US stocks posted mixed results
US stocks posted mixed weekly results as investors digested strong GDP growth data and weak earnings from technology companies. For the week ending July 27, the Dow Jones Industrial Average gained 1.6% and closed at 25,451.06, while the S&P 500 rose 0.61% to 2,818.82. Weak earnings growth from technology companies like Twitter and Facebook led to a 1.1% fall in the NASDAQ Composite Index to 7,737.42.
Financials led the gains
Last week, the markets had strong support from the financial sector. The S&P 500 Financials Index rose over 2%, while the S&P Insurance Select Industry Index rose 1.9%. Tax cuts, rising interest rates, and strong economic growth are creating the congenial growth environment for US banks. The US GDP grew 4.1% in the second quarter.
The Vanguard Financials ETF (VFH) rose 2.4%, while the Financial Select Sector SPDR ETF (XLF) rose 0.8%. Among bank stocks, JPMorgan Chase (JPM) rose 4.27%. Other major gainers included Wells Fargo (WFC), Citigroup (C), Bank of America (BAC), and U.S. Bancorp (USB) with respective gains of 3.94%, 3.57%, 3.09%, and 3.02%. Visa (V), which reported stellar earnings, remained flat for the week. However, Visa has posted a 24% rally year-to-date. Visa has become the second-best performing stock in the Dow in 2018.