The Three Major U.S. Stock Indexes Hit New Highs

“US Stocks” employment growth is better than expected, three major indexes simultaneously set new highs

The three major U.S. stock indexes hit new highs before the long weekend holiday, mainly motivated by better-than-expected employment reports and a 4-month low in U.S. bond yields. Among them, the S&P 500 Index has set a new high for 7 consecutive trading days, the longest consecutive record high since June 1997.
The U.S. stock market  closed for one day on Monday, as July 4th Independence Day falls on a Sunday. This week, the market will pay attention to the release of the minutes of the Federal Open Market Committee meeting in June, in order to find more clues about possible changes in monetary policy, as well as the progress of the company’s second quarter financial reports and government infrastructure plans.

The Dow Jones Industrial Average rose 0.44% (152.82 points) to close at 34,786.35 points on July 2. The Standard & Poor’s 500 Index rose 0.75% (32.40 points) to close at 4,352.34 points. The Nasdaq Index rose 0.81% (116.95 points) to close at 14,639.33 points. The Philadelphia Semiconductor Index rose 0.63% (20.77 points) to close at 3,315.83 points. Last week, the Dow Jones index rose 1.0%, the S&P 500 index rose 1.7%, and the Nasdaq index rose 1.9%.

Among the top five heavyweights in the Dow Jones Index on Friday, United Health Insurance (weighted 7.70%) rose 1.10%, Goldman Sachs (weighted 7.13%) fell 0.22%, Home Depot (weighted 6.11%) rose 0.36%, and Microsoft (weighted 5.16%) rose 2.23%, Amgen (weight 4.69%) rose 0.73%.

The U.S. non-agricultural employment population increased by 850,000 in June, the largest increase in three months, which was better than the 700,000 increase estimated by the Reuters survey. The data in May was also revised up from an increase of 559,000 to an increase of 583,000. . The unemployment rate rebounded by 0.1 percentage point to 5.9% in June, which was weaker than expected 5.6%. According to the US Bureau of Labor Statistics, employment opportunities in leisure and hospitality, public and private education, professional and business services, retail trade and other services have increased significantly.

Electric vehicle manufacturer Tesla Inc announced on Friday that in the second quarter of 2021, the company will produce and deliver more than 200,000 vehicles, a record high. Tesla produced 206,421 vehicles in the second quarter and delivered 201,250 vehicles, but it was still slightly lower than the market’s expected 207,000 vehicles. Tesla CEO Elon Musk pointed out that the supply of chips and some raw materials still poses a challenge. The company’s shares closed up 0.1%.

On Friday, the 11 major stocks in the S&P 500 index rose and fell: communications services (0.92%), optional consumption (1.08%), basic consumption (0.31%), energy (-0.20%), finance (-0.20%) , Healthcare (0.86%), industry (0.18%), information technology (1.39%), raw materials (0.08%), real estate (0.52%), public utilities (0.08%).

In terms of individual stock performance, technology leaders: Apple (1.96%), Microsoft (2.23%), Google (1.86%), Amazon (2.27%), Facebook (0.09%), Tesla (0.14%). Semiconductor chips: Micron (0.27%), Supermicro (1.49%), Xilinx (1.94%), Nvidia (1.36%), Qualcomm (1.26%), Texas Instruments (0.72%), Intel (1.34%).