While you were sleeping: Wall St rebounds, Treasuries decline
By Margreet Dietz
April 4 (BusinessDesk) - Wall Street rebounded following Monday’s selloff as investors found value in beaten-down stocks.
Shares of Amazon traded 0.7 percent stronger as of 1.55pm in New York, having fluctuated between gains and losses earlier in the day, as investors tried to assess the impact of US President Donald Trump’s latest criticising tweets about the company.
“I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted. “Amazon should pay these costs (plus) and not have them bourne [sic] by the American Taxpayer. Many billions of dollars.”
In 1.49pm trading in New York, the Dow Jones Industrial Average rose 0.7 percent, while the Nasdaq Composite Index gained 0.2 percent. In 1.34pm trading, the Standard & Poor’s 500 Index added 0.5 percent.
“You should have a bounce after a day like yesterday,” Andrew Slimmon, senior portfolio manager and managing director at Morgan Stanley Investment Management, told Bloomberg.
“No signs of fundamental deterioration and you get that type of selloff, and you should get a bounce,” Slimmon noted. “I don’t know what will happen the rest of this week, but as we get into earnings season, I do think it will help the market.”
US Treasuries fell, pushing yields on the 10-year note two basis points higher to 2.75 percent.
The Dow moved higher as gains in shares of Nike and those of Johnson & Johnson, recently up 2.9 percent and 2.2 percent respectively, outweighed declines in shares of General Electric and those of Walt Disney, down 1.1 percent and 0.5 percent respectively.
“In the immediate term there is pressure, but [there is] nothing in long term because the fundamentals are still in place,” Matt Lloyd, chief investment strategist at Advisors Asset Management, told Reuters.
Shares of Spotify Technology soared as they began trading on the New York Stock Exchange through a direct listing with an opening price of US$165.90 a share.
“It’s a fair market price. It’s not manipulated or set by any puts and takes by banks or institutional investors,” Chi-Hua Chien, an early investor in Spotify who is now at San Mateo, California-based Goodwater Capital, told Reuters.
Shares of Tesla jumped, up 8.2 percent as of 2.05pm in New York, after the car maker reassured investors by saying it will not need to raise additional capital this year.
“Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow,” the company said in a filing with the US Securities and Exchange Commission. “As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.”
In Europe, the Stoxx 600 Index ended the day with a 0.5 percent decrease from the previous close. Germany’s DAX Index dropped 0.8 percent, the UK’s FTSE 100 Index slid 0.4 percent, while France’s CAC40 Index declined 0.3 percent.