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Stock Market Today: Dow closes higher as dip-buyers swoop into tech

Published 12/21/2023, 06:34 AM
Updated 12/21/2023, 04:16 PM
© Reuters.

Investing.com -- The Dow closed higher Thursday, as investors bought the dip in stocks following a selloff a day earlier, underpinned by a Micron-led rise in tech as the chipmaker reported better-than-expected quarterly results.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 322 points, or 0.9%, S&P 500 rose 1%, higher and NASDAQ Composite climbed 1.3%.

Micron lifts chip stocks; Salesforce (NYSE:CRM) jumps on upgrade

Micron Technology (NASDAQ:MU), with the chipmaker's stock rising over 8% after forecasting quarterly revenue above market estimates on Wednesday, on signs of memory chip recovery in 2024 after one of the most significant downturns in years.

"Better than expected gross margin guidance and an even more confident tone on pricing in C2024 should keep MU moving higher and it remains one of our top ideas for '24," UBS said in a note.

Adding to the tech melt-up, Salesforce rose more than 2% after Morgan Stanley upgraded the software maker to outperform form equalweight, citing a favourable risk to reward. 

Despite a solid and improving positioning for generative AI, Salesforce continues to trade at a discount to large cap software peers on a growth-adjusted GAAP earnings basis, presenting a "compelling risk-reward ahead," Morgan Stanley added.

Apple stops sales of certain Watches from website amid patent dispute

Apple Inc (NASDAQ:AAPL) gave up gains after it removed its models of its Apple Watch including the series 9 and ultra 2 from its website amid a patent dispute with Masimo over the blood oxygen feature on the watches. 

Earlier this week, Apple said it would "preemptively taking steps" to comply with a ruiling from The International Trade Commission that found that the technology used in certain versions of its Apple Watch to monitor blood-oxygen levels had infringed on two of Masimo (NASDAQ:MASI)'s patents.

President Joe Biden has until Dec. 25 to veto the ruling from the ITC.

In other Apple-related news., the tech giant is reportedly ramping up production of its vision pro mixed reality headset, which could be launched in February. 

Warner Bros Discovery (NASDAQ:WBD) and Paramount Global have discussed a potential tie-up, according to reports, that would bring together two of the world's largest media companies.

Q3 GDP revised lower, manufacturing activity slows; key inflation report eyed

On the economic front, the final revision of economic growth, or Gross domestic product, for Q3 fell to 4.9% from prior estimate 5.2%, while initial jobless claims rose 2,000 to 205,000 in the week ending Dec. 16, missing expectations of 214,000.

The Philadelphia Fed said Thursday its manufacturing index rose to a reading of -10.5 from -5.9 in August as the contraction in manufacturing activity continued.

The economic reports come just a day ahead of the core Personal Consumption Expenditures price index, the Fed’s favorite measure of inflation, on Friday, which could show whether inflation has slowed enough for the Fed to begin easing policy next year.

(Peter Nurse contributed to this report.)

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