The stock market reversed early losses to post gains by midday as a manufacturing index sagged in July and strong earnings and acquisitions news provided some lift. Boeing led blue chips.
The Nasdaq composite led the major indexes, gaining 0.5%. The S&P 500 gained 0.1%, and the Dow Jones Industrial Average was up 0.2%. The small-cap Russell 2000 was down 0.1%. The Innovator IBD 50 ETF rose 0.1%.
Volume fell on the Nasdaq and rose on the NYSE compared to the same time on Friday.
The tech-heavy Nasdaq climbed 12% in July, its best month since April 2020. The S&P 500 gained 9.1% in July, while the Dow Jones industrials rose 6.7%. It was the best monthly performance for the S&P and Dow since November 2020.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32912.53 | +67.40 | +0.21 |
| S&P 500 | (0S&P5) | 4135.07 | +4.78 | +0.12 |
| Nasdaq | (0NDQC ) | 12453.85 | +63.16 | +0.51 |
| Russell 2000 | 187.06 | -0.19 | -0.10 | |
| IBD 50 | 28.49 | +0.04 | +0.14 | |
Last Update: 12:08 PM ET 8/1/2022 |
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Investors have been encouraged that slowing economic growth might prompt the Fed to raise rates at a slower rate.
Weak PMI Data Puts A Drag On Stock Market
However, the recession could be worse than what investors had bargained for. This morning, the seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers' Index was 52.2 in July, down from 52.7 in June and roughly in line with the Econoday estimate.
"With the exception of pandemic lockdown periods, July saw U.S. manufacturers report the toughest business conditions since 2009," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "A growth spurt in the spring has quickly gone into reverse, with new orders for factory goods down for a second straight month in July, leading to the first drop in production for two years and sharply reduced employment growth."
The ISM manufacturing index for July came in at 52.8, above views and slightly lower than the previous month's reading.
Asian and European stock markets started the week mostly with gains. The Hong Kong Hang Seng Index climbed 0.1%, and the Shanghai composite gained 0.2%. Japanese stocks also gained, with the Nikkei 225 index up 0.7%.
European stocks mostly rose in afternoon trading. The London FTSE 100 rose 0.1%. The German DAX climbed 0.2% and the French CAC 40 index fell 0.1%.
The 10-year Treasury yield continued to slide to 2.59% Monday morning. Meanwhile, U.S. oil prices took a beating, down 5.5% to around $93 per barrel.
Earnings, Acquisitions Lead Stock Market
Builders FirstSource soared nearly 8% after releasing strong earnings early Monday, easily beating analyst estimates for both earnings and sales.
Global Payments rallied 6% on strong results and agreed to acquire EVO Payments for $4 billion. EVOP soared 19% on the news.
Chipmaker Onsemi beat earnings and sales views for Q2 and guided higher for the current third quarter, but shares dropped 4.8%.
Dow Jones aerospace giant Boeing rose more than 7% after the company temporarily avoided a strike at three defense manufacturing plants and cleared a regulatory hurdle for resuming deliveries of its 787 Dreamliner.
Celsius Holdings rallied 13% after PepsiCo and Celsius announced a long-term strategic distribution arrangement that includes a PepsiCo investment in Celsius. An IBD 50 stock, Celsius is well past the 5% buy zone after clearing an aggressive entry with volume, and looks to by forming a big cup with a new buy point of 110.32.
Valvoline fell 1.4% after announcing a definitive agreement with Aramco for the sale of its global products business for $2.65 billion in cash.
Follow Michael Molinski on Twitter @IMmolinski
