The U.S. stock market made a clear attempt to push back from the lows amid the publication of the minutes of the Federal Reserve’s meeting in May. The information that the Central Bank is ready to raise the rates by 0,5% at the next two meetings was taken within the expectations.
Dow Jones added 0.6%
The lag of the main stock benchmark can be explained by the presence of a large number of protective securities, the interest in which was minimal amid the rollback in most sectors. Shares of Procter & Gamble (PG), Johnson & Johnson (JNJ), Merck & Co (MRK), WalMart (WMT) and McDonalds (MCD) lost 0.2% to 1.6%.
The S&P 500 broad market index rose 0.95%, led by retailer Best Buy (BBY) +8.97%. Growth in the Nasdaq (+1.51%) was “led” by Zoom Video (ZM) +8.48%, DocuSign (DOCU) +8.32% and Intuit (INTU) +8.21%.
Traders are watching Chevron and Occidental stocks rise. Photo: CNBC.
With all the positive market sentiment the world’s largest company Apple (AAPL) shares did not get reassured, they managed to rise only by 0.11%, and Alphabet (GOOG), which ended the trading session slightly, but still negative. As for the big stocks, only Tesla (TSLA) +4.88% and Amazon (AMZN) +2.57% were performing well on the volume.
Oil stocks are better than the market
Oil quotations confidently holding their current positions continue to inspire investors in energy stocks. Chevron (CVX), the second largest U.S. oil company by capitalization, gained 1.6%, marking its new highs. Shares of the first ExxonMobil (XOM) and third ConocoPhillips (COP) gained 2% and 1.5%, respectively.
On topic: Oil price will be $150 per barrel sooner than $75
The sector’s mid-price stocks fared well: EOG Resources (EOG) as well as Chevron made new highs, gaining +2.96%. Occidental Petroleum (OXY) added two percent.
Occidental and Chevron favorites Buffett
Recall that earlier this month Warren Buffett’s Berkshire Hathaway spent more than $50 million to buy more than 900,000 shares of Occidental, bringing the total steak in that oil company to more than 143 million shares. Berkshire has also been building up its stake in Chevron (CVX), which now exceeds 38 million shares.
Michael Brush on MarketWatch writes about the rally
There is an entertaining article on MarketWatch in which the author focuses the reader’s attention on insider buying. He cites Home Depot (HD), Morgan Stanley (MS) and Coinbase (COIN) stocks as examples. Using mathematical valuation models against historical data, Michael Brush concludes that all conditions are ripe for a powerful 15% rally from current levels.
On topic: U.S. stock market may repeat the movement of the seventies
After Market Close
Nvidia (NVDA) and Snowflake (SNOW) reported. The stock was down 6% and 13%, respectively. U.S. stock index futures had almost no reaction to these events.
