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Stocks - Wall Street Gains as Recession Fears Fade, Nvidia Boosts Tech

Published 16/08/2019, 14:37
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Investing.com - Wall Street clawed back more of their midweek losses on Friday in the absence of fresh geopolitical shocks, but were still on course for a third straight weekly loss against the backdrop of a slowing global economy.

The Dow Jones gained 207 points, or 0.8%, to 25,786.08 points by 9:32 AM ET (13:32 GMT), while the S&P 500 rose 23 points, or 0.8%, 2,870.20 points.

The tech-heavy NASDAQ Composite was outperforming, with a gain of 1.0%, after a strong set of quarterly numbers from semiconductor maker Nvidia after the bell on Thursday encouraged hopes that the cycle for silicon chips may be turning up.

Shares in Nvidia (NASDAQ:NVDA) jumped 7.4%, while fellow chipmakers Intel (NASDAQ:INTC) gained 1.4% and Advanced Micro Devices (NASDAQ:AMD) rose 2.1%. The Philadelphia Semiconductor Index traded up 1.9%.

In the only major earnings report of the morning, agricultural machinery maker Deere & Company (NYSE:DE) cut its full-year profit forecasts after saying its sales fell 3% in the three months to July.

"Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases," said Chief Executive Officer Samuel Allen.

Deere stock still jumped 2.8%, reflecting how much bad news had already been 'baked in' to the stock since President Trump’s tariff announcement escalated the trade war with China at the end of last month. It's still down nearly 14% from last month's high.

Elsewhere, General Electric (NYSE:GE) bounced 6.8% on news that Chief Executive Larry Culp had put his money where his mouth was by buying the dip in GE stock on Thursday, amid accusations of irregular accounting by short-sellers.

On the economic front, housing data painted a mixed picture of the U.S. real estate market.

Housing starts unexpectedly fell in July, marking a third straight month of declines.

However, building permits - a proxy for future construction - jumped by a stronger-than-expected 8.4%. That was the largest increase in more than two years.

Still ahead, the University of Michigan will publish its preliminary reading of consumer sentiment for August.

The data will likely provide insight into how optimism among American consumers is holding up to U.S. President Donald Trump’s handling of the ongoing trade conflict with China.

Elsewhere, crude oil WTI futures were on the rebound, up 1.0%, after a torrid week, although the bearish outlook for supply and demand from OPEC’s monthly report on the oil market caused a decline from earlier intraday highs. Gold futures were down 0.4% at $1,524.90 a troy ounce, while the U.S. dollar index, which tracks the greenback against a basket of developed market currencies, was up some 0.2% at 98.155 thanks to gains against the safe-haven yen and Swiss franc.

The stock still jumped 2.8%, reflecting how much bad news had already been 'baked in' to the stock since President Trump’s tariff announcement escalated the trade war with China at the end of last month. It's still down nearly 14% from last month's high.
The stock still jumped 2.8%, reflecting how much bad news had already been 'baked in' to the stock since President Trump’s tariff announcement escalated the trade war with China at the end of last month. It's still down nearly 14% from last month's high.
The stock still jumped 2.8%, reflecting how much bad news had already been 'baked in' to the stock since President Trump’s tariff announcement escalated the trade war with China at the end of last month. It's still down nearly 14% from last month's high.

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