US stocks recoup early losses

The Dow and S&P 500 moved out of the red in the afternoon in New York today, while the NASDAQ extended yesterday’s gains after strong results from Facebook.

Dow-component Caterpillar continued to slide today after yesterday’s weak results, and that set the tone for the first few hours of trading New York, with both the Dow and the S&P 500 struggling to stay out of the red. Both indices pared their losses as the trading day wore on, though, with the Dow flat in early afternoon on Wall Street, while the S&P gained 0.09% or 1.4 points to 1687.4.

The NASDAQ gained though, helped by the soaring share price of Facebook, which posted its largest ever daily percentage, jumping as much as 28% at one point after posting stellar results for the last quarter.

A long list of brokers raised their price targets substantially today for the company, after the best set of results for Facebook since it went public. Second-quarter earnings were 19 cents per share, excluding items, which beat the Street’s estimate of 14 cents.

Revenue spiked 53% from the same quarter a year ago to $1.81 billion, boosted by the income from mobile ads. Mobile revenue is a hot topic for online providers such as Facebook, Google and Yahoo. Facebook showed it has got on top of the issue, growing mobile ad revenue to 41% of total advertising revenue in the second quarter from the 30% seen in the first quarter.

Facebook’s strong performance helped the NASDAQ rise 0.6% to 3059.

Macroeconomic data today held few clues as to where the Fed might be heading with its quantitative easing. Jobless claims came in at 343,000 for last week, up 7000 from the previous week, and slightly worse than expected. July’s data can be skewed more than a little by the fact that a lot of car manufacturers close their plants for annual maintenance at this time of year, so this particular report doesn’t significantly affect the picture when it comes to the employment situation.

A separate report showed durable goods orders increased faster than expected in June, but the headline rate of a 4.2% is perhaps a little misleading. Stripping out the notoriously volatile component of transportation left the number unchanged for June, and as a result, the market reaction to this report was somewhat muted.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.