4:05pm: US equities close higher
US stocks closed higher after Pfizer (NYSE:PFE)’s COVID-19 vaccine won full regulatory approval.
Both the S&P 500 and the Nasdaq closed at record highs.
On the day, the Dow rose 26 points, or 0.09%, to 35,366 and the S&P 500 increased 0.15% to 4,46. The tech-heavy jumped 0.52% to 15,019.
12.05 pm: Record run for the Nasdaq continues as growth stocks lead the advance
US stocks continued to push higher in noon trading as optimism over recent corporate earnings and an economic reopening outweighed COVID Delta variant concerns and worries over changes to monetary policy.
At midday, the Dow rose 44 points to 35,380, while the S&P 500 added 8 points at 4,488 and the tech-heavy Nasdaq moved up 58 points, or 0.4%, to 15,001.
“We think the primary trend is higher. You're only about one year into this economic expansion. Economic expansions last about five years. And the earnings season which we just got out of was phenomenal once again,” Truist Wealth chief market strategist Keith Lerner said.
“Even if it's peak growth, we still think it's going to be strong growth. You have earnings moving forward, and then you look at the relative comparison of stocks relative to bonds and they're still attractive ... Overall we think the right position is to be overweight stocks,” Lerner added.
Buyers stepped in to pick up shares of beaten-down Chinese technology companies, while ‘reopening’ stocks, including the airlines and cruise lines, added to gains made on Monday.
Other notable movers included shares of Palo Alto Networks, which surged more than 18% after the cybersecurity company posted quarterly earnings that beat estimates.
Tech giants Alphabet and Amazon were both more than 1% higher in late-morning trading.
10.45am: New home sales bottoming; inventory soaring
US new home sales were little changed at 708,000 in July, just up 1% from 701,000 in June, albeit above the consensus forecast for a dip to 697,000.
In a note to clients, economists at Pantheon Macroeconomics US commented: "Sales have stabilized a bit above the level implied by the lagged mortgage applications numbers, mirroring the pattern seen in the existing sales data.
"We suspect that rising inventory is allowing previously-frustrated homebuyers to find a home. Eventually, though, sales will move back into line with mortgage applications, which recently have shown signs of life after falling by 28% between December and June, as demand shifted back abruptly to its pre-Covid level."
They added: "The number of new homes for sale in July, 367K, was the highest since November 2008, and is up 26% compared to July last year. Supply now stands at 6.2 months of current sales, the highest level since March 2020, when sales collapsed as Covid hit, and far above last summer’s lows, just 3.5 months.
"As a result, the rate of increase of new home prices is slowing, though the data are so wild that it’s hard to spot shifts in the trend in real-time. Still, we estimate that seasonally adjusted prices rose by an average of 0.7% per month in the six months through July, compared to 2.1% in the six months through January.
"The y/y rate will be back in single figures by the year-end, after peaking at 17.6% in the three months through May. In short, the Covid-triggered boom is over, though it is not about to be followed by a bust."
Stocks were barely moved by the data, with the Dow Jones Industrial Average still up 60 points, or 0.2% at 35,395, while the broader S&P 500 index gained 0.3%, and the tech-laden Nasdaq Composite rose 0.6%.
11am: Proactive North America headlines:
Golden Tag Resources says new 3D model on its San Diego project showcases broad zones of skarn mineralization
First Cobalt (TSX-V:FCC, OTCQX:FTSSF) announces pricing of previously announced overnight-marketed public offering at C$0.25 per common share
Adyton Resources (TSX-V:ADY, OTCQB:ADYRF) advances auxiliary trenching program at Gameta gold project in Papua New Guinea
Todos Medical’s Provista Diagnostics enters reference lab agreement with Meadowlands Diagnostics to provide cPass blood testing
Ayurcann Holdings brings Her Highness cannabis products to the Canadian marketplace through exclusive manufacturing and distribution agreement
Fortitude Gold (OTCQB:FTCO) releases promising intercepts from 2Q exploration at Isabella Pearl in Nevada
Fobi launches new Digital Conference and Trade Show Management Platform for conference venues and event organizers
Stifel GMP repeats 'Buy' on Steppe Gold following challenging Q2; analysts eyeing ATO expansion feasibility and leaching restart
Cardiol Therapeutics (TSX:CRDL, NASDAQ:CRDL) wins FDA approval for clinical trial of CardiolRx to treat patients with acute myocarditis
ElectraMeccanica (NASDAQ:SOLO) adds automotive industry veteran Dave Shemmans to its board of directors
The Parent Company (OTCQX:GRAMF, NEO:GRAMU) introduces 'Well by Caliva' lotions and tinctures; expanding product portfolio
Renforth Resources announces additional positive assay results at Parbec surface gold deposit in Quebec
MedX Health appoints industry veteran Sylvain Desjeans to its board and names Ken McKay as chairman
Cardiol Therapeutics (TSX:CRDL, NASDAQ:CRDL) wins FDA approval for clinical trial of CardiolRx to treat patients with acute myocarditis
ElectraMeccanica (NASDAQ:SOLO) adds automotive industry veteran Dave Shemmans to its board of directors
The Parent Company (OTCQX:GRAMF, NEO:GRAMU) introduces 'Well by Caliva' lotions and tinctures; expanding product portfolio
Renforth Resources announces additional positive assay results at Parbec surface gold deposit in Quebec
Mindset Pharma files new US patent applications covering its Family 4 novel DMT compounds
Q BioMed expects South Korean patent for its liver cancer chemotherapy candidate
Nextech AR brings the showroom to you as an early access partner for Google’s 3D AR search program
Delta 9 continues brisk retail expansion with opening of thirteenth cannabis store
American Manganese uses its tech to successfully upcycle EV battery black mass into cathode precursor
authID.ai to raise US$10M in public offering and list on Nasdaq
Endexx says its international subsidiary initiates soft launch of its Herb House in Ocho Rios, Jamaica
Empower Clinics and Pharmasave enter pilot program to supply Kai Testing Solutions to independent pharmacies
GR Silver Mining (TSX-V:GRSL) says latest resource for Plomosas increases combined indicated silver equivalent ounces by 29%
Stifel GMP repeats 'Buy' on Steppe Gold following challenging Q2; analysts eyeing ATO expansion feasibility and leaching restart
9.50am: Full steam ahead
US stocks pushed higher in early deals on Tuesday, extending Monday's gains led by advances in technology stocks as investors eye the Federal Reserve's Jackson Hole symposium at the end of the week.
After 20 minutes of trading, the Dow Jones Industrial Average was 59.46 points, or 0.2% higher at 35,395, while the broader S&P 500 index added 0.2%, and the tech-laden Nasdaq Composite gained 0.4%.
Craig Erlam, senior market analyst at OANDA Europe commented: "Stock markets may get another helping hand from Jerome Powell this week when he appears at the annual Jackson Hole event.
"Until recently, this looked the perfect platform to lay the groundwork for a September taper announcement but some concerning economic releases and a surge in delta cases in the US may see the Fed adopt a more cautious stance for now.
"Any suggestion from Powell that a taper may not happen this year could give these markets another boost, with it having until recently looked almost guaranteed. The more cautious approach is likely to be adopted by many central banks in the coming months."
Erlam added: "Vaccine efforts should ensure full lockdowns are a thing of the past for many of these countries but the recovery will no doubt slow, regardless, as some restrictions are imposed and behaviours change.
"It will be interesting to see whether the Pfizer (NYSE:PFE)-BioNTech vaccine getting full FDA approval will significantly boost vaccine rates, with some that were previously sceptical perhaps feeling more comfortable accepting it. It's become such a polarized issue in many countries now, it will still likely not be enough to convince some people but any gains will aid the fight against the virus."
7.00am: More gains predicted
US stocks were on course for opening gains on Tuesday, extending Monday's advances as investors await more US housing market data and the Federal Reserve's Jackson Hole symposium at the end of the week.
Futures for the Dow Jones Industrial Average were 0.1% higher, while those for the broader S&P 500 were ahead 0.2%, with the index having closed at its second-highest level ever on Monday, and tech-laden Nasdaq-100 futures rose 0.3%.
Comments from Fed officials at the central bank’s Jackson Hole Symposium being held virtually later in the week may offer insights into the pace at which the central bank could, as expected, taper bond purchases. Fed chairman Jerome Powell speaks virtually at the event on Friday.
Data on US new home sales, due at 10am ET on Tuesday, are expected to show an increase in July after an unexpected drop in the previous month.
Investors are also awaiting earnings from companies including Best Buy ahead of the opening bell, with Intuit and Nordstrom set to release earnings after the market close.
Six things to watch on Tuesday:
Palo Alto Networks shares jumped In premarket trading after the cybersecurity company reported better-than-expected revenue growth late Monday.
Tesla Inc (NASDAQ:TSLA) chief executive Elon Musk said on Monday that the electric-car maker was working on improving the much-awaited update to its self-driving software "as fast as possible."
Walmart has launched a delivery service for other merchants throughout the United States as goods sellers scramble to secure deliveries ahead of the all-important holiday shopping season.
Spain's Santander's US business is to buy the minority stake in its consumer unit it doesn't already own for around $2.5 billion, a slightly higher price than it agreed to pay in July.
Samsung Group will invest 240 trillion won ($206 billion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics in the post-pandemic era.
South Korea is likely to bar Google and Apple from requiring software developers to use their payment systems, effectively stopping them from charging commissions on in-app purchases, the first such curbs on the tech giants by a major economy, Reuters reported.