In a day marked by volatility, US equity indexes demonstrated resilience on Thursday, as investors navigated through the latest durable goods orders and economic growth data, all while processing a wave of quarterly corporate earnings reports. The Nasdaq Composite climbed 0.6%, reaching 17,450.2 points.
Meanwhile, the S&P 500 index saw a commendable uptick of 0.8%, closing at 5,471.4, while the Dow Jones Industrial Average surged 1.2%, finishing at 40,335.6. During the earlier part of the session, both the S&P 500 and Nasdaq indices witnessed declines, highlighting the turbulent trading environment.
However, all sectors exhibited gains throughout the day, with energy, industrials, and financials emerging as the standout performers. Focusing on economic indicators, new orders for durable goods in the US experienced a noteworthy contraction of 6.6% in June, following a modest gain of 0.1% the month before.
This figure fetched a stark contrast against the expectations of a 0.3% increase, as surveyed by Bloomberg. Notably, when excluding the substantial 20.5% dip in transportation orders, the new orders would have indicated a 0.5% increase for June, juxtaposed with a slight 0.1% decline in May. Market anticipations had set a target for only a 0.2% gain in this sector.
In terms of growth, the gross domestic product (GDP) of the country exhibited a robust increase of 2.8% for the second quarter (Q2), outperforming both the first quarter’s (Q1) growth of 1.4% and expectations of a 2% gain as indicated in the Bloomberg survey. Moreover, initial jobless claims in the US showed improvement, falling to 235,000 for the week ending July 20, compared to an upward revision to 245,000 in the prior week.
This performance was better than the anticipated 238,000 jobless claims highlighted in the Bloomberg survey. In commodity markets, gold prices took a significant hit, plunging 2.4% to settle at $2,357.22 per ounce, while silver followed suit, decreasing by 4.18% to $28.1. Treasury yields largely saw a decline, with the 10-year yield decreasing by 3.9 basis points to stand at 4.25%.
Turning to corporate developments, Molina Healthcare ($MOH) made headlines as its shares surged 15% during intraday trading, making it the leading performer on the S&P 500 index. This spike stemmed from the company's announcement of stronger-than-expected growth in adjusted earnings and sales for Q2, along with a reaffirmation of its full-year income outlook for 2024.
Conversely, Edwards Lifesciences ($EW) registered as the worst performer on the index, witnessing a dramatic 29% drop in shares after disclosing a disappointing growth rate in their Q2 sales, which fell short of market forecasts. On the energy front, West Texas Intermediate crude oil saw a marginal rise, climbing 0.6% to $78.08 a barrel.
In conclusion, the day's trading was marked by contrasting sentiments, driven by economic data and corporate performances that continue to shape market trajectories..