US open: Stocks open higher in first session of earnings packed week
By Iain Gilbert
Date: Monday 27 Jul 2020
(Sharecast News) - US stocks opened higher on Monday as market participants prepared for a week full of major corporate earnings amid continued stimulus talks in Washington.
As of 1550 BST, the Dow Jones Industrial Average was up 0.50% at 26,600.99, while the S&P 500 was 0.64% firmer at 3,236.12 and the Nasdaq Composite started out the session 1.26% stronger at 10,493.40.
The Dow opened 131.10 points higher on Monday, reversing most of the losses recorded at the end of last week amid ratcheting up in tensions between the US and China following the closure of a Chinese consulate in Houston and a US consulate in Chengdu.
Gold prices hit a new record high of $1,943.92 prior to the open before slipping to $1,930.91 after the bell, as investors seemed to stock up on more traditional safe havens as those same US-Sino relations remained strained going into the new week. Silver also hit its highest level in almost seven years as
Not only were political relations frayed, but fears regarding the Covid-19 crisis were also doing the rounds, especially in hard-hit states like Florida, Texas and Arizona.
Also in focus, lawmakers on Capitol Hill were trying to forge ahead with another coronavirus stimulus package.
Treasury Secretary Steven Mnuchin said on Sunday that Republicans had finalised a bill for roughly $1trn in Covid-19 relief funds, while White House economic advisor Larry Kudlow said there was "a $1,200 check coming".
Oanda's Edward Moya said: "US stocks are rebounding as investors shrug off virus worries and remain focused with the prospect of at least a $1 trillion fiscal stimulus deal this week, high hopes the Fed will show they will provide longer-run accommodation, and ahead of the busiest week for earnings seasons.
"The virus picture in the US is mixed as several daily updates are noisy and make it seem the virus is showing no signs of slowing. Florida the current epicenter, saw their largest number of deaths over the past day, while several counties in California struggle to contain the virus. US case numbers through Sunday posted the first seven-day decline since early June and provide some hope the second wave is cresting."
On the macro front, orders for goods made to last more than three years continued to bounce back last month, despite another sharp drop in orders for civilian aircraft. According to the Department of Commerce, durable goods orders jumped at a month-on-month pace of 7.3% in June to reach $151.58bn (consensus: 7.0%).
Elsewhere, the Dallas Fed's manufacturing index for July revealed Texas factory activity has continued to expand following a record contraction in the spring. The production index inched up from 13.6 to 16.1, suggesting a slight pickup in the pace of output growth
In the corporate space, Beyond Meat, Forterra and Hasbro will all report earnings on Monday, while McDonald's, Pfizer, Alphabet, Apple and AMD will all report later in the week.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN