US Stock Market Overview – Stocks Close Higher to Close out the Month on an Up NoteApple surges following earnings
US stocks moved higher on Friday as the Nasdaq roared higher. Better than expected earnings from Apple, Amazon and Facebook helped buoy the Nasdaq. Apple shares soared more than 10% as iPhone 11 sales surged. Facebook was up more than 7%, as both the top and bottom-line beat expectations. All sectors in the S&P 500 index were lower, led down by losses in cyclicals. The technology was the best performing sector. Personal spending rose more than expected, and inflation ticked up slightly. Crude oil prices edged higher following news that the oil rig count declined by one rig.
Personal Spending Rose
Consumer spending, rose 5.6% last month after a record 8.5% jump in May as more businesses reopened. Expectations had been for consumer spending to rise by 5.5% in June. When adjusted for inflation, consumer spending increased 5.2% last month after surging 8.4% in May. Personal income dropped 1.1% last month after decreasing 4.4% in May. Wages increased 2.2% after rebounding by 2.6% in May. The saving rate fell to a still-high 19% from 24.2% in May.
Inflation edged higher in June
Monthly inflation ticked up in June, driven by food and energy goods and services prices, though the trend remained muted. The personal consumption expenditures (PCE) price index excluding the volatile food and energy components rose 0.2%, matching May’s gain. On a year over year basis, the core PCE price index increased 0.9% after rising 1.0% in May.
Stimulus Bill Hits a Road Block
Negotiators on the next coronavirus relief bill hit a roadblock Friday and have not been able to reach a middle ground. Underscoring the gulf between Democrats and Republicans as they try to boost an economy. The current $600 per week enhanced federal unemployment benefit lapses on 7/31. After last-ditch efforts to pass an extension failed Thursday, the Senate left for the weekend.