|Day's range||3,124.52 - 3,165.81|
|52-week range||2,191.86 - 3,393.52|
Stock rose on Thursday, as investors cheered the resiliency of a U.S. economy that created nearly 5 million jobs last month in the throes of the raging coronavirus pandemic.
(Bloomberg) -- European stocks dropped with U.S. futures on Friday as investors mulled reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.The Stoxx 600 Index turned lower after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron’s decision to name a new prime minister after asking his government to resign.Contracts on the main U.S. stock gauges slipped after fluctuating earlier in the session. American cash equity and bond markets are shut for Independence Day. The dollar was steady, though still headed for its first weekly drop in a month. Gold drifted just below $1,800 an ounce.The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S. payrolls figures Thursday fueled optimism of a V-shaped recovery in the world’s biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients.“There’s still a general positive sentiment about how quickly we’re seeing the recovery,” said Chris Gaffney, president of world markets at TIAA Bank. “But we do think you’re going to see the recovery level off, especially if we continue to see higher case numbers on the virus.”Elsewhere, crude oil dipped but remained on track for a weekly gain.These are some of the main moves in markets:StocksFutures on the S&P 500 Index decreased 0.6% as of 3:39 p.m. London time.The Stoxx Europe 600 Index declined 1%.The MSCI Asia Pacific Index gained 0.9%.The MSCI Emerging Market Index increased 0.9%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.1241.The British pound sank 0.1% to $1.2452.The onshore yuan was unchanged at 7.066 per dollar.The Japanese yen was little changed at 107.51 per dollar.BondsGermany’s 10-year yield fell one basis point to -0.43%.Britain’s 10-year yield gained less than one basis point to 0.19%.Japan’s 10-year yield sank one basis point to 0.028%.CommoditiesWest Texas Intermediate crude declined 1.7% to $39.94 a barrel.Brent crude declined 1.6% to $42.43 a barrel.Gold was little changed at $1,775.47 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The months leading up to the U.S. presidential election in November will be choppy, especially if Democrat Joe Biden extends his poll lead. The EU needs to agree on a $750 billion recovery fund proposal. A wave of foreign money has hit mainland China's markets as the second half of 2020 kicks in.
Green vehicles are indeed striking the right chord with investors, as is evident from the meteoric share price increase of many EV makers.
(Bloomberg) -- From a 2,997-point rout in the Dow to two 9% single-day rallies in the S&P 500, the 2020 stock market has served up a raft of tantalizing sessions for would-be market timers. Hours came and went in which whole years could be made or lost.But for all the dizzying turbulence, it’s worth noting that the S&P 500 is nearly flat for anyone who sat tight and held through the chaos. Mistakes stand out in an environment like that -- the back-breaking costs of even a few wrong moves in a market as turbulent as this one. Maybe volatility is the time for active managers to shine, but the downside of getting it wrong has rarely been greater.One stark statistic highlighting the risk focuses on the penalty an investor incurs by sitting out the biggest single-day gains. Without the best five, for instance, a tepid 2020 becomes a horrendous one: a loss of 30%.The exercise highlights the danger of trying to call the market’s peak, something that investors are feeling tempted to do now with the S&P 500 hitting a wall at the 3,200 level, coronavirus infections rising and the worst earnings season in a decade about to kick off. In a recent survey conducted by Citigroup, more than two-thirds of investors see a 20% decline in the market as more likely than a gain of a similar amount.“We want to be tactical,” Yana Barton, a fund manager at Eaton Vance Management, said in an interview on Bloomberg TV. “But the problem is, it’s easy to get out and you don’t know when to get back in.”However prudent it sounds, the cost of bearishness is exemplified by the hedge fund crowd, whose reluctance to embrace equity gains is one reason they’ve lagged behind the market. In perhaps the most famous case to date, legendary investor Stan Druckenmiller told television interviewers he was “far too cautious” and had made “all of 3% in the 40% rally.” Broadly, hedge funds that focus on equities were down 6.3% in the first half, according to data from Hedge Fund Research. That compared with a total decline of 3.1% in the S&P 500.Read: Druckenmiller Says He Was ‘Far Too Cautious’ During Rally (2)Still, the urge to take the money and run is understandable after the S&P 500 has rallied 40% from its March bottom, a pace of gains that eclipses any in nine decades. Profits are estimated to have plunged 44% in the second quarter, billions of dollars in buybacks are shelved and the stay-at-home trade is back in vogue. But economic data from housing to employment is improving, retail investors are warming up to stocks and the Federal Reserve pledges indefinite support.With the number of 2% days piling up for the S&P 500 at a pace not seen in decades, the halfway point of 2020 might look like a great time to pack it up and go home. Looking back, on the other hand, one had to have perfect prescience to have made a timing strategy work any time up to now. The benchmark dropped more than 5% on five sessions, four of which occurred in March. The same month also accounted for four of the five biggest gains, totaling more than 900 points.“There were no flashing signals that those were the days that were going to see huge upside,” said Chris Gaffney, president of world markets at TIAA Bank. “If you look back, they are unexpected. We get some of the biggest rallies on those unexpected days and so if you’re timing the market and you’re out of them, you’ve missed out on all of the rally really.”Sell high and buy low. It’s investing 101. But an ill-timed decision to do either can open the door to career-threatening pain. Getting out at the top may seem like the way to maximize returns. But over the past century, the S&P 500 had suffered 13 bear markets before this year, with all of them seeing losses fully recovered and the index eventually exceeding its prior peak by an average 68%.“People are always hopeful that they can time the market, and most people try and time the market based on emotion rather than logic,” said Olivia Engel, chief investment officer of State Street Global Advisors’s active quantitative equity team. “From a couple of decades of investing, I would say that timing the market is just really hard and if it was easy, we’d all be very rich.”As hard as it is, that hasn’t stopped investors from trying. Bears, in particular, haven’t given up on their calls for the S&P 500 to crash, potentially revisiting its March low.If history is any guide, that scenario may not play out when stocks have gone this far in a rebound. During the eight market cycles since World War II, only once did the S&P 500 come within 5% of its bear market trough after three months had passed, as is the case now, according to a study by BMO Capital Markets.“You can’t buy it one day and sell it the next and think you can outfox the market. You can’t do that,” said Gary Bradshaw, a portfolio manager at Hodges Capital Management in Dallas. “The way you make money in the market is you buy good companies and you hold on.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The rally in technology stocks is aiding the U.S. stock market amid the coronavirus crisis. Here we choose five technology stocks that are well poised to grow as economic activities gain momentum.
The United States once again broke a record for the number of daily new COVID-19 cases on Thursday, with 55,000 new incidents confirmed.
The market rally, fuelled by Thursday's record U.S. jobs numbers, largely blew itself out after a record daily total of new U.S. COVID-19 cases, though news of the fastest expansion in China's services sector in over a decade kept Asia's tail up early in the day. Chinese shares had charged to their highest level in five years [.SS], helping the pan-Asian indexes to four-month peaks, so the sight of European markets stalling left traders floundering, especially with no Wall Street to pick things up again because of a U.S. market holiday. More than three dozen U.S. states are now seeing increases in COVID-19 cases, including Florida, where they have leapt above 10,000 a day.
In the latest trading session, JetBlue Airways (JBLU) closed at $10.67, marking no change from the previous day.
In the latest trading session, Citrix Systems (CTXS) closed at $150.06, marking a +0.46% move from the previous day.
Twitter (TWTR) closed the most recent trading day at $30.87, moving +0.19% from the previous trading session.
In the latest trading session, Chipotle Mexican Grill (CMG) closed at $1,056.45, marking a -1.11% move from the previous day.
June job numbers helped investors end the Independence Day week on a positive note, even as COVID-19 cases continue to climb.
In the latest trading session, Discover (DFS) closed at $48.85, marking a +1.31% move from the previous day.
(Bloomberg) -- U.S. stocks pared gains on speculation that a second wave of coronavirus cases could jeopardize an economic rebound from the sharpest contraction on record.The S&P 500 came off session highs amid a slump in trading volume ahead of a holiday on news that U.S. virus cases had the biggest increase since May 9. Earlier, Florida reported that infections and hospitalizations jumped the most ever, and Houston had a surge in intensive-care patients. The figures offset data showing payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month.“Going into the long weekend, why have an extreme bullish position?” Ed Clissold, chief U.S. strategist at Ned Davis Research, told Bloomberg TV. “We should think of the market in terms of a trading range environment around 3,000 and 3,200. When it looked earlier today, it became clear the market wasn’t going to break out, the rally lost steam.” The S&P 500 closed at 3,130.01.Read: U.S. Job-Growth Optimism Tempered by Stall in States’ ReopeningsThe U.S. labor market made greater progress than expected last month digging out of a deep hole, yet optimism over the rebound was tempered by stubbornly high layoffs and a resurgent coronavirus outbreak across the country. President Donald Trump still said the report shows the economy is “roaring back.” Massive monetary and fiscal policy stimulus helped lower borrowing costs and keep the financial system liquid in a time of stress -- while propelling the stock market higher.“There’s still a general positive sentiment about how quickly we’re seeing the recovery,” said Chris Gaffney, president of world markets at TIAA Bank. “But we do think you’re going to see the recovery level off, especially if we continue to see higher case numbers on the virus.”Investors also assessed remarks from White House Economic Adviser Larry Kudlow, who told Fox Business Network that “we are very unhappy with China” and “there are going to be export restrictions.”U.S. stocks are poised to rise this quarter if history is any guide, according to Keith Lerner, chief market strategist at SunTrust Private Wealth Management. Lerner cited the S&P 500’s track record after its biggest quarterly gains since 1950 in a report Tuesday. The gains ranged from 15% to 22%, in line with last quarter’s 20% increase, according to data compiled by Bloomberg. In each case, the S&P 500 rose in the following quarter. The average advance was 8.4%.These are some of the main moves in markets:StocksThe S&P 500 gained 0.5% as of 4 p.m. New York time.The Dow Jones Industrial Average increased 0.4%.The Nasdaq Composite Index advanced 0.5%.The Stoxx Europe 600 Index added 2%.The MSCI Asia Pacific Index increased 1.7%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.1%.The euro fell 0.1% to $1.124.The Japanese yen weakened 0.1% to 107.53 per dollar.BondsThe yield on 10-year Treasuries declined one basis point to 0.67%.Germany’s 10-year yield sank three basis points to -0.43%.Britain’s 10-year yield fell three basis points to 0.186%.CommoditiesThe Bloomberg Commodity Index advanced 0.7%.West Texas Intermediate crude advanced 1.2% to $40.29 a barrel.Gold increased 0.5% to $1,788.30 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- It’s one thing for stocks to bounce violently after losing a quarter of their value in a month, as they did in March. It’s another thing entirely to keep doing it after soaring back to record highs. And yet that is what’s happening with the biggest U.S. tech shares, which just notched one of their best weeks of the recovery period.In a year of hysterical markets, no fact is weirder than this: that halfway through 2020, the Nasdaq 100 Index is not only back in positive territory, but is headed for an annual gain that ranks with its best of the last two decades. Much more than survive the pandemic lockdown, the largest American companies are seeing their advantage widen drastically as a result of it, with investors flocking to anything with size and stability.“This virus has brought forward those companies’ businesses by two and three years,” said Gary Bradshaw, a portfolio manager at Hodges Capital Management in Dallas. While the juxtaposition with the economy is surprising, “you’re buying the best growth companies on the planet in a very low-interest rate environment.”The Nasdaq 100 tacked on another rousing weekly advance to end more than 600 points above the level where the Covid crash began. A measure of the gauge’s velocity relative to that of the broader S&P 500 just surpassed its dot-com highs.Very few saw this coming. Back before coronavirus rattled the globe, when things made sense, Wall Street was sure that when the bull market crashed its first casualties would be high-valuation technology stocks. Reality didn’t play out that way. Rather, the group’s strong balance sheets and automated, stay-at-home characteristics acted as insulation from the worst of this year’s declines.Investors are growing more attached to megacaps, not less. Before a 0.6% gain Thursday, the Nasdaq 100 had climbed more than 1% on the first three days of the week, a streak not matched in over a year. It ended the four days up 5%, a percentage point more than the S&P 500’s advance. That came as Covid cases and hospitalizations continued to rise in the U.S., leaving reason to question the pace of the economic recovery and how long recent progress may last.As the second half of the year begins, tech’s stellar returns are getting hard to ignore. Bucking a broad equity decline, the Nasdaq 100 is up 18%, leaving the rest of the market in the dust. At 21.5 percentage points, the tech-heavy gauge’s performance gap relative to the S&P 500 is the widest at this point of a year on record.Naturally, skeptics say these darling stocks have gone too far too fast. Certain momentum indicators support that. The rally has pushed the Nasdaq 100 way above its 200-day moving average, with the premium approaching 20%, a level of exuberance that coincides with the market’s peak in February.“It’s amazing -- investors are just willfully putting money, continuing to plow into large cap tech despite all of the regulatory concerns from the U.S., Europe, China, despite all of this,” said Yousef Abbasi, global market strategist at StoneX. “It’s gotten so disconnected from fundamentals it’s hard to have that real conversation.”If you widen the lens and go back 20 years, another milestone was also reached this week: the Nasdaq 100’s relative performance to the S&P 500 surpassed its 2000 height. Depending on one’s view on the market, interpretations of that achievement will differ. To the doubters, the sight alone brings flashbacks to the dot-com crash.In the eyes of tech faithful, however, it’s a strong case for staying bullish. Just consider the amount of money that tech titans like Apple Inc. and Microsoft Corp. make now versus then. In the year just before the internet crash, companies in the S&P 500 Information Technology Index earned combined profits of roughly $50 billion. Last year, the total was $240 billion.So while the Nasdaq 100 has come back to its heyday relative to the broader market, the underlying earnings power is almost five times as big as it was 20 years ago. That’s part of the reason Hodges Capital Management’s Bradshaw continues to hold on to some of the largest names in his portfolio, including Apple, Microsoft, Amazon.com Inc. and Facebook Inc.“These companies are growing earnings, growing revenues and continue to grow cash flow at a faster clip than most other companies,” Bradshaw said. “This is not like the Internet bubble in March of 2000 when we had the big bust. Because back in the day, many of those companies were just burning through cash left and right.”Believers got a scare last Friday, when the group popularly known as the Fang stocks -- Facebook, Amazon.com, Netflix Inc. and Google parent Alphabet Inc. -- dropped more than 5% in the worst session since the depths of the Covid crash. Now those losses have been completely erased. The amalgamation of internet stocks rose 7.6% in the holiday-shortened week to a record high, the best week since April.But even amid the gains, there were hints of concern. After 12 straight sessions in which a measure of 30-day implied swings in the tech-heavy gauge traded at a discount to the equivalent for the S&P 500 -- the second-longest such streak since 2011 -- the relationship between the two reverted back to what’s normal.Usually, the Cboe NDX Volatility Index (VXN) trades above the Cboe Volatility Index (VIX), with an average spread of three points over the last five years. But that gap has shrunk in 2020 to a third of that size, as investors rushed into megacaps and technology stocks for their perceived safety through the coronavirus crisis. This week, the Nasdaq 100’s fear gauge held above the classic VIX in every session.“I’m a little concerned about the entire market’s pace of gains, but the Nasdaq especially,” said Tim Courtney, chief investment officer at Exencial Wealth Advisors. “When you look at the valuation of large growth to, say, the rest of the market, or large value or smaller companies, it is definitely getting back into that range of the 2000s.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Payrolls rise by a record 4.8 million jobs
Synnex (SNX) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
The jobs number was better than anticipated during the Thursday session, so this of course sent stock markets higher in the United States.
Jul.03 -- The S&P 500 and Nasdaq Composite indexes, with their concentration of technology companies, are set to benefit from a continued economic recovery, even as markets enter a "choppier" third quarter, says Supriya Menon, senior multi asset strategist at Pictet Asset Management. She speaks on "Bloomberg Markets: European Open."