US major averages rise after wrapping up winning month

Market Reports

by Peter Milios

Stocks rose modestly Monday as Wall Street kicked off a busy earnings week and wrapped up a winning month.

For the month of July, the S&P 500 jumped 3.1 per cent to notch its fifth consecutive positive month for the first time since its seven-month streak ending August 2021.

The tech-heavy Nasdaq Composite gained about 4.1 per cent and registered its fifth straight winning month for the first time since April 2021.

The blue-chip Dow added about 3.4 per cent. Last week, the index posted a 13-day advance that matched its longest streak of gains going back to 1987.

Overall, the Dow Jones Industrial Average added 100.24 points, or 0.28 per cent, to settle at 33,559.53. The S&P 500 edged up 0.15 per cent to close at 4,588.96, and the Nasdaq Composite rose 0.21 per cent to end at 14,346.02.

Investors in recent weeks have grown increasingly more hopeful about a soft landing scenario as economic data shows ongoing strength in the labour market and cooling inflation. Second-quarter earnings also continue to trickle in better than expected.

While earnings season is more than halfway through, investors are keeping an eye on Thursday's reports from Amazon and Apple, which could "set the tone" for the rest of the market.

Last week, the Federal Reserve hiked rates to their highest level in more than 22 years after passing a much-anticipated quarter-point hike. Fed Chair Jerome Powell said the central bank will make data-driven decisions on a "meeting-by-meeting" basis.

Along with earnings, investors remain focused on Friday's jobs report. Economists polled by Dow Jones expect the US economy to have added 200,000 jobs in July. Nonfarm payrolls increased 209,000 in June.

In commodity news, oil is on track for its biggest monthly gain in over a year due to indications of a tightening market, as analysts suggest that crude demand is at a record level while OPEC+ reduces production.

New York crude futures have recovered their year-to-date losses and surged over 15 per cent this month, potentially achieving the largest gain since January 2022, partly boosted by expectations of the Federal Reserve's nearing end of monetary policy tightening.

Turning to US sectors, most closed higher overnight. On the back of the news that oil is on track for its biggest monhtly gain in over a year, Energy was the best performer. Healthcare was the worst performer.

US Commerce Secretary Gina Raimondo is considering a visit to China in late August as part of the Biden administration's efforts to ease tensions between the US and China, the world's two largest economies. The planned trip is aimed at reducing friction and fostering dialogue. However, specific dates for the visit have not been confirmed yet and are subject to change.


The SPI futures are pointing to a 0.3 per cent gain.


One Australian dollar at 7:20 AM was buying 67.20 US cents.


Gold added 0.47 per cent. Silver gained 1.95 per cent. Copper advanced 2.08 per cent. Oil gained 1.51 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.07 per cent, Frankfurt fell 0.14 per cent, and Paris closed 0.28 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.26 per cent, Hong Kong’s Hang Seng added 0.82 per cent while China’s Shanghai Composite closed 0.46 per cent higher.

The Australian sharemarket closed 0.09 per cent higher at 7410.


NB Global Corporate Income Trust (ASX:NBI) is paying 1.2179 cents unfranked
Partners Grp Global (ASX:PGG) is paying 1.35 cents unfranked

Dividends payable

Collins Foods (ASX:CKF)
Blackmores (ASX:BKL)
Timah Resources (ASX:TML)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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