S&P Rides Apple’s Surge to Record High as Tech Melt Up Continues By Investing.com


© Reuters.

By Yasin Ebrahim

Investing.com – The S&P closed at a record high on Friday, as an Apple-infused rally in tech and positive economic data prompted investors to raise their bullish bets on stocks. 

The closed 0.42% higher at a record 3,395, the  rose 0.69%, or 190 points. while the gained 0.42% to close at another record. 

Apple (NASDAQ:) surged 5%, leading the charge higher for the tech sector despite losses in other big tech names such as Microsoft (NASDAQ:), Facebook (NASDAQ:), and Amazon.com (NASDAQ:).

The surge in Apple comes just months to go until the release of its new slate of 5G-enabled iPhones, which many expect will be a game-changer for the upgrade cycle. 

“Our recent Asia supply chain checks conducted by our TMT team show a discernible uptick in forecasts for iPhone 12, which bodes well for demand trends heading into this highly anticipated October launch,” Wedbush said in a note.

Tesla (NASDAQ:) was also in focus, rising more than 2% to a new high at $2,049 as it prepares for a five-for-one stock split – a move that will make the stock more affordable for retail investors.

Energy, however, proved an exception to the day’s move higher as oil prices slipped on concerns that a slower pace of economic recovery could hurt demand.

But not every sector of the economy is flagging a potential slowdown. Housing remains robust, while a survey on business activity also surprised to the upside.

The Commerce Department said existing home sales in July to a seasonally adjusted annual rate of units., topping forecasts for a 14.7% rise.

“Given the continued plunge in mortgage rates, there is probably further upside for demand in August,” Jefferies (NYSE:) said.

IHS Markit data showed flash Composite Purchasing Managers’ index of 54.7 for August, above forecasts of 51.3.

Upbeat quarterly corporate earnings also supported investor sentiment on stocks.

Deere  (NYSE:) advanced more than 5% after the company reported fiscal third-quarter results that beat on both the top and bottom lines.

Foot Locker (NYSE:) also delivered quarterly results for the second quarter that topped analysts’ consensus, sending its share price up 1%

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link

After the S&P 500’s record run, UBS says look here for the next stock winners


A red flag from the Federal Reserve is jarring investors a little, in a week that has delivered milestones for stocks.

Global stocks slipped after the Fed released the minutes of its latest policy meeting late on Wednesday. “In summary, the minutes described a weakened economy on uncertain footing with few viable policy options at this juncture,” Michael O’Rourke, chief market strategist at JonesTrading, told clients.

Rattling investors in particular was the view that the Fed appeared to take one option — yield curve control — off the table. Under that policy, the central bank would commit to buying bonds if a specific yield was breached. The idea that the Fed will keep buying big assets can help shore up stock prices, hence some disappointment is showing up this morning.

Or maybe those record runs for the S&P 500
SPX,
-0.44%

and the Nasdaq Composite
COMP,
-0.57%

have inspired some to take cash off the table. Our call of the day from a team of strategists led by Mark Haefele, chief investment officer for UBS Global Wealth Management, says don’t fear that circa 51% rally for the S&P 500 since the post-COVID-low in March.

“We see the equity rally as driven primarily by central bank policies of adding unprecedented liquidity to markets through renewed quantitative easing and ultralow rates,” says Haefele, who expects central banks to stay in “stimulus mode for the foreseeable future” — supportive for stocks and other perceived riskier assets. But investors will need to think harder about where to invest.

He expects the “most attractive returns in the next phase of the recovery to be in portions of the market that have lagged behind so far.” That means investors with hefty exposure to equities that have been driving big gains lately, such as big U.S. technology names — Facebook
FB,
+0.09%
,
Apple
AAPL,
+0.12%
,
Amazon
AMZN,
-1.57%
,
Microsoft
MSFT,
-0.60%
,
Netflix
NFLX,
-1.49%

and Google’s parent Alphabet
GOOGL,
-0.71%

— may want to “rebalance into other opportunities.

“We see particular upside for companies involved in 5G and other enabling technologies. In addition, as the global recovery gradually takes hold, the next leg up in the market may be driven by cheaper sectors that have trailed behind in the rebound, such as cyclical and value stocks,” Haefele tells clients in a note.

And he sees U.S. midcap stocks as “poised to regain lost ground as the economic recovery gains traction and broadens out.” Smaller companies tend to perform better in a recovery as they are more cyclical.

Looking at the measure of midcap stock performance, the SPDR S&P 500 ETF trust
SPY,
-0.41%

is up about 4.7% year to date against a 6% drop for the SPDR S&P Midcap-400 ETF Trust
MDY,
-0.41%
.

As ETF.com points out, midcap stocks led a market recovery after the 1997 Asian financial crisis, the 2000 dot-com bubble, and the 2008-09 financial crisis.

The market

Dow
YM00,
-0.26%
,
S&P
ES00,
-0.25%

and Nasdaq
NQ00,
-0.12%

futures are under pressure, with losses for European
SXXP,
-0.76%

and Asian markets. Gold
GC00,
-1.40%

is sliding and the dollar
DXY,
+0.08%

is up.

The chart

Time to love Europe stocks a little less?

The buzz

Weekly jobless claims are ahead and economists are looking for another decline. The Philadelphia Federal Reserve manufacturing index and leading economic indicators are also coming.

Shares of China’s e-commerce giant Alibaba
BABA,
+0.53%

are sliding after results. 

Shares of Intel
INTC,
-0.65%

are climbing after the chip maker announced plans for a hefty stock buyback. Shares of rival Nvidia are slipping even after record revenue.

Unfathomable a few months ago, home-rental company Airbnb is planning an initial public offering.

Makeup giant Estee Lauder
EL,
-0.37%

will lay off up to 2,000 after posting a loss.

A China official says recently postponed trade talks are back on.

Sen. Kamala Harris officially accepted the Democratic Party’s nomination for vice president at the its virtual convention, where former President Barack Obama slammed the current administration.

Random reads

Russian opposition leader Alexei Navalny is in a coma after drinking suspected poisoned tea.

Germany is cracking down on lazy dog owners.

Central banks are here to make you happy. Mission accomplished.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

Follow MarketWatch on Twitter, Instagram, Facebook.





Original source link

Asian Stocks Mixed, With Record U.S. Markets Run Marred By U.S.-China Tensions By Investing.com


© Reuters.

By Gina Lee

Investing.com – Asian stocks were mixed on Wednesday morning, with escalating U.S.-China tensions overshadowing another record session for the U.S. markets on Tuesday.

China denounced the U.S’ latest moves that  further restricted Huawei Technologies’ access to commercially available chips. Chinese Foreign Ministry spokesperson Zhao Lijian called them “nothing short of bullying” during a press conference on Tuesday.

The U.S. State Department also advised colleges and universities throughout the country to divest any Chinese holdings in their endowments via a letter on Tuesday. The letter also warned of more onerous measures for institutions choosing to hold onto the shares.

Meanwhile, Trump also indicated on Tuesday that he postponed the trade talks between U.S. and Chinese officials due to have taken place on August 15. 

“I canceled talks with China… I don’t want to talk to China right now,” he said, also adding that China’s handling of the COVID-19 situation is “unthinkable.”

China’s was down 0.42% by 10:50 PM ET (3:50 AM GMT) and the fell 0.91%.

Down Under, the rose 1%. Australia signed a deal on Tuesday with British drugmaker AstraZeneca (NYSE:) to produce and distribute enough doses of its potential COVID-19 vaccine AZD1222, which is being developed by University of Oxford and licensed to AstraZeneca.

Prime Minister Scott Morrison said that the deal encompassed enough doses for Australia’s population of 25 million, but Health Minister Greg Hunt added that medical panel will determine the priority list of vaccine recipients.

Japan’s edged up 0.19% and South Korea’s rose 0.63%. Korea reported 297 new COVID-19 cases on Wednesday, the highest number since early March and a sixth straight day of triple-digit increases as the country struggles to curb an outbreak in Seoul.

Hong Kong’s ‘s Wednesday morning session was cancelled due to a typhoon.

But some investors remain optimistic.

“We have a Federal Reserve that is all in, keeping rates low probably across the curve for as far as the eye can see… that is supportive of higher valuations.” Katie Nixon, chief investment officer at Northern Trust (NASDAQ:) Wealth Management, told Bloomberg.

Minutes from the latest Fed policy meeting are due to be released later in the day.

Hopes are also slightly up for a U.S. Congress deal for the latest stimulus package, after House Speaker Nancy Pelosi indicated that Democrats could cut their stimulus proposal in half to reach a consensus with Republicans. But Pelosi spokesman Drew Hammill reportedly clarified that Pelosi was referring to her previous stance of meeting Republicans “halfway, not cutting our bill in half.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link

S&P Finally Reaches New Record, Erasing Covid-era Losses, as Dow Falls By Investing.com


© Reuters.

By Christiana Sciaudone

Investing.com —  The S&P 500 closed at its highest ever, wiping out all losses since the coronavirus hit markets earlier this year. The Nasdaq also closed at a record, but the Dow couldn’t pull off a win for a second day in a row.

The was down 67 points, or 0.24% and the S&P 500 was up 0.22%. The was up 0.73%.

The record high surpassed by the S&P 500 on Tuesday was last seen before the onset of the coronavirus crisis in February, with Amazon.com (NASDAQ:) taking the lead and rising more than 4%.   

Walmart (NYSE:)’s online sales doubled in a record, but as stimulus money waned, revenue slowed and shares traded lower. The Home Depot (NYSE:) similarly reported terrific sales, but with the outlook uncertain, shares also fell. Retailer Kohls Corp (NYSE:) got hammered on its outlook, despite better-than-expected results.

Oracle Corp (NYSE:) joined some of the investors of TikTok’s Chinese owner, ByteDance, in pursuing a bid for the popular short-video app’s operations in North America, Australia and New Zealand, Reuters said, citing people familiar with the matter.

Teva Pharma Industries Ltd ADR (NYSE:) fell after the U.S. government said it is suing the Israeli company for false claims.

Tesla (NASDAQ:) rose some more on Tuesday, rallying about 40% over the past week, since it approved a five-for-one stock split to make ownership more accessible. The split goes into effect Aug. 31.

on Comex broke above $2,020 an ounce for the first time in a week, and futures and spot prices of the metal for immediate delivery rose about 1% each, adding to Monday’s gain of 2% or more.

Data on Tuesday showed U.S. home building accelerated by the most in nearly four years in July in the latest sign the housing sector is emerging as one of the few areas of strength in an economy suffering a record slowdown. That further added to market optimism.

— Reuters contributed to this report.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link

S&P 500 dips but index not far from record levels By Reuters


© Reuters. A man walks a dog in the shade past the New York Stock Exchange (NYSE) during hot weather in New York

By Caroline Valetkevitch

(Reuters) – The S&P 500 eased in afternoon trading on Thursday after briefly trading above its record closing high level for a second day, with the Dow also falling in the wake of a disappointing forecast from Cisco Systems Inc (O:).

The S&P 500 earlier broke above its record closing high of 3,386.15 from Feb. 19. Its intraday record high of 3,393.52 was also set on Feb. 19.

But an 11.6% slump in Cisco Systems Inc (O:) weighed on the Dow and S&P 500 after the company forecast first-quarter revenue and profit below estimates.

Apple Inc (O:) rose 1.4% to about $458.38, helping to support the Nasdaq.

Jobless claims fell below 1 million for the first time since efforts to curb the COVID-19 outbreak in the United States began five months ago.

Initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March. But the expiration of a $600 weekly jobless supplement at the end of July likely contributed to the decline.

Data last week showed the economy has regained only 9.3 million jobs of the 22 million jobs lost between February and April, indicating a long road to reach pre-pandemic levels.

But Wall Street has recovered most of the trillions in market capitalization lost during the start of the pandemic and the tech-heavy Nasdaq was the first of the three major indexes to hit a record high in June. The Dow remains below its February peak.

“The outlook for earnings in the next few quarters seems to be getting watered down by a lot of big companies,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

“It’s making for a sluggish market without a real catalyst to push it up and over the hurdle for good,” he said.

The Dow Jones Industrial Average () fell 135.44 points, or 0.48%, to 27,841.4, the S&P 500 () lost 11.98 points, or 0.35%, to 3,368.37 and the Nasdaq Composite () added 14.74 points, or 0.13%, to 11,026.98.

Markets continue to hold on to hopes the Democrats and the White House can reach agreement on a stimulus package to help the economy recover. Unemployment benefits have been a sticking point in their talks.

The U.S. presidential election is expected to add another layer of uncertainty into markets, with roughly 12 weeks remaining until Election Day.

AMC Entertainment Holdings Inc (N:) jumped 14.0 after the firm said it will start its first phase of reopening theaters in the United States from Aug. 20, covering more than 100 venues.

Tapestry Inc (N:) fell 2.2% even as it beat quarterly sales estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.61-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 16 new lows.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link