The major market indexes finished a holiday-shortened week in fine fashion, leaving behind Thursday's Treasury-rate tumult to end today at record highs.
After falling to its lowest level since February yesterday, the 10-year Treasury yield stabilized, settling up 7 basis points (one basis point is one-one hundredth of a percentage point) to 1.36%.
Also moving higher today were reopening stocks like American Airlines (AAL, +2.7%) and Carnival (CCL, +2.3%), as well as financials (+2.8%).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow Jones Industrial Average gained 1.3% to finish at 34,870 as big banks Goldman Sachs (GS, +3.6%) and JPMorgan Chase (JPM, +3.2%) surged ahead of next week's earnings reports, while the S&P 500 Index jumped 1.1% to 4,369. Even the Nasdaq Composite brushed off news of President Joe Biden's executive order aimed at promoting competition in a wide range of sectors, including technology, to finish up 1.0% at 14,701.
Other action in the stock market today:
- The small-cap Russell 2000 rose 2.2% to 2,280.
- Discover Financial Services (DFS) jumped 6.2% today. Citi upgraded the big bank stock to Buy, saying it "has the clearest near-term path to benefit from the return of consumer card spending and lending as pandemic-related benefits expire and elevated payment rates return to lower levels."
- There were a number of stocks that moved on M&A news today. Philip Morris International (PM) rose 1.1% after the tobacco titan said it was buying U.K. respiratory treatment specialist Vectura for $1.4 billion. Additionally, Stamps.com (STMP) soared 64.0% after the mailing company agreed to be taken private by Thoma Bravo in a deal valued at $6.6 billion.
- U.S. crude oil futures spiked 2.3% to $74.60 per barrel, but still fell 0.8% on the week.
- Gold futures gained 0.6% to finish at $1,810.60 an ounce. For the week, gold rose 1.5% – its third consecutive weekly win.
- The CBOE Volatility Index (VIX) plunged 14.8% to end at 16.18.
- Bitcoin added 1.3% to $33,446.99. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.
So, What's in Store for Next Week?
While the start to second-quarter earnings season will certainly be front and center, Wall Street will also be watching inflation with the latest consumer price index (CPI) due out ahead of the opening bell on Tuesday, July 13.
Last month's CPI reading rose 5% on a year-over-year basis – its biggest annual increase since August 2008. And according to Gargi Chaudhuri, head of iShares Investment Strategy, Americas at BlackRock, inflation is going to continue to run hot. This is due to several factors, including the Fed's easy money policy, higher production costs and supply bottlenecks.
However, Chaudhuri says that the rising-inflation trend bodes well for "cyclically oriented value stocks in sectors such as financials that have been strong performers so far in 2021."
For investors looking to position for higher inflation, we've recently compiled a list of top-rated financial stocks to watch for the remainder of the year. These are the most compelling plays in the space, according to Wall Street's analysts. Check them out here.
-
What the Comcast Cable Spinoff Means for InvestorsComcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.
-
TJX Stock: Wall Street Stays Bullish After EarningsTJX stock is trading lower Wednesday despite the TJ Maxx owner's beat-and-raise quarter, but analysts aren't worried. Here's why.
-
Travel Stocks I've Got an Eye OnGoing places to gather experiences, learn and relax is what people do as income grows and these travel stocks are likely to benefit from that trend.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
Stock Market Today: Stocks Pause as Investors Assess Fed PolicyThe Federal Reserve met expectations with a quarter-point rate cut.
-
Stock Market Today: Dow Jumps 1,500 Points on Election OutcomeThe removal of election uncertainty unleashed a powerful rally in equity markets.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Stock Market Today: Markets March Higher as Strong Earnings Offset Weakness in ChipsUpbeat quarterly results helped stocks bounce back with broad-based gains.
-
Stock Market Today: UnitedHealth Selloff Drags on DowWhile the main indexes ended in the red, Walgreens Boots Alliance had its best day since 2008.
-
Is Goldman Sachs Stock Still a Buy After Earnings?Goldman Sachs stock is struggling for direction Tuesday even after the financial giant beat expectations for its third quarter. Here's what you need to know.
