Stock Market News For Jul 1, 2019
Zacks Investment Research | Jun 30, 2019 09:30PM ET
Wall Street closed higher on Friday buoyed by strong performance of bank stocks after the Fed released results for the second round of stress test. Investors also cautiously awaited for the outcome of the meeting between U.S. President Donald trump and Chinese leader Xi Jinping scheduled to take place at the G-20 summit in Japan. All three major stock indexes finished in the green.
However, for the week as a whole, all three indexes closed in the red. In contrast, for the month of June, the indexes hit record highs. The Dow and S&P 500 posted their best June in 81 and 64 years, respectively. The Nasdaq Composite recorded its best June in nearly two decades. In the second quarter and first half of 2019, the indexes also performed impressively. Notably, the S&P 500 registered its strongest gains for the first half in 22 years.
The Dow Jones Industrial Average (DJI) gained 0.3% to close at 26,599.96. The S&P 500 climbed 0.6% to close at 2,941.76. Meanwhile, the Nasdaq Composite Index closed at 8,006.24, rising 0.5%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.7% to close at 15.08. A total of 10.26 billion shares were traded on Friday, higher than the last 20-session average of 7.11 billion. Advancers outnumbered decliners on the NYSE by a 2.84-to-1 ratio. On Nasdaq, a 2.66-to-1 ratio favored advancing issues.
How Did The Benchmarks Perform?
The Dow closed in positive territory with 17 components of the 30-stock blue-chip index closing in the green while thirteen finished in the red. The tech-heavy Nasdaq Composite ended in the green due to strong performance by large-cap stocks. The S&P 500 also closed in positive territory. The Financials Select Sector SPDR (XLF) and Energy Select Sector SPDR (XLE (NYSE:XLE)) surged 1.6% and 1.2%, respectively. Notably, nine out of total 11 sectors of the benchmark index closed in the green while two ended in the red.
Bank Stocks Surge
After the market close on Jun 27, the Federal Reserve declared results of the second round of stress test of 18 major banks operating in the United States. Barring the one, all seventeen banks successfully cleared the requirements of the Fed. With this, these banks got the central bank’s approval to raise dividend and enlarge their share repurchase programs.
Consequently, shares of JPMorgan Chase & Co. (NYSE:JPM) , The Goldman Sachs Group Inc. (NYSE:GS) and Citigroup Inc. (NYSE:C) climbed 2.7%, 2.7% and 2.8%, respectively. All three stocks carry a Zacks Rank #3 (Hold). You can see Original post
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