Sumary of Dow rises slightly for a third day led by tech stocks as markets shrug off poor jobs data:
- Tech shares led U.S. stocks higher Thursday, despite an unexpected jump in jobless claims that resurfaced some concerns about the economy and sent bond yields lower.
- The Dow Jones Industrial Average rose 72 points, the S&P 500 is 0.2% higher and the tech-heavy Nasdaq Composite is leading the markets with a 0.3% gain.
- Investors jumped back into their favorite tech stocks as optimism about the sector grows ahead of big earnings reports next week for some of the largest names in the space.
- Microsoft rose 1% after Citi raised its price target, saying the tech giant has the potential to beat Wall Street expectations when it reports quarterly earnings next week.
- Apple also rose 1% after Cannacord Genuity said there was “strong demand” for Apple products ahead of its earnings next week.
- The overall market continues to grind higher, led sometimes by value stocks when economic optimism is high and on days such as Thursday, tech shares take over the lead.
- “That means interest rates in the bond market are too low and if we start to see the yield curve really steepen, that’s a challenge for the companies that are driven by growth, that hope they’ll make a profit in five to 10 years,” like tech stocks.
- Stocks were under pressure earlier in the day after jobless claims unexpectedly rose to 419,000, higher than the 350,000 economists polled by Dow Jones estimated and more than the upwardly revised 368,000 from the previous period.