Stocks Closed Higher, Nasdaq Leads The Way Image: Bigstock Stocks closed higher again yesterday. The Nasdaq led the way with 1.58%, while the S&P added 0.59%. The Dow was up a more modest 0.15%. Once again, another day of strong earnings helped lift stocks. So did continued optimism in the semiconductor industry over the $52 billion CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America), which advanced in the Senate on Tuesday. That paves the way for the Senate to vote on the bill later this week or next. And then the House after that. But the news wasn't all good yesterday. Existing Home Sales fell to 5.12 million units (annualized) vs. last month's 5.41M and views for 5.395M, for a decline of -5.4% m/m, and -14.2% y/y. And MBA Mortgage Applications fell -6.3%, with purchases down -7.3% and refi's down -4.3%. That puts mortgage demand at a 22-year low. Today we'll get Weekly Jobless Claims, the Philadelphia Fed Manufacturing Index, and Leading Indicators. And, of course, more earnings. There's another 100 companies on deck to report today (145 in total for the rest of the week). And then another 1,056 next week. While earnings are the main focus this week, traders will soon shift their attention to interest rates next Wednesday, July 27th. That's when the Fed's 2-day FOMC Meeting concludes and they announce how high they lifted interest rates (50, 75, or 100 basis points). The consensus appears to be for 75 bp. But we'll soon know for certain next week. In the meantime, stocks continue to trade above last month's lows. And if everything goes well, this week will be week number 5. Since the lows were put in, the Dow is up 6.51%, the S&P is up 7.99%, and the Nasdaq is up 11.76%. Stocks still have a long way to go to make up for lost ground this year. But they have been responding well lately. The standout performers this year, however, are commodities. Yes, that includes oil and gas for sure. But also metals, grains, lumber, meats, coffee, and more. But you don't have to trade the actual commodities to profit from these moves. There are plenty of stocks and ETFs to capture these gains. To learn more about the asset class that's been soaring this year throughout high inflation, rising interest rates, and geopolitical upheavals, please read our latest commentary... These Ignored Assets Beat Your Favorite Stocks Best, Kevin Matras Executive Vice President, Zacks Investment Research |
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