Nasdaq snaps losing streak, leads rise

Written by admin on 30/07/2019 Categories: 佛山桑拿

The tech-rich Nasdaq Composite Index has rallied, leading the market to its first day of gains after three straight losses.


The Nasdaq jumped 33.23 (0.81 per cent) to 4,112.99 on Tuesday.

The Dow Jones industrial Average advanced 10.27 (0.06 per cent) to 16,256.14, while the broad-based S&P 500 rose 6.92 (0.38 per cent) to 1,851.96.

Analysts said it was too soon to say if Tuesday’s rally meant the tech sector had stabilised.

Nasdaq has been in retreat since early March due to concerns Facebook, Tesla Motors and other high-flying stocks are overvalued.

The Nasdaq has lost 5.5 per cent of its value since March 6. Over the same period, the Dow fell 1.0 per cent and the S&P 500 lost 1.3 per cent.

Art Hogan, chief market strategist at Wunderlich Securities, said the tech sector had become “oversold.”

Enjoying the rebound Tuesday were Facebook (+2.2 per cent), Tesla (+3.8 per cent), Amazon (+2.9 per cent) and Google (+3.1 per cent).

But biotechnology stocks, which have experienced some of the heaviest selling over the past two weeks, continued to show weakness. Gilead Sciences fell 3.1 per cent and Biogen dropped 2.8 per cent.

Nike led the Dow higher, rising 3.0 per cent after it was upgraded by Stifel Nicolaus.

Chipmaker Intel reportedly will shut its Costa Rica plant, eliminating 1500 jobs. Shares rose 1.6 per cent.

Pharmaceutical giant Eli Lilly slipped 0.1 per cent following a big punitive-damages award against the company and its Japanese partner Takeda Pharmaceuticals for hiding the cancer risks of the Actos drug for diabetes.

A jury found Takeda owes $US6 billion in punitive damages and Lilly owes $US3 billion. But Lilly said its agreement with Takeda indemnifies it against losses in the US litigation. Both companies plan to contest the award.

Bond prices rose. The yield on the 10-year US Treasury declined to 2.68 per cent from 2.70 per cent Monday, while the 30-year dipped 3.54 per cent from 3.56 per cent. Bond prices and yields move inversely.

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