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Stocks - Dow Snaps Two-Week Rally Despite Strong End to Week on Tech

Published 04/24/2020, 04:15 PM
Updated 04/24/2020, 04:19 PM
© Reuters.

© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow snapped a two-week winning streak despite closing higher on Friday, led by a Facebook-infused rally in tech stocks ahead of major tech earnings due next week.

The Dow Jones Industrial Average rose 1.11%, the S&P 500 rose 1.39%, while the Nasdaq Composite gained 1.65%.

Facebook (NASDAQ:FB) closed 2.7% higher after rolling out a group video chat feature called Messenger Rooms as the social media giant looks to cash in on the ramp-up in demand for video conferences amid lockdown measures.

Zoom Video Communications (NASDAQ:ZM) reversed gains to end down 6%.

With major tech earnings hitting the tape next week, Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) also ended higher.

Chip stocks also played a role in the rally, as Intel (NASDAQ:INTC) cuts its losses, rising 0.3%.

Intel reported earnings that topped estimates, but the chipmaker pulled its guidance, stoking concerns its future growth is more likely to ease rather than accelerate.

The surge in tech stocks, however, was unable to prevent the broader market from falling to its first weekly loss in three weeks following declines earlier in the week amid a historical plunge in oil prices.

Oil prices settled 2.7% higher, though still ended the week 7% lower after settling in negative for the first time ever on Monday.

Adding to the surge in jobless claims earlier this week, a slump in U.S. durable goods orders provided further evidence the economic downturn will likely be severe.

U.S. durable goods orders fell by 14.4% last month, the biggest slide since 2014, led by waning demand for big-ticket items such as cars and a slump in orders for Boeing (NYSE:BA) passenger planes.

The weaker-than-expected data come just as President Donald Trump signed the $484 billion coronavirus stimulus package into law to ease the Covid-19 hit to the economy at a time when some states are set to reopen.

But with worries over the pandemic still running high, some of the biggest companies are wary of opening for business, with Macy’s (NYSE:M), Gap (NYSE:GPS), and TGI Fridays choosing to remain shuttered in states such as Georgia and South Carolina.

Latest comments

its an artifical market. controlled by the printing press
sp500 @ 3K in 2 weeks
why? us economy is about to fall down bad this soon
So, if we finish up for the day, it's all about the downside for the week. Disgusting attitude.
  If you have FB in your portfolio, that's a good thing.  They're simply doing what they should for their shareholders. The problem is state governments becoming intoxicated with power with no regard for the victims they create, which exceed the number of victims they claim to prevent.
While it is presumably true that the Government's action on what a Free People and a Free Market should resolve - the obvious fact is that neither is the case.I'd say if you only want to read Bull ***and rainbows - maybe WSB can help you.The downside is an honest take for what is obviously an outright manipulation of the economy. Wealthy people hit a ceiling, and wanted in lower... (need free money to preserve the principle so you can live off the Interest) and also wanted more money to put in... with value of the Dollar against other fake money being totally subjective... MOAR USD = MOAR RICHER.But in any case... #BUYCALLS: Whether from a return to inflated Stonk prices due to a fantastic evonomy... Or through hyperinflation and a Depression the story is the same: #STONKS ONLY GO UP. 🐂💯🚀
Offering a "true" premise, followed by a retraction via support for an unsupported "obvious" with a later injection of a hypothetical anecdotal is not a logical argument.  I suppose you should be credited for stating the obvious that (all) governments manipulate their economies, but we already knew that.
We are selling Puts for the funds and are letting our clients know thats what we believe is the proper reaction to the sideways moving marketRed is likely coming bigtime
A big red follows a big green snd oposite
isn't selling puts a bullish move?
Not really. Its market neutral. Options are good income in sideways times. Its a bit counter intuitive but selling puts is slightly bearish especially if you are selling one ATM.
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