– With a debt limit agreement seeming more likely, the Dow Jones Industrial Average rose by 1.24 points.
– The share price of Home Depot has recovered after yesterday’s slump due to a weak earnings report.
– The financial industry as a whole did well, headed by JPMorgan Chase.
Intel stock dropped amid news of weak PC sales.
The Dow Jones Industrial Average recovered from the previous session’s dive on retail fears to rise by 1.24%, or 408 points, on the expectation that progress would be made in U.S. debt limit discussions.
President Joe Biden’s “confident” statement that Democrats and Republicans would reach a compromise to increase the government’s borrowing ceiling before funds are depleted on June 1 boosted the stock market.
After Home Depot (HD) topped Wall Street’s earnings forecasts the day before, its stock price soared by more than 3.5 percent, making it the top performer among the Dow 30. Investors focused on the company’s sales shortfall and weak retail sales figures yesterday, sending the stock price tumbling.
Even Boeing (BA) gained about 3%. The 21 Boeing 737 Max planes ordered by Singapore Airlines were cut down to 13, but investors hardly batted an eye.
After CEO Jamie Dimon stated he did not foresee the too-big-to-fail bank acquiring additional regional banks, JPMorgan Chase (JPM) shares climbed by more than 3%. Dow components Goldman Sachs (GS) and American Express (AXP) rose roughly 3% and 2.5%, respectively, making financials one of the session’s best-performing sectors.
Intel (INTC) had the poorest return on the Dow. After Bernstein reported that the PC market recovery might be slower than expected, its stock dropped more than 1%.
Healthcare was one of the worst-performing sectors of the day, likely due to the Federal Trade Commission’s (FTC) complaint filed yesterday to stop Amgen’s (AMGN) $28 billion purchase of Horizon Therapeutics. Merck & Co. (MRK) fell by almost 1%, while Amgen fell by 0.5%. Similarly, Johnson & Johnson (JNJ) was down 0.5%, marking the 11th decrease in 12 trading days.
