US close: Dow extends winning streak ahead of next Fed decision

Monday ended on a high note on Wall Street as major indices managed to secure positive finishes.

Investors were holding their breath ahead of a packed week of central bank policy decisions, with key inputs expected from the Federal Reserve, the European Central Bank, and the Bank of Japan.

The Dow Jones Industrial Average maintained its rally, advancing 0.52% to close at 35,411.24, making for the index’s longest winning streak in six years.

Joining the Dow on the upside, the S&P 500 edged up 0.4% to finish at 4,554.64, while the Nasdaq Composite eked out gains of 0.19% to settle at 14,058.87.

In currencies, the dollar was last up 0.09% on sterling to trade at 78.02p, and by 0.02% against the euro to stand at 90.4 euro cents.

The greenback also ticked up 0.06% against the yen, last changing hands at JPY 141.57.

“The Dow continues to enjoy a period of ascendancy over the S&P 500 and Nasdaq 100, after lagging for so much of the year, with the broadening participation of more sectors in the rally helping the index to a fresh 16-month high,” said IG chief market analyst Chris Beauchamp earlier.

“There isn’t much whinging about ‘poor breadth’ now, and with a wide swathe of companies reporting this week the Dow might receive yet more support.”

Economic downturn remains a risk as PMIs dip and GDP growth slows

On the economic front, July saw a minor downturn according to data from S&P Global, with a decrease in the PMI composite output Index and slowing GDP growth.

The PMI composite output index, a measure of the health of the manufacturing and service sectors, registered a slight slip from June's 52.3 to 52.0 in July.

Though the dip was minor, and the index remained above the 50-point mark that separates expansion from contraction, it suggested a cooling in economic growth.

More specifically, the 'flash' services purchasing managers' index (PMI), which tracks the health of the service sector, slipped from 54.4 in June to a five-month low of 52.4 in July - below the consensus estimate of 54.3.

On a more positive note, the manufacturing PMI showed signs of recovery.

Despite being in contraction territory below the 50-point threshold, it rose from 46.3 in June to 49.0 in July, surpassing the consensus estimate of 46.4.

S&P Global also noted a deceleration in GDP growth, from an annualised pace of 2.0% in June to 1.5% in July.

The firm also highlighted a dip in the business outlook for the coming year, alongside persistent stickiness in prices, which could point to potential inflation concerns.

AMC Entertainment surges following blockbuster weekend and court ruling

In equities, AMC Entertainment Holdings surged 32.95% after a Delaware court blocked its plans to convert APE preferred units into common stock, preventing potential dilution of its shares.

Additionally, AMC reported its busiest weekend since 2019, fuelled by the blockbuster debuts of Barbie and Oppenheimer.

In line with AMC's success, large-format cinema operator IMAX Corporation climbed 2.93%, likely benefiting from the surge in movie-goers flocking to the so-called ‘Barbenheimer’ premieres.

Mattel, the company that owns the intellectual property rights to Barbie, meanwhile saw its shares grow 2.84%.

Elsewhere on the market, Domino’s Pizza managed to inch up by 0.12% after the pizza delivery giant's second-quarter profit exceeded expectations, although an unexpected dip in revenue kept the gains relatively small.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $358.92 1.98%
Chevron Corp. (CVX) $161.82 1.97%
JP Morgan Chase & Co. (JPM) $158.00 1.97%
Boeing Co. (BA) $215.87 1.92%
Home Depot Inc. (HD) $325.11 1.45%
Travelers Company Inc. (TRV) $174.84 1.17%
Cisco Systems Inc. (CSCO) $53.11 0.91%
Caterpillar Inc. (CAT) $259.37 0.67%
Visa Inc. (V) $240.74 0.62%
Walgreens Boots Alliance, Inc. (WBA) $30.64 0.59%

Dow Jones - Fallers

Merck & Co. Inc. (MRK) $108.79 -1.45%
American Express Co. (AXP) $167.79 -1.43%
Intel Corp. (INTC) $33.63 -1.15%
Salesforce.Com Inc. (CRM) $225.66 -1.05%
Dow Chemical Co. (DOW) $52.55 -0.94%
Walt Disney Co. (DIS) $86.60 -0.67%
Nike Inc. (NKE) $108.77 -0.27%
McDonald's Corp. (MCD) $295.31 -0.10%
3M Co. (MMM) $104.27 -0.06%
Dowdupont Inc. (DWDP) $0.00 0.00%

S&P 500 - Risers

Becton, Dickinson & Company (BDX) $280.02 5.71%
Kohls Corp. (KSS) $26.42 5.05%
Nordstrom Inc. (JWN) $21.68 4.63%
Dish Network Corp. (DISH) $7.76 4.30%
Keycorp (KEY) $11.89 4.02%
Crown Castle International (CCI) $111.54 3.91%
Freeport-McMoRan Inc (FCX) $42.10 3.67%
Hanesbrands Inc. (HBI) $4.83 3.65%
Halliburton Co. (HAL) $38.26 3.57%
Discover Financial Services (DFS) $108.84 3.55%

S&P 500 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Nektar Therapeutics (NKTR) $0.53 -5.69%
Intuitive Surgical Inc. (ISRG) $323.56 -3.89%
AES Corp. (AES) $21.61 -3.87%
Gilead Sciences Inc. (GILD) $77.66 -3.70%
CenturyLink Inc. (LUMN) $1.83 -3.68%
Ipg Photonics Corp. (IPGP) $128.21 -3.30%
American Airlines Group (AAL) $16.88 -3.10%
Equifax Inc. (EFX) $206.57 -2.73%
United Airlines Holdings Inc (UAL) $56.06 -2.69%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $1.09 5.83%
Baidu Inc. (BIDU) $148.73 5.11%
Dish Network Corp. (DISH) $7.76 4.30%
JD.com, Inc. (JD) $38.36 3.48%
Tesla Inc (TSLA) $269.06 3.48%
Vodafone Group Plc ADS (VOD) $9.83 3.47%
NetEase Inc. Ads (NTES) $105.58 3.30%
Trip.com Group Limited (TCOM) $37.90 3.24%
Lam Research Corp. (LRCX) $639.03 2.47%
Western Digital Corp. (WDC) $38.92 1.62%

Nasdaq 100 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Sirius XM Holdings Inc (SIRI) $6.00 -15.25%
Intuitive Surgical Inc. (ISRG) $323.56 -3.89%
Gilead Sciences Inc. (GILD) $77.66 -3.70%
American Airlines Group (AAL) $16.88 -3.10%
Mercadolibre Inc. (MELI) $1,198.43 -1.85%
Expedia Group Inc. (EXPE) $116.87 -1.82%
Vertex Pharmaceuticals Inc. (VRTX) $357.05 -1.49%
Asml Holdings N.V. (ASML) $684.48 -1.28%
Illumina Inc. (ILMN) $188.01 -1.27%