U.S. Indexes Extend Gains On Oil and Tech Stocks Rally

Barry Adams
07 Jul, 2022
New York City

U.S. benchmark indexes advanced for the fourth day in a row and energy stocks advanced reversing losses in the week. 

The S&P 500 index increased 1.5% to 3,902.62 and the Nasdaq Composite index added 2.3% to 11,621.35. 

Futures of crude oil jumped 3.7% to $102.23 and natural gas increased 12.5% to $6.20 a unit. 

Energy prices rebounded after a 4-day decline. 

Chipmakers advanced after South Korea based Samsung reported its strongest June quarter in four years. 

Intel increased 3.1% to $38.14, Advanced Micro Devices added 5.2% to $79.34, and Qualcomm, Inc jumped 5.8% to $134.46. 

The yield on 10-year Treasury notes increased to 3.002% after the latest Fed minutes of meeting indicated policymakers' commitment in fighting inflation. 

Policymakers proposed a restrictive stance and a faster interest rate hike at the next Fed's meeting on July 26. 

The tough talk from policymakers may not smooth markets for too long as the central bank ignored inflation above its target rate of 2% for more than 18 months. 

Initial claims of jobless benefits rose 4,000 to 235,000 for the week ended July 2, the Department of Labor reported today. 

The initial claims increased to the level last seen in the second week in January and the 4-week average increased to 232,500, its highest level since December 2021. 

Goods and services trade deficit edged lower to $85.5 billion from $86.7 billion in April, the Commerce Department reported today. 

Though the deficit declined on a monthly basis but surged 38.4% from a year ago after imports rebounded faster than exports. 

On a monthly basis, the seasonally adjusted trade deficit with China declined in May by $2.8 billion to $32.2 billion.

After the close, Levi Strauss, WD 40 Company, and Kura Sushi USA reported earnings.  

Kura Sushi USA gained 7.3% to $54.10 and extended gains after the regular hours of trading by another 19.5% to $64.62 after the release of earnings. 

Kura said revenues in the third quarter ending in May more than doubled to $38 million from $18.5 million a year ago on a comparable sales increase of 65%. 

Net income was $0.5 million or $0.05 per diluted share compared to $0.8 million or $0.09 a share a year ago. 

The company guided full-year 2022 total sales between $137 million and $142 million and the addition of 8 new restaurants. 

WD-40 Company plunged 9.2% to $186.01 after the chemical maker reported earnings after the regular hours of trading. 

WD-40 said sales in the third quarter ending in May declined 9% to $123.7 million and sales were affected after translating foreign sales to the strong U.S. dollar. 

Net income in the quarter declined 31% to $14.5 million or $1.07 a diluted share from $21.0 million or $1.52 a share. 

The company lowered its annual sales growth outlook to between $519 million and $532 million, an increase between 6% and 9%. 

Wd-40 estimated annual net income between $69.0 million and $71.1 million and diluted earnings per share between $5.02 and $5.10 based on an estimated 13.7 million weighted average shares outstanding.