Claire HunteFrom the top:
- Dow extends gains on strong earnings reports
- Nasdaq flounders amidst tech sell off
- Oil price back above $50
- Anthony Scaramucci latest casualty in White House upheaval
More corporate earnings rolling in on Monday gave added momentum to the Dow's record gains at the end of last week. The Dow was in record territory getting close to 22,000 during intraday trading before closing broadly up +0. 28% with gains across most sectors. The S&P 500 was flat notching up +0.06% and Nasdaq down -0.42% as technology stocks weighed.
Among the winners on the blue chip index were Home Depot (+1.03%), Chevron (+0.99%) and Verizon (+0.96%) were among the gainers. The technology sell off took the shine off Twitter (-3.76%,) and Tesla was hammered -3.24% after CEO Elon Musk warned the company may face "manufacturing hell" with the mass marketing of it new Model 3 sedan. Amazon dropped -2.87%. Keeping the Dow aloft was Boeing's rally in share price at +0.49% to its record share price of $242 came after JP Morgan raised its price target to $280 a share.
- Dow 21,891 +0.28%
- S&P 500 2,470 -0.07%
- Nasdaq 6,378 -0.42%
- Russell 2000 1,427 -0.12%
- NYSE Composite 11,985 +0.26%
- Gold 1,276 +0.08%
- Oil WTI $52 +2.18%
- 10-Year Treasury Yield 2.29% +0.03%
Oil barrels on stack of dollar bills Source: Shutterstock.comOil price rise
Brent crude is above the $50 a barrel mark for the first time in two months following a sustained rally last week. OPEC's extended cuts to Nigeria plus a report from the US Energy Information Administration showing data for the month of May was below the weekly figures point to a more balanced crude oil market according to market commentators. US shale oil drilling is also slowing.
In other economic news, US home sales rose greater than expected. Investors await manufcturing data due on Tuesday and the employment report at the end of the week to gauge whether the Federal Reserve will increase interest rates.
Perhaps it was the timing but late breaking news from the White House shortly before market close that its communications director, Anthony Scaramucci, was removed at the behest of the newly installed chief of staff John Kelly seemed to have little effect. The former communications director lasted 10 days and was the fourth official to leave within that time period.
Breaking news: Closely watched on Tuesday will be Apple's (-0.52%) second quarter earnings announcement and market reaction. MarketWatch says analysts on average expect Apple to bring in net income of $8.2bn or $1.57 a share a 5% gain from the same quarter a year ago. Analysts adjusted revenue to on average $44.89bn after Apple's forecast for the quarter a 6% gain from third quarter in 2016.