Nasdaq erases 2020 losses, little changed in ASX futures
Wall Street’s indexes climbed on Thursday, with the Nasdaq erasing losses for 2020, following a clutch of upbeat earnings reports led by PayPal (NASDAQ: PYPL) as investors looked past more weak jobs data caused by the coronavirus-induced economic downturn.
Australian futures have lifted a marginal 5 points after overnight activity as investors digest economic data, overseas earnings reports and local news.
The ASX 200 eased 0.4% to close at 5,364.2 points as banks weighed on the market. The Australian share market does not have a vast number of technology companies - as opposed to the US where the tech sector makes up over 20% - to propel the index higher. Afterpay Touch Group (ASX:APT) is an exception - the payments technology company rebounded aggressively and is trading close to an all-time high after closing at $39.05 on Thursday.
Banks and Australia's mining sector have underperformed and are the reason why we are not seeing the same level of gains as we see in the US.
US stocks recover - but will it last?
Global stocks have rebounded sharply since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. Investors are now watching efforts by a number of states to spark their economies by easing restrictions put in place to fight the outbreak.
The Dow Jones Industrial Average .DJI rose 211.25 points, or 0.89%, to 23,875.89, the S&P 500 .SPX gained 32.77 points, or 1.15%, to 2,881.19 and the Nasdaq Composite .IXIC added 125.27 points, or 1.41%, to 8,979.66.
The Nasdaq turned marginally positive for 2020 by closing above 8,972.604, after being down well over 20% for the year as of late March. The S&P 500 remains down over 10% this year.
The S&P 500 posted nine new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and eight new lows.
Data showed millions more Americans sought unemployment benefits last week, suggesting layoffs broadened from consumer-facing industries to other segments of the economy and could remain elevated even as many parts of the country start to reopen.
The US employment report for April is due on Friday.
Investors were also encouraged by news that China’s exports unexpectedly rose in April for the first time this year as factories raced to make up for lost sales due to the coronavirus pandemic.
Sources: Bloomberg, Reuters, Iress, SMH, Market Watch, wise-owl
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.