Wall Street Rallies on the First Trading Day of the Second Half of the Year

It was welcome news after the three indexes posted losses for the first half of the year.

Wall Street-Rallies-on-the-First-Trading-Day-of-the-Second-Half-of-the-Year
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After suffering losses for the first six months of 2022, Wall Street rallied in the first trading session for the second half of 2022.

On Friday, stocks rose to begin the third quarter on a positive note. The Dow soared by 321.83 points to finish at 31,097.26, gaining 1.1 percent. Meanwhile, the S&P 500, which just finished its worst performance since 1970, climbed to 3,825.33, rising 1.1 percent. The Nasdaq also finished ahead by 0.9 percent, settling at 11,127.85.

Stocks in the home building industry led the way, with D.R. Horton and Lennar each rising by more than 5 percent, and PulteGroup surging ahead by 6.5 percent. Etsy shares led the way for the S&P 500, with shares jumping 9 percent.

On the Dow front, McDonald’s shares were front and center with a 2.5 percent increase. Boeing and Coca-Cola also ended in the positive, with each rising by more than 2 percent.

But, in spite of ending up in positive territory, the three major indexes posted in the negative for the week, that is, their fourth week down out of five. The Dow slid by 1.3 percent for this week, while the Nasdaq lost 4.1 and the S&P 500 finished 2.2 percent lower.

Investors were still on guard after a number of companies lowered their guidance after concerns about decades-long record-high inflation might persist.

But, even after General Motors sent out warnings that manufacturing issues during the second quarter could lower its net income, GM stocks ended 1.4 percent higher. Analysts had predicted the net income for GM to end at around $2.5 billion for the second quarter, but GM said it predicts it will fall short to between $1.6 billion and $1.9 billion.

Micron Technology shares were lower by around 3 percent after it issued lower guidance for the fiscal fourth quarter. Other chipmaker shares didn’t fare well either. AMD, Western Digital, and Qualcomm shares each fell by around 3 percent, while Nvidia trimmed about 4 percent.

Kohl’s shares also fell by 19.6 percent after the Menomonee Falls, Wisconsin-based retailer slashed its fiscal second-quarter outlook. The retailer blamed lower consumer spending and a worsening retail environment since talks ended to sell the company.

Meanwhile, June’s manufacturing activity was weaker than anticipated, according to the Institute for Supply Management. ISM’s national factory activity index fell to 53, its lowest reading in two years. The Institute’s new orders index also declined from 55.1 to 49.2, highlighting a contraction for the first time in 25 months.

 

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