US S&P 500, Dow scales new high after GDP data

The US stocks finished session modest higher on Thursday, 29 July 2021, with the S&P 500 and the Dow indexes scaled record highs, as investors risk appetite underpinned on hopes that the Federal Reserve will not be in a hurry to begin scaling back its asset purchases after weaker than expected growth in second-quarter Gross Domestic Product. Meanwhile, upbeat earnings reports also buoyed investor sentiment.

At the close of trade, the Dow Jones Industrial Average index advanced 153.60 points, or 0.44%, to 35,085. The S&P 500 index increased 18.51 points, or 0.42%, to 4,419. The tech-heavy Nasdaq Composite Index was up 15.68 points, or 0.11%, to 14,778.

Total 9 of 11 S&P 500 sectors inclined, with materials (up 1.08%) sector was top gainer, followed by financials (up 1.07%), energy (up 0.93%), consumer discretionary (up 0.84%) and industrials (up 0.77%) sectors. communication services (down 0.91%) sector was worst performer, followed by real estate (down 0.24%) sector.

Shares of Ford Motor Co jumped 4.0% to hit a more than three-week high as it lifted its profit forecast for the year, while KFC-owner Yum Brands Inc rose 5.2% after beating expectations for quarterly sales.

Facebook Inc shares fell 4% as the company warned revenue growth would "decelerate significantly" following Apple Inc's recent update to its iOS operating system that would impact the social media giant's ability to target ads.

ECONOMIC NEWS: US GDP Climbs 6.5% In Q2 - US real GDP surged up by 6.5% in the second quarter following a 6.3% jump in the first quarter, a report released by the Commerce Department on Thursday showed. The GDP growth in the second quarter reflected increases in consumer spending, non-residential fixed investment, exports, and state and local government spending. The report showed consumer spending skyrocketed by 11.8% in the second quarter after soaring by 11.4% in the first quarter. The report also showed core consumer prices, which exclude food and energy prices, spiked by 6.1% in the second quarter after jumping by 2.7% in the first quarter.

US Initial Jobless Claims Pull Back Modestly- US initial jobless claims pulled back modestly in the week ending July 24, the Labor Department reported on Thursday. The advance figure for seasonally adjusted initial claims was 400,000, a decrease of 24,000 from the previous week's revised level. The previous week's level was revised up by 5,000 from 419,000 to 424,000. The 4-week moving average was 394,500, an increase of 8,000 from the previous week's revised average. The previous week's average was revised up by 1,250 from 385,250 to 386,500.

Among Indian ADR, Tata Motors added 2.48% to $19.82, ICICI Bank added 1.24% to $18.82, Vedanta added 8.16% to $15.77, HDFC Bank added 1.34% to $71.24, and INFOSYS added 0.32% to $21.92. WNS Holdings added 2.27% to $82.15, and Dr Reddys Labs added 0.17% to $63.29. Wipro fell 0.47% to $8.40.

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