Thursday, July 29, 2021

business

Stock traders ride growth-into-value rotation


Another batch of strong economic reports added fuel to the rotation into stocks that stand to benefit the most from a U.S. reopening.

Almost every major group in the S&P 500 advanced, while technology companies underperformed. The benchmark gauge of American equities rose for a sixth straight day, heading toward its longest winning streak since February. Treasuries were little changed. Oil climbed as OPEC+ ministers recommended a gradual increase in output until the end of the year, though the group's meeting was delayed until Friday to resolve an internal dispute.

U.S. manufacturing expanded at a solid, yet slightly slower pace in June, with a measure of prices paid for materials hitting an almost 42-year high. Applications for state unemployment insurance fell last week by more than projected, reaching a fresh pandemic low. The figures come ahead of Friday's monthly payrolls report, which will help shape expectations of when the Federal Reserve might start tapering stimulus.

"With economic and earnings growth prospects robust, policy accommodative, and valuations still appealing relative to bonds, we believe the current environment is supportive of further equity gains," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note to clients.

However, Haefele is among the strategists advising investors to brace for bouts of volatility ahead. He cites inflation concerns, the spread of coronavirus variants and geopolitical tensions as potential catalysts.

Among the corporate highlights, Robinhood Markets Inc. filed for an initial public offering, saying it has applied to list on the Nasdaq under the symbol "HOOD." Walgreens Boots Alliance Inc. slid after the drugstore chain signaled a slowdown in earnings growth and an increase in investments over the coming months.

These are some of the main moves in markets:

Stocks

- The S&P 500 rose 0.5% as of 2:51 p.m. EDT

- The Nasdaq 100 was little changed

- The Dow Jones industrial average rose 0.3%

- The MSCI World index rose 0.2%

- The Russell 2000 Index rose 0.9%

Currencies

- The Bloomberg Dollar Spot Index rose 0.3%

- The euro fell 0.1% to $1.1844

- The British pound fell 0.5% to $1.3756

- The Japanese yen fell 0.5% to 111.62 per dollar

Bonds

- The yield on 10-year Treasurys advanced one basis point to 1.48%

- Germany's 10-year yield was little changed at -0.20%

- Britain's 10-year yield advanced one basis point to 0.73%

Commodities

- West Texas Intermediate crude rose 2.1% to $75.01 a barrel

- Gold futures rose 0.2% to $1,775.10 an ounce

Published : July 02, 2021

By : Syndication Washington Post, Bloomberg · Rita Nazareth, Vildana Hajric