The Dow Jones Industrial Average closed at 26,362.25 on Thursday with a gain of 326.15 points or 1.25%. The S&P 500 closed at 2,924.58 for a gain of 36.64 points or 1.27%. The Nasdaq Composite closed at 7,973.39 for a gain of 116.51 points or 1.48%. The VIX Volatility Index was lower at 17.88 for a loss of 1.47 points or -7.60%.
Thursday's market movers
U.S. indexes gained for a second day with several key contributors. China said it would not immediately retaliate to match the U.S.'s tariffs going into effect on Sept. 1. Chinese officials also reported willingness to negotiate, with potential meetings planned for September. On the economic calendar, the gross domestic product remained stable, down just 0.1% from the first estimate for a second-quarter growth report of 2%. Corporate profits were better than expected with a second-quarter increase of 5.1%, beating expectations of 2.9%.
In the S&P 500, the technology and industrial sectors led gains. In Treasuries, longer-term yields were higher and the yield curve remained inverted. The 10-year Treasury's yield ended at 1.504%.
In the U.K., Queen Elizabeth agreed to a suspension of parliament. In currencies, the U.S. Dollar Index increased and the U.S. dollar gained 0.23% against the pound.
Economic reports affecting market trading included the following:
- The second estimate of second-quarter GDP growth was 2%, down from 2.1% in the advance estimate.
- Corporate profits increased 5.1% in the second quarter, beating expectations of 2.9% and following a decrease of 4.1% from the fourth quarter to the first quarter.
- The goods trade balance showed a deficit of $72.34 billion in July.
- Wholesale inventories increased 0.2% in July.
- Retail inventories increased 0.8% in July.
- Jobless claims increased to 215,000 from 211,000.
- Pending home sales decreased 2.5% in July following an increase of 2.8%. Year over year, pending home sales were down 0.3% following an increase of 1.6%.
- The Treasury held auctions for four-week bills at a rate of 2.060%, eight-week bills at a rate of 1.990% and seven-year notes at a rate of 1.489%.
- Mortgage rates were slightly higher according to Freddie Mac's weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.58%, increasing from 3.55%. The 15-year fixed-rate mortgage averaged 3.06%, increasing from 3.03%.
In the Dow Jones Industrial Average, the following stocks led gains:
- Caterpillar (NYSE:CAT) 2.53%
- Home Depot (NYSE:HD) 2.42%
- Intel (NASDAQ:INTC) 2.36%
In small caps, the Russell 2000 closed at 1,496.72 for a gain of 24.01 points or 1.63%. The S&P 600 closed at 920.04 for a gain of 14.02 points or 1.55%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,730.28 for a gain of 147.99 points or 1.54%. The Dow Jones U.S. Small-Cap Value Index closed at 9,026.07 for a gain of 136.49 points or 1.54%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,877.21 for a gain of 27.26 points or 1.47%; the S&P 100 at 1,291.77 for a gain of 15.53 points or 1.22%; the Nasdaq 100 at 7,702.31 for a gain of 114.42 points or 1.51%; the Russell 3000 at 1,714.43 for a gain of 22.06 points or 1.30%; the Russell 1000 at 1,617.64 for a gain of 20.46 points or 1.28%; the Wilshire 5000 at 29,887.89 for a gain of 384.84 points or 1.30%; and the Dow Jones U.S. Select Dividend Index at 694.87 for a gain of 7.30 points or 1.06%.
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This article first appeared on GuruFocus.
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