S&P 500 and Nasdaq Set to Extend 5-month Rally In July

Barry Adams
31 Jul, 2023
New York City

Market averages traded higher in New York on the final day of July amid rising optimism about inflation and rate path. 

With overall inflation cooling for about nine months in a row, tracking lower energy prices, investors have stepped up to add more stocks in the hope that the resilient economy will avoid a recession. 

The stronger-than-expected second quarter GDP growth of 2.4% also emboldened investors and most companies have reported earnings ahead of market expectations. 

In addition, regional banks have been able to retain deposits despite rising interest rates and so-far avoided the talks of wider bailout in the industry. 

The  S&P 500 and the Nasdaq Composite index advanced more than 0.2% and both indexes are set to extend monthly gains. 

The S&P 500 index is up 3.0% and the index is set to close for the fifth month in a row and the Nasdaq Composite index has advanced 3.6% in July, and the index is expected to close higher for the fifth month in a row. 

The Dow Jones Industrial Average, the index tracking mega-cap stocks, has gained 3.1% in July after a 13-rally boosted its performance in the year sofar. 

In overseas news, China's official manufacturing activity survey showed declining activities for the fourth month in a row, the National Bureau of Statistics reported Monday. 

The PMI Index for manufacturing industry edged slightly higher to 49.3 in July from 49.0 in June on weak domestic demand recovery and falling exports orders. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.2% to 4,589.23 and the Nasdaq Composite rose 0.3% to 14,359.19. 

The yield on 2-year Treasury notes decreased to 4.88%, 10-year Treasury notes inched lower to 3.95% and 30-year Treasury bonds edged down to 4.02%. 

Crude oil increased $0.67 to $81.23 a barrel and natural gas prices increased 1 cent to $2.62 a thermal unit. 

 

U.S. Stock Movers 

Apple, Amazon, CVS Healthcare and Starbucks are among the 1,300 companies scheduled to report earnings this week. 

Arista Networks, Avis Budget Group, ON Semiconductor, Lowes Corp, CNA Group and ZoomInfo Technologies are expected to release earnings on Monday. 

Oil companies are also expected to trade higher following the recent rise in price of oil and gas. 

Exxon Mobil, Chevron, Valero and Occidental Petroleum and Marathon Oil are expected to extend the recent market rally as the price of Brent crude approaches $90 a barrel.