(Morning) S&P 500 and Nasdaq both hit record highs as positive economic indicators boost confidence in the resilience of the US economy | Market Overview | Moneyクリ MoneyX Securities' investment information and media useful for money.

【US Stock Market】New York Market

NY Dow: 44,484.49 △229.71 (7/17)

NASDAQ: 20,885.65 △155.16 (7/17)

1. Overview

The Dow average started trading down $24 at $44,229. On the 18th, around 3 PM Japan time, the earnings announcement from Taiwan Semiconductor Manufacturing (TSMC) [TSM] was solid, leading to buying in semiconductor-related stocks and tech stocks in the US market, causing the Dow average to turn upward early on. Additionally, the retail sales and new unemployment insurance claims announced on that day were better than market expectations, easing concerns over economic trends and supporting the market. Furthermore, the retreat of uncertainty regarding the Trump administration's economic policies also provided reassurance to investors.

The Dow average finished higher, up 229 points at 44,484 dollars. Additionally, the S&P 500 stock index continued to rise, finishing up 33 points at 6,297 points, setting a new record high.

The Nasdaq Composite Index rose by 155 points to 20,885 points, continuing its upward trend for the fourth consecutive day, and reached a new record high for consecutive days.

2. Economic Indicators, etc.

US retail sales in June increased by 0.6% compared to the previous month, exceeding market expectations and last month's figures. The core index, excluding automobiles, also rose by 0.5% compared to the previous month, again surpassing market expectations and last month's results. For the week ending July 12, the number of new unemployment insurance claims in the US fell by 7,000 to 221,000, which was below market expectations.

3. Sector Trends

In the S&P 500 sectoral stock price index, 9 out of the 11 sectors rose. In particular, financials, consumer staples, capital goods & services, and information technology increased by nearly 1%. On the other hand, healthcare fell by over 1%, and real estate decreased slightly.

4. Individual Stock Trends

In the US Stock Market, 21 out of the 30 Dow components rose. In particular, Travelers Companies [TRV] rose by over 3%. The company's announced strong earnings were well received, attracting buying interest. Walt Disney [DIS] and Coca-Cola [KO] each rose by about 2%. On the other hand, 9 stocks fell. Notably, UnitedHealth Group [UNH] dropped by over 1%. Additionally, Merck [MRK] and Johnson & Johnson [JNJ] also fell by about 1%.

Outside of the Dow average constituents, PepsiCo [PEP] reported better-than-expected earnings in the second quarter, rising 7.5%. Electric vehicle manufacturer Lucid Group [LCID] announced plans for self-driving robo-taxis in partnership with ride-hailing service Uber Technologies [UBER], resulting in a significant increase of 36.2%. On the other hand, medical device manufacturer Abbott Laboratories [ABT] saw a decline of 8.5% due to lowering its full-year profit outlook.

5. Exchange Rates, Interest Rates, etc.

The US long-term interest rate remained unchanged at 4.45% compared to the previous day. The dollar-yen exchange rate is fluctuating in the mid 148 yen range on the morning of the 18th.

VIEW POINT: Today's Perspective

The US market the previous day saw major three indices rise as economic indicators were positively received, and the Japanese market is expected to continue this trend with a strong start. Domestically, the national CPI (Consumer Price Index) will be announced before the market opens, but it is inferred that it is unlikely to strengthen the Bank of Japan's interest rate hike expectations as they seek to assess economic trends.

Additionally, next week there is a schedule for the House of Councillors election on the 20th (Sunday) and a public holiday on the 21st (Monday), so we should be cautious of position adjustments in the latter half of the day.

(Monex Securities Financial Intelligence Department Keita Yamaguchi)