US: Stocks bounce after solid economic data
WALL Street stocks bounced on Tuesday (Jun 27), shaking off weakness in the prior session after solid US data reassured investors on the economic outlook.
US consumer confidence surged to an 18-month high in June, while new home sales jumped unexpectedly in May and orders of big-ticket manufactured items topped estimates.
“There was a lot of US economic data released today and the key takeaway was that the economy is not breaking just yet,” said Oanda’s Edward Moya.
The Dow Jones Industrial Average finished up 0.6 per cent at 33,926.74.
The broad-based S&P 500 gained 1.2 per cent to 4,378.41, while the tech-rich Nasdaq Composite Index jumped 1.7 per cent to 13,555.67.
“Today (was) a very strong indication that the bulls remain in control,” said Adam Sarhan of 50 Park Investments. “The market had every chance in the world to fall and instead it’s going up.”
Stocks have been on the upswing for most of the second quarter on greater confidence that the US economy can avert a recession, and hopes that the Federal Reserve has ended its cycle of lifting interest rates.
Among individual companies, shares of Dow component Walgreens Boots Alliance tumbled to end 9.3 per cent lower as the drugstore chain cut its full-year forecast, citing “a more cautious and value-driven consumer”.
But Delta Air Lines shares jumped 6.8 per cent as it lifted its profit forecast on still-strong travel demand. AFP
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