US stock indexes edged higher on Friday as the retail sale for June beat analysts’ expectations. S&P 500 index rose 0.2% while Nasdaq 100 index was up by more than 0.3%. Dow Jones Industrial Average (DJA) index was at a standstill.
US Economic Outlook
S&P 500 index edged higher on Friday after the release of better-than-expected US Retail Sales for June. US retail sales beat analysts’ forecast as demands for goods remained stronger.
Retail sales jumped 0.6% MoM in June 2021 beating the estimated forecast of a 0.4% decline. It increased from the previous month’s 1.7% decline.
The global supply of semiconductors led to shortages of motor vehicles due to the slowdown in their production. This led to hiccups in the sales of automobiles. Sales of some household appliances were also affected by the chip shortage.
During the pandemic, demand shifted to electronics and motor vehicles as many people worked from home and avoided public transportation. Hence the sales in this sectors rose. However, sales in bars, restaurants, and clothing stores struggled due to the strict social distance restrictions.
Retail sales less food and energy sales, climbed 1.3%. The core retail sales beat the 0.4% estimated forecast and surpassed the previous 0.9% decline in May.
S&P 500 Movers
Among the best performers in the S&P 500 index include State Street, Cintas, among many others. State Street gained 3.10% in its stock earnings. the financial service company announced its financial results for the second quarter on Friday. The company’s profits came in at $763 million which was higher than the previous quarter.
Cintas was up by more than 2.50%. The US-based uniform supplier company announced its earnings for the fourth quarter of the fiscal year 2021. The company’s revenue advanced 13% to $1.8 billion surpassing estimates.
Charles Schwab led the laggards in the index. The financial services company recently announced its revenue for the second quarter. The company’s revenue rose to beat estimates, however, its profits declined.
Freeport McMoRan took a 2.33% nosedive in its stock price. The mining company announced the withdrawal of its plans to build a new copper smelter with China’s Tsing Shan Holding Group.