Giving the Nasdaq its biggest daily gain since March, U.S. stocks jumped on Thursday, as in technology names Microsoft’s earnings prompted a rebound and investors give way to the oversold shares. A day after it registered its biggest decline since 2011 and confirmed a correction, the Nasdaq rose 3 percent.
The S&P 500 and Dow both moved to positive territory for the year. After it beat estimates for revenue and profit, along with gains in chipmakers, Microsoft jumped 5.8 percent that helped technology stocks rise 2.89 percent. You can’t say that the earnings are turning the market around, he said. Any kind of upside action in the market is facing a lot of skepticism from a lot of people.
On Thursday, on U.S. exchanges, around 9.2 billion shares changed hands compared with 11.44 billion when it sold off on October 11, 2018. Whirlpool Corp, Visa Inc, Ford Motor Co, and Twitter Inc all provided positive results and offering relief and then on sluggish outlooks from manufacturers and chipmaker geared lower.
The S&P 500 gained 49.47 points, to 2,705.57 or 1.86 percent, the Dow Jones Industrial Average rose 401.13 points, to 24,984.55 or 1.63 percent, and the Nasdaq Composite added 209.94 points, to 7,318.34 or 2.95 percent. Amid worries over the impact of tariffs and China’s profit slowdown, stocks have sold off recently as well as concerns ranging from bond yields, rising costs, Italy’s budget struggles and upcoming U.S. congressional elections.
In September 2018, U.S. business spending on equipment appeared to have remained slow in a further sign that economic growth is moderating and as the rising imports outpaced a rebound in exports the goods trade deficit widened further. According to Refinitiv data, from 15.8 the S&P 500’s valuation fell to a low of 15.3 times profit estimates for next 12 months which is a two and a half year low.
Ford which is struggling for sales in China had gains in the consumer discretionary sector and rose 9.9 percent as its earnings report raised hopes for a better finish to the year. Helped by Xilinx’s 15 percent jump on its strong quarterly report, Philadelphia Semiconductor index rose 2.3 percent, while Advanced Micro Devices’ weak forecast sent its stock dipping 15.4 percent. The Nasdaq posted 225 new lows and 15 new highs. The S&P 500 posted 37 new lows and 1 new 52-week highs.
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