Wall St. jumps on surprise gain in Disney quarterly earnings, stimulus hopes

Darnell Taylor
August 9, 2020

"Markets have been incredibly resilient, there is a big fear of missing out and it is the old stalwarts, the technology leaders that keep driving the market higher", said Sal Bruno, chief investment officer at IndexIQ in NY.

The U.S. economy added 1.763 million jobs in July, the Labor Department said Friday.

The Dow Jones Industrial Average.DJI rose 185.46 points, or 0.68%, to 27,386.98, the S&P 500.SPX gained 21.39 points, or 0.64%, to 3,349.16 and the Nasdaq Composite.IXIC added 109.67 points, or 1%, to 11,108.07.

Unemployment Rate in the United States fell to 10.2% in July. The moves for stocks came after the USA added 1.76 million jobs in July-just one-third of the unexpected 4.8 million gain last month-with the unemployment rate falling to 10.2% from 11.1% in June.

In point of fact, apart from a surprise Disney quarterly profit released late on Tuesday that seemed to have pushed the Walt Disney Co.'s shares up by as much as 8.80 per cent, investors' optimism over another round of trillion-dollar pandemic stimulus package had tuned up the tone of the day's Wall St.

However, the figure still topped economists' expectations and analysts said that it could take the pressure off the US Congress to agree on a relief bill after weeks of wrangling. Top Democratic congressional leaders and White House officials said they would continue negotiations on Friday.

The S&P 500 is up 120.50 points, or 3.7%.

Germany records 1,045 cases, highest in three months
Germany's list of "risk zones" now includes most non-EU countries, as well as certain provinces in Belgium and Spain. However, he considered this interference to be "reasonable" with regard to the responsibility for others.

Communication services.SPLRCL and technology.SPLRCT were the best performing of the 11 major S&P sectors on the day.

Meanwhile, Trump late on Thursday unveiled sweeping bans on USA transactions with the Chinese owners of messaging app WeChat and video-sharing app TikTok after his administration flagged greater effort to purge "untrusted" Chinese apps from domestic digital networks.

In response, China said the companies complied with United States laws and warned that Washington would have to "bear the consequences" of its action.

New York-listed Tencent Music Entertainment Group, which was spun off from WeChat-owner Tencent Holdings Ltd in 2018, fell 3.3%, while Facebook Inc jumped 3.8%. Microsoft Corp, which is seeking to buy TikTok's USA operations, was down about 0.7%.

US-listed Chinese stocks, such as Baidu Inc (百度), Alibaba Group Holding (阿里巴巴) and JD.com Inc (京東) also declined.

Declining issues outnumbered advancers for a 1.26-to-1 ratio on the NYSE and for a 1.59-to-1 ratio on the Nasdaq.

About 9.69 billion shares changed hands in USA exchanges, compared with the 10.39 billion daily average over the last 20 sessions.

Other reports by

Discuss This Article