Stocks had a solid showing today. The major indices exhibited some choppiness, but maintained gains through the session. The S&P 500 (+1.1%), the Nasdaq Composite (+1.0%), the Dow Jones Industrial Average (+1.6%), and the Russell 2000 (+1.7%) ultimately closed more than 1.0% higher in a broad advance. 

Advancers led decliners by a better than 4-to-1 margin at the NYSE and by a nearly 3-to-1 margin at the Nasdaq.

The upside bias was driven by positive responses to earnings news, a drop in market rates, and some pleasing economic data. The June Personal Income and Spending Report showed some fairly steady behavior in the PCE and core-PCE price indexes on a year-over-year basis and supported the market's belief that the Fed will cut rates in September.

The 10-yr note yield settled six basis points lower today, and four basis points this week, at 4.20%. The 2-yr note yield settled five basis points lower today, and 13 basis points lower this week, at 4.39%. 

In earnings news, 3M (MMM 127.16, +23.77, +23.0%), Mohawk (MHK 160.71, +26.21, +19.5%), Charter Comm (CHTR 367.62, +52.39, +16.6%), and Norfolk Southern (NSC 247.22, +24.32, +10.9%) were among the winning standouts. Meanwhile, Dexcom (DXCM 64.00, -43.85, -40.7%) logged the largest decline in the S&P 500 by a big margin after disappointing FY24 revenue guidance.

Today's broad buying activity led all 11 S&P 500 sectors to close higher. The industrial (+1.7%) and materials (+1.7%) sectors led the pack while the energy sector logged the slimmest gain, up 0.4%.

• Nasdaq Composite:+15.6% YTD
• S&P 500: +14.5% YTD
• Russell 2000: +11.5% YTD
• S&P Midcap 400: +10.6% YTD
• Dow Jones Industrial Average: +7.7% YTD

Reviewing today's economic data:

• June Personal Income 0.2% (Briefing.com consensus 0.4%); Prior was revised to 0.4% from 0.5%
• June Personal Spending 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.2%
• June PCE Prices 0.1% (Briefing.com consensus 0.1%); Prior 0.0%, June PCE Prices - Core 0.2% (Briefing.com consensus 0.2%); Prior 0.1%
  • The key takeaway from the report is that the price indexes didn't worsen on a year-over-year basis (i.e., move higher relative to the prior month). Consequently, they didn't give the market any reason to think the Fed will not cut rates at its September FOMC meeting considering comments from Fed officials, who knew where the May PCE price readings stood, have been teeing up that possibility.
• July Univ. of Michigan Consumer Sentiment - Final 66.4 (Briefing.com consensus 66.0); Prior 66.0
  • The key takeaway from the report is that there weren't any real notable changes in consumer sentiment, which has been rightfully described as guarded as consumers continue to deal with inflation, election uncertainty, higher interest rates, and some softening in the labor market.

Monday's calendar does not feature notable economic data.