Wall Street recovers on Big Tech gains, upbeat economic data

In this news, we discuss the Wall Street recovers on Big Tech gains, upbeat economic data.

(Reuters) – US stocks gained ground on Thursday after falling sharply a day earlier, as investors piled on tech heavyweights ahead of their earnings reports, while bullish economic data eclipsed concerns about the surge in coronavirus cases.

Apple Inc, Amazon.com Inc and Alphabet Inc, which saw an increase in demand for their products and services from people staying at home during the pandemic, increased between 0.6% and 2.3% before their results after the closing bell.

Social media companies Facebook Inc and Twitter Inc, which also reports later in the day, jumped about 5% each, building on Pinterest Inc’s optimistic forecast for sales growth on a healthy rebound in ad spend.

Shares of the image-sharing company have climbed more than 33%.

Communication services, materials and technology advanced the most among the major S&P sectors.

Sentiment rose further after data showed the U.S. economy grew at a record pace in the third quarter, as the government provided more than $ 3 trillion in pandemic relief.

A separate report showed weekly jobless claims fell more than expected over the past 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.

“It’s encouraging to see that we’ve seen a noticeable recovery, but I’m not sure if that points the way to us from here.”

The CBOE’s volatility index hovered near its 15-week highs as the White House coronavirus task force urged aggressive action to curb the spread of the disease and anxiety over the outcome of the presidential election of November 3.

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.

Efforts stalled in Washington due to new stimulus measures and an alarming increase in COVID-19 cases around the world put the S&P 500 and the Dow on track for their worst week since March.

As of 10:53 a.m. ET, the Dow Jones Industrial Average rose 138.93 points, or 0.52% to 26,658.88, and the S&P 500 was up 29.16 points, or 0.89% to 3,300.19. The Nasdaq Composite gained 117.38 points, or 1.07%, to 11,122.25.

Trainer owner Tapestry Inc climbed 4% after beating quarterly profit estimates and forecasting growth for the year, demand for handbags and luxury clothing rebounding in China after pandemic lows .

Rising issues outnumbered falling issues on the NYSE by a 2 to 1 ratio and by a 1.3 to 1 ratio on the Nasdaq.

The S&P 500 posted three new 52-week highs and 10 new lows; the Nasdaq Composite recorded 31 new highs and 65 new lows.

Reporting by Medha Singh and Shivani Kumaresan in Bengaluru, additional reporting by Sruthi Shankar; Edited by Anil D’Silva

Original © Thomson Reuters

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