U.S. stocks rebounded on Monday after a depressed start to the trading week, as Wall Street looked to extend a summer rally that saw equity markets longest winning streak in 10 months in the Friday session.
The S&P 500 rose 0.4% after the benchmark index marked its fourth straight week of gains, officially recouping half of the bear market’s losses since falling from its all-time high in January. The Dow Jones Industrial Average added 150 points, or about 0.5%, and the Nasdaq Composite gained 0.6%.
Investors expect a busy week for retail, with earnings from Walmart (WMT) before the open on Wednesday to kick off reports for the sector.
Disney shares (DIS) rose 2.2% after Daniel Loeb’s Third Point revealed a new stake in the company and urged CEO Bob Chapek in a letter to make a number of changes, including integrating Hulu directly into the Disney+ DTC platform and acquiring Comcast’s remaining minority stake before the deadline in early 2024. The letter also recommended that ESPN be divested to shareholders to help their parent company pay off debt.
The Federal Reserve Bank of New York’s general terms of business index, a measure of the state’s manufacturing activity, It posted the second biggest drop since 2001, with declines in orders and shipments reflecting a dramatic drop in demand. The gauge fell more than 42 points to -31.3, the second-worst decline in more than two decades after printing in April 2020. The reading was weaker than the lowest estimate of the ‘economist, according to data from Bloomberg. Readings below zero indicate a contraction.
In other economic data, the National Association of Home Buyers/Wells Fargo The builder sentiment index also disappointed — down 6 points to 49 in August. The reading was below the forecast of Bloomberg’s most disappointed economist and below the equilibrium measure of 50 for the first time since May 2020.
Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., August 8, 2022. REUTERS/Andrew Kelly
Investors have cheered the summer rally after a series of better-than-expected economic releases renewed optimism on Wall Street. But some strategists remain skeptical of the market upswing since the risks associated with inflation and monetary tightening persist.
The story continues
“The macro, political and earnings setup is much less favorable for stocks today,” Morgan Stanley’s Michael J. Wilson wrote in a note. “The risk/reward is unattractive and this bear market remains incomplete.”
China’s President Xi Jinping leaves the podium after speaking at his arrival by high-speed train, ahead of the 25th anniversary of the former British colony’s handover to Chinese rule, in Hong Kong, China, 30 June 2022. Selim Chtayti/Pool via REUTERS
Abroad, data from China on Monday showed a slowdown of economic activity in general last month. The world’s second-largest economy saw retail sales, industrial production and investment come in lower than economists expected in July.
China’s central bank also unexpectedly cut its key interest rate in an effort to reverse lagging economic growth as President Xi Jinping seeks re-election.
The The Wall Street Journal reported that Chinese officials are arranging plans for a face-to-face meeting between Xi Jinping and President Biden in Southeast Asia this fall, a trip that would mark their first in-person meeting since Biden was inaugurated.
oil futures fell on worries about demand to China and the prospect of increased exports from Iran. U.S. West Texas Intermediate and Brent crude fell about 4.5 percent to $87.97 and $93.66 a gallon, respectively.
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for apple or android
Follow Yahoo Finance at Twitter, Facebook, Instagram, Flipboard, LinkedIni YouTube
[ad_2]
Source link
