It’s been an up-and-down week for North American markets as investors survey a wide range of mixed economic data, along with concerns that the Delta variant could hamper economic activity as U.S. cases continue to mount.
U.S. markets were essentially flat Monday as investors weighed a strong earnings season against growing uncertainty about the Delta variant. In Toronto, markets were closed Monday for the Civic Holiday. N.A. markets bounced back on Tuesday, however, as data showed that U.S. factory orders rose 1.5% in June after a 2.3% increase in May, beating economists’ expectations. By Tuesday’s close, the Dow added 278 points, while the Nasdaq and S&P rose 80 and 36 points, respectively. In Canada, the TSX jumped 78 points. U.S. markets were mostly weak Wednesday as new economic data revealed that the private sector added fewer jobs than expected in July — just 330,000 — almost half the number forecast. Countering that data was news that U.S. service-sector activity rose at the fastest pace on record in July. The Institute for Supply Management’s PMI reached 64.1 last month, clearly in expansion territory. By Wednesday’s close, the Dow dropped more than 300 points, while the S&P and TSX surrendered 20 and 36, respectively. The TSX ended with a minor loss, despite a 4% drop in the energy sector, as oil prices fell for a third consecutive day. The lone bright spot was the Nasdaq, which added 19. Fresh data Thursday showed the U.S. trade deficit grew to $75.7 billion in June, more than economists had forecast, as Americans ramped up purchases from overseas. Meanwhile, initial jobless claims in the U.S. for the previous week fell slightly to 385,000—still nearly double the pre-pandemic average. Despite the economic news, U.S. stocks staged a broad-based rally Thursday, as financials, travel and technology names regained ground. In Canada, the TSX added 46.
Markets Gain Ground, Despite Surging Delta Variant
For the four trading days covered in this report, the Dow added 129 points to close at 35,064, the S&P 500 rose 34 points to settle at 4,429, while the tech-heavy Nasdaq jumped 223 points to close at 14,895. In Canada, the TSX climbed 87 points to end at 20,375.
source https://richarddri.ca/markets-struggle-for-traction-as-delta-variant-cases-surge-in-u-s/
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