Stocks closed higher on positive corporate news and lower bond yields

From Nasdaq: 2024-07-16 18:23:06

Stock indexes closed higher on Tuesday, with the S&P 500 and Dow Jones Industrials setting new all-time highs. Positive corporate news pushed the market up, with Bank of America rising 5% after impressive Q2 results. Retail sales in June exceeded expectations, boosting the economy. But, Charles Schwab fell after missing new account estimates. Interest rates and bond yields fell amid hints of a Fed rate cut later this year.

European government bond yields dropped, with the German ZEW survey indicating a decline in economic growth expectations. The ECB is expected to cut rates in September. US stock movers included building product makers and homebuilders, rallying after better-than-expected NAHB data. Bank of America, Match Group, and UnitedHealth Group led gains. Chip stocks retreated, limiting Nasdaq 100 gains. Several companies reported earnings on 7/17/2024.

US retail sales in June were better than expected, with no change month-to-month and a rise in sales excluding autos. The import price index surprised with an increase, and the NAHB housing market index decreased to a 7-month low. The Fed considers lowering borrowing costs if inflation continues to moderate. Markets are anticipating a rate cut by the Fed in July or September. Overseas stock markets were mixed, with varying performances in Europe, China, and Japan.



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