© Reuters. FILE PHOTO: “Wall St” sign seen above two “One Way” signs in New York, August 24, 2015. REUTERS / Lucas Jackson / File Photo
Authors David French and Bansari Mayur Kamdar
(Reuters) – Another awkward ride on Wall Street ended on Friday as Amazon’s positive earnings limited a number of mixed big tech numbers, with Nasdaq recovering most of its losses from the previous session and all three benchmarks ended the week in positive territory .
The results of the growth of megacap stocks dictated market moves this week, while investors are looking for tangible data that would support incredibly high values.
Amazon.com Inc. (NASDAQ 🙂 jumped 13.5% after reporting strong earnings in the holiday quarter. Profits increased its market capitalization by about $ 190 billion, the largest increase in the value of a U.S. company ever in a single day.
This came a day after the disappointing results of Facebook owner Meta Platforms Inc. shook the markets and erased more than $ 200 billion from his estimate, the largest stock market loss in history by the American company.
“These are tear-jerking movements, which are usually associated with penny stocks, and yet they happen in companies with a market capital of $ 1 billion,” said Michael Hewson, chief market analyst at CMC Markets UK.
Despite earnings-driven jumps in tech stocks, all three major stock market indices ended the first week of February on the rise, with the indices reporting a second week in a row.
While Meta lost another 0.3% on Friday, other social media companies that were withdrawn with Facebook owner (NASDAQ 🙂 recovered strongly as they posted their own earnings that exceeded estimates.
It was among them Snap Inc. (NYSE :), jumping 58.8% after announcing user growth and fourth-quarter outlook better than expected.
Pinterest (NYSE 🙂 Inc also jumped 11.2% after its quarterly revenue exceeded estimates as retailers spent on advertising during the holiday quarter.
It fell 21.42 points, or 0.06%, to 35,089.74, gained 23.09 points or 0.52% to 4,500.53 and added 219.19 points or 1.58% to 14,098.01.
Among the major sectors of the S&P 500 that have thrived, energy inventories have reached their highest level since 2018, as crude oil prices reached a seven-year high. [O/R]
Hess Corp The NYSE 🙂 achieved the highest growth in the sector, jumping 4% to its largest closure since September 2014. Occidental Petroleum Corp. (NYSE 🙂 strengthened 2% and its shares ended at levels last seen in February 2020.
Still, consumer discretion was the leading sector, with growth of 3.7% as it was backed by Amazon’s performance. The gains of the technology giant helped ease the resistance of Ford Motor (NYSE 🙂 Co., which fell 9.7% after the carmaker released disappointing quarterly figures.
An employment report closely monitored by the Ministry of Labor showed that non-agricultural payrolls increased by 467,000 jobs last month, compared to an increase of 150,000 new jobs forecast by economists polled by Reuters.
Data for December have been revised to more and show 510,000 vacancies, instead of the previously reported 199,000.
Fears of a faster-than-expected rate hike to curb rising inflation have plagued markets since the beginning of the year, and growth stocks such as technology are feeling the brunt as investors turn to current cash flow from betting on future expectations.
“A lot of high-value things will still have problems, and they’re already pretty much broken,” said Louis Ricci, head of trading at Emles Advisors.
“For us, this business report was a confirmation that, yes, stocks will be nervous and there will be a lot of volatility.”
However, the prospect of rising interest rates has boosted U.S. Treasury bonds, with yields at 10-year benchmarks reaching their highest levels since December 2019, following payroll data. This is considered positive for finances, with Bank of America Corp (NYSE :), Morgan Stanley (NYSE 🙂 i Wells Fargo (NYSE 🙂 & Co. rose between 1.8% and 4% on Friday.
The volume on the American stock exchanges amounted to 11.07 billion shares, compared to the average of 12.37 billion for the entire session in the last 20 trading days.
The S&P 500 announced 26 new highs in 52 weeks and 11 new lows; The Nasdaq Composite recorded 36 new highs and 196 new falls.