Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Wall Street Opens Higher, Shrugging Off Durable Goods Weakness; Dow up 240 Pts

Published 24/03/2021, 13:21
© Reuters.
US500
-
DJI
-
INTC
-
DIS
-
XOM
-
PARA
-
MCO
-
GME
-
IXIC
-
TSM
-
ASML
-
AMC
-

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened higher on Wednesday, shrugging off a weaker-than-expected set of durable goods orders data as Tuesday's dip attracted bargain-hunters.

By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was up 244 points, or 0.8%, at 32,667 points. The S&P 500 was up 0.6% and the Nasdaq Composite was up 0.2%.

Earlier, the Commerce Department had said that durable goods orders fell 1.1% and core orders fell 0.9%, disappointing hopes for a more modest slowdown in growth.

Additionally, data from the Mortgage Bank Association showed that refinancings fell for the eight time in the last 10 weeks, under pressure from rising long-term interest rates. The 30-year mortgage rate rose another 8 basis points last week to 3.36% and is now up over half a percent from its January low.

Some of the most notable early moves came in chipmaking names, with Intel (NASDAQ:INTC) stock rising 1.3% after announcing a major capacity expansion in Arizona as part of CEO Pat Gelsinger’s new strategy.  Taiwan Semiconductor Manufacturing (NYSE:TSM) stock was down 4% at the prospect of the former leader in the chip sector trying to regain its lost crown.

ADRs in ASML Holding (NASDAQ:ASML), the Dutch-based producer of chipmaking machines, rose 4.7% to their highest in a month.

Elsewhere, GameStop Corp (NYSE:GME) stock fell 17%, albeit in smaller volumes than has often been the case in recent weeks, in disappointment at the company's admission that it is looking at selling new equity to fund its transformation into an e-commerce powerhouse. The company's results for the three months through January, released after the close on Tuesday, were also a little shy of consensus expectations. 

ViacomCBS (NASDAQ:VIAC) stock also fell another 11%, taking it down to a 20% loss since announcing a $3 billion equity raise on Tuesday.

Another 'meme stock', AMC Entertainment  (NYSE:AMC), fell 2.9% after Walt Disney (NYSE:DIS) issued an implicit warning about the willingness of customers to return to packed movie theaters this summer. The company is pushing back the release of its 'Black Widow' superhero movie and will release it, along with live-action movie 'Cruella' simultaneously in theaters and on the Disney+ streaming channel.

Among the gainers, Exxon Mobil  (NYSE:XOM) stock rose 3.4%, after a back-handed endorsement from Moody's (NYSE:MCO). The company cut its rating on Exxon's long-term debt, citing its commitment to keep paying dividends. The stock currently has a dividend yield of 6.22%. Oil and gas stocks were more broadly supported by a rise in oil prices caused by an accident in the Suez Canal, which forced a giant container ship to block one of the world's key routes for seaborne crude.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.