S&P 500 Climbs Toward Its 12th Record This Month: Markets Wrap
(Bloomberg) — Stocks climbed, led by some of the world’s largest technology companies. Concern about the damage from Tropical Storm Ida sank insurers and energy producers, while pushing gasoline prices higher.
The S&P 500 headed toward its 12th all-time high in August, while the Nasdaq 100 outperformed, with Apple Inc.’s market value topping $2.5 trillion. Stay-at-home darling Zoom Video Communications Inc. was due to report results later Monday. PayPal Holdings Inc. rallied on a news report the firm is exploring a stock-trading platform. Airlines dropped as European Union countries voted to reimpose restrictions on non-essential travel from the U.S. amid a surge in coronavirus cases.
As the earnings season draws to a close, the S&P 500 is on track for its seventh straight monthly advance — the longest winning streak since January 2018. Federal Reserve Chair Jerome Powell did just enough last week to preserve the view that his goals align with investors’: growth that is fast enough to boost hiring and profits, but not inflation. U.S. pending home sales fell in July, while traders looked to Friday’s payrolls data for a guide as to whether there’s any slowdown.
“Earnings and accommodative monetary policy continue to support U.S. equities,” wrote Craig W. Johnson, a technical market strategist at Piper Sandler & Co. “Rates remain historically low, and although we suspect higher rates are on the horizon, we do not forecast another taper tantrum rate of change.”
While the equity market may be getting “a little tired” after doubling from its pandemic lows, it has more than enough fuel to continue, according to veteran strategist Robert Doll.
A “still good” economy means that stocks will “generally go up,” Doll, chief investment officer at Crossmark Global Investments Inc., said in an interview on Bloomberg TV’s Surveillance on Monday. “A good economy means good earnings, so the path of least resistance has been and likely will continue to be to the upside.”
Some other corporate highlights:
Affirm Holdings Inc. surged after entering a partnership with Amazon.com Inc. to help consumers finance large purchases made on the e-commerce giant’s website.Vinco Ventures Inc., a digital media company, and software firm Support.com Inc. extended rallies fueled by retail investors in chatrooms like StockTwits and on Reddit.Chinese gaming stocks listed in the U.S. were under pressure after regulators in Beijing cut back the amount of time minors can play each week, with NetEase Inc. and Bilibili Inc. dropping.Meme stock Cassava Sciences Inc. slid after one analyst suspended his rating saying the company’s main product, an experimental Alzheimer’s disease drug, posed a “diligence challenge.”
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Here are some key events to watch this week:
The U.S. plans to pull out almost all American troops from Afghanistan TuesdayOPEC+ meeting on output…
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