Dow closes more than 150 points higher to erase its 2020 losses; European stocks close lower following Fed policy shift; BELEX15 up 0.47%; Tehnogas and Philip Morris reported 6M 2020 numbers
Stocks rose on Friday to wrap up another strong week on a high note as the Dow Jones Industrial Average erased its losses of 2020. The 30-stock Dow closed 161.60 points higher, or 0.6%, at 28,653.87. The S&P 500 gained 0.7% to close at 3,508.01. It was the index’s first-ever close above 3,500. The Nasdaq Composite advanced 0.6% to end the day at 11,695.63. Walmart and Coca-Cola led the way for the Dow, rising 2.7% and 3.3%, respectively. Tech and energy were the best-performing sectors in the S&P 500, gaining 1.1% and 1.9%, respectively.
On the data front, U.S. consumer spending rose 1.9% in July, topping a Reuters forecast of a 1.5% gain, the Commerce Department said. Personal income was also stronger than expected, rising 0.4% while economists had forecast a drop of 0.2%.
European stocks closed lower Friday as investors digested a major policy shift by the U.S. Federal Reserve and news that Japanese Prime Minister Shinzo Abe is resigning because of health concerns.
Rolls-Royce, the engine maker, said it would sell assets in an attempt to raise £2 billion. Shares fell by about 3%. Meanwhile, WPP tumbled another 3% despite announcing plans to resume its dividend after beating dire second-quarter earnings expectations.
BELEX15 was up 0.47% as Energoprojekt gained 10.5%, while Tehnogas added 2.2%. Komercijana Banka was the most active with solid RSD 13m in volume, while Tehnogas and Phillip Morris reports were major corporate events. Tehnogas reported slightly lower sales for the period 6M 2020, which suggests the crisis has not affected the company so badly at this tage – namely, its sales were down only 1.3% but operating costs were also higher (depreciation, salaries, fuel and energy), which resulted in a lower operating profit by 19%. As a result, net profit was down 33%, to RSD 761m. Major negative effect over the remaining 2020 period may arrive from lower demand from Chinese HBIS company. Tobacco company Philip Morris reported pretty solid finial figures for 6 M 2020. The company’s sales were up 3.9% to RSD 10.9bn, while operating profit was up 4.1%, to RSD 2.4bn. Net profit was basically flat at RSD 2bn. The stock gained 1.4% on Friday.
Source: CNBC, Ilirika