The stock markets in the United States ended the trading session higher this week after investors’ eased concern regarding the potential escalation of the conflict in Ukraine.
Yesterday, the stock markets declined due to the crash of a Malaysian Airlines jet in the main battleground of civil war in Ukraine. The government of Kiev accused pro-Russian rebels of shooting down the jet that killed all 295 people on board.
At this year's annual Robin Hood conference, which was held virtually, the founder of the world's largest hedge fund, Ray Dalio, talked about asset bubbles and how investors could detect as well as deal with bubbles in the marketplace. Q1 2021 hedge fund letters, conferences and more Dalio believes that by studying past market cycles Read More
Today, Jim Paulsen, the chief investment strategist at Wells Capital Management told Bloomberg in a telephone interview, “I think when all these things hit the headlines, there’s a knee-jerk reaction. Traders reacted yesterday, and it’s bringing in investors today. Maybe they’re thinking of buying and all of a sudden, stocks got a lot cheaper.”
Meanwhile, the index of U.S. leading indicators climbed for the fifth consecutive month in June, which is a sign that the economy continues to grow. On the other hand, the Thomson Reuters/ University of Michigan preliminary index of consumer sentiment dropped from 82.5% to 81.3%.
Jim Russell, a senior equity strategist at U.S. Bank Wealth Management commented, “We had a bit of a low expectation going into the second quarter, given the first quarter. We do feel the second quarter finished much stronger than it began. We think the economic drumbeat is growing louder and more constructive for the markets moving forward.”
- Dow Jones Industrial Average (DJIA)- 17,100.18 (+0.73%)
- S&P 500- 1,978.22 (+1.03%)
- NASDAQ- 4,332.15 (+1.57%)
- Russell 2000- 1,151.43 (+1.57 %)
- EURO STOXX 50 Price EUR- 3,164.21 (+0.20%)
- FTSE 100 Index- 6,749.45 (+0.17%)
- Deutsche Borse AG German Stock Index DAX- 9,720.02 (-1.35%)
- Nikkei 225- 15,215.71 (-1.01%)
- Hong Kong Hang Seng Index- 23,454.79 (-0.28%)
- Shanghai Shenzhen CSI 300 Index- 2,164.14 (+0.33%)
Stocks in Focus
The stock price of Advanced Micro Devices, Inc. (NYSE:AMD) declined more than 16% to $3.83 per share after the company reported lower than expected earnings for the second-quarter. The company posted earnings of $0.02 per share on $1.44 billion in revenue compared with the consensus estimate of $0.03 in earning per share on $1.4 billion in revenue based on data compiled by Bloomberg. AMD also indicated that it is not benefitting from the rebound of the PC market.
The shares of Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) increased nearly 4% after the search engine giant’s reported revenue that is higher than the estimates of analysts. Its CEO Larry Page also indicated that the company is adding new features for its mobile, video and web services to improve user traffic and attract advertisers.
Nu Skin Enterprises, Inc. (NYSE:NUS) declined more than 6% to $62.38 per share after analysts at Bank of America Merrill Lynch downgraded their rating for the stock to Underperform, and its stock became oversold.