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US stocks trade mixed as Powell says economy is making progress

Jerome Powell
Jerome Powell

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  • US stocks closed mixed on Wednesday after Fed Chairman Jerome Powell said the economy is making progress towards it tapering standards.
  • Despite the economic progress, Powell said the Fed is not yet ready to begin tapering its monthly bond purchases.
  • Investors were also digesting earnings results from mega-cap tech companies like Apple, Alphabet, and Microsoft.
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US stocks were mixed on Wednesday, with the S&P 500 and Nasdaq 100 rising following comments from Federal Reserve Chairman Jerome Powell.

Powell said the economy is beginning to make progress towards it standards that would trigger the Fed to begin tapering its monthly bond purchases, but that the economy is not yet fully there. The Fed will continue its monthly bond purchases of $120 billion.

Investors were also digesting strong earnings results from mega-cap tech companies like Apple, Alphabet, and Microsoft.

All three tech giants easily surpassed analyst’s revenue and EPS estimates, helping boost shares of Microsoft and Alphabet in trades on Wednesday. Apple traded slightly lower as investors questioned if Apple’s strong growth rates were sustainable.

Here’s where US indexes stood after the 4:00 p.m. ET close on Wednesday:

The strong moves in US tech companies are in stark comparison to Chinese tech stocks, which continue to sell off as increased regulation from Beijing spreads to various industries. Cathie Wood’s Ark Invest continued to sell off their stakes in Chinese tech companies on Tuesday.

Robinhood’s expected IPO later this week will not be bought by some large asset managers, as they are reportedly going to sit out the offering in fear of retail-driven volatility. The retail brokerage app is now testing a new feature that will let users invest their spare change into select stocks.

Crypto-exchange Binance said it will step up its compliance efforts, including data-sharing with regulators and implementing a tax-tracking tool. The company has come under fire from a number of jurisdictions for its lack of compliance safeguards.

Crypto bull Mike Novogratz criticized Senator Elizabeth Warren’s anti-crypto stance on Tuesday, saying that DeFi is far more transparent than banks. Warren had sent a letter to Treasury Secretary Janet Yellen calling for tougher rules on cryptocurrencies.

Oil prices were higher. West Texas Intermediate crude was up as much as 0.66%, to $72.12 per barrel. Brent crude, oil’s international benchmark, jumped as much as 0.54%, to $74.88 per barrel.

Gold was up 0.34%, to $1,805.90 per ounce.

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Twitter could rise another 30% as ad spending is set to soar, Bank of America says

Jack Dorsey
Twitter CEO Jack Dorsey.

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  • Twitter stock could rise by almost 30% to $90 per share, according to Bank of America analysts.
  • BofA sees Twitter expanding in its advertising growth which took a hit during the COVID-19 pandemic.
  • BofA reiterated its buy rating on the stock.
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Twitter stock could rise by about 30% as the social media platform stands to see further growth in advertising sales which have been recovering after the onset of the coronavirus pandemic, Bank of America said Friday.

Twitter’s own outlook for the third quarter points to optimism about its business prospects, the investment bank said in a research note in which it raised its price objective and reiterated its buy rating on the stock.

The bank’s new price objective of $90 follows Thursday’s closing price of $69.57, implying a 29% increase. BofA increased its price objective from $82 after Twitter late Thursday posted a 74% jump in second-quarter revenue, to $1.19 billion. That beat expectations of $1.07 billion in a Refinitiv poll of analysts. It also marked the fastest rate of top-line growth since 2014.

Shares of Twitter were up 4.2% on Friday after rising as much as 5.4% to $73.34 during the session.

Twitter’s outlook “suggests more optimism,” for the third quarter and revenue looks quite strong, BofA analyst Justin Post said in the note. Twitter projected revenue of $1.22 billion to $1.3 billion, higher than the $1.07 billion expected in a FactSet poll of analysts.

The social media site posted an 87% spike in advertising revenue year over year to $1.05 billion, citing a broad increase in demand and improvements in its brand and direct response ad products.

“We reiterate our positive view on Twitter for 2H based on increased brand advertising rebound,” and, among other things, continued traction in its offerings for Mobile Application Promotion, said BofA. MAP is a technology that aids advertisers in promoting their mobile apps. Twitter said Thursday it had launched its playable ad pilot that’s designed to help mobile gaming advertisers gain new customers by allowing them to experience gameplay before installing an app.

“[We] are optimistic that the MAP product ramp can drive solid 23% q/q 4Q growth, better than Twitter’s historical pre-pandemic average,” said the analyst.

Twitter’s advertising dropped 23% to $562 million in the second quarter of 2020 on a year-over-year basis as the COVID-19 pandemic drove down global demand in the face of widespread economic recession.

“While user growth will remain a question, we maintain our optimistic view that Twitter can increase its still (very) limited reach as a differentiated news and content platform, with strong distribution on other media,” said BofA’s Post.

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US stocks gain as jump in retail sales in June points to steady pace of economic recovery

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US stocks edged higher on Friday amid June retail sales data that showed a surprise increase of 0.6%, besting expectations of a 0.4% decline.

US consumers spent $621 billion at retail stores in June, signaling that the ongoing economic recovery from the pandemic is accelerating as more people get vaccinated from COVID-19.

The move higher in stocks came a day after a market sell-off that was spurred by investor concerns over rising inflation. Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen both expressed concerns at the pace of rising inflation and expect the trend to continue over the next few months before cooling down as supply chain disruptions are resolved.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Moderna jumped as much as 8% on Friday after it was tapped to replace Alexion Therapeutics in the S&P 500 index. The mRNA biotech platform exceeded a $100 billion valuation for the first time on Thursday, and is now worth $112 billion.

Shares of recent IPO Didi continued their decline on Friday, following reports that Chinese officials sent police to its offices as part of a sweeping cybersecurity probe.

Bitcoin declined about 1% on Friday, and is set to see its worst weekly performance in over a month as cryptocurrencies struggle to recover from a deep sell-off that began in May.

PayPal raised its weekly purchase limit of bitcoin to $100,000, and Square’s Jack Dorsey said the company would work to create a DeFi ecosystem centered around bitcoin.

Oil prices were higher. West Texas Intermediate crude was up as much as 0.6%, to $72.12 per barrel. Brent crude, oil’s international benchmark, jumped 0.5%, to $73.87 per barrel.

Gold fell 0.25%, to $1,824.50 per ounce.

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US stocks close mixed as traders weigh tumbling bond yields and surging oil prices

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020.

Bryan R Smith/Reuters

US stocks closed mixed on Tuesday, with the S&P 500 ending its seven-day win streak and the Nasdaq 100 closing at record highs.

Crude oil jumped to its highest level since 2015 before paring some of the gains following a breakdown in talks among OPEC+ members. The group was unable to agree upon an oil production increase. OPEC and its allies had been discussing output increases, but the UAE is unhappy with the proposed target that it believes is too low, according to reports.

Meanwhile, the US 10-year Treasury yield fell to 1.34%, helping revitalize the mega-cap tech trade. Shares of Amazon were up nearly 5% on Tuesday to a record high, while Apple jumped about 2%.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

All eyes were on shares of Didi, which plunged more than 20% on Tuesday after regulators in China ordered the ride-hailing app to be removed from app stores. The move came just days after Didi completed its IPO.

Robinhood’s upcoming IPO could value the investing app at $30 billion or more, according to analysts from S&P. The firm’s recent S-1 filing revealed it generated about $30 million in revenue in the first quarter from dogecoin trading.

Bitcoin and ether are seeing a resurgence in institutional capital inflows as all digital assets pick up steam, according to a report from CoinShares.

Apple received a price target increase from JPMorgan, with the bank arguing there’s 21% potential upside from current levels on the upcoming iPhone 13 generating better than expected sales.

Oil prices were lower after popping early in the day. West Texas Intermediate crude fell 2%, to $72.72 per barrel. Brent crude, oil’s international benchmark, dropped about 3%, to $74.87 per barrel.

Gold rose 0.8%, to $1,797.60 per ounce.

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US stocks hover near record highs as oil jumps following breakdown of OPEC talks

NYSE Trader

Lucas Jackson/Reuters

US stocks were mixed on Tuesday, with the S&P 500 and Nasdaq 100 hovering near record highs as the Dow Jones fell slightly.

Oil jumped higher over the weekend following a breakdown in talks among OPEC+ members. The group was unable to agree upon an oil production increase. OPEC and its allies had been discussing output increases, but the UAE is unhappy with the proposed target that it believes is too low, according to reports.

Crude oil surged to its highest level since 2015 before giving up some of those gains.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

All eyes were on shares of recent Chinese-IPO Didi, which plunged more than 20% on Tuesday after regulators in China ordered the ride-hailing app to be removed from app stores.

Bitcoin and ether are seeing a resurgence in institutional capital inflows as all digital assets pick up steam, according to a report from CoinShares.

Oil prices were higher. West Texas Intermediate crude was up as much as 2.3%, to $76.92 per barrel. Brent crude, oil’s international benchmark, jumped 0.8%, to $77.78 per barrel.

Gold rose 1.4%, to $1,809.50 per ounce.

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S&P 500 closes at record high for 6th day in a row amid busiest IPO week since 2004

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US stocks edged higher on Thursday, with the S&P 500 closing at record highs for the sixth day in a row.

Weekly jobless claims fell to another pandemic-era low of 364,000, beating economist estimates of 388,000.

The move higher in stocks comes amid the busiest week in IPO debuts since 2004. Krispy Kreme is one of 18 companies to hit the markets this week, with its stock popping 10% in Tuesday trades. On Wednesday, Didi jumped as much as 28% in its first day of trading, while shares of LegalZoom popped as much as 39% in their debut.

There have been 215 IPOs priced this year, a +225.8% change from the same date last year, per Renaissance Capital.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Robinhood filed its S-1 on Thursday, a necessary step to take when preparing to go public. The free-trading app has even reserved some of its IPO allocation for its customers, according to a report from The Wall Street Journal.

Oil spiked past $75 per barrel for the first time since 2018 as OPEC and its allies move toward raising global crude supply.

Hertz, the original “meme stock,” emerged from Chapter 11 bankruptcy on Wednesday. The company’s stock has soared more than 2,000% leading up to the key event.

Nio had a volatile day of trades, initially popping 3% before falling more than 4%, after it reported record monthly sales for the month of June.

Oil prices were higher. West Texas Intermediate crude rose 1.9%, to $74.86 per barrel. Brent crude, oil’s international benchmark, jumped 1%, to $75.83 per barrel.

Gold jumped 0.25%, to $1,776.29 per ounce.

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S&P 500, Nasdaq close at record highs as bipartisan infrastructure deal spurs economic optimism

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  • US stocks closed at record highs on Thursday as a bipartisan deal for an infrastructure bill helped boost economic optimism.
  • The S&P 500 and Nasdaq 100 closed at record highs, while the Dow Jones surged more than 300 points.
  • Weekly jobless claims resumed their downward trend on Thursday, falling to 411,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks hit all-time highs on Thursday, with the S&P 500 and Nasdaq 100 closing at record levels as a bipartisan agreement for an infrastructure deal boosted economic optimism.

The $1 trillion infrastructure deal has support from both Republicans and Democrats, while Biden plans to support a separate party-line package.

Meanwhile, weekly jobless claims resumed their downward trend on Thursday, falling to 411,000, which was slightly higher than economist estimates. The decline in jobless claims followed a surprise jump in claims last week.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Andreessen Horowitz has launched a $2.2 billion fund targeting the cryptocurrency space, making it the biggest investment vehicle to ever target the sector.

JPMorgan said the recent decline in bitcoin is unlikely to reverse, as institutional investors are not yet buying the dip in the cryptocurrency. The bank said bitcoin’s fair value could be as low as $23,000.

Reddit is piling in on the digital collectibles craze and auctioning off three ethereum NFTs featuring its alien mascot Snoo.

Millennial and Gen-Z investors are eager to invest in the stock market, and they’re starting to borrow money from friends and family to begin investing, according to a recent survey.

Eli Lilly surged as much as 10% after the company said it would seek accelerated approval for its Alzheimer’s drug candidate, donenamab.

PayPal co-founder Peter Thiel has amassed a $5 billion tax-free fortune in a Roth IRA, helping him avoid a massive tax bill, according to a report from ProPublica.

Oil prices were higher. West Texas Intermediate crude jumped 0.25%, to $73.26 per barrel. Brent crude, oil’s international benchmark, rose 0.5%, to $75.53 per barrel.

Gold fell 0.5%, to $1,774.70 per ounce.

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US stocks hit record high as economic optimism accelerates

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US stocks gained on Thursday, with the Nasdaq 100 and S&P 500 surging to record highs as data continued to show an ongoing economic recovery from the COVID-19 pandemic.

Weekly jobless claims resumed their downward trend on Thursday, falling to 411,000, which was slightly higher than economist estimates. The decline in jobless claims followed a surprise jump in claims last week.

As stocks continue their trend higher, work around an infrastructure bill is heating up, with President Joe Biden continuing talks with both Democrats and Republicans later today.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

Andreessen Horowitz has launched a $2.2 billion fund targeting the cryptocurrency space on Thursday.

JPMorgan said the recent decline in bitcoin is unlikely to reverse, as institutional investors are not yet buying the dip in the cryptocurrency. The bank said bitcoin’s fair value could be as low as $23,000.

Reddit is piling in on the NFT craze and auctioning off 3 ethereum NFTs featuring its alien mascot Snoo.

Millennial and Gen-Z investors are eager to invest in the stock market, and they’re starting to borrow money from friends and family to begin investing, according to a recent survey.

Oil prices were lower. West Texas Intermediate crude fell 0.5%, to $72.69 per barrel. Brent crude, oil’s international benchmark, dropped 0.4%, to $74.85 per barrel.

Gold rose 0.7%, to $1,784.60 per ounce.

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US stocks trade mixed as economic data signals continued recovery

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Traders work during the closing bell at the New York Stock Exchange (NYSE) on March 18, 2020 at Wall Street in New York City

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US stocks traded in a narrow range on Tuesday, with the Dow Jones leading the market higher. The S&P 500 and Nasdaq 100 both finished Tuesday’s trading session within 10 basis points of Friday’s closing prices.

ISM Manufacturing data for the month of May was 61.2, slightly above April’s reading of 60.7, and above analyst expectations of 60.9.

Even with Tuesday’s narrow trading range, the S&P 500 and Dow Jones are within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 4:00 p.m. ET close on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting. That surge sent oil stocks higher, with the sector up as much as 3% in Tuesday trades.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 2.4%, to $67.93 per barrel. Brent crude, oil’s international benchmark, jumped 1.7%, to $70.50 per barrel.

Gold fell 0.1%, to $1,902 per ounce.

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Dow climbs 280 points amid renewed pandemic-recovery optimism

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Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.

Lucas Jackson/Reuters

US stocks started June higher, with the Dow Jones surging nearly 300 points ahead of economic data that is expected to show a continued economic recovery from the pandemic.

ISM Manufacturing data for the month of May is expected to come in slightly above April’s reading of 60.7 at 61, according to analyst estimates.

The move higher in stocks will put the S&P 500 and Dow Jones within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 3%, to $68.30 per barrel. Brent crude, oil’s international benchmark, jumped 2.1%, to $70.78 per barrel.

Gold jumped 0.2%, to $1,910.60 per ounce.

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