The Weekly Stock Market Report (11 – 17 July 2015)Contributor JPMAM UK
US: receding global worries boost stocks
- Calmer global waters lifted Wall Street stocks in the week to 17 July. The Dow Jones returned 1.8% and the broad S&P 500 was up 2.4% as worries over Greece and China eased.
- The technology-biased NASDAQ surged 4.3% to close at an all-time high after several big names released strong earnings reports.
- The U.S. dollar continued to gain as a small pickup in inflation added to expectations the Federal Reserve (Fed) will soon raise interest rates. Core U.S. consumer prices rose at an annual rate of 1.8% in June, up from 1.7% in May.
- In her semi-annual testimony to Congress, Fed chair Janet Yellen said an interest rate rise this year would be “appropriate” if the economy remained on the expected path. Yellen reiterated that the timing of the first rate rise was less important than the pace of subsequent increases, which she said would be gradual.
- The quarterly earnings season got underway in earnest last week, with some of the U.S.’s largest companies reporting results for the April-June period.
- Google’s share price jumped after the search engine operator reported a better-than-expected second quarter and promised tighter cost controls. Internet TV provider Netflix also released strong results, helped by growth in subscriptions beyond the U.S. market.
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