The S&P 500 rose to a record for the final session of June, its fifth straight closing high, while the Dow jumped over 200 points, to close out a strong first half of the year. Wednesday was the last day of the second quarter and final day of the first half of 2021.
For the month, the Nasdaq outperformed with a rise of 5.49%, while the S&P 500 increased over 2% and the Dow slipped 0.08% lower. For the quarter, the Nasdaq also outperformed with a rise of 9.49%, and the S&P 500 and Dow climbed by 8.2% and 4.6%, respectively. For the year, the S&P 500 rose by 14.4%, while the Nasdaq and Dow both increased by more than 12%.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Gap to see nearly $1 billion sales benefit from Yeezy line, says Wells Fargo:
Gap's
Wells Fargo analyst Ike Boruchow wrote in a note to clients on Wednesday that the Yeezy line could drive up $990 million in sales for Gap in fiscal 2022, and boost earnings by roughly 50 cents per share. By fiscal 2026, the partnership could add about $1.50 per share to earnings, according to Boruchow.
One reason is that the analysts expect the Yeezy merchandise to have a margin rate of about 50%, which is high for apparel, given that most of it should be sold at full price, Boruchow added.
Pending home sales skyrocket in May:
Pending home sales jumped higher in May after April's decline, rebounding on falling mortgage rates which offset affordability pressures from high demand and low inventory.
Pending home sales were up 8% in May month-on-month, reversing April's 4.4% drop, according to data from the National Association of Realtors released Wednesday. This brought the pending home sales index to 114.7, or the highest reading for the month of May since 2005.
"May's strong increase in transactions--following April's decline, as well as sudden erosion in home affordability--was indeed a surprise," Lawrence Yun, NAR's chief economist, said in a statement. "The housing market is attracting buyers due to the decline in mortgage rates, which fell below 3%, and from an uptick in listings."
Bipartisan infrastructure deal to boost economic growth, lower national debt, says Wharton School study:
The bipartisan infrastructure deal reached by President Joe Biden and a group of senators last week would not only add to U.S. economic growth, but will also lower the national debt, according to a new study from the University of Pennsylvania's Wharton School.
Researchers at the Wharton School said the additional $579 billion in new infrastructure spending would increase domestic output by 0.1% and decrease the U.S. debt by 0.9% by 2050.
"Over time, as the new spending declines, IRS enforcement continues, and revenue grows from higher output, the government debt declines relative to baseline by 0.4% and 0.9% in 2040 and 2050 respectively," the Wharton team wrote.
Here's how the benchmarks started trading after market open:
S&P 500 Index: -0.04% or -1.85 points to 4,289.95
Dow Jones Industrial Average: -0.01% or -1.85 points to 34,290.44
Nasdaq Composite Index: -0.21% or -30.31 points to 14,494.10
Private payrolls rose more than expected in June:
Private payrolls rose by more-than-expected in June as businesses sought to fill more positions as the U.S. economy continues to recover from the coronavirus pandemic.
Private payrolls increased by 692,000 in June, according to the ADP's report on Wednesday, marking a sixth straight monthly rise. June's rise following May's downwardly revised growth of 886,000 jobs.
June's payroll rise was driven by a strong improvement in service-sector employment, with leisure and hospitality positions increasing by 332,000 in June to add to the 414,000 gain in May.
