Stocks traded lower as market wraps; Dow and S&P let go of intraday gains

CENTRAL, Hong Kong - Aug. 12, 2021 - PRLog -- Despite the opening session ]of this month pushing downward, the momentum given by the 6-month consecutive gains, extended by July as S&P 500 ended 2.3% higher, Dow and NASDAQ ending with more than 1% gains each, was not erased.

The gains were the affected by the strong earnings data provided by the corporate quarterly report which was exceeding consensus estimates for revenue and earnings per share. This is a good news since the economy is on its reopening phase in full blast on spring. Data shows that for S&P 500 companies, 59% have already released their Q2 earnings report and 88% of them have exceeded estimates set by Wall Street. More companies will be providing their quarterly earnings report this week which includes Lyft, Uber and Etsy.

As for the companies that did not meet their Q2 guidance, most of them are part of industries that benefitted from the current stay at home set up, which includes the tech big wigs like Apple, Amazon and Facebook. Even so, the majority that exceeded the estimates helped traders to overcome concerns over the Delta variant that suddenly resurged, although now analysts are implying that the concerns over this virus are beginning to wane.

There's also the Federal Reserve's decision about the current asset purchase program and low interest rates being kept for the meantime, as they believed that the economy has not reached the intended target yet. Central bank has agreed to keep the current policies as is to allow further recovery, but some strategists believe that the changes are coming sooner than later.

Monday's market is summarized as follows:

• The Dow Jones Industrial Average down by 0.28% or 97.31 points and at 34,838.16.
• S&P 500 Index decreased by 0.18% or 8.10 points and currently at 4,387.16.
• NASDAQ Composite Index advanced to 14,681.07 after gaining 8.39 points or 0.06%.
• Yield on 10 Year Treasury now at 1.1740%.
• Gold down by $0.70 or 0.04% and now at $1,816.50 an ounce.
• Crude down by $2.54 or 3.43% and closed at $71.41 per barrel.

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