The First Slice for Thursday, August 4, 2022

U.S. stock indexes traded sharply higher on Wednesday as investors weighed earnings reports and better-than-expected economic data after kicking off August with back-to-back losses in the wake of geopolitical tensions generated by House Speaker Nancy Pelosi’s trip to Taiwan.

  • The Dow gained +416.33 or +1.29%
  • The S&P 500 rose +63.98 or +1.56%
  • The Nasdaq went up +319.40 or +2.59%

A busy week of corporate earnings reports rolled on, as investors assessed a string of results from tech-related companies and others.

“I think if earnings come in sort of mid to high single digits, it’s a meaningful positive because I think one of the pillars of the bear’s case is that earnings estimates have to be rerouted dramatically lower and so far even with some high profile (companies), that’s not been the case,” Timothy Holland, chief investment officer at Orion Advisor Solutions, said in an interview. 

In U.S. economic data, an ISM barometer of business conditions at companies in July rose to a three-month high of 56.7%, suggesting the economy continues to expand despite growing headwinds.

U.S. factory orders rose 2% in June, the government said Wednesday. Economists polled by MarketWatch had forecast a 1.2% gain.

Meanwhile, House Speaker Nancy Pelosi left Taiwan Wednesday after meeting with the island’s president. Pelosi’s visit angered Beijing, which sees Taiwan as part of its territory, and said it would conduct live-fire military exercises in areas around the island this week…….Full Loaf Hot Link[read more]

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