Wall Street Stocks Climb as Market Shifts Focus to Tech Earnings

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Principal Points

• Major US stock indexes end Thursday session modestly higher, buoyed by upbeat earnings
• Futures on Friday imply a higher open as markets head to tech earnings next week

US stocks advanced for a third consecutive day on Thursday as investors renewed their optimism that “the everything rally” would continue as the economy and the American companies signalled sustained growth. Furthermore, expectations remain high that upcoming corporate earnings, especially for technology companies, will deliver blowout results for the quarter ended June.

Major US indexes on Thursday finished higher, led by gains in the tech sector. In a rather quiet trading session, the Dow Jones Industrial Average added 25.35 points, or 0.07%, to close at 34,823.35. The broad S&P500 index gained 8.79 points, or 0.20%, to finish at 4,367.48. The tech-heavy Nasdaq Composite climbed 52.64 points, or 0.36%, to end at 14,684.60.

All three main stock gauges have stabilized over the past three days after a steep drop on Monday triggered by fears the Delta strain of coronavirus could dent the economic recovery. At current levels, the stock indexes remain in the green for the week and less than 1% from their all-time highs.

The stock market’s resiliency is attributed to the consistent flow of positive corporate earnings. Upbeat results across companies from all sectors have improved the market sentiment as about one-fifth of the S&P500 companies have reported quarterly earnings. Most of them have beaten analysts’ expectations.

Tesla To Report Earnings on Monday

On Thursday, Blackstone Group, a private equity firm, posted a net income for the second quarter of $1.31bn, or $1.82 a share. Investors hailed the results and lifted the stock 4.1% to $110.13. “Our forward momentum has never been stronger,” Chief Executive Stephen Schwarzman said on the earnings call.

Investors largely expect the flurry of elevated financial figures in the earnings reports to continue into the coming week. Major technology companies are set to report their corporate results for the quarter ended June.

EV maker Tesla is scheduled to deliver its earnings report on Monday. The biggest names in software, Apple, Microsoft, and Google-parent Alphabet, publish their quarterly numbers on Tuesday. Social media giant Facebook follows on Wednesday, along with vaccine maker Pfizer and payment company PayPal. Thursday is reserved for eCommerce leader Amazon and the other large vaccine producer AstraZeneca. And Friday brings the quarterly earnings of Warren Buffett’s Berkshire Hathaway.

In policymaking action next week, Federal Reserve officials are set to accelerate tapering discussions at their two-day meeting on Tuesday and Wednesday. Fed Chairman Jerome Powell has said previously the central bank would like to see more months of data before it decided to reduce its monthly asset purchases.

Mr. Powell is expected to deliver his comments on Wednesday. Investors will be looking for clues about when and how the Fed intends to scale back its easy-money policies.

US futures on Friday remain positive. Dow futures indicate a positive open by roughly 0.20%, while S&P500 futures and Nasdaq futures are higher by more than 0.30% each.

Overseas, European bourses advanced on Thursday and are trading moderately higher in the early trading hours of Friday’s session. The pan-continental Stoxx 600 gained about 0.60% yesterday as travel and leisure stocks led the move higher.

In cryptocurrency, bitcoin on Friday is trading up for a third straight day. The cryptocurrency market has largely improved its sentiment after Elon Musk said during an online event on Wednesday, he and his two companies, Tesla and SpaceX, hold bitcoin and do not intend to sell any. Bitcoin is currently floating above $32,600 per token. Ether is also higher on the day, up 3% to $2,080.