Portfolio

US open: Stocks start August in the green

By Iain Gilbert

Date: Monday 02 Aug 2021

US open: Stocks start August in the green

(Sharecast News) - Wall Street stocks were in the green early on Monday as market participants strapped in for the first trading day of August.
As of 1550 BST, the Dow Jones Industrial Average was up 0.41% at 35,079.39, while the S&P 500 was 0.42% firmer at 4,413.67 and the Nasdaq Composite came out the gate 0.48% stronger at 14,743.51.

The Dow opened 143.92 points higher on Monday, reversing losses recorded in the final session of an otherwise strong month for major indices.

Concerns regarding the delta variant of Covid-19 were seemingly in the rearview on Monday, with investors betting on reopening plays like Carnival and US airlines.

Also in focus, the US Senate will finalise text on Joe Biden's infrastructure bill, which includes $550.0bn in new spending over the next five years, which comes on top of previously approved funds of roughly $450.0bn.

On the macro front, IHS Markit's manufacturing PMI reached a new series high of 63.4 in July, up from flash estimates for a print of 63.1, with both manufacturers and suppliers once again struggling to meet booming demand.

Elsewhere, the ISM's manufacturing PMI came in at 59.9 for July, short of estimates for a reading of 60.8 but still enough to register a 14th consecutive monthly gain.

Lastly, US construction spending rose 0.1% in June, according to the Commerce Department, with an increase in private projects being offset by a drop in public sector building throughout the month.

In the corporate space, Lyft, Amgen, Uber, CVS Health, General Motors, Boku and Square will all report earnings on Monday.

Separate from its upcoming earnings, Square was also gaining an amount of investor attention after the firm agreed to buy Australian installment loan provider Afterpay as part of a $29.0bn all-stock deal.

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