Wall Street stock indexes rose to record highs at the beginning of the week amid data that will provide information on global economic growth, while the bonds went down.
The financial stocks led to the S&P 500, while investors expect reports from some of the world’s largest companies. Bank of New York Mellon and Citigroup were among the best-performing components in the sector, with growth rates of 2%.
The yield on US Treasuries picked up after a block deal of 5-year bonds, while the US dollar remained virtually unchanged and the Euro raised its value. The crude oil markets experienced an unstable session, as severe crackdowns on Iranian oil exports continue to put pressure on the market.
The broad index S&P 500 reached record value on Monday, but the sessions stayed within limits due to generally more reticent investors. The benchmark added 0.1% to its value to 2,943.03 points, surpassing the previous record set in September.
The technology index Nasdaq Composite also ended the session at new record level after 0.2% gain to 8,161.85 points. The blue-chip index Dow Jones Industrial Average closed the session with an increase of 11.06 points to 26,554.39 points.
The strong corporate reports helped the S&P 500 and Nasdaq Composite to hit their highest levels last week. The two indices also reported stable weekly growths.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 2.99% to 13.11.
Currently, depositors are in a wait-and-see position and weigh everything sensibly. The analysts expect new impulses from the Federal Reserve, which is expected on Wednesday not to change its interest rates and keep them in the range of 2.25-2.50%.
The markets watched carefully the latest inflation data. Although consumer spending rose in March with the highest pace in more than nine and a half years, the investors analyze carefully the figures.
Earlier in the day, it became clear that consumer spending in the United States increased strongly in March, while personal income grew almost symbolically, signaling that households feel confident about the prospects of the world’s leading economy. According to the report of the Department of Trade, the personal income reflecting the income of Americans before taxes on wages, investments, and other sources rose in March by only 0.1% compared to February, when they grew by 0.2%, while the expectations of the financial markets were for growth of 0.4%.
Corporate stocks performance
The stocks of Anadarko Petroleum rose by 0.2% after the company said on Monday it intends to resume talks with Occidental Petroleum Corp regarding its bid to acquire the company, which came after an earlier merger agreement with major oil producer Chevron Corp. Meanwhile, the stocks of Occidental fell by 1.9% and Chevron shares edged up by 0.5%.
Shares of Dow component Boeing were in focus after The Wall Street Journal reported that aircraft manufacturer didn’t tell Southwest Airlines when the company began flying 737 MAX jets in 2017 that a safety feature designed to warn pilots about malfunctioning sensors had been deactivated. the company’s shares fell by 0.5% on Monday.
Shares of Walt Disney slipped by 0.4% Monday, reversing pre-market gains that accrued after “Avengers: Endgame”, from the entertainment giant’s Marvel Studios, crushed box-office records in its opening weekend, with an estimated 350 million USD in domestic ticket sales and 1.2 billion USD in global sales.
The best performers within the index Dow Jones Industrial Average were Goldman Sachs Group (+1.89%), JPMorgan Chase & Co (+1.44%) and Walgreens Boots Alliance (+1.34%) was up 1.34%, while on the opposite side were Intel Corporation (-2.52%), Procter & Gamble Company (-1.02%) and Pfizer Inc (-0.95%).
Within the broader index S&P 500 remarkable gains were achieved by Ingersoll-Rand PLC (+6.5%), Archer-Daniels-Midland Company (+5.77%) and Mattel Inc (+3.05%).
Corporate earnings reports
About 165 companies from the S&P 500 plan to publish their quarterly results this week, including Apple, General Electric and Qualcomm. Alphabet and Western Digital published their data for the first quarter on Monday after the bell.
So far, 231 S&P 500 companies have reported quarterly results with 77.5% of them outperformed analysts’ expectations. The reported growth rate in the meantime is around 1%, well above the expected decline of 4.2%.
Alphabet Inc revenue growth cooled off at the start of 2019, according to an earnings report Monday afternoon that sent shares down in after-hours trading. Google’s parent company came up short of expectations as all of its major sales categories performed slightly worse than projected in the first quarter, and yet another big fine out of Europe dinged the company’s earnings. Alphabet reported first-quarter earnings of 6.66 billion USD, or 9.50 USD per share, on revenue of 29.48 billion USD, after removing traffic-acquisition costs. Revenue grew at a rate lower than 20% — sales grew by 16.7%, 18.6% when factoring in TAC — a level Alphabet has managed to hold over the past three years. In 2018, Alphabet sales grew by 23.4%, and no single quarter showed year-over-year growth lower than 20%.