Sumary of Tech stocks lead Nasdaq to third straight day of gains:
- 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.
- Microsoft rose 1.6% 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 rose almost 1% after Canaccord 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.
- The 10-year Treasury yield ticked lower to 1.265% on the poor jobs data.
- Still, a strong second-quarter earnings reporting season continues, with American Airlines posting a profit for the period, snapping a streak of five straight quarters with losses, thanks to the recovery in travel demand and government aid.
- Similarly, Southwest Airlines reported a quarterly profit, but the carrier’s stock closed 3.4% lower.