US close: Stocks rise at start of busy week for earnings

Ford Motor CoSharecast / J W. via Pixabay

Wall Street ended its trading session on a high note on Monday, as investors chose to overlook disappointing economic data from China ahead of a promising week of US earnings reports.

At the close, the Dow Jones Industrial Average gained 0.22% for its sixth consecutive day of positive movement to finish at 34,585.35, while the S&P 500 added 0.39% to 4,522.79.

The tech-heavy Nasdaq Composite outperformed the other indices, registering an impressive increase of 0.93% to end the session at 14,244.95.

In currency markets, the dollar was last down 0.04% against sterling to trade at 76.46p, while it decreased 0.08% to 88.93 euro cents.

The greenback was also weaker on the yen, slipping 0.06% to change hands at JPY 138.62.

“After Friday’s round of bank earnings a sudden lull has descended over markets,” said IG chief market analyst Chris Beauchamp earlier.

“But with corporate reporting season back in full flow tomorrow investors remain understandably cautious about piling into stocks.

“The rise into positive territory for the Empire State manufacturing index will provide little comfort, given how much of a seesaw this figure has been for the past eighteen months.”

New York factory sector shows resilience amid global uncertainty

On the economic front, activity within the factory sector of the New York Fed’s jurisdiction showed unexpected resilience in July, performing slightly better than forecast.

The Empire State index, a key barometer of the sector's health, decreased marginally to 1.1 from 6.6 in June, defying economists' predictions of a steeper decline to -3.4.

The sub-index for new orders, indicative of future manufacturing activity, edged upwards, advancing from 3.1 in June to 3.3 in July.

Moreover, the delivery times sub-index saw a further decrease, sliding from -1.0 to -6.9, hinting at faster supplier deliveries.

Tracking firms' operating expenses, the prices paid sub-index also saw a decrease, easing from 22.0 to 16.7, suggesting a respite from rising costs for businesses.

Employment prospects within the sector improved markedly, with the corresponding sub-index advancing from -3.6 in June to 4.7 in July, demonstrating better labour conditions.

Additionally, the average workweek length also showed a similar degree of improvement, indicating increased operational hours in the sector.

Earlier in the day, Wall Street was on a more cautious note following underwhelming economic data from China.

According to official figures, the world’s second-largest economy grew by just 0.8% in the second quarter compared with the prior three months, marking a significant slowdown from the 2.2% expansion recorded in the first quarter.

The year-on-year growth was recorded at 6.3%, also falling short of expectations.

Tesla shines, Ford and Rivian tumble in electric vehicle market

In equities, shifting market dynamics surrounding electric utility trucks set the tone for much of Monday’s trading session.

Tesla enjoyed a rise of 3.2% as its first Cybertruck rolled off the production line in Texas, almost four years after the company initially announced the project.

Its competitor in the space, Rivian, fell 3.34%, however, as market participants mulled the potential downside risk posed by Tesla's Cybertruck entering production.

Ford Motor also stumbled, with shares sliding 5.94% after the automotive giant announced a price cuts for its F-150 Lightning electric trucks, slashing prices by up to 17%.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Intel Corp. (INTC) $34.37 3.68%
JP Morgan Chase & Co. (JPM) $153.38 2.41%
Apple Inc. (AAPL) $193.99 1.73%
Travelers Company Inc. (TRV) $168.59 1.59%
American Express Co. (AXP) $175.39 1.15%
Cisco Systems Inc. (CSCO) $50.81 0.85%
Unitedhealth Group Inc. (UNH) $484.11 0.81%
Caterpillar Inc. (CAT) $257.46 0.72%
Nike Inc. (NKE) $108.71 0.70%
International Business Machines Corporation (CDI) (IBM) $134.24 0.63%