Bank of America Stocks Rise by 2%
Bank of America stocks increased by 2% following the publication of its quarterly report. Investors found reasons to be optimistic in the latest retail trade data in the US and Bank of America’s stronger-than-expected second-quarter report.
Wall Street Stocks Rise on Tuesday
Stocks on Wall Street rose on Tuesday as investors saw reasons for optimism in the latest retail trade data in the US and Bank of America’s stronger-than-expected second-quarter report, according to CNBC.
The broad market indicator S&P 500 and the tech measure Nasdaq Composite rose by 0.4% and 0.5% respectively. The blue-chip index Dow Jones also increased.
Stock Market Update: Bank of America and Morgan Stanley
Bank of America’s stocks rose by 2% after surpassing analysts’ revenue forecasts for the April-June period. Meanwhile, Morgan Stanley’s stocks dropped by 1% just before the bank’s quarterly results were published.
Investors Favoring Small-Cap Companies
Investors are continuing to focus on companies with small market capitalization, as the Russell 2000 index increased by nearly 1%. This growth set the benchmark on track to mark its fifth consecutive day of gains.
Positive Retail Sales Data in the US
Furthermore, retail sales data in the US also turned out to be better than expected, with a growth of 0.6%. This indicates a positive trend in consumer spending and economic recovery in the country.
ховете за икономическо забавяне, което може да подкопае нагоре или надолу настроенията на потребителите.“
Positive Retail Sales Report in June
A recent report showed that retail sales in the country remained unchanged in June, defying expectations of a 0.4% decrease predicted by economists surveyed by Dow Jones. With the exception of automobiles, sales actually increased by 0.4%, surpassing the forecast of 0.1%.
Market Outlook
According to Quincy Crosby, Chief Global Strategist at LPL Financial, these data “should be positive for the markets.” Investors are looking for signs of economic recovery, which could influence consumer sentiment either positively or negatively.
Impact of Political Events on Stock Markets
Following a tumultuous Monday on Wall Street, where the Dow reached historic highs, investors are closely monitoring the political landscape. The failed attempt to impeach former President Donald Trump is seen as a positive sign for his re-election bid in November. This could pave the way for favorable tax and fiscal policies for investors.
At the start of today’s trading session, the yield on 10-year US Treasury bonds is on the rise, indicating confidence in the economy despite recent political events.
Foreign Exchange and Commodity Markets Update
The foreign exchange market saw the US dollar strengthen against a basket of competing currencies, with an increase of 0.2% to 104.39 points. This resulted in a decrease in the interest rate on 10-year US treasury bonds to 4.203%, while for 30-year bonds it dropped to 4.415%.
Meanwhile, in the commodity markets, futures on the international oil benchmark Brent rose by 1.52% to $83.56 per barrel, while WTI crude futures increased by 1.7% to $80.52 per barrel. Gold also saw a price increase of 0.84% and is currently trading at $2449.3 per ounce.
These market updates are as of 5:00 pm Bulgarian time. Stay informed with the latest news by following Investor.bg and Google News Showcase.
