Connect with us


Dow Jones climbs nearly 200 points but Nasdaq drops again as rate hike divides market




The Nasdaq Composite fell for the second day in a row as higher interest rates appeared to put pressure on high-tech stocks, but shares of banks and industry names rose on Tuesday in a divided market.

The technology index fell 0.50% to 15,775.14, while the S&P 500 rose 0.17% to close at 4,690.70. The Dow Jones Industrial Average rose 194.55 points to 35,813.80 on the strength of banking and energy stocks.

The drop in tech and other growth stocks comes as Treasury yields surged following President Joe Biden’s decision to select Fed Chairman Jerome Powell for a second term on Monday. Higher rates are often seen as negative for high growth companies because their future profits look less attractive as short-term returns rise.

“We’ve seen slight pressure on tech stocks as long-term government bond yields have rallied for the second day now. It’s weighing on valuations. Profits from the zoom didn’t help today. , highlighting some of the momentum in these very high growth regions of the market as growth slows at the margins, ”said Angelo Kourkafas, investment strategist at Edward Jones.

Social media giant Meta, Facebook’s parent company, fell 1.1%, while Roku and biotech stock Moderna fell more than 2%. Zoom Video Communications shares fell 14.7% per day after beating earnings estimates, but warned of a coming slowdown as the Covid pandemic ends and demand for remote contact declines

On the other hand, bank stocks rose along with rates, with JPMorgan stocks adding nearly 2.4%.

Energy stocks climbed even after President Joe Biden on Tuesday announced he would tap the Strategic Oil Reserve in an attempt to push down gas prices at a time when inflation is at its highest level in three decades. The price of oil had fallen in recent days amid rumors that Biden would take that step, but reversed upward on Tuesday.

Powell’s re-appointment was generally welcomed by Wall Street, but movements in the Treasury market were abrupt. The benchmark 10-year Treasury yield traded near 1.67% on Tuesday, compared to around 1.54% on Friday. Yields move in opposition to prices.

“With a Fed led by Powell, we expect the speed of the decline in QE to follow the data, likely accelerating if the inflation numbers continue to keep pace with the October print with increases interest rates that will soon follow the decline (June at current rate) The market believes this action will allow the Fed to control inflation, ”Aptus Capital Advisors portfolio manager John Luke Tyner said in a note to customers.

“As the market expects a more hawkish response to current inflation, time will tell if that will be enough, as Powell is well established in the conciliatory camp of FOMC politics,” he added. .

In other earnings news, Best Buy shares fell 12.3% after the company said comparable sales and gross profit could decline in the fourth quarter compared to the same time of year. last.

On the bright side, chipmaker Western Digital was one of the top performers on Tuesday, up 6.3% following an upgrade from Mizuho.

Tuesday marked the second straight day of decline for the Nasdaq, which fell 1.26% on Monday. The index is still positive for the month.

CNBC Pro Stock Selections and Investment Trends:

While trade is likely to slow because it’s Thanksgiving week and the Fed’s main decision is behind the market, investors will be watching some economic data that comes out later in the week, including weekly jobless claims. , an update of GDP, personal income and consumer confidence. .

Investors are also juggling concerns about the coronavirus overseas. German Chancellor Angela Merkel warned on Monday that the country was witnessing a peak in the virus.

US markets will be closed for the Thanksgiving holiday on Thursday. The stock market closes early at 1 p.m. ET on Friday.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]