Stocks hit a 5-month high as earnings season rolls on

James Gorman

Stocks rose Wednesday, with the S&P 500 hitting a five-month peak, as strong earnings reports propelled financials and industrials higher. The dollar and Treasury yields climbed. 

Here’s the scoreboard:

Dow Jones industrial average: 25,197.32 +77.43 (+0.31%)

S&P 500: 2,816.03 +6.48 (+0.23%)

  1. The US housing market tumbled in JuneHousing starts fell to a nine-month low last month, the Commerce Department said, down more than 12% from May. Construction permits also saw a third month of decline. Analysts say rising supply costs and mortgage rates could be pressuring an existing housing shortage.
  2. President Donald Trump said he might aim for separate trade deals with Mexico and Canada. The suggestion casts further doubt on the future of the two-decades-old North American Free Trade Agreement, which Trump has threatened to scrap.
  3. US oil production hit 11 million barrels per day for the first time. Domestic stockpiles unexpectedly rose by 5.8 million barrels, compared with analyst expectations for a two to three million barrel drawdown. Weighing that against output disruptions in Libya and Venezuela, oil jumped more nearly 2%. 
  4. Earnings season rolls on. Morgan Stanley beat analyst expectations on multiple fronts, with second-quarter earnings up 39% from a year ago.

And a look at the upcoming economic calendar:

  • Retail sales numbers are out in the UK.
  • The Philadelphia Federal Reserve releases its manufacturing index.
  • Microsoft and Blackstone report earnings. 

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Read the full article from it’s original source: http://uk.businessinsider.com/stocks-hit-5-month-high-earnings-season-rolls-on-2018-7

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