US close: Stocks rise as market volatility continues
Wall Street stocks closed on positive territory on Thursday, as market participants watched the second day of Federal Reserve chairman Jerome Powell's testimony in Washington.
At the close, the Dow Jones Industrial Average was up 0.64% at 30,677.36, as the S&P 500 added 0.95% to 3,795.73 and the Nasdaq Composite was ahead 1.62% at 11,232.19.
The Dow closed 194.23 points higher on Thursday, erasing the losses it recorded on Wednesday after Powell told the Senate the central bank remained "strongly committed" to lowering inflation but also warned that a recession was still a real "possibility".
Powell was in the House for a second day of testimony on Thursday, delivering remarks as part of a congressionally-mandated semiannual report on monetary policy.
“Earlier this morning, US index futures were in the red, but they have since rebounded amid high volatility,” said Equiti Capital market analyst David Madden.
“Jerome Powell, the Fed chair, is testifying before lawmakers in the US and the central banker said he would be ‘reluctant to cut rates’, which indicates his determination to tackle the high level of inflation.
“Earlier this month, Powell cautioned the risk of a recession has increased but as we heard today, he seems set on the course of higher rates.”
On the macro front, the number of Americans filing fresh unemployment claims fell by 2,000 in the seven days ended 18 June to hit 229,000, below expectations for a print of 227,000 and pointing to an exceptionally tight labour market.
According to the Labor Department, on a non-seasonally adjusted basis, initial claims fell by 3,255 from the previous week to 202,844, with notable decreases seen in Missouri, while the main increases were in California and Pennsylvania.
Elsewhere, the S&P Global flash US manufacturing PMI fell to 52.4 in June, down from 57 in May and well below market expectations of 56, while the services PMI fell to 51.6 in June, down from 53.4 in May for the lowest reading in five months.
A flash reading of the composite PMI decreased to 51.20 points in June from 53.60 points in May.
On another note, America's current account deficit reached a fresh record high equivalent to 4.8% of the country's gross domestic product over the first three months of 2022.
According to the Department of Commerce, in seasonally adjusted terms, the US current account deficit yawned wider in the first quarter to reach -$291.4bn, against -$224.8bn during the previous three-month stretch.
Economists had pencilled in a deficit of -$284.8bn.
Finally, the Fed's bank stress test results for the year were released not long after the close, with the banks of America passing.
The central bank said the hypothetical losses among retail institutions widened this time around, but still remained within what it considered to be acceptable bounds.
In equities, Olive Garden owner Darden Restaurants eked out gains of 0.42% after it reported an 11.7% jump in same-store sales ahead of the open earlier.
Embattled streaming pioneer Netflix was ahead 1.58% after the company confirmed long-leaked reports that advertising would soon feature on its platform.
On the downside, cosmetics giant Revlon saw its astounding rally come to a screeching halt as it fell 11.55% by the close.
The company’s shares, reported to be seriously shorted, were still more than 300% higher since it filed for bankruptcy protection last week.
Reporting by Josh White at Sharecast.com. Additional reporting by Iain Gilbert.
Dow Jones - Risers
Salesforce.Com Inc. (CRM) $173.05 3.34%
Merck & Co. Inc. (MRK) $92.00 3.19%
Nike Inc. (NKE) $108.00 2.94%
Procter & Gamble Co. (PG) $142.30 2.74%
Verizon Communications Inc. (VZ) $52.09 2.56%
Walmart Inc. (WMT) $123.62 2.43%
Home Depot Inc. (HD) $275.42 2.39%
Microsoft Corp. (MSFT) $258.86 2.26%
Johnson & Johnson (JNJ) $179.66 2.23%
Apple Inc. (AAPL) $138.27 2.16%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $178.67 -4.88%
Chevron Corp. (CVX) $142.43 -3.68%
Dow Chemical Co. (DOW) $51.06 -2.45%
Boeing Co. (BA) $133.97 -2.33%
Travelers Company Inc. (TRV) $159.77 -2.07%
American Express Co. (AXP) $141.65 -1.90%
Cisco Systems Inc. (CSCO) $42.93 -1.47%
JP Morgan Chase & Co. (JPM) $113.92 -1.09%
3M Co. (MMM) $130.15 -0.19%
Dowdupont Inc. (DWDP) $30.52 0.00%
S&P 500 - Risers
Autodesk Inc. (ADSK) $183.41 8.43%
Nektar Therapeutics (NKTR) $4.16 8.33%
Whirlpool Corp. (WHR) $163.58 7.05%
Align Technology Inc. (ALGN) $251.12 6.82%
Idexx Laboratories Inc. (IDXX) $355.62 6.76%
Illumina Inc. (ILMN) $193.55 6.59%
Clorox Co. (CLX) $140.11 6.03%
Amer Water Works (AWK) $144.58 5.53%
Intuit Inc. (INTU) $400.75 5.23%
Abiomed Inc. (ABMD) $248.62 5.21%
S&P 500 - Fallers
Mosaic Company (MOS) $45.24 -9.57%
CF Industries Holdings Inc. (CF) $80.60 -9.01%
Valero Energy Corp. (VLO) $104.53 -7.60%
Archer-Daniels-Midland Co. (ADM) $71.75 -7.34%
Schlumberger Ltd. (SLB) $34.98 -6.77%
Phillips 66 Common Stock (PSX) $84.39 -6.76%
Deere & Co. (DE) $297.51 -6.42%
Halliburton Co. (HAL) $30.04 -6.39%
Robert Half International Inc. (RHI) $75.08 -6.28%
Freeport-McMoRan Inc (FCX) $29.57 -5.59%
Nasdaq 100 - Risers
Autodesk Inc. (ADSK) $183.41 8.43%
Align Technology Inc. (ALGN) $251.12 6.82%
Idexx Laboratories Inc. (IDXX) $355.62 6.76%
Illumina Inc. (ILMN) $193.55 6.59%
Intuit Inc. (INTU) $400.75 5.23%
Vertex Pharmaceuticals Inc. (VRTX) $283.50 4.11%
Workday, Inc. (WDAY) $142.19 4.10%
Biomarin Pharmaceutical Inc. (BMRN) $84.55 3.97%
Hologic Inc. (HOLX) $70.55 3.63%
Regeneron Pharmaceuticals Inc. (REGN) $607.39 3.50%
Nasdaq 100 - Fallers
Expedia Group Inc. (EXPE) $94.02 -3.21%
Booking Holdings Inc. (BKNG) $1,835.06 -2.90%
Wynn Resorts Ltd. (WYNN) $52.02 -2.58%
Marriott International - Class A (MAR) $133.06 -2.49%
PACCAR Inc. (PCAR) $81.58 -2.38%
Microchip Technology Inc. (MCHP) $57.91 -1.78%
QUALCOMM Inc. (QCOM) $120.09 -1.69%
Cisco Systems Inc. (CSCO) $42.93 -1.47%
Analog Devices Inc. (ADI) $145.54 -1.43%
Seagate Technology Plc (STX) $70.75 -1.19%