Sunday, September 26, 2021

Global Market Square

By on July 29, 2021

The U.S. and European stock markets closed with significant gains, with both the Dow Jones and S&P 500 reaching new records following a weaker than expected GDP report. The U.S. Gross Domestic Product grew at a rate of 6.5% during 2Q21, 23.5% below an expected 8.5%. A dampened economic sentiment and less prosperous outlook are not entirely bad for the equities market. It forces the Federal Reserve to continue supporting the markets.

The corporate earnings parade continues:

  • Amazon (AMZN) reported 2Q21 net sales of $113.1 billion, up 27%; Net income of $7.8 billion; and earnings per share of $15.12. The stock closed at $3,404.44, down $225.88
  • Mastercard Inc. (MA) reported 2Q21 net revenues of $4.5 billion, up 36%; net income of $2.1 billion, up 40%; and earnings per share of $2.08, up 41%. Notably, during 2Q21, Mastercard bought back 4.6 million of its shares, paying $1.7 billion for the shares and $434 million in dividends. The stock closed at $388.00, up $4.56. 
  • PayPal Holdings (PYPL) reported 2Q21 net revenues of $6.24 billion, up 17%; net income of $1.36, up 8%; and earnings per share of $1.00, up 8%. The stock closed at $282.68, down $19.30.

Several key economic benchmarks were reported:

  • U.S. Real GDP QoQ rose to 6.50%, compared to 6.30% last quarter, higher than the long-term average of 3.19%.
  • U.S. Initial Claims for Unemployment Insurance fell to 400,000, down from 424,000 last week and a decrease of -5.66% from the previous week.
  • U.S. Personal Savings Rate is at 10.90%, compared to 20.80% last quarter and higher than the long-term average of 8.81%.
  • European Union Economic Sentiment Indicator: rose to 118.00, up from 117.10 last month, a 0.77% rise.
  • European Union Consumer Confidence Indicator: fell to -5.60, down from -4.50 last month.

Eurozone Summary for July 29:

  • Stoxx 600 closed at 463.81, up 2.11 points, or 0.46%.
  • FTSE 100 closed at 7,078.42, up 61.79 points, or 0.88%
  • Dax Index closed at 15,640.47, up 70.11 points, or 0.45%.

Wall Street summary for July 29:

  • The Dow Jones Industrial Average closed at 35,084.53, up 153.60 points, or 0.44%.
  • The Standard & Poor’s 500 closed at 4,419.15, up 18.15 points, or 0.42%.
  • The Nasdaq Composite Index closed at 14,778.26, up 15.68 points, or 0.11%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,478.30, up 14.50 points, or 0.59%.
  • The U.S. Treasury 10-year note closed at 1.28%.
  • The U.S. Treasury 2-year note closed at 0.20%.

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