Midday Report: US Stocks March Higher as Yields Hit North; Oil Futures Jump Ahead of Vote on $1.2 Trillion Infrastructure Bill

Last Updated: Wednesday, July 21, 2021 1:10 PM | MT Newswires

US stocks advanced as earnings flowed in, with the rebound in investor sentiment much more evident in government bond markets on Wednesday as yields jumped in midday trading.

The Dow Jones Industrial Average rose by 0.7% to 34,749.33, with S&P 500 and Nasdaq higher by 0.6% each. Energy and financials were among the biggest gainers while utilities and healthcare led decliners, signaling a risk-on mood.

The US 10-year yield jumped by 8.3 basis points to more than 1.29%. Yields had ended Tuesday, when equities rebounded strongly, just 3 basis points higher at around 1.22%.

In company news, Chipotle Mexican Grill (CMG) and Interpublic Group (IPG) led gainers on S&P 500, with shares up by 10% each intraday, after the duo reported earnings and sales that beat the market's expectations.

The worst performer on S&P 500 and Nasdaq was Netflix (NFLX), with shares down 3.7% intraday. The entertainment streaming giant reported second-quarter earnings below estimates and said the "lumpiness" in subscriber growth was due to the COVID-19 pandemic pulling forward growth last year.

In other earnings that reflect on the health of the US economy, Verizon Communications (VZ) beat on second-quarter earnings and operating revenue, and also lifted its guidance above consensus. Coca-Cola Co. Consolidated (COKE) reported fiscal Q1 earnings that were ahead of projections as sales advanced from a year ago.

Commercial crude oil inventories in the US rose for the first time in nine weeks, increasing by 2.1 million barrels for the week ended July 16, the US Energy Information Administration reported Wednesday. Crude stocks reached 439.7 million barrels, 7% below their five-year average for this time of year.

West Texas Intermediate crude surged 4.1% to $69.94.

A $1.2 trillion bipartisan infrastructure bill will face an initial procedural vote in the US Senate, Stifel Chief Economist Lindsey Piegza said, citing media reports.

"Members of both parties reportedly agreed to the outline of the proposal which aims to upgrade roads and bridges, water systems and expand broadband internet," Piegza said. "The measure would need the support of at least 10 Republicans to reach the 60 votes required to advance under Senate rules."

In the metals markets, gold was down 0.4% to $1,804.90, silver was up 1.1% to $25.28 an ounce and copper was up 0.3% to $4.28 per pound. Among energy ETFs, the United States Oil Fund was up 4.1% to $48.42 and the United States Natural Gas Fund was up 1.2% to $13.75.

Among precious-metal funds, the Market Vectors Gold Miners ETF was up 1% to $33.63 and SPDR Gold Shares were down 0.3% to $168.84. The iShares Silver Trust was up 1% to $23.38.

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