Categories: Markets

Technology relay on the Wall led by Amazon – At + 2.4% Nasdaq per week

Technology relay on the Wall led by Amazon – At + 2.4% Nasdaq per week

The Wall closed lower on Friday after the Dow lost ground, while the S&P 500 and Nasdaq gained momentum from strong employment data that overshadowed fears of a more aggressive Federal Monetary policy stance. Reserve this year, but also the rise of technology stocks starring Amazon.

The technology industry today surpassed the heavy losses it brought on Thursday the disappointing results of Meta, a parent company of Facebook, whose share recorded the largest daily decline in its history, by 26.39%. Today, Meta recorded small losses of about 0.28%.

The driver of profits was Amazon which strengthened by 13.5% in the aftermath of the strong results it announced the tech giant with $ 14.3 billion in profits or $ 27.75 per share in the fourth quarter, which is more than double compared to the corresponding period of 2020 and impressively better than the estimates of analysts who expected earnings of $ 3.61 per share. These include pre-tax profits of $ 11.8 billion from the Group’s stake in electric car maker Rivian Automotive.

Impressive rally by SNAP, which jumped 63% after announcing its first quarter of net profitabilityas well as profits and revenues that exceeded analysts’ expectations.

The investment climate was stimulated by the best-expected data for the jobs in January in the USA. In particular, the US economy continued to create new jobs in early 2022, despite disruptions in economic activity due to the rapid spread of the Omicron mutation.

A further 467,000 jobs were added in January, according to the US Department of Labor. At the same time, the December data were revised upwards to 510,000 positions from 199,000 previously announced. Average estimates by analysts at a Reuters poll put the figure at 150,000 in January.

The unemployment rate, meanwhile, rose to 4% from 3.9% following the introduction of new criteria by the government in the population calculation rules.

“The best-performing job report reinforces the Fed’s argument that the economy is strong enough to withstand a tighter monetary policy this year,” said Julian Koski, New Age Alpha’s chief investment officer.

Although investors were initially skeptical about employment data, as they gave the Fed more room to raise interest rates, “the market finally seemed to be doing well,” said Scott Wren, an analyst at Wells Fargo Investment. Institute. “We have returned above the 200-day average for the S&P 500,” Wren said. “It will be a very positive sign if these gains are maintained and consolidated.”

Meanwhile, its performance climbed to the highest level since December 2019 10-year government bond of the USA, adding 10.5 basis points to 1.93%, while during the week it strengthened by 15.1 basis points. His performance 2 years, which moves on the basis of expectations for the course of interest rates, strengthened by 13.2 basis points. at 1.322%, the highest level since March 10, 2020. In the week, the 2-year gained 15.2 bp, marking the 7th consecutive week of rise.

The dollar rose 0.08%, according to the ICE US Dollar.

Indicators – Statistics

On the dashboard, the industrial Dow recorded marginal losses 0.06% at 35,089.74 points, the widest S&P 500 climbed 0.52% to 4,500.53 points, while the technological Nasdaq gained 1.58% to 14,098.01 points.

In weekly basis, all three indices closed with gains. The Dow Jones industrial average was up 1.1%, the S&P 500 was up 1.6% and the Nasdaq was up 2.4%.

From 30 shares that make up the Dow, 10 closed with a positive sign and 20 with a negative. Sales were led by Salesforce (+ 3.07%), JPMorgan (+ 2.64%) and Goldman Sachs (+ 2.44%), while the biggest losses were recorded by 3M (-2.25), Walgreens Boots (- 1.82%) and Procter & Gamble (-1.6%).

Pinterest rose 11% after announcing year-over-year profits and annual revenue of more than $ 2 billion.

36% rally for the Bill.com title, with the results of the manufacturer of financial software tools for small businesses exceeding the expectations for the fourth quarter and giving positive guidance.

GoPro gained about 4% as action-camera maker exceeded its earnings expectations.

Ford’s share plunged 9.7% after announcing lower than expected profits and revenues in the quarter ended December.

Source: Capital