Stocks on Wall Street continued their march higher into record territory as investors turn their minds to upcoming earnings from megastocks Tesla and Google-parent Alphabet later this week, with the reporting season beating expectations in its first week.
Wireless carrier Verizon Communications led the S&P 500 higher after the telecommunications firm raised its annual earnings outlook, while low-cost European airline Ryanair rallied after more than doubling quarterly profit.
Meanwhile, Wise’s co-founder Taavet Hinrikus is pushing proxy firms to oppose plans for the fintech to extend its dual-class share structure as the firm eyes shifting its primary listing to New York from London.
And UK-listed miners drove gains on the FTSE 100 after China announced plans for a mega-dam in Tibet, stoking expectations the project will boost demand for steel.
Making money
US reporting season steps up a gear this week with electric vehicle maker Telsa and Google-parent Alphabet among those poised to report on Wednesday, with Meta Platforms, Microsoft and Apple cued up for the following week.
Investors are pondering the fortunes of the Magnificent 7 and how they’re responding to the artificial intelligence boom.
The S&P 500 was up 0.4% in late trading, with Verizon leading the US benchmark index as it gained 4.4% after raising its earnings forecast for the year amid tight competition in the world’s biggest economy. June quarter profit and revenue beat expectations, although the carrier shed 9,000 postpaid connections in the period.
“The index extended recent gains above 6,300 with limited first-tier economic data to provide the market with direction as investors look ahead to a busy week for corporate earnings,” Bank of New Zealand senior interest rate strategist Stuart Ritson said in a note. “US equities have traded to new record levels despite uncertainty whether US trading partners will be able to reach a deal before the latest tariff deadline on 1 August.”
Fintech Block, which owns Square, advanced 7.7% with the company poised to join the S&P 500, while Sharesies favourite Rocket Lab dropped 8.1% after the Wall Street Journal reported the White House discussed ending some of SpaceX’s contracts but found most were critical to the Defense Department and NASA.
Across the Atlantic, the UK’s FTSE 100 up 0.2% with mining stocks including Glencore, Anglo American and Rio Tinto rallying on news of China’s plans for a mega-dam in Tibet, which is expected to stoke demand for steel.
Second thoughts
Fintech Wise dipped 0.5% amid reports co-founder Taavet Hinrikus, who owns 5.1% of the money-transfer service, was urging proxy voting firms to oppose plans to extend the company’s dual-class shares until 2036 as part of its plans to shift its primary listing to New York from London.
Ryanair climbed 5.7% after the low-cost airline more than doubled quarterly profit on rising fares and pointing to strong summer bookings.
Australian futures are pointing to a 0.3% gain when the S&P/ASX 200 index opens today, while the kiwi dollar rose to 59.76 US cents at 7am in Auckland from 59.51 cents yesterday.
New Zealand’s S&P/NZX 50 index rallied yesterday after inflation data showed consumer prices didn’t rise as fast as some economists feared in the June quarter, keeping alive the prospect of a rate cut by the Reserve Bank next month.
The Reserve Bank of Australia will release minutes from its latest meeting today, with soft jobs data across the Tasman boosting expectations for an easing in August. The kiwi traded at 91.55 Australian cents from 91.45 cents yesterday.
Local data include monthly merchandise trade figures for the month of June, while Argosy Property will hold its annual meeting in Auckland today.
Reporting by Paul McBeth. Image from José Matute on Unsplash.
