Dow ends 177 points higher; Nasdaq at record high

Global stocks rose on Wednesday as recovery hopes overcame fears that a surge in coronavirus cases would slow the U.S. economy, but many investors still sought safety on pandemic worries, driving gold prices above $1,800 an ounce for the first time since 2011.

Stocks on Wall Street rose, and the Nasdaq marked a record closing high, boosted by technology shares, while demand for the dollar slid even as the number of confirmed U.S. coronavirus cases surpassed 3 million. Still, demand for the dollar proved remarkably stable given Wall Street’s strength.

The technology-rich Nasdaq finished at a record closing high, the fourth time in five days.

On Wall Street, the Dow Jones Industrial Average rose 177.1 points, or 0.68%, to 26,067.28. The S&P 500 gained 24.63 points, or 0.78%, to 3,169.95 and the Nasdaq Composite added 148.61 points, or 1.44%, to 10,492.50.

But investor sentiment remains tenuous as the pandemic resurges in the United States and elsewhere. Oil prices were steady as rising U.S. crude inventories and the coronavirus surge put the brakes on a recent recovery.

Yousef Abbasi, global market strategist at StoneX Group Inc in New York, said U.S. investors in particular are still comfortable with the idea of buying secular growth or select companies they think will thrive in a low-consumption economy.

While materials, industrial and bank stocks were lower, Abbasi said, other sectors were delivering gains.

“If you’re in an industry where your focus is in technology, such as enterprise software or e-commerce, providing the backbone for those businesses, you’ve been rewarded hand over fist,” Abbasi said.

The MSCI world equity index, a gauge of equity markets in 49 nations, rose 0.63% and its emerging markets index jumped 1.77% as investors continue to pour into Chinese equities.

“There is certainly a rush from retail to buy Chinese stocks,” Abbasi said. “Trading volumes are eclipsing their normal

Read More Here...

UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

Australian shares have risen in early trade after a rally in tech stocks led the Nasdaq to a fresh record in the US overnight.

Key points:

  • The Australian share market opened higher, led by mining and energy stocks
  • Treasury Wine Estates was among the worst performers, as it warned earnings had taken a hit
  • Overnight, the UK Government announced extra stimulus measures

    By 10:40am AEST, the benchmark ASX 200 index had gained 0.9 per cent, or 50 points, to 5,970.

    Mining and energy stocks led the broad-based rally, with shares in BHP +(2pc), Rio Tinto (+2.6pc), Oil Search (+2pc) and Worley (+2.6pc) making gains.

    Rio Tinto said more than 2,000 jobs would go in New Zealand, as it announced plans to close its aluminium smelter in the country because of high power prices.

    The big miner said the winding down of operations at the New Zealand smelters would end in August next year, before eventual closure.

    The smelter employs around 1,000 people, with a further 1,600 indirect jobs affected.

    Shares in Treasury Wine Estates had fallen 3.3 per cent to $10.91, after another profit warning from the winemaker.

    Treasury Wine said its core earnings for the 2020 financial year had fallen by 21 per cent, compared to the prior year, amid the coronavirus pandemic and travel restrictions.

    The company now expects earnings to come in between $530 million and $540 million, with a decline of 14 per cent in Asia, 37 per cent in the Americas and 16 per cent in Australia and New Zealand.

    Due to the uncertainty caused by the pandemic, Treasury did not provide guidance for the 2021 financial year.

    The Australian dollar was slightly higher against the greenback, buying around 69.9 US cents.

    Multi-billion pound stimulus announced in UK

    The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of

    Read More Here...

  • UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

    The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

    It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

    UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

    He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

    There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

    Shares in major UK construction firms jumped.

    Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

    Tech shares rally on

    In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

    Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

    The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

    Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

    The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

    Read More Here...

    UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

    The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

    It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

    UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

    He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

    There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

    Shares in major UK construction firms jumped.

    Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

    Tech shares rally on

    In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

    Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

    The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

    Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

    The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

    Read More Here...

    UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

    Australian shares have risen in early trade after a rally in tech stocks led the Nasdaq to a fresh record in the US overnight.

    Key points:

  • The Australian share market opened higher, led by mining and energy stocks
  • Treasury Wine Estates was among the worst performers, as it warned earnings had taken a hit
  • Overnight, the UK Government announced extra stimulus measures

    By 10:40am AEST, the benchmark ASX 200 index had gained 0.9 per cent, or 50 points, to 5,970.

    Mining and energy stocks led the broad-based rally, with shares in BHP +(2pc), Rio Tinto (+2.6pc), Oil Search (+2pc) and Worley (+2.6pc) making gains.

    Rio Tinto said more than 2,000 jobs would go in New Zealand, as it announced plans to close its aluminium smelter in the country because of high power prices.

    The big miner said the winding down of operations at the New Zealand smelters would end in August next year, before eventual closure.

    The smelter employs around 1,000 people, with a further 1,600 indirect jobs affected.

    Shares in Treasury Wine Estates had fallen 3.3 per cent to $10.91, after another profit warning from the winemaker.

    Treasury Wine said its core earnings for the 2020 financial year had fallen by 21 per cent, compared to the prior year, amid the coronavirus pandemic and travel restrictions.

    The company now expects earnings to come in between $530 million and $540 million, with a decline of 14 per cent in Asia, 37 per cent in the Americas and 16 per cent in Australia and New Zealand.

    Due to the uncertainty caused by the pandemic, Treasury did not provide guidance for the 2021 financial year.

    The Australian dollar was slightly higher against the greenback, buying around 69.9 US cents.

    Multi-billion pound stimulus announced in UK

    The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of

    Read More Here...

  • UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

    Australian shares have risen, with tech stocks including Afterpay surging, after a rally in the US overnight saw the Nasdaq hit a fresh record.

    Key points:

  • The Australian share market opened higher, led by mining and energy stocks
  • Treasury Wine Estates was among the worst performers, as it warned earnings had taken a hit
  • Overnight, the UK Government announced extra stimulus measures

    By 1:15pm AEST, the benchmark ASX 200 index had gained 0.9 per cent, or 55 points, to 5,975.

    Mining and energy stocks led the broad-based rally, with shares in BHP (+2.1pc), Rio Tinto (+3.2pc), Woodside (+3.3pc) and Worley (+4.1pc) making gains.

    Rio Tinto said more than 2,000 jobs would go in New Zealand, as it announced plans to close its aluminium smelter in the country because of high power prices.

    The big miner said the winding down of operations at the New Zealand smelters would end in August next year, before eventual closure.

    The smelter employs around 1,000 people, with a further 1,600 indirect jobs affected.

    Technology stocks surged, led by buy-now-pay-later operators Afterpay (10.5pc) and Zip Co (+7.5pc).

    Afterpay shares hit a fresh record high above $73 following an upgrade from Morgan Stanley.

    Morgan Stanley analysts raised their price target on the stock to $101, saying the company’s latest earnings were much stronger than expected.

    Shares in Treasury Wine Estates had fallen 1.1 per cent to $11.15, after another profit warning from the winemaker.

    Treasury Wine said its core earnings for the 2020 financial year had fallen by 21 per cent, compared to the prior year, amid the coronavirus pandemic and travel restrictions.

    The company now expects earnings to come in between $530 million and $540 million, with a decline of 14 per cent in Asia, 37 per cent in the Americas and 16 per cent in Australia and New Zealand.

    Due to the uncertainty caused by

    Read More Here...

  • UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

    Australian shares have risen, with tech stocks including Afterpay surging, after a rally in the US overnight saw the Nasdaq hit a fresh record.

    Key points:

  • The Australian share market opened higher, led by mining and energy stocks
  • Treasury Wine Estates was among the worst performers, as it warned earnings had taken a hit
  • Overnight, the UK Government announced extra stimulus measures

    By 1:15pm AEST, the benchmark ASX 200 index had gained 0.9 per cent, or 55 points, to 5,975.

    Mining and energy stocks led the broad-based rally, with shares in BHP (+2.1pc), Rio Tinto (+3.2pc), Woodside (+3.3pc) and Worley (+4.1pc) making gains.

    Rio Tinto said more than 2,000 jobs would go in New Zealand, as it announced plans to close its aluminium smelter in the country because of high power prices.

    The big miner said the winding down of operations at the New Zealand smelters would end in August next year, before eventual closure.

    The smelter employs around 1,000 people, with a further 1,600 indirect jobs affected.

    Technology stocks surged, led by buy-now-pay-later operators Afterpay (10.5pc) and Zip Co (+7.5pc).

    Afterpay shares hit a fresh record high above $73 following an upgrade from Morgan Stanley.

    Morgan Stanley analysts raised their price target on the stock to $101, saying the company’s latest earnings were much stronger than expected.

    Shares in Treasury Wine Estates had fallen 1.1 per cent to $11.15, after another profit warning from the winemaker.

    Treasury Wine said its core earnings for the 2020 financial year had fallen by 21 per cent, compared to the prior year, amid the coronavirus pandemic and travel restrictions.

    The company now expects earnings to come in between $530 million and $540 million, with a decline of 14 per cent in Asia, 37 per cent in the Americas and 16 per cent in Australia and New Zealand.

    Due to the uncertainty caused by

    Read More Here...

  • Dow closes up 177 points, Nasdaq at fresh high as investors focus on economic recovery prospects

    U.S. stocks ended Wednesday higher, with the tech-heavy Nasdaq scoring an all-time record, as investors focused on stocks that can outperform amid an acceleration of coronavirus infections in about 30 American states and longer periods of working from home.

    How did benchmarks perform?

    The Dow Jones Industrial Average DJIA, +0.68% rose 177.10 points, or 0.7%, to end at 26,067.28, after trading as high as 26,109.49 at the start of the session. The S&P 500 SPX, +0.78% climbed 24.62 points, or 0.8%, to finish at 3,169.94. The Nasdaq Composite COMP, +1.43% added 148.61 points, or 1.4%, closing at a fresh 10,492.50 record, it’s 25th of the year.

    On Tuesday, the Dow tumbled 396.85 points, or 1.5%, to end at 25,890.18; the S&P 500 index shed 34.40 points, or 1.1%, closing at 3,145.32 and ending a 5-session win steak; while the Nasdaq Composite Index fell 89.76 points, or 0.9%, to finish at 10,343.89, after carving out an intraday 10,518.98 record on Monday.

    Year-to-date the Dow is down 8.66%, the S&P 500 down 1.88% but the Nasdaq Composite is up 16.94%.

    What drove the market?

    Equity markets booked gains Wednesday, even as investors focused on the question of whether unabated increases in COVID-19 cases in a number of U.S. states would delay economic recovery.

    The U.S. reported 60,000 new coronavirus cases Tuesday, a single-day record, according to data compiled by Johns Hopkins University. The seven-day average for cases is higher than the 14-day average, an indication that the spread is intensifying, according to a Wall Street Journal analysis of the publicly available health data.

    “The single-day spike kind of woke some investors up,” Lindsey Bell, Ally Invest’s

    Read More Here...

    Dow closes up 177 points, Nasdaq at fresh high as investors focus on economic recovery prospects

    U.S. stocks ended Wednesday higher, with the tech-heavy Nasdaq scoring an all-time record, as investors focused on stocks that can outperform amid an acceleration of coronavirus infections in about 30 American states and longer periods of working from home.

    How did benchmarks perform?

    The Dow Jones Industrial Average DJIA, +0.68% rose 177.10 points, or 0.7%, to end at 26,067.28, after trading as high as 26,109.49 at the start of the session. The S&P 500 SPX, +0.78% climbed 24.62 points, or 0.8%, to finish at 3,169.94. The Nasdaq Composite COMP, +1.43% added 148.61 points, or 1.4%, closing at a fresh 10,492.50 record, it’s 25th of the year.

    On Tuesday, the Dow tumbled 396.85 points, or 1.5%, to end at 25,890.18; the S&P 500 index shed 34.40 points, or 1.1%, closing at 3,145.32 and ending a 5-session win steak; while the Nasdaq Composite Index fell 89.76 points, or 0.9%, to finish at 10,343.89, after carving out an intraday 10,518.98 record on Monday.

    Year-to-date the Dow is down 8.66%, the S&P 500 down 1.88% but the Nasdaq Composite is up 16.94%.

    What drove the market?

    Equity markets booked gains Wednesday, even as investors focused on the question of whether unabated increases in COVID-19 cases in a number of U.S. states would delay economic recovery.

    The U.S. reported 60,000 new coronavirus cases Tuesday, a single-day record, according to data compiled by Johns Hopkins University. The seven-day average for cases is higher than the 14-day average, an indication that the spread is intensifying, according to a Wall Street Journal analysis of the publicly available health data.

    “The single-day spike kind of woke some investors up,” Lindsey Bell, Ally Invest’s

    Read More Here...