4:05pm: US stocks close higher
US equities ended another trading session in the green, with both the Nasdaq and S&P 500 hitting new record highs, as stronger-than-expected durable goods orders for July contributed to the day’s positive sentiment.
On the day, the Dow rose 39 points to 35,405, while the S&P 500 added 10 points at 4,496 and the tech-heavy Nasdaq edged up 22 points, or 0.2%, to 15,042.
US stock markets were led higher by gains in the cyclical, financials, energy, and industrials sectors.
Other notable movers included shares of Western Digital Corp (NYSE:WDC) (NASDAQ:WDC), which gained more than 7% after the Wall Street Journal reported that the chip maker is in advanced talks to merge with Japan’s Kioxia Holdings.
12.05 pm: Nasdaq continues its record run
US stocks struggled to maintain gains in noon trading as stronger-than-expected durable goods orders for July sparked concerns the Federal Reserve will adopt a more hawkish tone.
At midday, the Dow rose 115 points to 35,481, while the S&P 500 added 13 points at 4,499 and the tech-heavy Nasdaq edged up 15 points, or 0.1%, to 15,036
“While we've seen the progress on the labor market that I think the Fed wanted to see ... we're obviously experiencing this temporary setback in terms of growth momentum,” Jefferies chief financial economist Aneta Markowska said.
“It makes it difficult for the Fed to signal anything and to commit to any taper timeline at this point, but I think they do have to acknowledge that we have made further progress on those goals,” Markowska added.
Notable movers included shares of Johnson & Johnson (NYSE:JNJ), which eased nearly 1% even after the company said its COVID vaccine booster shot showed promising results in early stage clinical trials, significantly increasing virus-fighting antibodies.
10.10am: Proactive North America headlines:
Real Luck Group (TSX-V:LUCK, OTCQB:LUKEF) ends 2Q 2021 with $17.2 million cash and no debt
The Valens Company (TSX:VLNS, OTCQX:VLNCF) congratulates Green Roads co-founder Laura Fuentes on her inclusion in Forbes' 50 over 50
Star Royalties sees 2Q revenue increase by 46% compared to previous quarter as its royalty assets continue to deliver
AIM ImmunoTech files provisional patent application for use of Ampligen in Post-COVID-19 Cognitive Dysfunction
CO2 GRO and partner Rancho Nexo participating in two major agriculture conferences in Mexico
FSD Pharma (CSE:HUGE, NASDAQ:HUGE) to buy pharma group Lucid Psycheceuticals in a stock deal worth US$9 million
Harvest One Cannabis launches line of Dream Water Sleep Gummies for American market
Aequus Pharmaceuticals appoints Dr Robert Koenekoop as its consultant on inherited retinal diseases
CytoDyn says its final mTNBC report shows 980% increase in 12-month overall survival with its flagship drug leronlimab
Victory Square portfolio company Turnium Technology announces onboarding of its SD-WAN Edge Solution to IBM Cloud for Telecommunications
American Resources named to US Department of Energy partnership to assess REEs in coal resource feedstocks
Aurania Resources reveals new epithermal gold-silver target on its Lost Cities-Cutucu project
Betterlife Pharma announces start of pre-clinical study of AP-003 against COVID-19's Delta variant
HempFusion (TSX:CBD.U, OTCQX:CBDHF) Wellness expansion plans expected to boost its FY2021 revenue to US$12.5M to US$13.5M
MedX Health generates revenue in 2Q and expects ‘increasing activity’ during the year
PharmaDrug announces clinical research collaboration with Johns Hopkins University to evaluate DMT in a comparative clinical study
Great Bear extends LP gold fault zone on both sides of its current drill grid
Snowline Gold hails discovery of 'sizeable gold system' at Jupiter zone of Einarson project
Phyto Extractions continues to proceed towards the acquisition of 1204581 B.C. Ltd, first unveiled in March
Contakt World (CSE:HELP) to help combat vaccine passport fraud while preserving privacy with HealthCheck app
Evergold targets early September drilling start on its Snoball property in British Columbia
MegumaGold looking forward to receiving results from first drill program at Caribou gold project
DRDGOLD reports a sharp rise in profit on higher rand gold price and cost containment
Versus Systems says it powered at-home and in-stadium fan engagement at the 2021 MLS All-Star Skills Challenge
9.45am: Wall Street starts on mixed footing
Wall Street shares started mixed on Wednesday as traders took their foot off the gas after the Nasdaq closed above 15,000 for the first time yesterday and there was also a record close from the S&P 500.
In early deals in New York, the Dow Jones shed around 62 points at 35,303.
The broader-based S&P 500 added nearly two points at 4,487. The Nasdaq gained around 24 points at 15,044.
Traders were also digesting US durable goods data for July, which showed orders fell that month for the second time in 15 months but demand in most sectors remained fairly strong.
Orders for long-lasting goods slipped 0.1% last month in America, according to official data, while economists had predicted a 0.5% decline.
In other news, the much flagged Jackson Hole symposium where Central bankers meet kicks off tomorrow (this year's is a virtual meeting) and Fed chair Jerome Powell is due to speak on Friday.
The Federal Reserve has been purchasing at least US$120 billion of bonds each month to curb interest rate rises and prompt economic growth amid the pandemic but all eyes are now on when these taps will start to be turned off
6.55am: US stocks seen higher
US stocks are expected to just tick higher on Wednesday, consolidating around record levels with the S&P 500 index having notched up its 50th record close of 2021 and the Nasdaq Composite closing above the 15,000 level for the first time on Tuesday.
Futures for both the Dow Jones Industrial Average and the S&P 500 ticked up by less than 0.1%, while tech-laden Nasdaq-100 futures edged up 0.1%.
Investors are awaiting fresh insights from Federal Reserve chairman Jerome Powell to be delivered virtually at the central bank’s Jackson Hole symposium on Friday. The market is undecided over whether the Fed will proceed with tapering its bond purchases in coming months given an uptick in coronavirus (COVID-19) Delta variant cases and some signs that the economic recovery is slowing.
Recent regulatory approval for Pfizer (NYSE:PFE) and BioNTech’s COVID-19 vaccine has spurred some businesses to impose vaccination mandates, potentially boosting the pace of the US rollout, however, there are concerns over the duration of the efficacy COVID-19 vaccines which could also cause the global economic recovery to falter.
On the data front, durable goods figures for July are due at 8.30am ET which will indicate current demand for the likes of cars and domestic appliances. Economists expect new orders for products meant to last at least three years will decrease by 0.5%, seasonally adjusted, from June.
On the earnings front, Salesforce.com is among the companies scheduled to report after the market close on Wednesday.
Five things to watch on Wednesday:
President Biden is expected to host executives from major technology, financial and energy companies on Wednesday for a summit on national cybersecurity, a gathering that comes amid heightened fears about proliferating disruptive attacks on American businesses and infrastructure.
Goldman Sachs (NYSE:GS) Group Inc told employees that from Tuesday anyone entering its offices in the United States must be fully vaccinated against COVID-19, according to an internal memo seen by Reuters.
A South Korean parliamentary committee voted on Wednesday to recommend amending a law, a key step toward banning Google and Apple from forcibly charging software developers commissions on in-app purchases, the first such curb by a major economy.
Eyewear maker Warby Parker Inc. said Tuesday it plans to go public through a direct listing, making the company the latest to shirk the traditional public-offering process. The direct-to-consumer company in June confidentially filed a draft registration statement with the Securities and Exchange Commission for a public offering.
TPG has hired JPMorgan Chase JPM 0.62% & Co. and Goldman Sachs (NYSE:GS) Group Inc. GS 1.77% to underwrite its planned initial public offering, according to people familiar with the matter, moving the private-equity powerhouse closer to a milestone it has flirted with for years, The Wall Street Journal exclusively reported on Wednesday.