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Stock Market News for Jun 28, 2023

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Wall Street ended sharply higher on Tuesday, pulled up by tech stocks. Investor mood was upbeat on the release of a slew of economic data, reflecting a strong economy and allaying fears of a recession. All three major indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.6% or 212.03 points to close at 33,926.74. Twenty-three components of the 30-stock index ended in positive territory, while seven ended in negative.

The S&P 500 gained 1.2%, or 49.59 points to close at 4,378.41. Ten of the 11 broad sectors of the benchmark index ended in positive territory. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) advanced 2.2%, 2% and 1.7%, respectively, while the Health Care Select Sector SPDR (XLV) slid 0.2%.

The tech-heavy Nasdaq advanced 219.90 points, or 1.7%, to finish at 13,555.67.

The fear-gauge CBOE Volatility Index (VIX) was down 3.6% at 13.74. A total of 10.2 billion shares were traded on Tuesday, lower than the last 20-session average of 11.6 billion. Advancers outnumbered decliners on the NYSE by a 2.55-to-1 ratio. On the Nasdaq, a 1.54-1 ratio favored the advancing issues.

Economic Data Lifts Investor Mood

The U.S. benchmark stock indexes rebounded from their recent losing trend and had a winning Tuesday, mainly driven by economic data. Numbers showed that the economy remains reslilient. Investor activity reflected that there was too much talk about an impending recession even as various sectors continued to return robust numbers.

Risk remains, however, that if these numbers persist, the Fed would re-emabark on its policy-tightening path. According to CME Group's Fedwatch tool, market participants were pricing in a 77% chance that the central bank will raise interest rates by 25 bps to the 5.25-5.50% range in its July meeting. Nonetheless, this slew of economic data comes in an apt time to lift investor mood.

The Conference Board reported that the consumer confidence index rose to 109.7 in June, its highest level since January 2022, from 102.5 in May. The May number was revised from 102.3.

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales had come in at 763,000 for May, 12.2% up from the revised April figure of 680,000. The April number was revised down from 683,000.

Case-Shiller Home Prices showed a 1% month-over-month increase for the 10-City Composite, and a 0.9% increase for the 20-City Composite for the month of April.

Per a government report, durable orders for May increased 1.7% after increasing 1.2% in April. The April figure was revised up from 1.1%.

Riding on these, the Dow Jones Industrial Average turned green for the first time in seven sessions. The biggest impact this slew of robust economic data had in the session, however, was on mega-cap growth and tech stocks, which drove the spoils of the day.

Consequently, shares of Microsoft Corporation (MSFT - Free Report) and Apple Inc. (AAPL - Free Report) increased 1.8% and 1.5%, respectively. Each carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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