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23.07.2021 11:44 AM
US stock market growing steadily amid strong earnings reports

At the close of Thursday's trading session, US stock indexes saw moderate growth after the two-day increase. Amid the positive earnings reports of the tech companies, the stock market managed to rebound. So, it closed in the black as investors were disappointed with weak economic data and switched their attention to the stock market.

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The Dow Jones rose by 0.1%, the S&P 500 index gained 0.2%, and the Nasdaq Composite grew by 0.4%.

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Shares of US semiconductor manufacturer Texas Instruments fell by 4.8% after the company's management announced a possible slowdown in revenue in the 3rd quarter.

Shares of the Las Vegas Sands casino sank by 4% due to weak earnings report. The drop exceeded market expectations.

Domino's Pizza shares soared by 14% after the company announced the adoption of a new share repurchase program.

Shares of one of the world leaders in the market of food products and household chemicals, Unilever, lost 6% following a decrease in pre-tax profit in the 1st half of the year.

At the moment, the US stock has resumed its rally, recouping Monday's losses. At the beginning of the week, news about the rapid spread of a new strain of coronavirus made market participants worry about the possible introduction of quarantine restrictions. However, later, within a few days, the leading indexes neared their historical highs.

Now, investors are focused on the quarterly reporting season. Many firms have already published quarterly results that significantly exceeded the expectations.

Experts believe that today, the sentiment in the US stock market will be mixed. On the one hand, investors are keen to purchase stocks they are currently growing. On the other hand, they also consider buying cyclical and undervalued stocks.

According to the US Department of Labor, last week, the number of Americans filing new claims for unemployment benefits rose to 419,000, which was 51,000 higher than the previous week. At the same time, labor market analysts predicted that during the COVID-19 pandemic, the number of applications may reach a new low.

As for the European stock market, investors are mulling over the ECB's decision not to change the key rate. The regulator also added that it may maintain the key rare near zero until inflation stabilizes at 2%.

Money injections of the central bank, especially amid the rapid spread of a new delta strain of coronavirus, has boosted the growth of the government bonds of Spain, Portugal, and Italy. The yield of 10-year Spanish government bonds sank on Thursday to 0.230% from 0.280% on Wednesday.

The STOXX Europe 600 Index gained 0.6%.

Most of the leading stock indexes of the Asia-Pacific region grew following the rebound of the US stock market. Thus, the Shanghai SE Composite increased by 0.3%, and Hong Kong's Hang Seng index edged higher by 1.8%.

Irina Maksimova,
Analytical expert of InstaForex
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