In a notable progression on the last trading day of the week, benchmark equity indexes in the United States experienced an upward trend as investors carefully evaluated the latest corporate earnings reports alongside economic indicators. The Dow Jones Industrial Average impressively increased by 1.6%, concluding at 40,589.3.
Meanwhile, the S&P 500 saw a rise of 1.1%, closing at 5,459.1. The Nasdaq Composite also marked a gain of 1%, finishing the day at 17,357.9. All sectors reported positive performances, with industrials, materials, and real estate leading the upward momentum. Throughout the week, the Nasdaq faced a setback, declining by 2.1%, while the S&P 500 experienced a slight downturn, losing 0.8%.
Conversely, the Dow recorded a modest gain of 0.8% over the same period. Turning our attention to company-specific news, 3M ($MMM) provided a boost to investor sentiment after it raised the low end of its full-year earnings outlook, thanks to second-quarter results that exceeded market expectations.
Shares of the industrial conglomerate soared nearly 23%, securing the position of the top gainer on both the Dow and the S&P 500 index. In another notable development, Mohawk Industries ($MHK) delivered encouraging outcomes, becoming the second-best performer on the S&P 500 with an impressive jump of almost 20%.
The company reported upbeat third-quarter earnings projections following a successful second-quarter performance. Charter Communications ($CHTR) also contributed to the positive market atmosphere, as its shares surged by 17%. This remarkable performance positioned Charter as the leading performer on the Nasdaq and among the top gainers on the S&P 500, driven by better-than-expected results for the second quarter, notably boosted by a significant rise in residential mobile service revenue. On a less positive note, DexCom ($DXCM) faced substantial losses, with shares plummeting by 41%.
The diabetes management firm revised its full-year topline outlook downward after reporting second-quarter revenues that fell short of market expectations. Biogen ($BIIB) also struggled, experiencing a 7.2% decrease in share value, making it the second-worst performer on the S&P 500 and the Nasdaq.
This decline followed the announcement that the European Medicines Agency's Committee for Medicinal Products for Human Use recommended against granting marketing authorization for lecanemab—a treatment aimed at early Alzheimer's disease—in collaboration with its partner, Eisai. Examining the bond market, the yield on the US 10-year Treasury dropped by 6.2 basis points, arriving at 4.19%, while the shorter two-year rate fell by 5.6 basis points to settle at 4.39%. On the economic front, new government data indicated a slight easing in the growth pace of US consumer spending during June.
Meanwhile, the Federal Reserve's preferred inflation metric remained stable on an annual basis, leading analysts to reflect positively on this trend. The TD Economics team highlighted that despite a minor uptick in the monthly core inflation figure, the prevailing cooling trend is likely to be perceived favorably by the Federal Reserve. Consumer sentiment in the United States saw a decline in July, with year-ahead inflation expectations dropping for the second consecutive month, as per findings from the University of Michigan's Surveys of Consumers. Joanne Hsu, Director of the Surveys of Consumers, noted that, "Labor market expectations remain relatively stable, providing continued support to consumer spending.
However, continued election uncertainty is likely to generate volatility in economic attitudes in the months ahead." In commodities, West Texas Intermediate crude oil prices dipped 2%, landing at $76.70 per barrel on Friday. Conversely, gold prices rose by 1.4%, reaching $2,385.90 per troy ounce, while silver saw a slight increase of 0.3%, closing at $28.06 per ounce..