Stock Market Today: Dow Jones Rises, Dell Rises, Salesforce Rises
The September stock market crisis may be over. Investors showed signs of renewed confidence on Thursday, pushing stocks higher as they were comforted by the injection of more liquidity by the Chinese central bank into the banking system as well as the firm hand of the Federal Reserve during the its Wednesday meeting.
The Dow Jones gained 507 points, or 1.5%, to close at 34,764.82 on Thursday, marking the index’s biggest two-day percentage gain since March. The
increased by 1.2% and the
advanced by 1%. This is the second consecutive day of gains for the major indices.
Overall, the two-day market rally has been convincing. The S&P 500 is up more than 3% from its low this week, with the vast majority of stocks in the index participating in Thursday’s rally, according to FactSet. The index also returned above its 50-day moving average, a key technical level. In addition, the two trading days leading up to Thursday saw times when rising New York Stock Exchange shares outnumbered declines by more than 1,500. The last time it happened this year, it happened after a brief pullback, and then stocks did well for the next two weeks, according to Instinet.
“The global rally of relief that started Tuesday night continues today,” writes Michael Reinking, senior market strategist at the New York Stock Exchange. He noted that the Fed’s announcement on Wednesday offered no surprises. Regarding the situation of the China Evergrande Group (ticker: EGRNF), “investors are more and more comfortable with any risk of contagion,” says Reinking.
Evergrande may be struggling, markets don’t care about the ripple effects. The People’s Bank of China injected an additional $ 17 billion into the banking system after investing $ 13 billion earlier this week.
The injection helps consolidate the Chinese banking system, while US banks are not even very exposed to credit risk in China. Wells Fargo analysts say none of the major U.S. banks have more than 1.5% of their assets related to Chinese cross-border transactions.
Evergrande stock rose 17.6% in Hong Kong, but remains down 81% year-to-date.
As for the Fed, President Jerome Powell made no indication on Wednesday that the central bank will cut monthly bond purchases by more than the $ 15 billion currently expected. If the Fed goes faster than that, it could lower the price of long-term bonds more than expected, increasing yield, making future earnings less valuable. For now, the markets expect a gradual reduction in the bond buying program.
The 10-year Treasury yield rose 1.42% from 1.32% at Wednesday’s close, although still below its 2021 high of 1.75%.
While weekly jobless claims edged up to 351,000, above expectations of a drop to 320,000, the four-week average remains near its pandemic low.
Here are 9 actions in motion Thursday:
Hydrogen fuel cell developer
Connect the power (PLUG) rose 3.2%, extending Wednesday’s gains, amid a Reuters report that German automakers were betting on a hydrogen-powered future.
Dell Technologies (DELL) gained 3.4% after the company said it achieved compound annual growth of 3-4% in revenue through fiscal 2026.
Blackberry (BB) jumped 11% after reporting a loss of 6 cents a share, beating expectations of a loss of 7 cents, on sales of $ 175 million, ahead of expectations of $ 168.8 million.
Darden Restaurants (DRI) rose 6.1% after reporting earnings of $ 1.76 per share, beating expectations of $ 1.65 per share, on sales of $ 2.31 billion, beating expectations of 2 , $ 24 billion.
Roku (ROKU) is up 3% after upgrading to Buy From Neutral in Guggenheim.
Selling power (CRM) is up 7.1% after raising its full-year sales forecast.
General dynamics (GD) grew 1.5% and
Northrop Grumman (NOC) rose 0.6% after shares were upgraded to Neutral from Sell at Goldman Sachs.
Pfizer Shares (PFE) rose 0.6% after the Food and Drug Administration authorized the recall of the company’s Covid-19 vaccine for those at high risk or those over 65.
Write to Jacob Sonenshine at [email protected]