The US authorities filed a lawsuit against Facebook - what are the implications?
Dow gets back to positive territory
On Thursday, the Dow got back to positive territory for the year, offsetting losses from yesterday’s rout, led by soaring tech equities because bargain-hunting traders rushed to beaten-up equities on the back of reassuring earnings.
As a matter of fact, the Dow Jones Industrial Average leapt by nearly 1.63%. As for the S&P 500, it managed to gain by 1.86%. At the same time, the Nasdaq Composite surged by 2.95%. Firm profits for the Dow as well as Nasdaq saw both indexes dodged correction territory.
Well, the major averages managed to dodge correction territory due to the fact market participants considered the rout from a day earlier to be a buying opportunity.
On Wednesday, Microsoft reported profits after the settlement that handily surpassed analyst expectations on both the top as well as bottom lines, thus sending its equities up by 6%. As for Twitter, it managed to surge over 15% having surpassed consensus profit forecasts.
In addition to this, Tesla demonstrated a striking third-quarter gain, although some on Wall Street tamed upbeat mood, questioning whether it’s as good as it gets for the well-known electric car maker.
Tesla's exposure to China levies on imported components as well as its offering of lower-priced cars would probably have margins compressed in the fourth quarter.
Chip producer Advanced Micro Devices tamed optimism on profits after it guided fourth-quarter gains below consensus forecasts. Its equities headed south by nearly 15%.
Chipmakers generally rallied, with top performers including, Nvidia, Micron Technolgoy and Intel. Besides this, the SPDR S&P Semiconductor headed north by over 2%, compensating some losses from yesterday, when the sector faced its worst dive since November 2018.
By the way, Xilinx, Twitter as well as International Paper turned out to be the S&P 500 top performers for the trading session.
Russian media companies are complaining that Youtube and Facebook block them. So sad. Now, what about the stock price?
Have you seen the Tesla stock price? But it has already dropped from that high... will it move up again?
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!