Nasdaq leads stock rebound ahead of big tech earnings

This week has seen $45B in semiconductor M&A

Stocks gained on more signs the U.S. economy is recovering after third-quarter GDP bounced back by 33.1% and jobless claims continued to drop.

Ticker Security Last Change Change %
I:COMP NASDAQ COMPOSITE INDEX 14039.683841 -33.17 -0.24%
FB FACEBOOK, INC. 331.08 -5.67 -1.68%
AAPL APPLE, INC. 130.15 +0.51 +0.39%
GOOGL ALPHABET, INC. 2,415.45 -12.94 -0.53%
AMZN AMAZON.COM, INC. 3,415.25 +32.12 +0.95%

The Nasdaq Composite, up over 1.6%, led the charge helped by Alphabet, Facebook and Apple, all of which gained and report earnings after the closing bell. Amazon also rallied ahead of its report.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34033.67 -265.66 -0.77%
SP500 S&P 500 4223.7 -22.89 -0.54%

The Dow Jones Industrial Average tacked on 139 points or 0.5% while the S&P 500 rose over 1%.

HOW MAY RECORD GDP IMPACT 2020 ELECTION

ECONOMIC REBOUND 

Third-quarter GDP rebounded by a record 33.1% following a record second-quarter decline brought on by the coronavirus pandemic. Initial jobless claims data for the week ending Oct. 24 fell to 751,000 while continuing claims held at 7.7 million. Though improving, unemployment levels remain elevated.

Oil fell closing near the $36 per barrel level the lowest since June.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 48.75 -0.23 -0.47%

MARVELL-INPHI $40B CHIP MERGER 

In M&A news, Marvell Technology announced its intention to acquire Inphi for $10 billion to create a semiconductor giant worth $40 billion in market value, sending those shares soaring. This is the second blockbuster chip deal this week after AMD and Xilinx's $35 billion tie-up.

MARVELL-INPHI COMBO TO CREATE $40B CHIP GIANT

Ticker Security Last Change Change %
MRVL MARVELL TECHNOLOGY, INC. 54.11 +0.52 +0.97%
IPHI INPHI CORP 172.27 -1.88 -1.08%

Separately, LVMH and Tiffany & Co. said in a statement the two companies had agreed upon a lower price for Tiffany shares, with LVMH buying Tiffany at $131.50 a share, down from the initial offer of $135 per share.

Ticker Security Last Change Change %
TIF n.a. n.a. n.a. n.a.

COVID-19 FEARS GRIP SENTIMENT

Dealmaking helped sentiment after the Dow fell 942 points, a decline of 3.4%, as COVID-19 fears gripped investors across the globe as Germany and France announced new lockdown measures.

The U.S., in particular, continues to struggle with COVID-19, as the total number of cases in the country topped 8.8 million on Wednesday, according to data from Johns Hopkins University, resulting in at least 227,000 deaths.

Moderna shares rose after the company disclosed it took in $1.1 billion for COVID-19 vaccine orders which could be dispersed in 2021.

Ticker Security Last Change Change %
MRNA MODERNA, INC. 197.84 -3.75 -1.86%

DOW DROPS 942 POINTS, AS S&P, NASDAQ TURN NEGATIVE FOR OCTOBER

EARNINGS, EARNINGS, EARNINGS

On the earnings front, Comcast Corp. and e-commerce company Shopify both reported better-than-expected results.

Pinterest, Anheuser Busch Inbev NV and Tapestry shares also gained after reporting its quarterly results.

Ticker Security Last Change Change %
PINS PINTEREST, INC. 69.66 -0.88 -1.25%
CMCSA COMCAST CORP. 57.12 -0.20 -0.35%
SHOP SHOPIFY INC 1,366.30 +45.22 +3.42%
BUD ANHEUSER-BUSCH INBEV 78.60 -0.75 -0.95%
TPR TAPESTRY INC. 43.26 -0.29 -0.67%

Approximately 40% of the companies in the S&P 500 have reported calendar third-quarter results, with more than 80% of them beating top- and bottom-line expectations.

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Pending home sales for September were lighter-than-expected, with the reading showing a decline of 2.2%, versus expectations of a rise of 3.5%.

European indices also rebounded on Thursday, as the STOXX 600 rose 0.1% and the German DAX climbed 0.5%.

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