The U.S. stock market is in the midst of a very productive stretch for those long equities, one that seemingly came out of nowhere in the days immediately following the sharp two-day plunge pursuant to the Brexit vote. It has seen the Dow Jones Industrial Average and the broader S&P 500 Index produce record highs in several sessions over the last fortnight of trading. Driving stocks higher has been some supportive earnings data from Corporate America and a slew of positive economic reports, including a much better-than-expected reading on employment last month. All of this against the backdrop of an environment where market pundits believe that the world’s central banks will continue their accommodative monetary policies into 2017 makes for the perfect cocktail for those long equities.
General Electric, an industrial conglomerate that is in the process of pivoting back to its industrial roots and selling off its financial-related holdings, has reported June-period results that depicted a solid overall showing. But with the stock trading at lofty levels heading into the release, investors chose to take profits following the earnings announcement.
Shares of Visa were little changed in the premarket after the electronic payments processor reported decent June-quarter results.