Nasdaq, S&P, and Dow rise after a raft of economic data
Major market averages opened trading on Tuesday higher following a decline to start the week, with growth stocks rebounding a little.
Early on and the Nasdaq Composite (COMP.IND) advanced by 0.5%, the S&P 500 (SP500) gained 0.3%, and the Dow (DJI) rose 0.3%.
Tech stocks also continued to struggle in the previous session. The Nasdaq (COMP.IND) and FANG+ index (FNGS) fell to a 2-week low, "with the latter seeing its sharpest daily fall since February," Deutsche Bank noted. "The FANG+ decline came as all 10 stocks were lower."
The 10-year Treasury yield (US10Y) was higher by 3 basis points to 3.74% and the 2-year yield (US2Y) gained 5 basis points to 4.72%.
ECB President Christine Lagarde remained hawkish at her Sintra speech this morning.
"The president repeated the message from last month’s policy meeting that the central bank is all but certain to raise rates in July, but otherwise noted that: 'My intention is not to signal any future decisions, but rather to frame the issues that monetary policy will face in the period ahead,'" Pantheon Macro said. "In other words, the president refuses to get pinned down on the decision in September. Judging by the tone of today’s speech more generally, however, we are sticking with our view that the ECB will increase its key policy rate by 25bp in September."
Back in the U.S., May durables good orders arrived at +1.7% above the economists expected 1% decline, with core durables good orders coming in at +0.6%.
"US May durable goods orders data has a very wide forecast range, so the consensus number is not a reliable measure," UBS' Paul Donovan said. "The surge in demand for consumer durable goods has faded, pushing that sector of the US economy into deflation. However, the balance between goods and services demand may be stabilizing."
Additionally, the S&P Case Shiller April home price index rose more than expected. hits. Seasonally adjusted HPI Composite for 20 cities was +0.9% versus the expected +0.5%.
The Conference Board's June consumer confidence index came in at 109.7 compared to the anticipated 104 figure.
At the same time May new home sales figures surged. May new home sales jumped +12.2% to 763K versus the forecasted 675K number.
Among active stocks, Lordstown Motors (RIDE) plunged after filing for Chapter 11.
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Source: Seeking Alpha
