ASX braces for gains as Tesla, banks take Wall Street to record high - Africa News Quick
  • July 12, 2021

ASX braces for gains as Tesla, banks take Wall Street to record high

The S&P 500 hit a record high on Monday (US time), fueled by Tesla and bank stocks as investors waited for the start of the second-quarter earnings season and a batch of economic data.

Seven of the 11 major indices in the S&P sector advanced; finance and real estate led the way. In afternoon trading, the Dow Jones Industrial Average was up 0.4% while the S&P 500 was up 0.4%. The Nasdaq is up 0.2 percent.

The S&P 500 has started the week with more gains. Credit:NYSE

The Australian stock market is poised for more gains, with futures at 5.07am AEST targeting a 24-point gain, or 0.3 percent, at the open.

Tesla jumped 3.6 percent. Tesla CEO Elon Musk insisted in court Monday that he does not control Tesla and said he did not enjoy being the CEO of the electric vehicle company when he took the stand to defend the company’s acquisition of SolarCity. in 2016.

JPMorgan Chase added nearly 2 percent, with the two stocks contributing more to the S&P 500’s earnings than any other stock.

The S&P 500 Bank Index added 1.5 percent ahead of this week’s quarterly earnings reports from major banks including Goldman Sachs and JPMorgan on Tuesday. Investors will closely follow quarterly reports for early clues as to how long the US economic recovery may last, and June quarter earnings per share for S&P 500 companies are expected to rise 66%, according to Refinitiv IBES data.

The benchmark has recovered 16 percent so far this year, and some investors are wondering how long the rally may last and are concerned about a possible recession.

“The earnings season will be greeted warmly as an opportunity for existing biases to be confirmed,” warned Mike Zigmont, head of trading and research at Harvest Volatility Management in New York. “Even if the forecasts are not as optimistic as the most optimistic expected, everything is going to be rationalized.”

This week will also focus on a number of economic reports, including headline inflation data and US retail sales.In addition, Federal Reserve Chairman Jerome Powell will appear before Congress on Wednesday and Thursday to learn about his opinions on inflation.

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