U.S. equity markets rallied on Thursday as investors piled into large-cap tech stocks driving Tesla and Apple to new records.
The Nasdaq rose 1.06 percent to its 35th record close of the year as Apple reclaimed its $2 trillion market value and as Tesla shares closed at $2,001.83 for the first time putting annual gains over 378 percent. Both stocks are set to split at the end of the month.
|I:COMP||NASDAQ COMPOSITE INDEX||15491.656804||-353.57||-2.23%|
The Dow Jones Industrial Average rose over 46 points, or 0.17%, while the S&P 500 added 0.32% closing just shy of its prior record.
|I:DJI||DOW JONES AVERAGES||34899.34||-905.04||-2.53%|
Investors digested initial unemployment claims for the week ended Aug. 15 which ticked up to 1.106 million from a revised 971,000. Continuing claims, meanwhile, fell to 14.844 million from 15.48 million. Wall Street analysts surveyed by Refinitiv were expecting a total of 925,000 initial claims and 15 million continuing claims.
They also moved past cautious comments Wednesday from the Federal Reserve's July meeting which showed central bank policymakers are worried the absence of government aid could stall the economy’s comeback.
Looking at stocks, Uber and Lyft were granted a temporary stay in California allowing both ridesharing companies to continuing operating.
|UBER||UBER TECHNOLOGIES, INC.||40.52||-1.56||-3.71%|
American Airlines Inc. suspended flights to 15 cities in October as demand remains tepid during COVID-19.
|AAL||AMERICAN AIRLINES GROUP, INC.||17.75||-1.71||-8.79%|
|DAL||DELTA AIR LINES, INC.||36.38||-3.31||-8.34%|
|CVS||CVS HEALTH CORP.||91.52||-1.13||-1.22%|
Rival Delta Air Lines Inc. announced a partnership with CVS Health Corp. for rapid COVID-19 tests.
Looking at earnings, Alibaba Group’s core e-commerce business returned to pre-COVID-19 levels as its profit jumped 143% from a year ago.
Meanwhile, chipmaker Nvidia Corp. reported better-than-expected top- and bottom-line numbers, but an underwhelming performance from its data-center business left some investors unsatisfied.
|BABA||ALIBABA GROUP HOLDING LTD.||133.35||-3.17||-2.32%|
BJ’s Wholesale Club Inc. said quarterly profit surged 96% from last year as digitally-enabled sales spiked more than 300%.
L Brands reported a surprise profit as customers stocked up on soap and hand sanitizer from its Bath & Body Works unit. Sales at lingerie maker Victoria’s Secret plunged 39%.
|BJ||BJS WHSL CLUB HLDGS INC||66.34||-1.37||-2.02%|
Looking at commodities, gold fell $24.90 to $1,933.80 an ounce and West Texas Intermediate crude oil slipped 35 cents to $42.58 per barrel.
U.S. Treasurys were modestly higher, pushing the yield on the 10-year note down to 0.644%.
In Europe, Britain’s FTSE paced the decline, down 1.24%, while France’s CAC and Germany’s DAX were weaker by 1.12% and 1.03%, respectively.
Asian markets were lower across the board as Hong Kong’s Hang Seng fell 1.54%, China’s Shanghai Composite slid 1.3% and Japan’s Nikkei shed 1%.