The New York stock market closed mixed on the 25th (local time).
Big tech companies that are about to announce their earnings showed strong performance for a long time, and the Nasdaq index rose again, setting an all-time intraday record. However, U.S. Treasury yields were an obstacle to the market again that day, and the direction was shaken as oil prices rose and market volatility increased due to the situation in the Middle East.
On this day, on the New York Stock Exchange (NYSE), the blue chip group Dow Jones Industrial Average closed at 42,114.40, down 259.96 points (0.61%) from the previous day. The large-cap benchmark Standard & Poor’s (S&P) 500 index recorded 5,808.12, down 1.74 points (0.03%) from the previous day, and the Nasdaq Composite Index, centered on technology stocks, recorded 18,518.61, up 103.12 points (0.56%) from the previous day.
The NASDAQ rose to 18,690.01 during the day, breaking the record for the highest point in three months. All stocks of the large technology stock group ‘Magnificent 7’ (M7) rose, leading the rise.
Tesla opened the M7 performance announcement season with solid performance and a bright outlook, and its stock price soared 21.92% the day before, and rose 3.34% that day, raising the weekly increase rate to 22.91%.
Nvidia rose 0.80%, Microsoft 0.81%, Apple 0.36%, Alphabet (Google parent company) 1.57%, Amazon 0.78%, and Facebook parent company Meta 0.96%.
The Nasdaq index continued its upward trend for seven consecutive weeks on a weekly basis, the longest weekly winning streak this year. On the other hand, the Dow index fell for 5 consecutive trading days and the S&P 500 index fell for 2 consecutive trading days, failing to continue rising for 6 consecutive weeks on a weekly basis.
Geopolitical concerns in the Middle East have reared their heads again. Amid speculation that Israel’s retaliation for Iran’s missile attack on Israel on the 1st is imminent, Central Command (CENTCOM), which oversees U.S. forces in the Middle East, relocated F-16 fighter jets from Germany to the Middle East on this day. It was announced that it had been deployed. Afterwards, international oil prices soared.
The company’s performance announcement continued on this day. Western Digital (WDC), a HDD, SSD, and flash memory semiconductor manufacturer, rose 4.72% in its stock price thanks to its strong performance.
Low-cost airline Spirit’s stock price soared 15.05% as it announced a cost-cutting plan, including a plan to restructure management-level personnel.
The merger plan between Capri, which owns luxury brands Michael Kors and Versace, and Tapestry, the parent company of Coach, was scuttled by a federal court ruling that found the company guilty of violating antitrust laws. As a result, Capri’s stock price plummeted 48.89%, and Tapestry’s stock price jumped 13.54%.
Colgate-Palm Olive, a global consumer goods company, exceeded market expectations in both sales and earnings per share (EPS), but its stock price fell 4.14% due to poor sales growth in North America, which accounts for 20% of total sales.
AutoNation, which operates the largest automobile dealer chain in the United States, saw its stock price fall 4.52% as the aftermath of the cyberattack on CDK, an automobile sales management software provider that occurred in July, was reflected in its earnings report.
Shoe brand Skechers’ stock price fell 3.93% even after reporting good results.
By industry, among the 11 industries that make up the S&P 500, four industries rose: consumer discretionary (0.48%), energy (0.06%), technology (0.59%), and communication services (0.71%), while consumer staples (0.76%) and finance rose. Seven industries fell: (1.05%), healthcare (0.53%), industrial goods (0.25%), materials (0.64%), real estate (0.76%), and utilities (1.46%).
Philip Kolmar, global strategist at MRB Partners, a financial information company, said, “The noticeably high level of government bond yields seems to be a problem for the stock market.” He added, “High bond yields have created a lot of uncertainty, and the market is trying to digest it. “There is,” he said.
Megan Honeman, chief investment officer at Buddens Capital, said, “Today’s market performance is related to Treasury yields.”
At the stock market closing time, the 10-year U.S. Treasury bond interest rate stood at 4.24%, up 3.8bp (1bp=0.01%) from the previous day. The dollar index also showed 104.32, 0.26 (0.25%) higher than the previous day.
As Republican presidential candidate former President Donald Trump’s chances of victory increase, the strong dollar and sharp rise in U.S. Treasury yields are expected to continue for the time being.
Reporter Park Geun-ah [email protected]
