Wall Street Attempts to Rebound from Monday's Big Sell-off

Barry Adams
06 Aug, 2024
New York City

Market indexes recouped losses of the previous session as market sentiment stabilized on Wall Street. 

The S&P 500 index jumped 1% and the Nasdaq Composite advanced 0.7% as investors searched for bargains in mega-cap stocks. 

Investors returned to buy more stocks in the hopes that the previous three-session sell-off was overdone and underlying economic fundamentals are solid, despite the recent moderation in labor market conditions. 

The yield on 10-year Treasury notes rebounded above 3.8% after dropping to a one-year low of 3.67% in the previous session. 

The U.S. international goods and services trade gap shrank in June, the Commerce Department reported Tuesday. 

The trade gap shrank to $73.1 billion from the revised 20-month peak of a $75 billion deficit in the previous month. 

Exports increased 1.5% from the previous month to $265.9 billion, and imports rose at a slower pace of 0.6% to $339 billion. 

Exports advanced to the second-highest on record, driven by strong demand for aircraft, automotive vehicles, and petroleum energy products. 

Trade deficit with China fell by $1.6 billion to $22.3 billion as more Chinese companies shipped goods from Vietnam, Mexico, and Malaysia to avoid punitive tariffs. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index gained 1.1% to 5,241.09, the Nasdaq Composite advanced 0.7% to 16,311.21, and the Russell 2000 index rose 1.2% to 2,063.71. 

The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes increased to 3.83%, and 30-year Treasury bonds advanced to 4.12%.

WTI crude oil increased $0.51 to $73.52 a barrel, and natural gas prices edged up 2 cents to $1.96 a thermal unit.

Gold decreased by $7.92 to $2,396.86 an ounce, and silver declined by $0.04 to $27.20. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.

 

U.S. Stock Movers 

Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results. 

Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook. 

The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion. 

Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results. 

Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago. 

Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago. 

The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services. 

Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results. 

Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents. 

The company also said its chief financial officer is planning to step down.