The rally in the US stock market has resumed in recent days after a massive sell-off on Monday sparked by fears over the rapid spread of the new COVID-19 delta strain. Investors are encouraged by the financial results of the largest American companies.
Meanwhile, market participants are waiting for the next meeting of the US Federal Reserve System (FRS), which will be held this week. Financial reports from a number of tech giants will also be released this week, including Tesla Inc., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc.
IHS Markit's purchasing managers' index (PMI) in the US industrial sector hit a record 63.1 in July, up from 62.1 a month earlier, preliminary data showed on Friday. This came as a surprise to analysts, who, on average, predicted a decline to 62 points, Trading Economics reported.
PMI in services fell to 59.8 points from 64.6 points in June. It was expected to rise to 64.8 points. The composite PMI indicator, which takes into account manufacturing and services, fell to 59.7 points this month against 63.7 points a month earlier. A PMI reading above 50 points indicates an increase in activity in the sector, below it indicates a weakening.
The Dow Jones Industrial Average to close the market rose by 238.2 points (0.68%) and amounted to a record 35,061.55 points.
Standard & Poor's 500 gained 44.31 points (1.01%), rising to a record 4411.79 points.
The Nasdaq Composite rose 152.39 points (1.04%) to a record 14,836.99 points.
For the week, the Dow added 1.1%, the S&P 500 added 2% and the Nasdaq added 2.8%, according to FactSet.
Stock quotes of American Snap Inc. jumped 23.8% in trading on Friday. The owner of the Snapchat app cut its net loss in the second quarter of 2021 and more than doubled its revenue as the ad market continues to recover.
Twitter Inc. Promotions have risen in price by 3.1%. The American company, which owns the microblogging network of the same name, in the second quarter increased the number of users and revenue more than analysts' forecasts.
American Express Co. (AmEx) added 1.3% in price. AmEx, one of the leaders in the American plastic card market, increased its net profit in the second quarter of 2021 by 9 times, and its revenue by 33%.
Capitalization of Kimberly-Clark Corp. increased by 0.5%. The US consumer goods maker cut its net profit in the second quarter of 2021 by 41% on a rise in revenue of just 2%.
Schlumberger Ltd. rose 1.5%. The American oilfield services company, one of the largest in the world, returned to profitable levels in the second quarter of 2021 amid a general increase in industry activity.
Market value of Veoneer Inc. soared by 56.4%. Canada's Magna International Inc., one of the world's largest suppliers of auto parts, plans to acquire a Swedish company specializing in vehicle safety technology.
The price of securities of the American Intel Corp. fell by 5.3%. One of the world's leading manufacturers of computer components in the second quarter of 2021 reduced net income and revenues, but improved its annual forecast.
Honeywell International Inc. fell in price by 1.5%. The American corporation increased its net income by more than 30% in the second quarter of 2021, while the adjusted figure and revenue exceeded market expectations and the company raised its annual forecast.
Nio Inc., a Chinese electric vehicle manufacturer, is quoted in the US. decreased by 4.5%. The company said that shareholders are selling 1.68 million shares of Nio. The automaker will not receive any proceeds from the sale of the shares.
