Stocks close higher with positive sentiment due to strong earnings reports
From Nasdaq: 2024-08-09 18:12:57
US stocks closed higher with the S&P 500 up +0.47%, Dow Jones up +0.13%, and Nasdaq up +0.54%. Positive sentiment helped as companies like Akamai (+10%) and Expedia (+10%) beat earnings. The FOMC is expected to cut rates by -25 bps in September, with a 54% chance of a -50 bps cut. Bond yields fell on dovish comments, boosting stock prices. Challenges included Intel (-3%) and Insulet (-9%) missing expectations.
The stock market remains optimistic with a +9% y/y expected rise in Q2 earnings for the S&P 500. Most companies are beating earnings but only 43% have beaten revenue expectations, the lowest in five years. Overseas markets varied with Euro Stoxx 50 up +0.14%, Shanghai Composite down -0.27%, and Nikkei Stock 225 up +0.56%.
Interest rates saw 10-year T-notes close up +9.5 ticks with yield at 3.947%. Dovish remarks from Boston Fed President Collins and short covering by bond dealers lifted prices. European government bond yields fell with the 10-year German bund at 2.225% and the UK gilt at 3.945%. The market anticipates a -25 bps rate cut by the ECB in September.
Key movers include Akamai (+10%), Expedia (+10%), and Trade Desk (+12%) leading gains. Intel (-3%) and Insulet (-9%) underperformed. Chip stocks like ON Semiconductor, AMD, and NXP Semiconductors fell over -1%. Other decliners were Sealed Air Corp (-6%), EchoStar (-16%), Elf Beauty (-14%), and Five9 Inc (-26%).
Earnings reports for August 12 were released by companies like Acrivon Therapeutics Inc, DHT Holdings Inc, Immersion Corp, Viant Technology Inc, and more. Market data is for informational purposes only and does not constitute investment recommendations. The author does not hold positions in mentioned securities. Always refer to the Barchart Disclosure Policy for more information.
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