Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow Closes Above 35,000 for First Time as Strong Earnings Stoke Bullish Bets

Stock MarketsJul 23, 2021 21:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The Dow closed above 35,000 for the first time ever, led by a rally to record highs in shares of Google and Facebook following strong quarterly results from Twitter and Snap.    

The S&P 500 rose 1.01% to a closing record of 4,411.81. The Dow Jones Industrial Average gained 0.68%, or 238 points to close at 35,061, the Nasdaq gained 1.04% to 14,836.

Facebook (NASDAQ:FB) rallied 5% and Google-parent Alphabet (NASDAQ:GOOGL) gained nearly 4% to notch record highs ahead of their quarterly results due next week. The bid up in social media companies comes as better-than-expected quarterly results from Twitter and Snap pointed to a strong backdrop for advertising spending.

Twitter (NYSE:TWTR) rallied 3% after reporting revenue growth of 74% year-over-year, its fastest growth since 2017.

“[W]e are bullish on advertising momentum heading into 2H, led by strong demand across large advertisers, evidenced by 3Q guidance being 8% above Street expectations,” Oppenheimer said as it raised its price target on Twitter to $85 from $70.

Snap (NYSE:SNAP) jumped 24% as a ramp up in users and advertising revenue led to second-quarter results that beat analyses expectations on both the top and bottom lines.

Apple Inc (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) were also in the ascendency ahead of their quarterly results due next week.  

Intel (NASDAQ:INTC), however, proved a drag on the semiconductor sector after the chipmaker reported results that topped Wall Street expectations, but guidance on quarterly revenue fell short of expectations, sending its shares more than 5% lower.

“[The] bears will question the increased magnitude of the implied decline in GMs [gross margins], while also pointing to concerns around PCs, with client computing group, needing to decline through the remainder of the year to offset the forecast pickup in data center group,” Wedbush said as it lowered its target price on Intel to $50 from $53.

Financials, meanwhile, were underperforming relative to broader market as banking stocks continued to be shunned despite a rise in yields.

American Express (NYSE:AXP), up 1%, outperformed relative to broader financials, following better-than-expected quarterly revenue and earnings. 

Concerns about the outlook on the economic recovery had sent yields spiraling earlier this week, with the 10-year falling below 1.14%.

Data released Friday, showing a rise in manufacturing activity, and weaker-than-expected services activity continued to muddy the outlook.

Energy was the sole sector in the red, paced by a decline in ConocoPhillips (NYSE:COP), though downside was limited by steading oil prices.

Looking ahead, corporate earnings as well as monetary policy will take center stage next week. The Federal Reserve kicks off its two-day meeting on Tuesday. 

"The Fed will not change course quickly at next week's meeting despite the high inflation rates," Commerzbank (DE:CBKG) said. However, it is likely to push ahead with preparations and possibly present some ensuing considerations."

Dow Closes Above 35,000 for First Time as Strong Earnings Stoke Bullish Bets
 

Related Articles

China Evergrande shares plummet on default risks
China Evergrande shares plummet on default risks By Reuters - Sep 20, 2021

HONG KONG (Reuters) - Shares of Evergrande plunged over 15% on Monday, extending losses as investors take a dim view of its business prospects with a fast approaching deadline for...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email