Seven Sessions and Five All-Time Highs in a Row | Wall Street Today

Moomoo Recap US joined discussion · Jul 10 15:49

Seven Sessions and Five All-Time Highs in a Row | Wall Street Today

US stocks advanced for the seventh session on Wednesday, lifting the $S&P 500 Index (.SPX.US)$ above 5,600 for the first time ever. The index hit a fresh all-time high and closing high, climbing 1.02% to 5,633.

The $Nasdaq Composite Index (.IXIC.US)$ hit an all-time high and closing high as well, climbing 1.18% to 18,647. The $Dow Jones Industrial Average (.DJI.US)$ recently was up 0.5% and the Nasdaq Composite index was rising 1.09%.

Jerome Powell spoke in front of the Senate again Wednesday, but he refrained from making specific predictions about rate cuts. The moomoo team arrived at our new office overlooking Manhattan and the Hudson River!

MACRO

In macroeconomics this week, investors can watch for CPI data on Thursday, expected at 3.1%, and Core at 3.4%. PPI comes out Friday, expected at 0.2% core. Investors watched Powell speak in front of yet another Capitol Hill committee, where he said the Fed was waiting for a consensus before acting on interest rate changes, but they were ready to go.

Tuesday, Federal Reserve Chair Jerome Powell said he would like more data supporting rate cuts, but the Fed keeps its options open.

"We know that reducing policy restraint too soon or too much could stall or even reverse the progress we have seen on inflation," Powell said. "In light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face."

Powell pointed to rising unemployment numbers over the past three months as an example of a cooling market. He said the unemployment rate most recently peaked at 4.1% in June, while payrolls have shown an increase of 222,000 a month for the past six months. He attributed the job-to-workers gap fall to increased labor participation and strong immigration numbers.

He said that, compared to two years ago, the labor market had cooled significantly to just above where it sat in 2019 and that inflation was not the Fed's only concern. Wednesday, he also said the Fed does not need inflation below 2% before cutting rates, just evidence inflation is on its way there.

"Reducing policy restraint too late or too little could unduly weaken economic activity and employment," Powell said.

SECTORS

Crude oil futures climbed 1.44% after the weekly supply data fell. Government data showed Wednesday that commercial crude stockpiles in the US posted a surprise draw last week as motor gasoline inventories declined.

Inventories of crude, excluding the strategic petroleum reserve, declined by 3.4 million barrels to 445.1 million barrels through the week ended July 5, the Energy Information Administration said. The consensus estimate on Bloomberg was for a build of 1 million barrels.

Meanwhile, Bitcoin fell 0.47%, resting at $57k/coin. Gold traded higher early on Wednesday as the dollar and yields weakened ahead of the second day of Federal Reserve Chair Jerome Powell's congressional testimony.

$Gold Futures(DEC4) (GCmain.US)$ was last seen up US$20.00 to US$2,387.90 per ounce. The rise comes as Powell continues his semi-annual testimony to Congress and his appearance before House lawmakers. His remarks are being closely watched for any indication of when the central bank will begin lowering interest rates. However, in Tuesday's remarks to the Senate, Powell offered little detail on the Fed's plans while the U.S. 2-year and U.S. 10-year treasury note yields traded lower.

MOOVERS

$Advanced Micro Devices (AMD.US)$ were trading 3.8% higher after the chip maker announced a deal to acquire Silo AI -- the largest private AI lab in Europe -- in an all-cash transaction valued at about $665 million. The stock was the highest gainer on the Nasdaq 100, and second on the S&P 500 only to $CarMax (KMX.US)$, climbing 6%.

Shares of $Taiwan Semiconductor (TSM.US)$, the largest semiconductor maker in the world were advancing nearly 4% Wednesday after the world's largest third-party chip manufacturer reported a surge in sales.

$LegalZoom (LZ.US)$ announced CEO Dan Wernikoff is resigning from the company's board of directors. The lowered its full-year guidance, and on Wednesday, the stock fell while analysts cut their expectations.

Thursday, investors are watching for $Delta Air Lines (DAL.US)$ earnings, and Friday, watch the true start of the earnings season when $JPMorgan (JPM.US)$ reports.

As industries go, as tracked by moomoo, Uranium companies were climbing higher by 8% on average. $Uranium Royalty (UROY.US)$ led the pack, up 9.5%.

Word from the herd: Mooers, what are you watching?
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