Dow Jones Today: Debt Vote Drives Index Higher

Key Takeaways

Financials American Express, Visa, and JPMorgan move higher following the vote on the bill to raise the debt ceiling.
Apple’s retail plans and Microsoft’s AI deal send tech stocks higher.
Salesforce fell on warning about customer spending and Amgen slipped on generics competition.

The Dow Jones Industrial Average (DJIA) moved higher by more than 0.5%, or 153 points, as investors celebrated the House of Representatives passing the debt-ceiling bill, which now goes to the Senate.

Stocks were higher across the board, with the S&P 500 and Nasdaq gaining 0.9% and 1.2%, respectively.

Fresh economic data reinforced the narrative of a resilient economy. ADP reported private employers added 278,000 jobs in May, well over the 180,000 economists were expecting. Meanwhile, U.S. construction spending rose 1.2% in April, blowing past forecasts of a 0.2% increase.

American Express (AXP) rose 2.6%, making it the Dow’s best-performing stock, followed by rival Visa (V), which rose 2.4%. Other financial stocks followed them higher, with JPMorgan Chase (JPM) up 1.4%.

Chevron (CVX) moved higher by 1%. Oil prices rose 3% on speculation that OPEC+ could cut production at its upcoming weekend meeting.

Shares of Apple (AAPL) rose 1.5% after the company said it would build or remodel 57 retail locations. Investors are also anticipating the unveiling of Apple’s augmented reality headset, its first new major product line since launching the Apple Watch in 2014, at next week’s global developer conference.

Microsoft (MSFT) moved up 1.3% after it announced an AI cloud-computing infrastructure deal with startup CoreWeave.

Salesforce (CRM) was the Dow’s worst performer, falling 4.7% following its earnings report. The company beat earnings and revenue forecasts but warned clients may be tightening their belts.

Goldman Sachs (GS) shares fell 2.3% after the Wall Street Journal reported customers were having difficulty withdrawing funds from their Apple savings accounts—Goldman manages the high-yield savings accounts launched in April.

Amgen (AMGN) shares fell 2.9% after Coherus BioSciences said it would offer a generic version of AbbVie’s blockbuster drug Humira, selling it at an 85% discount to the name brand. Amgen’s generic currently sells at a 55% discount to Humira.

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