Stocks Begin July With a Bang as Fears Keep Getting Proven Wrong

Stocks Begin July With a Bang as Fears Keep Getting Proven Wrong

Stocks kept rising last week as one bearish narrative after another vanished. The S&P 500 climbed 1.65 percent in the holiday-shortened period between Friday, June 28, and Friday, June 5. It was the fourth gain in the last five weeks and saw the index push above previous record highs. Investors feared increased tariffs against China, then were forced to scramble as President Trump withdrew the threat. They also worried about a slowing economy, but then watched as key reports beat estimates: Monday: The Institute for Supply Management’s manufacturing index fell less than feared to 51.1. Trade remained a big concern, even as hiring and production increased. Wednesday: Initial jobless claims, a key forward-looking indicator, fell more than expected. Friday: Non-farm payrolls increased by 224,000, crushing estimates for 160,000 as more Americans re-entered the workforce. Meanwhile, neglected corners of manufacturing showed big gains. S&P 500 chart showing key levels and moving averages. Other data points like factory orders and private-sector payrolls missed estimates. But the takeaway was that few indicators are pointing to a recession any time soon. That may create a conundrum for Federal Reserve Chairman Jerome Powell when he appears in Congress this week. (See below for more.) Technology Still Leading Technology stocks including software makers and Internet companies led the charge as investors returned to prominent growth names. Solar , the year’s top-performing industry, rose more than 3 percent. Financial exchanges like Cboe (CBOE), Nasdaq (NDAQ) and CME (CME) continued their stealth rallies. Airlines and real-estate investment […]

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