4:10pm: US stocks push S&P 500 and Nasdaq into record intraday territory
Investors looked past the growing concern over the Delta (coronavirus) variant on Monday, driving the S&P 500 and Nasdaq to record intraday levels.
The S&P 500 ended the day up 10.51 points or 0.24% to 4,422.30, while the Nasdaq rose 3.72 points to 14,840.71. The Dow also ended the first day of trading for the week in the green, adding 82.76 to sit at 35,144.31.
The momentum has been attributed to investors staving off concerns that the Delta variant will impact economic recovery and instead looking to 2Q and 1H earnings.
12:10pm: US stocks rise slightly at midday as S&P 500 hovers around record levels
US stocks were slightly higher into the noon hour, after struggling a bit earlier in the session, as investors prepare for a busy week of earnings reports from technology heavyweights.
The Dow Jones Industrial Average gained 8.4 points, or 0.02%, to 36,067, while the S&P 500 rose 5.5 points, or 0.13%, to 4,417. The tech-heavy Nasdaq, meanwhile, climbed 3.56 points, or 0.02%, to 14,841.
“Stocks are struggling at the beginning of a busy week, while the dollar is also jumpy as traders weigh up the likely outcome of this week’s Fed meeting,” noted Chris Beauchamp, chief market analyst at online trading group IG.
“Unsurprisingly, and perhaps fairly, the looming FOMC meeting this week gets the blame for why the bounce in stocks of the past week has slowed. But it is a jam-packed week for earnings too, and by the end of this week, and of July, we will be much better informed (hopefully) about the outlook of the Fed but also about whether the strong start to earnings season was an aberration or whether it will be confirmed by the avalanche of earnings in coming sessions.”
The biggest gainer on the day so far is Brilliance China Automotive Holdings Limited, up by 28% to $10.83 a share.
9.55am: Proactive North America headlines:
Canada Silver Cobalt Works Inc discovers more high-grade silver at its Castle East project in Ontario
Vicinity Motors targets massive US market after conquering Canada with its mid-size buses
BioLargo Inc praises US Government’s PFAS action plan; enters deal to treat contaminated water in Southern California
Marble Financial executes definitive $10M credit facility agreement with Cypress Hills Partners to fund Fast-Track loan product
Dalrada subsidiary Dalrada Precision enters eco-friendly cleaning and degreaser market with Ignite Industrial Technologies
AgraFlora Organics International plans to change its name to Agra Ventures Limited
Nextech AR plans to launch its Augmented Reality NFT hologram creator platform
Empress Royalty Corp amends agreement with mining sector advisor Endeavour Financial to accelerate growth
QC Copper and Gold says latest hole from Saddle Zone at Opemiska underlines project's potential
9.39am: Wall Street starts lower
Wall Street’s main indices have started the week on the back foot ahead of a heavy week for US earnings.
Shortly after the opening bell, the Dow Jones Industrial Average was down 0.09% at 35,029 while the S&P 500 dropped 0.07% to 4,408 and the Nasdaq fell 0.27% to 14,796.
While equities were negative, Bitcoin was enjoying a strong bounce, up 12% in the last 24 hours at US$38,317 amid reports that Amazon may be considering accepting payments in the cryptocurrency.
The Nasdaq’s biggest players will continue to be in focus for the remainder of the day as investors await earnings from Tesla due after the closing bell.
7:40am: Wall Street to open lower
At the start of what is set to be a hectic week for company announcements, US indices are expected to open in the red.
Spread betting quotes indicate the Dow Jones will surrender 127 points to open at 34,924 and the S&P 500 will yield 13 points to clock in at 4,399. The teach-heavy Nasdaq 100, the index most likely to be affected by this week’s multitude of results from tech giants, is expected to retreat 25 points to 15,086.
“As we look ahead to this week’s key events, uppermost in investors’ minds will be the Federal Reserve rate meeting, which starts tomorrow, and where speculation about a discussion on the tapering of asset purchases, and a possible timeline is likely to be top of mind,” said CMC’s Michael Hewson.
“It is also set to be another busy week of earnings reports as the big tech giants report their latest quarterly numbers.
“These are especially important given that these tech companies have predominantly driven the moves higher in US markets to recent record highs, and investors won’t want to see any signs of a paring back of guidance expectations over the rest of the year.
“Starting with Tesla later tonight, we can also look forward to the numbers from Apple, Amazon. Alphabet, Facebook and Microsoft, along with a host of other high-profile names throughout the week,” he added.
Four things to watch for on Monday:
- On the earnings front, aside from the headline-grabbing Tesla traders can also expect numbers from the likes of Lockheed Martin (NYSE:LMT) Corp, software firm Cadence Design Systems Inc and office space investor Alexandria Real Estate (NYSE:ARE) Equities Inc
- Crypto markets are likely to be in focus amid a surge in the price of Bitcoin, which is currently being eyed to see if it can surpass the US$40,000 threshold for the first time since mid-June
- Language learning app Duolingo could also draw attention after it increased its IPO range to between US$95-US$100 from a previous range of US$85-US$95
- On the macro front, the diary is a little thin aside from US new home sales numbers and the latest Dallas Fed manufacturing index