Stocks Higher as Positive Earnings Bolster Optimism…..

U.S. equities closed higher as optimism surrounding more positive earnings helped stocks overcome an early malaise. Several key market themes that have been on investor’s minds continued to hold sway, as the markets appeared enthusiastic at more largely positive earnings results, but also stayed mindful over concerns regarding China’s further clampdown on big business and persistent Delta variant worries. Meanwhile, the markets kept an eye on developments in Washington as movement on a bipartisan $1 trillion infrastructure package began to heat up. Q2 earnings results remained front and center as Take-Two Interactive Software bested forecasts, but analysts scrutinized its guidance, Eli Lilly missed amid lower demand for its COVID-19 antibody therapy, while Under Armour trounced estimates and upped its outlook. In more M&A news, Marvell Technology announced it will acquire Innovium for $1.1 billion in stock. Treasuries were little changed, amid a light economic calendar that showed an increase in factory orders. The U.S. dollar was little changed, while gold lost ground and crude oil prices added to yesterday’s fall. Asia finished mixed as China remained the focus, while stocks in Europe also closed mixed amid some upbeat earnings in the region.

The Dow Jones Industrial Average advanced 278 points (0.8%) to 35,116, the S&P 500 Index gained 36 points (0.8%) to 4,423, and the Nasdaq Composite increased 80 points (0.6%) to 14,761. In moderately heavy volume, 918 million shares were traded on the NYSE and 4.1 billion shares changed hands on the Nasdaq. WTI crude oil fell $0.70 to $70.56 per barrel. Elsewhere, the gold spot price decreased $8.10 to $1,814.10 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was little changed at 92.06.

Factory orders increase, Treasuries little changed…..

Factory orders rose 1.5% m/m in June, versus estimates of a 1.0% gain, and compared to May’s favorably-revised 2.3% increase. Durable goods orders—preliminarily reported last week—were revised to a 0.9% increase for June, and excluding transportation, orders were upwardly-adjusted to a 0.5% advance. Finally, nondefense capital goods orders excluding aircraft—considered a proxy for capital spending—were revised higher from a 0.5% gain to a 0.7% rise.

Treasuries were little changed, with the yields on the 2-year note, 10-year note and 30-year bond all flat at 0.17%, 1.17% and 1.85%, respectively.

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