· The S&P 500 and Nasdaq Composite reached all-time highs on Wednesday, propelled by a rally in chip stocks as investors shook off regulatory concerns facing Big Tech.
The broad index rose 0.5% to 3,019.56, a record. The tech-heavy Nasdaq jumped nearly 0.9% to end the day at 8,321.50. The VanEck Vectors Semiconductor ETF (SMH) gained 2.7% to hit a record, led by a 7.4% rally in Texas Instruments sparked by better-than-expected quarterly results.
Other companies such as UPS and AT&T also got a boost from strong results.
However, the Dow Jones Industrial Average closed 79.22 points lower at 27,269.97 as investors pored through disappointing earnings from Boeing and Caterpillar.
Boeing shares dropped 3.1% after the aerospace giant posted a massive loss for the previous quarter. The loss comes as costs pile up while its 737 Max jet remains grounded. The company also warned it could suspend production of its flagship jet if delays worsen.
Stocks closed higher in the previous session after CNBC reported American and Chinese negotiators will meet for face-to-face talks next week.
However, Treasury Secretary Steven Mnuchin told CNBC’s “Squawk Box” that there are a lot of issues for the two countries to work out. “My expectation is this will be followed up with a meeting back in D.C. after this and hopefully we’ll continue to progress.”
· European stocks closed slightly higher Wednesday, as market participants digested a fresh round of corporate earnings and disappointing economic data out of France and Germany.
The pan-European Stoxx 600 closed provisionally up almost 0.1%, with autos stocks leading the gains with a near-1.5% rise while the basic resources sector tumbled over 1.2%.
Market focus is largely attuned to economic data and corporate results. PMI (Purchasing Managers’ Index) data showed that a recession in Germany’s manufacturing sector worsened in July with goods producer performance falling to its lowest level in seven year.
Meanwhile, French business growth also slowed unexpectedly. The euro slumped to two-month lows to $1.1127 following the PMI figures, but recovered slightly to trade around the $1.1140 mark during the afternoon.
· Asia Pacific shares traded mixed on Thursday morning despite record highs touched by the S&P 500 and Nasdaq Composite overnight on Wall Street.
The Nikkei 225 in Japan rose 0.32% in early trade, with shares of index heavyweight Softbank Group surging 3.16%. The Topix index saw fractional gains.
Australia’s S&P/ASX 200 traded fractionally higher as the sectors mostly advanced. Investors will be watching out for Reserve Bank of Australia Governor Philip Lowe’s speech at 11:05 a.m. HK/SIN on Thursday for clues about the central bank’s future policy moves.
In South Korea, the Kospi slipped slightly as shares of LG Chem plunged 4.53%. But shares of chipmaker SK Hynix jumped 2.71% after the company announced a reduction in chip output.
Before market open, SK Hynix reported second-quarter earnings.
Reference: CNBC
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