The Business Times

US: Stocks add to records ahead of Fed, Big Tech results

Published Tue, Jul 27, 2021 · 06:04 AM

[NEW YORK] Wall Street stocks edged higher on Monday, adding to records following a choppy session ahead of major corporate earnings and a Federal Reserve decision later in the week.

All three major indices mustered narrow gains, propelling the market even higher after Friday's surge.

Investors appear to have grown bullish again, shrugging off worries about the Delta variant of Covid-19 to bet that strong corporate earnings bode well for the future.

US companies have "a good shot at probably 18 months of continued growth" in light of the reopening economy, said Kim Caugher Forrest, chief investment officer at Bokeh Capital Partners.

"This is a pretty good basis for growth and a reason to own stocks, as opposed to buying real estate or go into bonds."

The Dow Jones Industrial Average gained 0.2 per cent to close at 35,144.31.

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The broad-based S&P 500 climbed 0.2 per cent to 4,422.30, while the tech-rich Nasdaq Composite Index advanced less than 0.1 per cent to 14,840.71.

Sales of new homes in the United States dropped for a third straight month in June, falling to an annualised rate of 676,000, which was much below expectations.

This week's schedule includes reports on consumer confidence and durable goods orders.

The Federal Reserve is expected to maintain its easy-money policies on Wednesday, but the announcement and press conference will be scrutinised for hints of when the central bank could begin tapering its massive monthly debt purchases.

The earnings calendar includes tech giants such as Amazon and Facebook, industrial players like Boeing and consumer-oriented names such as McDonald's.

AFP

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