Highlights
Equities edged up Tuesday on positive momentum after Monday's broad advance. Activity was cautious ahead of earnings and US inflation reports starting with Wednesday's consumer price figures.
The Dow industrial average rose 0.9 percent, the S&P 500 gained 0.7 percent, and the Nasdaq firmed 0.6 percent. US Treasury yields rose at the short end and declined at the long end. The dollar was mixed and oil prices rose.
Hopes for more progress on inflation and for a soft landing apparently underpinned the market for a second straight day. Investors focused on news of a big drop in Manheim used car prices and on declining inflation expectations in the New York Fed survey of consumer expectations, both reported Monday.
Megacaps remained under pressure after news Nasdaq would reduce the weighting of the biggest seven stocks in the Nasdaq 100.
Financials were among the day's winners with JP Morgan up on an analyst upgrade ahead of JPM and other bank earnings starting Friday. Other sectors outperforming included materials, energy, consumer discretionary, and industrials. Lagging were health care, consumer staples, and technology.
Activision Blizzard led to the upside after a judge said Microsoft could go ahead with its acquisition of Activision, a video game business. Amazon had a good day on positive buzz around its two-day Prime Day sales.
The Dow industrial average rose 0.9 percent, the S&P 500 gained 0.7 percent, and the Nasdaq firmed 0.6 percent. US Treasury yields rose at the short end and declined at the long end. The dollar was mixed and oil prices rose.
Hopes for more progress on inflation and for a soft landing apparently underpinned the market for a second straight day. Investors focused on news of a big drop in Manheim used car prices and on declining inflation expectations in the New York Fed survey of consumer expectations, both reported Monday.
Megacaps remained under pressure after news Nasdaq would reduce the weighting of the biggest seven stocks in the Nasdaq 100.
Financials were among the day's winners with JP Morgan up on an analyst upgrade ahead of JPM and other bank earnings starting Friday. Other sectors outperforming included materials, energy, consumer discretionary, and industrials. Lagging were health care, consumer staples, and technology.
Activision Blizzard led to the upside after a judge said Microsoft could go ahead with its acquisition of Activision, a video game business. Amazon had a good day on positive buzz around its two-day Prime Day sales.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
