Wall Street rebounds as market eyes tech results, strong U.S. data

In this news, we discuss the Wall Street rebounds as market eyes tech results, strong U.S. data.

NEW YORK (Reuters) – US stocks closed higher on Thursday as tech heavyweights rallying ahead of major earnings reports and bullish national economic data easing investor nervousness over the surge in coronavirus cases.

The rebound came after a drop of more than 3% a day earlier in major Wall Street indices, highlighting increased market volatility ahead of next week’s presidential election and growing fears of another COVID slowdown .

Stocks rebounded as investors expected strong results from a list of the biggest names in the U.S. corporate universe – Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Facebook Inc FB.O – Due after market close.

“The earnings season so far has seen some big earnings surprises,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “We believe this is helping fuel today’s rally in anticipation of positive surprises from these companies.”

Tech businesses have seen demand for products and services increase from people trapped in their homes during the pandemic. A better-than-expected earnings report from Pinterest Inc PINS.N, which predicted a rebound in ad spend, helped boost the rally. Shares of the image-sharing company climbed more than 28%.

The NYSE FANG + TM .NYFANG index jumped 3.2%. .SPLRCS communications services, .SPLRCM materials and .SPLRCT technology have advanced the most among the major S&P segments.

Sentiment was also boosted by data showing the US economy grew at a record pace in the third quarter after the government provided more than $ 3 trillion in pandemic aid. A separate report showed weekly jobless claims fell last week.

“This is positive data, but it’s a bit retrospective because you have COVID-19 cases on the rise again, which doesn’t really send a strong signal for Q4,” said Shawn Snyder, manager. investment strategy at Citi Personal Wealth Management in New York.

The CBOE .VIX volatility index hit a 15-week high this week due to lack of fiscal stimulus, as White House coronavirus task force urged aggressive action to stem the pandemic .

Democratic challenger Joe Biden holds a comfortable lead over President Donald Trump in national polls, but the race in the battlefield states that are likely to decide the election is tighter than national polls.

Unofficially, the Dow Jones Industrial Average .DJI rose 139.03 points, or 0.52%, to 26,658.98, the S&P 500 .SPX gained 39.11 points, or 1.20%, to 3310.14 and the Nasdaq Composite .IXIC added 180.73 points, or 1.64%, to 11,185.59.

Coach Tapestry Inc owner TPR.N climbed 4% beating quarterly profit estimates and forecasting growth for the year as demand for luxury handbags and clothing rebounded in China after pandemic troughs.

Reporting by Herbert Lash, additional reporting by Medha Singh, Shivani Kumaresan and Sruthi Shankar in Bangalore; Editing by David Gregorio, Anil D’Silva and Arun Koyyur

Original © Thomson Reuters

Originally posted 2020-10-29 13:36:10.

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