Latest technology news
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* Workday surges after lifting annual subscription forecast
* Dell rises as quarterly revenue tops estimates
* Coca-Cola rises after saying restructuring, job cuts
* Indexes up: Dow 0.27%, S&P 0.25%, Nasdaq 0.55% (Updates to market open)
By Medha Singh
Aug 28 (Reuters) – The S&P 500 rose on Friday, extending a six-day rally led by technology stocks because the prospect of tremendous-low rates of interest for a protracted interval and bets on a medical answer to the COVID-19 pandemic spurred danger urge for food.
The tech sector’s 0.7% rise supplied the most important increase to the benchmark index. Energy stocks superior 0.6% as hurricane Laura handed the center of the U.S. oil business in Louisiana and Texas with out inflicting any widespread harm to refineries.
The Federal Reserve on Thursday unveiled a plan to help inflation and restore the U.S. financial system from its greatest downturn for the reason that Great Depression.
Data on Friday confirmed U.S. client spending elevated greater than anticipated in July, although momentum is probably going to ebb because the COVID-19 pandemic lingers and monetary stimulus dries up with no sight of the following spherical of coronavirus reduction package deal.
“There’s no question consumer spending is going to be under some stress until we get additional fiscal support,” stated Albert Brenner, director of asset allocation technique at People’s United Advisors in Bridgeport, Connecticut.
The S&P 500 and the Nasdaq have scaled report highs and the benchmark is on monitor for its finest August in 34 years, partly powered by a rally in technology stocks, whereas the blue-chip Dow traded above the break-even stage for 2020.
“We’d like to see a sort of a broadening of (stocks in the rally); that would indicate to us some greater confidence of market participants in the economic recovery,” Brenner stated.
Progress within the race to develop remedies and vaccines for COVID-19 have additionally added to the cheer. Johnson & Johnson’s Janssen unit stated it might broaden testing for its experimental coronavirus vaccine to Spain, the Netherlands and Germany subsequent week.
Meanwhile, the U.S. election marketing campaign entered its closing stretch with U.S. President Donald Trump’s Republican nomination for a second time period. Analysts count on market volatility to enhance once more forward of voting in November.
At 9:57 a.m. ET, the Dow Jones Industrial Average was up 77.58 factors, or 0.27%, at 28,569.85, the S&P 500 was up 8.77 factors, or 0.25%, at 3,493.32. The Nasdaq Composite was up 63.60 factors, or 0.55%, at 11,688.94.
United Airlines rose 1.9% because it ready for the most important pilot furloughs of its historical past, a day after saying the necessity to minimize 21% jobs this yr.
Coca-Cola Co gained 0.8% because it introduced plans to almost halve its working items and provide voluntary separation to 4,000 employees.
In the newest signal that technology firms are booming within the pandemic, enterprise software program supplier Workday Inc jumped 13.2% after elevating its annual subscription forecast and Dell Technologies Inc gained 6.9% after reporting a quarterly revenue beat.
Advancing points outnumbered decliners by a 2.19-to-1 ratio on the NYSE and by a 1.65-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low, whereas the Nasdaq recorded 43 new highs and 9 new lows. (Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Arun Koyyur, Saumyadeb Chakrabarty and Maju Samuel)