Wall Street records fifth consecutive quarterly earnings Business and Economy News


The Dow Jones, S&P 500 and Nasdaq Composite indexes ended the session with a fifth consecutive quarterly gain.

Wall Street posted its fifth consecutive quarterly gain on Wednesday, a sign that the recovery from the worst days of the COVID-19 pandemic in the United States continues.

The S&P 500 set its fifth consecutive record closing the high, while the Dow rose slightly and the Nasdaq fell as investors ended the month and first half of 2021 in a tug-of-war. optimism versus caution.

The Dow Jones Industrial Average jumped more than 210 points, or 0.61 percent, to end the quarter at 34,502.51.

The broader S&P 500 index, a value relative to retirement health and college savings accounts, rose 0.13 percent to end the session at 4,297.50, while the Nasdaq composite index falling 0.17 percent to 14,503.95.

The S&P 500 recorded its second-best performance in the first half since 1998, up 14.4 percent.

In June, the S&P 500 reached its fifth consecutive lead, while the Dow won the four-month streak of victories. The Nasdaq also closed the month high.

While the possibility of a return to normalcy looks promising, fears about inflation and COVID-19 variants, including the Delta variant, continue to threaten the US economic recovery.

Solid data on labor and housing

The private sector added 692,000 jobs in June, suggesting it is beginning to lessen severe labor shortages, payroll processor ADP reported on Wednesday.

The sectors that reopened and increased activity worked well.

Leisure and hospitality added 332,000 jobs, while the education and health sectors gained 123,000, manufacturing added 19,000 and construction gained a boost of 47,000 jobs.

But some economists say ADP figures are up compared to what the U.S. Bureau of Labor Statistics payroll report is due to release on Friday.

“Given that the ADP survey has overestimated the monthly earnings of the official private payroll measure by more than 400,000 in recent months, we are not reviewing our forecast for the official measure,” Michael Pearce of Capital Economics said in a note this Wednesday.

“We have drafted an increase of less than 500,000, in line with the recent pace of gains, and a figure that would provide another signal that the Fed is still a long way from achieving“ substantial progress ”toward its targets,” Pearce added. .

Pending home sales rose 8% in May, driven by a sharp 15.5% rise in the Northeast, according to U.S. data. The momentum came despite economists predicting a slowdown.

“The rebound in pending home sales suggests a firmer pace of existing home sales in early summer,” Jan Hatzius of Goldman Sachs wrote in a note Wednesday.

Source link