S&P in the Green for the First Time This Week – US Market Wrap
Stocks rose for the first time this week, as traders analysed a slew of corporate earnings for clues about the state of the world’s largest economy. Treasuries recovered after days of losses.
A gauge of the “Magnificent Seven” reached a three-month high, with Tesla rising 22% in its biggest rally since May 2013. Elon Musk’s electric vehicle company reported strong earnings and predicts up to 30% growth in car sales next year. United Parcel Service, an economic barometer, rose 5.3% after resuming sales and profit growth. International Business Machines and Honeywell International’s results did not inspire.
The market barely moved following Thursday’s economic data, which showed new home sales exceeding expectations, initial jobless claims falling, and business activity expanding at a steady pace.
The S&P 500 gained 0.2%, reclaiming the 5,800 level. The Nasdaq 100 gained 0.8%. The Dow Jones Industrial Average fell 0.3%, marking the fourth consecutive day of losses and the longest losing streak since June.
The US 10-year yield fell four basis points to 4.20%. A $24 billion five-year TIPS auction yielded the lowest yield this year, as inflation-protected Treasuries outperformed since the Federal Reserve cut interest rates last month.
