From the top:
- S&P 500 strides to record high on upbeat earnings
- Where's the beef? McDonald's rallies on strong earnings results
- Consumers optimistic in all but income prospects
Optimism was the order of the day, as a raft of strong earnings took centre stage helping the S&P 500 to post a record high. McDonalds (+4.72%) and Caterpillar (+5.86%) share price performance on the back of strong earnings helped the large cap index advance +0.31% to 2,477.
The Dow climbed moderately higher up 0.47% as 3M went in to freefall down -5.05% weighing on the blue chip index. Nasdaq made a modest gain of 0.02% depressed by Alphabet's (-2.93%) and other tech companies lacklustre turn in today's trading. Among leading industry groups were nonferrous metals (14.22%), gold mining (5.05%) and apparel retailers (2.69%). Energy stocks moved in tandem with rising oil prices.
Macy's jumped +3.53%, while copper company Freeport McMoRan surged +14.74% as copper prices rose and it said negotiations with the Indonesian government to operate the world's second largest copper mine was moving ahead. According to the FT, its CEO Richard Adkerson said, “We are now approaching a stage where both parties have expressed an objective of a near-term resolution.”
- Dow 21,613 +0.47%
- S&P 500 2,477 +0.31%
- Nasdaq 6,412 +0.02%
- Russell 2000 1,450 +0.86%
- NYSE Composite 11,965 +0.51%
- Gold 1,256.2 -0.36%
- Oil WTI $50.71 +4.34%
- 10-Year Treasury Yield 2.33% +0.07%
Consumer confidence leaps
Optimism was pervasive as the Conference Board's Consumer Confidence Index leapt from 117.3 in June to 121.1 in July close to the record high seen in March this year of 124.
Lynn Franco, Director of Economic Indicators at The Conference Board said, “Consumers’ assessment of current conditions remained at a 16-year high (July 2001, 151.3) and their expectations for the short-term outlook improved somewhat after cooling last month. Overall, consumers foresee the current economic expansion continuing well into the second half of this year.”
However, when it came to income prospects confidence dropped moderately in July from 20.9% to 20% and those expecting a decline in income increased from 9.3% to 10%. A slowdown in spending and inflation means there is less likelihood that the Federal Reserve Board which began their policy meeting on Tuesday will raise interest rates.
In advance of the policy decision on Wednesday, bond prices fell with the yield on the 10-year Treasury increased to 2.33% from 2.25%. Yields are the inverse of bond prices. Crude oil continued its rally floating +4.4% to $50 a barrel after Saudia Arabia said it would cut oil exports in August.
McDonald's earnings results proves its all beef
McDonald's reported second quarter results beat earnings expectations and sending shares in to overdrive. Mickey D's has been rolling upwards since its last earnings report in April and is up 12.26% over the last three months.
The latest upbeat earnings has commentators pinning it to new CEO Steve Easterbrook's programme of change which is now yielding results on both the domestic and international front.
Same-store sales in the US rose 3.9%. Comparable sales according to the company increased 6.3% for the quarter, led by growth in the U.K., strong performance in Canada and Germany and positive results across all other markets. Revenue increased $6.05 bn.
Breaking news: President Donald Trump tells the Wall Street Journal he is considering both Janet Yellen and his economic adviser Gary Cohn as Federal Reserve chairman. In the interview with the Journal he also reiterated his disappointment in Attorney General Jeff Sessions, repeating the criticisms he made in the New York Times last week.