Stocks reversed intraday losses to end up higher; Dow and S&P sets fresh record high
The market's downward direction was changed midsession to wrap with slight gains, with S&P 500 and the Dow eking out fresh records for four straight sessions. NASDAQ, on the other hand, ended dipping.
These concerns stemmed from the possible slowing down of the economic growth across the globe, including the risks and the negative outlook, right after China's new set of economic data was released, showcasing multiple disappointing results on all fronts.
Sales and production have slowed down more than consensus estimate in July, indicating that growth deceleration is happening for the second-largest country in the world as it stepped to the latter half of the year, and it is being expected to slow down even more after the coronavirus resurgence resulting to China's tightened travelling policy.
That being said, the lingering concerns over coronavirus variant are still affecting the market, only to be outshined by the outstanding results of corporate earnings which allowed investors to look beyond Delta variant issues and focus on how the US retail companies are faring against it.
As of last week, 91% of the companies under S&P 500 have given out their Q2 earnings report, with 87% of them managing to exceed the estimates in earnings per share. More will be releasing their print for second quarter earnings this week including retail giants like Home Depot, Walmart and Target. Currently, the estimated growth rate in earnings is at 89.3% for S&P 500.
Many analysts agree that the Q2 earnings report of the corporate world will likely positively affect the market and continue to push it upward as the recovery continues, keeping concerns over deceleration and COVID at bay.
Today's market moves are as follows:
Invest Consulting Group Limited