Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Nasdaq Hits Record, Dow Surges as Tech Continues to Shine

Published 07/06/2020, 04:02 PM
Updated 07/06/2020, 04:07 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com –  The Nasdaq closed at a record high on Monday as mega-cap tech stocks continued to sparkle despite a rise in Covid-19 cases nationwide that threatened the pace of economic recovery.

The S&P 500 gained 1.60%, the Nasdaq Composite ended 2.21% and the Dow Jones Industrial Average rose 1.78%.

Tech was among the biggest gainers, with FANG and chip stocks driving the move higher.

Netflix (NASDAQ:NFLX) rose more than 3.5% even as Imperial Capital downgraded the streaming stock to inline from outperform on worries there is "modest" room for upside given the stocks surge in recent months.

In chip stocks, Xilinx (NASDAQ:XLNX) surged 6% after Goldman Sachs (NYSE:GS) analysts reiterated a buy rating on the stock and a price target of $113, noting the company's diversified end-market product mix.

Florida and Texas reported new single-day records for infections over the weekend, as coronavirus outbreaks across pockets of the U.S. showed little sign of abating.

Infections now total nearly three million nationwide, with 132,000 dead.

The surge in cases comes as data showed the U.S. services sector, which is responsible for the bulk of economic growth, rebounded strongly last month, renewing investor expectations for a sharp economic rebound.

The Institute for Supply Management’s (ISM) non-manufacturing purchasing managers’ index (PMI) jumped to 57.1 in June from 45.4 in May. 

"With broad-based reopening and a very low bar set by the readings of the past two months, we saw a very solid rebound this month to 57.1, the strongest reading since February 2020 (57.3)," Jefferies (NYSE:JEF) said.

Energy's move higher was cut short as oil prices pared gains to settle in the red, down 7 cents barrel, as some warn about the long-term Covid impact on crude demand.  

"We believe that oil-market participants are focusing on the current demand trends but are still ignoring the long-term implications of the corona pandemic," Commerzbank said. 

Amazon (NASDAQ:AMZN), meanwhile, boosted consumer discretionary stocks, rising 5.8% to top $3,000 for the first time ahead of the quarterly earnings season, which starts in earnest next week.

"(W)hen the next earnings season starts, this (Amazon) is a stock where these analysts, which primarily are all bullish, are going to have to be raising their price objectives," Piper Sandler (NYSE:PIPR) analyst Craig Johnson said.

On the M&A front, Uber Technologies (NYSE:UBER) tabled a $2.65 billion shares-only offer to acquire Postmates, the fourth largest food delivery services company, to beef up its UberEATS business.  

Elsewhere, Tesla (NASDAQ:TSLA) surged to another all-time high, up 13.5%, just a week after its second-quarter deliveries topped estimates. 

Latest comments

TSLA calls were free money this week. Incredinle thank you Elon
Learn the lesson ive been telling you for three months. The market should have cratered this year and it didnt. In 2008 it did. The matket tells you where its going. Get rid of what you think and just watch the prices. Its all you need.
Don’t fight the Fed... make money But don’t buy at the high 4000 S andP And go all in on the down side. If Biden gets in The short trader will be rich Once in a lifetime short if Biden wins
TSLA sold 90k cars, its market cap is $250 million, that is almost $3million market cap per car
democrats tried to destroy the country through virus hysteria, through rioting and looting and racism nonsense... yet here we are in a V shaped recovery. rip democrats, your demented front runner will get destroyed in the debates.
wallstreet handing trump 2020 on a golden platter
usd index will go 100 plus now
Isn't the markets going up a good thing? Why do all these haters keep wanting to see big nasty bears?
I have a bunch of calls in tech made a good money but the scary part is we dont know when will this bubble burst, trust me its inevitable and it will be nasty, idc tough since my calls are printing good money 😂
 Go with the flow... if it bursts, get the puts ready
isnt xlni in HK
This will drop when people need to sell shares to make rent.
And when they feel the need to feed their family!
a free market with 2 entities with unlimited money that screams bullish all year long; fed and treasury
Soon the media will feed fear into the air that bubble will burst. Retailers are selling. Index will drop 2 - 3 % but nasdaq will continues up to 12 000 points until year is end
democrats tried to destroy the economy through virus hysteria, looting and rioting... yet we are breaking into all time highs with V shaped recovery. democrats are party of mobs. will destroy this country to try to win an election.
Chong You are right about about the banks. But you couldn’t be more wrong about the Democratic Party The have been infiltrated by communist that want to destroy the USA. Civil war very near ,
nobody seemed to have any issues when obama did it for 8 years
P/E's higher than during the dot .com bubble
my taxi driver said he had to sell all his stocks when SPY was at 220 when things looked bad, but just bought them all back now at 317 now that things look good
thanks for the info. I'm out.
I always listen to the Roto Rooter guy for investment advice
When the moment is right, I'll short SPY back to 220.
Well , i know my opinion not important but i say it anyway , as long this pandemic continue Nadaq will raise but a bubble burst is possible this year or the next.
It'll be different this time.....
2233
it is not uncommon to see a time lag before the impact of events is truly revealed, this is why a lot of people will be surprised and shocked by the reality that is about to unfold.
lol we all have been waiting for the reality since March lows.. the market was truly red only few days since pandemic.. else it has been doing nothing but going up
2233
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.