In the latest intraday trading session, benchmark equity indexes in the US exhibited significant upward movement as market participants assessed new corporate earnings reports coupled with economic indicators. The Dow Jones Industrial Average saw an increase of 2%, reaching 40,735.1 just past midday on Friday.
Concurrently, the S&P 500 and the Nasdaq Composite both experienced robust gains of 1.6%, achieving levels of 5,486.1 and 17,444.8, respectively. Notably, all sectors reported positive returns, with industrials and materials leading the charge, both up more than 2%. In notable company news, 3M, identified by its ticker symbol ($MMM), has raised the lower end of its full-year earnings projections following a second-quarter performance that surpassed market expectations.
This positive sentiment was reflected in a remarkable 18% surge in the company’s stock, positioning it as the highest gainer on the Dow and the second-best performer on the S&P 500. Meanwhile, Mohawk Industries ($MHK) distinguished itself as the top performer on the S&P 500, with its shares climbing 19%.
This leap followed the company's optimistic outlook for third-quarter earnings released late Thursday, bolstered by a strong second-quarter performance. Charter Communications ($CHTR) experienced a phenomenal rise of 15%, making it the leading performer on the Nasdaq and among the top stocks on the S&P 500 after the company announced second-quarter results that exceeded expectations, driven by a substantial surge in residential mobile service revenue. On the other hand, DexCom ($DXCM) faced the most significant decline among the S&P 500 and Nasdaq, plummeting 42%.
This drop came after the diabetes management firm revised its full-year revenue forecast downward, as second-quarter earnings fell short of market projections. In terms of U.S. treasury yields, the two-year yield decreased by 5.2 basis points, settling at 4.39% intraday, while the ten-year rate also dropped, down five basis points to 4.21%.
Conversely, economic reports indicated a slowing growth pace in U.S. consumer spending for June, paired with a stable annual reading on the Federal Reserve's preferred inflation metric, according to government statistics. TD Economics commented in a client note that despite a slight uptick in the monthly core inflation figure, the prevailing cooling trend is likely to be viewed positively by the Fed. Consumer sentiment in the U.S.
declined in July, with year-ahead inflation expectations diminishing for the second consecutive month, as highlighted by data from the University of Michigan's Surveys of Consumers. Joanne Hsu, Director of the Surveys of Consumers, noted, “Labor market expectations remain relatively stable, providing continued support to consumer spending.
However, continued election uncertainty is likely to contribute to volatility in economic attitudes in the months ahead.” Moreover, the commodities market saw West Texas Intermediate crude oil experiencing a minor drop of 1%, now priced at $77.51 per barrel. In precious metals, gold recorded a 1.2% increase to $2,382.10 per troy ounce, whereas silver saw a slight uptick of 0.1%, reaching $28.01 per ounce. Overall, Wall Street is reacting positively to the influx of corporate earnings and economic indicators, reflecting investor optimism as stock prices climb across various sectors..