Home » Wall Street closes August higher. S&P fresh from 53rd record of 2021, and for UBS it does not end there

Wall Street closes August higher. S&P fresh from 53rd record of 2021, and for UBS it does not end there

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Wall Street poised to close the month of August at record levels and with solid gains. In the aftermath of the new closing highs tested by the Nasdaq Composite and the S&P 500, today’s session however starts with a retracement of the indices. The Dow Jones lost 0.14% to around 35,349 points; the Nasdaq Composite loses 0.21% to 15,234 points, while the S&P 500 loses 0.16% to 4,521.

The balance of the month nearing conclusion is however very positive: the S&P 500 rose 3% in August, the Nasdaq Composite rallied by 4%, advancing for the third consecutive month. The trend of the Dow Jones was more modest, up by 1.3%.

Cnbc reports that the S&P 500 index is experiencing the strongest bullish phase since the 10-month gain that ended in December 2017. Not only that. Yesterday the S&P 500 closed at a new closing high for the 53rd time in 2021.

“Despite rising geopolitical risks, concerns about the risk of GDP growth peaking and the Federal Reserve approaching tapering of its asset purchase program, the solid advance in equities continues,” notes Keith. Lerner, chief market strategist at Truist, in a statement.

And there are those who are still optimistic, like Mark Haefele, chief investment officer of UBS’s global wealth management division:

“We believe that the momentum linked to the reopening and recovery is intact and that there is further room for upside for equities. The rally in the S&P 500 is supported by robust earnings growth … with the economic recovery taking place. strengthening, we believe cyclical sectors, including financials and energy, will be the ones that do best. ”

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Haefele estimates another gain of 1.6% for the S&P 500 from now to the year-end target, which is set at 4,600. By the end of 2022, the strategist expects an additional run of up to 5,000 points.

It should be noted that the index rallied above + 20% in 2021, more than doubling its value from the pandemic minimum tested in March 2020.

From the macroeconomic front, the Case-Shiller index was released today, which monitors the trend in house prices in the 20 main metropolitan areas. The index, relating to the month of July, rose by 19.1% on an annual basis, better than the + 18.5% expected and in further acceleration compared to the jump of + 17% in June.

From the corporate front, the Zoom Video stock has fallen to -12% in afterhours trading on Wall Street, after the video conferencing software company, whose success has increased exponentially during the lockdowns of the Covid-19 pandemic , announced a better than expected balance sheet, but slowing down compared to the previous quarter.

Earnings beat consensus, as did revenue, which hit and crossed the $ 1 billion mark for the first time.

To be precise, Zoom Video’s turnover stood at $ 1.02 billion, better than the $ 991 million forecast, and with a respectable growth of + 54% year-on-year.

However, in the previous quarter, growth was + 191%. Furthermore, for the next quarter, Zoom expects a turnover expansion of just + 31%. In short, the slowdown in the growth rate is evident. Sales sink the title, which suffers a thud of more than -15%.

Focus also on the stock Alphabet, the holding company to which Google belongs, whose stock yesterday tested a new historical record that brought the company one step away from the market capitalization of $ 2 trillion, a threshold already exceeded by Apple and Microsoft. However, today the action retraces, as well as Apple and between the Big Tech also Tesla and Nvidia lose.

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In general, investors are waiting to know the real crucial market mover of the week, ergo the employment report for August, which will be released on Friday 3 September at 2.30 pm Italian time, in view of the Labor Day weekend.

Economists interviewed by Dow Jones predict the creation of 750,000 new jobs, while the unemployment rate falls to 5.2%.

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