Tuesday’s Market Snapshot: Here’s What You Need To Know Right Now
US stocks kicked off September with more gains as upbeat manufacturing data and tech stocks drove the rally lifting major indexes higher. The Nasdaq Composite Index advanced 1.1% as investors flocked into tech stocks that are benefiting from the stay-at-home trend. The S&P 500 Index, which in August saw the best monthly return in more than 30 years, rose 0.3%. The Dow Jones Industrial Average increased 0.2%.
US data published by the Institute for Supply Management (ISM), showed that manufacturing last month expanded at the fastest pace in almost 2 years. The ISM said its index of manufacturing activity rose to 56 last month from 54.2 in July, exceeding economists’ estimates for an increase to 54.5. A reading above 50 indicates expansion in manufacturing.
Tech stocks: Zoom Video is stealing the show today, jumping 38% and leading gains on the Nasdaq. The popular video-conferencing platform saw second-quarter sales explode 355% to $663.5 million vs Street consensus of $500.5 million, while also raising its annual sales guidance.
Apple is up 3.5% amid a Bloomberg report that the iPhone maker is launching new models with 5G technology in October indicating that demand for the company’s most important product is holding up in the midst of the global pandemic and economic downturn.
Bullish sentiment is also driving Netflix stock, which leaped almost 5% as analysts grow confident that the current stay-at-home environment supports continued subscriber growth for video streaming services.
On the retail front, Walmart traded 6% higher and is the best performer on the S&P 500. The retail chain disclosed that it will roll out itsnew membership program, Walmart Plus, later this month. It will offer subscribers unlimited free delivery, fuel discounts and no checkout lines.
Tesla is the second-worst performer on the Nasdaq declining 4.6% after the electric car maker announced a plan to raise up to $5 billion through a share offering. News of the offering comes just a day after Tesla’s 5:1 stock split went into effect.
In other health-related news, Athenex appreciated almost 6% after the biotech company announced that the US Food and Drug Administration (FDA) has accepted the new drug application (NDA) for its oral paclitaxel treatment of metastatic breast cancer.
Meanwhile, AbbVie shares lost 4% after the US House Oversight Committee said it plans to subpoena the drugmaker to request documents on its blockbuster treatments, Humira and Imbruvica, as part of its investigation into drug prices.
