Wall Street closes on higher gains in tech stocks

Wall Street closes on higher gains in tech stocks
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  • Netflix wins customer growth forecast
  • Baker Hughes posts bigger quarterly loss
  • Tesla will report earnings after the market closes
  • Indexes rose: Dow 0.15%, S&P 500 0.59%, Nasdaq 1.58%

July 20 (Reuters) – U.S. stocks ended higher on Wednesday, led by the tech-heavy Nasdaq, gaining 1.6% on positive earnings signals as inflation and a focus on more Fed rate hikes.

Netflix Inc (NFLX.O) Shares rose 7.4% after the company forecast a return to customer growth in the third quarter and a smaller-than-expected drop of 1 million subscribers in the second quarter. read more

Other high-growth stocks extended gains after the streaming service provider’s forecast. Apple Inc shares (AAPL.O) Inc (AMZN.O)Microsoft Corp (MSFT.O) and Meta Platforms Inc (OBJECTIVE) It increased between 1% and 4.2%.

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Electric car maker Tesla Inc (TSLA.O) It rose 2% in extended trading after reporting a rise in quarterly profit after the call. read more

“Equity prices are currently trending along a roller coaster at the mercy of inflation, interest rates and earnings,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.

“We will need a number of reporting periods to confirm whether inflation is indeed under control.”

Analysts expect annual total S&P 500 earnings to rise 5.9% this reporting season, up from a 6.8% estimate earlier in the quarter, according to Refinitiv data.

Runaway inflation initially led markets to expect a full 100 basis point increase in interest rates at the Fed’s meeting next week, before some policymakers signaled a 75 basis point hike.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 47.79 points, or 0.15%, to 31,874.84 (.SPX) 23.21 points or 0.59% up to 3,959.9 points and the Nasdaq Composite (.IXIC) It rose 184.50 points or 1.58% to 11,897.65.

7 of the S&P 500’s 11 major sectors gained ground in consumer discretionary. (.SPLRCD) and information technology (.SPLRCT)posts the biggest gains.

Trading remained flat on the CBOE Volatility index (.VIX) It closed at 23.79 points, the lowest level in nearly three months.

US stocks traded 11.51 billion shares over the last 20 trading days, compared to an average of 11.43 billion shares for the full session.

“Low volumes historically highlight market moves, and even though we’ve wiped $10 or $15 trillion out of global equities this year, there’s still a lot of liquidity. Low volumes of extreme liquidity can still highlight moves,” said John Lynch, chief investment officer at Comerica Wealth Management. said.

Baker Hughes Co was the biggest loser on the S&P, down 8.3%, as the oilfield services provider reported a bigger loss in the second quarter, while its adjusted profit also missed estimates. read more

Advancing issues outnumbered declining issues on the NYSE by a ratio of 1.94 to 1; A 2.28 to 1 ratio on the Nasdaq favored the advancers.

The S&P 500 hit one new 52-week high and 29 new lows; The Nasdaq Composite recorded 29 new highs and 38 new lows.

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Reporting by Echo Wang in New York and Shreyashi Sanyal in Bengaluru; Additional reporting by Aniruddha Ghosh in Bengaluru; Edited by Sriraj Kalluvila, Shounak Dasgupta and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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