Wall Street closed higher on Thursday, driven by discretionaries and utility stocks. Markets shrugged off tariff concerns with the extension of the tariff deadline to Aug. 1. Jobless claims came down, raising the notion that the labor market remained resilient. All three benchmark indexes closed in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4%, or 192.34 points, to close at 44,650.64. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.
The tech-heavy Nasdaq Composite gained 19.33 points, or 0.1%, to close at 20,630.67.
The S&P 500 added 17.20 points, or 0.3%, to close at 6,280.46. Nine of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU) and the Energy Select Sector SPDR (XLE) advanced 1.1%, 0.8% and 0.8%, respectively, while the Technology Select Sector SPDR (XLK) lost 0.3%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1% to 15.78. A total of 18.2 billion shares were traded on Thursday, lower than the last 20-session average of 18.3 billion. Advancers outnumbered decliners by a 2.23-to-1 ratio on the NYSE and by a 1.38-to-1 ratio on the Nasdaq.
Markets Shrug Off Trump Tariff Rhetoric
Despite the announcement of new tariffs by President Trump, markets appeared largely unbothered on Thursday. Trump imposed a 50% tariff on copper imports from Brazil and other restrictions on Chinese e-commerce platforms, with the measures set to take effect on Aug. 1. Initially, such announcements might have sparked volatility, especially given concerns over global trade and inflation. However, investors seemed to interpret the developments more as political posturing than immediate economic threats.
The timing of the tariffs played a key role in calming investor nerves. With the implementation date weeks away, traders saw the move as a bargaining chip that could still be watered down or delayed. As a result, broader equity indices not only held steady but continued their upward climb, indicating faith in underlying economic momentum. Risk appetite remained intact, helped by strong earnings from key companies and confidence in U.S. economy’s resilience. Delta Air Lines, Inc. DAL beat second-quarter earnings and revenue estimates, and sent airline stocks soaring.
Shares of United Airlines Holdings, Inc. UAL and American Airlines Group Inc. AAL added 14.3% and 12.7%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
For the week ending July 5, initial jobs claims came in at 227,000, a decrease of 5,000 from the previous week's revised level. The prior week's level was revised down by 1,000 from 233,000 to 232,000. The 4-week moving average was 235,500, a decrease of 5,750 from the previous week's revised average. Last week's average was revised down by 250 from 241,500 to 241,250.
Continuing claims for the week ending June 28 totaled 1,965,000, an increase of 10,000 from the previous week's revised level. This is the highest level for insured unemployment since Nov. 13, 2021, when it was 1,970,000. The previous week's level was revised down by 9,000 from 1,964,000 to 1,955,000. The 4-week moving average was 1,955,250, an increase of 3,500 from the prior week's revised average. This is the highest level for this average since Nov. 20, 2021, when it was 2,004,250. The previous week's average was revised down by 2,250 from 1,954,000 to 1,951,750.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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