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US Dow, S&P 500 scales news record closing highs

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Capital Market
Last Updated : Aug 13 2021 | 9:04 AM IST
The US stocks advanced for fifth consecutive session on Wednesday, 11 August 2021, with the Dow and the S&P500 indexes scaled new record closing high, as acceleration in producer prices and a drop in jobless claims reinforced expectation that the economy is well and truly on the recovery track.

At the close of trade, the Dow Jones Industrial Average index advanced 14.88 points, or 0.04%, to 35,499.85. The S&P 500 index added 13.13 points, or 0.3%, to 4,460.83. The tech-heavy Nasdaq Composite Index was up 51.13 points, or 0.35%, to 14,816.26.

Total 6 of 11 S&P500 sectors advanced, 4 sectors declined and 1 closed unchanged. Healthcare (up 0.77%) sector was top performer, followed by information technology (up 0.59%), real estate (up 0.35%), and communication services (up 0.35%) sectors, while energy (down 0.49%) sector was worst performer, followed by industrials (down 0.23%) and materials (down 0.19%) sectors.

Total volume turnover on U.S. exchanges was 7.72 billion shares, down from previous session volume of 7.77 billion shares. In the NYSE exchange, 1511 issues advanced, 1764 issues declined, and 165 issues closed unchanged. In the NASDAQ, 1849 issues advanced, 2483 issues declined, and 270 issues unchanged.

Top five advancing stocks were IEC Electronics Corp (up 46.7%), ExOne Co (up 45.1%), KnowBe4 Inc (up 25.9%), NanoVibronix Inc (up 25.1%), and Opendoor Technologies Inc (up 24%), while bottom five declining stocks included MedAvail Holdings Inc (down 52.6%), LifeStance Health Group Inc (down 46.5%), GoHealth Inc (down 42.8%), Trean Insurance Group Inc (down 32.5%), and VYNE Therapeutics Inc (down 31.1%).

ECONOMIC NEWS: US First-Time Claims For Unemployment Benefits Show Modest Decrease- US first-time claims for unemployment benefits saw a modest decrease in the week ended August 7th, according to a report released by the Labor Department on Thursday. The advance figure for seasonally adjusted initial claims was 375,000, a decrease of 12,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 385,000 to 387,000. Meanwhile, the Labor Department said the less volatile four-week moving average crept up to 396,250, an increase of 1,750 from the previous week's revised average of 394,500. The report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, slid by 114,000 to 2.866 million in the week ended July 31st. With the decrease, continuing claims fell to their lowest level since hitting 1.770 million in the week ended March 14, 2020.

US Producer Price Index Surges In July- US producer price index for final demand surged up by 1.0% in July, the Labor Department released a separate report on Thursday. With the bigger than expected monthly increase, the annual rate of growth in producer prices accelerated to 7.8% in July from 7.3% in June. The year-over-year spike in producer prices reflected the largest advance since 12-month data were first calculated in November 2010. The Labor Department said nearly three-fourths of the July increase in producer prices can be traced to a 1.1% jump in prices for final demand services. The report also showed energy prices shot up by 2.6% during the month, while food prices tumbled by 2.6%. Excluding prices for food, energy and trade services, core producer prices advanced by 0.9% in July after rising by 0.5% in June. Core prices were expected to show another 0.5% increase. The annual rate of growth in core prices accelerated to 6.1% in July from 5.5% in June, showing the biggest increase since 12-month data were first calculated in August 2014.

Among Indian ADR, INFOSYS rose 1.44% to $23.32, Tata Motors added 2.3% to $20.50, Wipro added 2% to $8.70, and ICICI Bank added 3% to $19.42. Vedanta fell 1.19% to $17.45, WNS Holdings shed 0.02% to $82.50. HDFC Bank fell 0.11% to $75.10, and Dr Reddys Labs fell 0.33% to $63.20.

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First Published: Aug 13 2021 | 8:39 AM IST

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