Cyclical stocks rise after retail sales data is released, Wall Street opens higher, Reuters

© Reuters. File photo: The New York Stock Exchange was taken on April 16, 2021 in Manhattan, New York City, New York, USA. REUTERS/Carlo Allegri/File Photo

Authors: Devik Jain and Shreyashi Sanyal

(Reuters)-Major Wall Street stock indexes opened higher on Friday. As data showed that US retail sales unexpectedly increased in June, investors have bought economically sensitive energy, banking and travel stocks.

The US Department of Commerce stated that retail sales rebounded by 0.6% last month because spending is shifting to the service sector, which strengthened expectations for an acceleration in economic growth in the second quarter.

The market has largely cheered the labor market’s steady recovery this year, but concerns about rising inflation due to a faster-than-expected rebound hit market sentiment. Investors used to waver between “value” and “growth” names for technology stocks Several sessions.

Dennis Dick, a proprietary trader at Bright Trading LLC, said: “We have a lot of optimism about earnings, but then we worry about inflation, which gives us a wash market.”

“The technology gains starting next week may make the market forget these worries (inflation).”

Interest rate sensitive lenders Citigroup Inc (NYSE code:), JPMorgan Chase Company (NYSE code:), Goldman Sachs Group Company (New York Stock Exchange:), Morgan Stanley (NYSE:) and Bank of America (NYSE:) rose 0.7% to 0.9%, following the rise of the benchmark index. [US/]

Oil stocks Chevron Company (NYSE:), Sidewinder (NASDAQ:) Energy Company, Exxon Mobil Corp (NYSE:), Halliburton (NYSE:) Co, Schlumberger NV (NYSE:) and Occidental Petroleum Corp (NYSE:) rose 0.5% to 1.1%.

However, the S&P 500 Energy Sector Index has fallen 5% so far this week, with the largest decline among the 11 major sectors, followed by non-essential consumer goods and materials.

Chart: Energy Weekly Decline:

On the other hand, defensive utilities, real estate, and consumer staples were the sectors with the biggest gains, as the new Delta variable globally led to a surge in coronavirus cases, renewing concerns about the delay in economic recovery.

Los Angeles County will re-implement the regulations on wearing masks this weekend. This is the latest sign that public health officials in many areas of the United States are working hard to deal with the rise in cases to worrying levels.

At 8:57 am Eastern Time, it was up 75 points or 0.22%, up 12.5 points or 0.29%, and up 54.25 points or 0.37%.

Modern (NASDAQ:) Inc rose 7.5% after the Standard & Poor’s Dow Jones Index said that the drugmaker will join at the start of trading on July 21, replacing Alexion Pharmaceuticals (NASDAQ:).

Alexion shares fell slightly by 0.3%.

Didi Global shares fell 5.2% because China sent state officials from at least seven departments to the ride-hailing giant to conduct cybersecurity reviews.

Intel Corporation (NASDAQ:) rose 0.2% after media reports that the chip maker was negotiating to acquire semiconductor manufacturer GlobalFoundries Inc for approximately US$30 billion.

Chart: Weekly performance on July 16th:

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