US Stocks Start Week Higher as Tech, Megacap Growth Stocks Gain

Last Updated: Monday, August 15, 2022 4:42 PM | MT Newswires

US stocks started the week higher despite opening in negative territory as Apple (AAPL), Alphabet, (AAPL), Microsoft (MSFT) and Tesla (TSLA) logged gains Monday.

The Dow Jones Industrial Average rose 0.5% to 33,912.24, with the S&P 500 up 0.4% to 4,297.14, and the Nasdaq Composite 0.6% higher at 13,128.05.

The energy sector was the steepest decline, while consumer staples led the gainers.

West Texas Intermediate sank 3.4% to $88.92 a barrel.

The US two-year yield dropped 5.6 basis points to 3.20%, and the 10-year yield dived 5.4 basis points to 2.80%.

Tesla ended 3% higher among the top gainers on the Nasdaq 100, while megacap stocks Apple, Alphabet, and Microsoft gained between 0.3% and 0.6%.

Government bond yields fell following a slump in a New York manufacturing gauge and macroeconomic data from China, the second largest economy in the world, missed expectations. The New York Federal Reserve's Empire State manufacturing index fell to -31.3 in August from 11.1 in July, compared with a decrease expected to 5 in a survey compiled by Bloomberg. The data represents the first reading for the manufacturing sector for August and suggests a severe contraction.

China's retail sales missed expectations, slowing 40 basis points from June to 2.7% year-over-year in July compared with the median on a Bloomberg survey of 4.9%, according to a note from Daiwa Capital. Industrial production rose by 3.8% versus a 4.3% increase forecast in a survey compiled by Bloomberg.

In other economic news, The National Association of Home Builders' monthly housing market index fell to 49 in August from 55 in July, below estimates for a decline to 54 in a survey compiled by Bloomberg. "Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession," NAHB Chief Economist Robert Dietz said.

The Commerce Department's monthly home construction data for July will be released at 8:30 am ET Tuesday.

In company news, Gilead Sciences (GILD) unveiled statistically significant results from the second interim analysis of the key secondary endpoint of overall survival in the late-stage study of Trodelvy in patients with metastatic breast cancer. Shares jumped 5.2%, the second-biggest gainer on the S&P 500 and the Nasdaq 100.

Topping the S&P 500 index and the Nasdaq 100 was Illumina (ILMN), whose shares soared almost 9% Monday, rebounding from last week's drop after the company posted Q2 adjusted earnings on Aug. 11 of $0.57 per diluted share, down from $1.87 a year ago. Revenue for the quarter was $1.16 billion, up from $1.13 billion a year earlier.

Gold was down 1.2% to $1,794.70 per troy ounce, with silver down 2.4% to $20.36 per ounce.

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