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Apple, Amazon, and Facebook lead market higher to close out July
31-Jul-20 16:15 ET
Dow +114.67 at 26428.32, Nasdaq +157.46 at 10745.35, S&P +24.90 at 3271.12

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 advanced 0.8% on Friday, closing at session highs amid a 10.5% gain in Apple (AAPL 425.04, +40.28, +10.5%), an 8% gain in Facebook (FB 253.67, +19.17, +8.2%), and a 4% gain in Amazon (AMZN 3164.68, +112.80, +3.7%) following their impressive quarterly results.

The Nasdaq Composite gained 1.5%, and the Dow Jones Industrial Average gained 0.4%. The Russell 2000, however, fell 1.0%.

The overall market was relatively weak on this final day of July, as declining issued outpaced advancing issues at both the NYSE and Nasdaq, but a turnaround in the S&P 500 utilities (+0.2%), materials (+0.1%), and financials (unch) sectors helped contribute to today's strong finish.

The information technology (+2.5%), consumer discretionary (+1.3%), and communication services (+0.8%) sectors were relatively strong all session due to the mega-cap gains, while the energy (-0.7%), health care (-0.6%), and industrials (-0.4%) sectors lagged.

Negative factors that weighed on the market included lawmakers still arguing over the contents of the next coronavirus relief bill, Alphabet (GOOG 1482.96, -48.49, -3.2%) falling 3% after posting its first-ever yr/yr decline in revenue, and the University of Michigan Index of Consumer Sentiment for July being revised lower to 72.5 (Briefing.com consensus 73.0) from 73.2.

Outside the mega-cap gains, Merck (MRK 80.24, +1.25, +1.6%) and Exxon Mobil (XOM 42.08, +0.21, +0.5%) finished higher following their earnings reports while KC Southern (KSU 171.85, +15.16, +9.7%) spiked 10% on news it could be taken private for more than $21 billion, according to The Wall Street Journal.

Chevron (CVX 83.94, -2.33, -2.7%) and Caterpillar (CAT 132.88, -3.84, -2.8%) were some notable earnings laggards.

U.S. Treasuries finished the session little changed. The 2-yr yield declined one basis point to 0.10%, and the 10-yr yield was flat at 0.54%. The U.S. Dollar Index rebounded 0.5% to 93.44. WTI crude futures increased 0.4%, or $0.16, to $40.13/bbl.

Reviewing Friday's economic data:

Personal income declined 1.1% m/m in June (Briefing.com consensus -0.9%) following a downwardly revised 4.4% decline (from -4.2%) in May. Personal spending increased 5.6% m/m (Briefing.com consensus 5.9%) on the heels of an upwardly revised 8.5% increase (from 8.2%) in May. The PCE Price Index rose 0.4% m/m, as expected, while the core-PCE Price Index, which excludes food and energy, jumped 0.2% m/m, which was also in-line with expectations.
The key takeaway from the report is that a 2.2% m/m gain in wages and salaries as the economy reopened was not enough to offset the 8.9% m/m decline in personal current transfer receipts. This consideration highlights the risk to the recovery trajectory that would be exacerbated at this juncture without further government assistance.
The Q2 Employment Cost Index increased 0.5% (Briefing.com consensus 0.6%), seasonally adjusted, for the three-month period ending in June 2020 after increasing 0.8% for the three-month period ending March 2020.
The key takeaway from the report is that employment costs held relatively steady with the same period a year ago.
The final July reading for the University of Michigan Index of Consumer Sentiment slipped to 72.5 from the preliminary reading of 73.2 and the final June reading of 78.1.
The key takeaway from the report is that the Expectations Index fell back to a six-year low, exposing a potential headwind for spending activity that is integral for stronger growth.
The Chicago PMI for July increased to 51.9 (Briefing.com consensus 42.0) from 36.6 in June.

Looking ahead, investors will receive Construction Spending for June and auto and truck sales for July on Monday.

Nasdaq Composite +19.8% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average -7.4% YTD
Russell 2000 -11.3% YTD

Market Snapshot
Dow 26428.32 +114.67 (0.44%)
Nasdaq 10745.35 +157.46 (1.49%)
SP 500 3271.12 +24.90 (0.77%)
10-yr Note +2/32 0.538
NYSE Adv 1257 Dec 1676 Vol 1.3 bln
Nasdaq Adv 1138 Dec 2126 Vol 4.4 bln

Industry Watch
Strong: Consumer Discretionary, Information Technology, Communication Services
Weak: Energy, Financials, Health Care

Moving the Market

-- U.S. stocks trade mostly lower

-- Apple (AAPL), Amazon (AMZN), and Facebook (FB) rise after strong earnings reports

-- Alphabet (GOOG) shares fall despite positive quarterly results

-- Uncertainty surrounding next coronavirus relief bill

WTI crude settles higher, but energy stocks lag
31-Jul-20 15:25 ET
Dow -28.75 at 26284.90, Nasdaq +106.06 at 10693.95, S&P +7.65 at 3253.87

[BRIEFING.COM] The S&P 500 is back in positive territory with a 0.2% gain. The Russell 2000 is down 1.5%.

One last look at the S&P 500 sectors shows information technology (+2.0%), consumer discretionary (+1.1%), and communication services (+0.1%) as the only sectors in the green. Conversely, the energy (-1.6%), health care (-1.1%), and real estate (-1.1%) sectors are down more than 1.0%.

WTI crude futures gained 0.4%, or $0.16, to $40.13/bbl.