Tech leads stocks higher as earnings pile up, ECB raises rates

Tech leads stocks higher as earnings pile up, ECB raises rates

Technology stocks led the markets higher for a third straight session on Thursday as investors weighed in on a slew of mixed earnings and a surprise rate hike by the European Central Bank.

[Click here to read what’s moving markets on Friday, July 22]

The tech-heavy Nasdaq Composite gained 1.3%, while the benchmark S&P 500 rose 1%. The Dow Jones Industrial Average added 160 points, or 0.5%.

Shares of Amazon ( AMZN ) rose for a seventh straight day, putting the e-commerce giant on pace for its longest winning streak since June 2020. Shares are up 13% over the seven days, but remain more than 25% per year. -meet up. Shares closed up 1.5%.

Shares of AT&T ( T ) fell 8% despite reporting earnings that beat estimates after the company revealed a reduced outlook for annual free cash flow.

Meanwhile, shares of United Airlines ( UAL ) fell 10% after the company posted weaker-than-expected second-quarter results as inflationary pressures drove higher operating expenses and fuel costs that hurt its benefits.

Another big development this morning came from the other side of the Atlantic, with the The ECB chooses to raise interest rates by 0.50%the first increase in central bank interest rates since 2011 and their biggest increase since 2000.

Investors had expected the ECB to raise rates by 0.25% in Thursday’s decision.

Following this move, the euro was slightly stronger against the dollar, trading above 1.025 after reaching parity with the greenback earlier this month.

In the U.S., investors remain focused on whether stocks can rise for a third straight day on Thursday after tech stocks rallied during Wednesday’s trading session.

Tesla ( TSLA ) was in focus after reporting earnings after the market closed Wednesday that beat analysts’ estimates, but said auto gross margins fell from the previous quarter. Shares were up about 2% before the bell.

United Airlines Boeing 777ER. Airplane at Fiumicino Leonardo da Vinci Airport. Fiumicino (Italy), July 14, 2022 (Photo by Massimo Insabato / Massimo Insabato Archive / Mondadori Portfolio via Getty Images)

“Only earnings really matter; other issues are simply sidebars to that main narrative,” Nicholas Colas, co-founder of DataTrek Research, said in a note Thursday morning, adding that Fed policy, investor confidence and events can impact the system and understanding them can provide useful context.”Ultimately, however, stock prices fundamentally reflect the market’s best estimate of future sustainable business earnings.”

The story continues

Europe also plans to restart the Nord Stream 1 pipeline, the largest pipeline that carries gas from Russia to Germany, after the end of a planned maintenance break.

Domestically, economic data showed that the labor market continued to soften last week.

The last report on weekly presentations for unemployment insurance showed that 251,000 people filed for first-time unemployment last week, the most since November 2021.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!