On Friday, US benchmark equity indexes experienced a notable rise, driven primarily by the latest corporate earnings reports and economic data. The Dow Jones Industrial Average saw an increase of 1.6%, closing at 40,589.3, while the S&P 500 climbed by 1.1%, finishing at 5,459.1. Additionally, the Nasdaq Composite advanced by 1%, closing at 17,357.9.
This positive momentum was broad-based, with all sectors recording gains, particularly in industrials, materials, and real estate, indicating strong investor interest across these areas. Looking back at the performance for the week, the Nasdaq experienced a decline of 2.1%, whereas the S&P 500 lost 0.8%; however, the Dow managed a slight weekly rise of 0.8%, reflecting mixed sentiment in broader market trends. In notable company news, 3M ($MMM) raised the lower end of its full-year earnings guidance after reporting second-quarter results that exceeded market estimates.
This announcement led to a significant surge in the company’s shares, which skyrocketed nearly 23%, making it the top gainer on both the Dow and the S&P 500. Meanwhile, Mohawk Industries ($MHK) emerged as the second-best performer on the S&P 500, experiencing a remarkable increase of 19.5%. The company's positive performance was attributed to an upbeat third-quarter earnings forecast published late Thursday, following a successful second-quarter earnings report. Moreover, Charter Communications ($CHTR) also garnered attention as its shares soared by 16.6%, leading the Nasdaq and ranking among the top performers on the S&P 500 after releasing better-than-expected second-quarter results, significantly bolstered by a surge in residential mobile service revenue. On the flip side, DexCom ($DXCM) suffered a sharp decline, becoming the worst performer on both the S&P 500 and the Nasdaq, as its share price plummeted by 40.7%.
The diabetes management firm adjusted its full-year revenue outlook downward after second-quarter revenues fell short of market expectations. Simultaneously, Biogen ($BIIB) faced challenges as its shares fell by 7.2%, marking it as the second-worst performer on both major indexes. The drug manufacturer, along with its partner Eisai, reported that the European Medicines Agency's Committee for Medicinal Products for Human Use did not recommend the marketing authorization for lecanemab, aimed at treating early Alzheimer’s disease, leading to investor caution. In the bond market, the US 10-year Treasury yield declined by 6 basis points to 4.19%, and the two-year rate also fell by 5.6 basis points, settling at 4.39%.
This decrease could indicate a modicum of investor optimism about future economic stability. In broader economic news, data revealed a slowdown in the growth rate of US consumer spending during June. The Federal Reserve's preferred inflation measure remained steady year-over-year, suggesting potential stability in economic conditions, which may be viewed positively by policymakers.
TD Economics noted that although there was a slight uptick in the monthly core inflation figure, the recent cooling trend is likely to be interpreted favorably by the Fed. Consumer sentiment in the US, however, showed a decrease in July, with inflation expectations for the upcoming year dropping for the second consecutive month, as reported by the University of Michigan's Surveys of Consumers.
Director Joanne Hsu indicated that while labor market expectations stay relatively stable, ongoing electoral uncertainties could create volatility in consumer economic attitudes in the coming months. In commodity markets, West Texas Intermediate crude oil prices fell by 1.9%, trading at $76.83 per barrel by the end of the trading day.
Conversely, gold prices increased by 1.3%, reaching $2,432.10 per troy ounce, and silver also saw a slight rise of 0.3%, closing at $28.05 per ounce. As markets continue to function within the framework of evolving economic indicators and corporate earnings, investors are urged to keep a close eye on both sector performance and macroeconomic developments..