Tech stocks lead charge higher for 2nd day
Stocks bounce back after 3-day plunge
More tech rotation to come? Reaction from Fox News contributor Jonathan Hoenig, Capitalist Pig hedge fund founding member.
U.S. equity markets shrugged off disappointing jobless claims data as mega-cap technology led the charge higher for a second day.
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The Nasdaq Composite paced the advance, trading up 1.24% while the S&P 500 and the Dow Jones Industrial Average were higher by 0.56% and 0.43%, respectively. The gains come after the major averages on Wednesday snapped a three-day losing streak that shoved the tech-heavy Nasdaq into its fastest correction on record.
|I:COMP||NASDAQ COMPOSITE INDEX||11284.441317||+142.88||+1.28%|
|I:DJI||DOW JONES AVERAGES||28078.23||+137.76||+0.49%|
Looking at the economy, initial jobless claims for the week ended Sept. 5 totaled 884,000, unchanged from the prior week. Continuing claims, a broader category that measures unemployed workers receiving benefits for longer than a week, climbed to 13.385 million, up from a revised 13.292 million. Both numbers were worse than the Refinitiv consensus.
Looking at stocks, tech giants Alphabet Inc., Amazon Inc., Apple Inc. and Microsoft Corp. gained ground for a second day as investors looked to scoop up shares at discounted prices following the sharp three-day slide.
Tesla Inc. shares were higher for a second day following their steepest one-day percentage plunge on record. Shares gained 11% on Wednesday after tanking 21% the prior session.
Nikola Corp. was under pressure after Hindenburg Research accused the electric-truck maker of being “an intricate fraud built on dozens of lies.” The research firm said it established a short position in Nikola shares following its research.
Elsewhere, Citigroup CEO Michael Corbat will retire in February 2021, and will be replaced by Jane Fraser, president and chief executive of global consumer banking. Fraser will become the first woman to head a major financial institution in the U.S.
Meanwhile, drugmaker AstraZeneca plc will know by the end of the year if its late-stage trial of an experimental COVID-19 vaccine will restart. The trial was put on hold this week after a participant fell ill.
Looking at earnings, video game retailer GameStop reported a wider-than-expected quarterly loss as comparable-store sales fell 12.7% from a year ago. The company said store closings due to COVID-19 and being in the final months of a generation console cycle contributed to the weakness.
Peloton Interactive Inc. is set to report its quarterly results after Thursday’s closing bell with Wall Street analysts surveyed by Refinitiv expecting adjusted earnings of 10 cents per share on revenue of $583 million.
Looking at commodities, West Texas Intermediate crude oil slid 56 cents to $37.49 per barrel and gold edged up $2.30 to $1,957.20 an ounce.
U.S. Treasurys were little changed with the 10-year note yield holding near 0.7%.
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In Europe, France’s CAC was trading up 0.28% and Germany’s DAX was higher by 0.24% after the European Central Bank kept rates and its stimulus program unchanged despite the euro over the last four months having strengthened 9% versus the U.S. dollar. Elsewhere in the region, Britain’s FTSE ticked up 0.09%.
Asian markets ended mixed with Japan’s Nikkei adding 0.88% while China’s Shanghai Composite and Hong Kong’s Hang Seng fell 0.61% and 0.64%, respectively.
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