Dow jumps 586 points, snapping five-day losing streak
Fed Chairman Powell will testify on the economy Tuesday
Strategic Wealth Partners wealth adviser Luke Lloyd and Surevest CEO Rob Luna weigh in on the growing influence of retail investors and the state of Big Tech stocks.
U.S. equity markets soared Monday with the Dow Jones Industrial Average snapping its five-day losing streak and bouncing back from its worst week since October.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43750.86 | -207.33 | -0.47% |
| SP500 | S&P 500 | 5949.17 | -36.21 | -0.60% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19107.65077 | -123.07 | -0.64% |
The Dow rose 586 points, or 1.76%, while the S&P 500 advanced 1.4% and the Nasdaq Composite gained 0.79%. The rally came after St. Louis Fed President James Bullard roiled markets on Friday when he suggested a rate hike could occur in 2022 – ahead of the Fed’s 2023 target. On Monday, he followed up in separate remarks, saying an uptick in inflation remains a risk for the economy.
But those remarks were offset by New York Fed President John Williams later on Monday saying the U.S. economy was not ready for a policy shift from the Fed.
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Investors hope to get further clarity on Tuesday when Fed Chairman Jerome Powell testifies on lessons learned from the central bank’s response to the coronavirus pandemic.
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In stocks, energy names were the strongest performers in the S&P 500, while Chevron added to the Dow's gains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLE | ENERGY SELECT SECTOR SPDR ETF | 94.87 | +0.36 | +0.38% |
| CVX | CHEVRON CORP. | 161.80 | +3.08 | +1.94% |
Amazon Inc. kicked off is two-day "Prime Day" event. Retailers including Walmart Inc., Target Corp. and Kohl’s are holding their own sales to try and win business.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 211.48 | -2.62 | -1.22% |
| WMT | WALMART INC. | 84.47 | -1.06 | -1.25% |
| TGT | TARGET CORP. | 153.47 | -1.52 | -0.98% |
| KSS | KOHL'S CORP. | 18.62 | +0.53 | +2.93% |
American Airlines Group Inc. will cancel about 1% of its flights in July as labor shortages will prevent the company from being able to handle pent-up travel demand.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 14.26 | +0.25 | +1.78% |
GameStop Corp. named CEO Matt Furlong to its board of directors. Investors will also learn later this week if the video game retailer will enter the Russell 1,000 Index in its annual rebalancing. Shares have advanced 1,035% this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.36 | +0.88 | +3.31% |
In deals, Amsterdam-based CNH Industrial N.V. agreed to buy Raven Industries, a U.S.-based agriculture technology company for $58 a share, a 33.6% premium to the four-week weighted stock price. The deal gives Raven an enterprise value of $2.1 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CNH | CNH INDUSTRIAL NV | 10.65 | +0.60 | +5.97% |
| RAVN | NO DATA AVAILABLE | - | - | - |
In commodities, West Texas Intermediate crude oil rose $2.02 to $73.66 a barrel and gold climbed $13.90 to $1,781.80 an ounce.
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Overseas markets traded mixed.
European bourses were higher across the board with Germany’s DAX 30 advancing 1%, France’s CAC 40 gaining 0.51% and Britain’s FTSE 100 edging up 0.64%.
In Asia, China’s Shanghai Composite climbed 0.12% while Hong Kong’s Hang Seng index fell 1.08% and Japan’s Nikkei 225 lost 3.29%.