Apple and Amazon drive rally on Wall Street

By Noel Randewich (Reuters) - Wall Street ended sharply higher on Monday, fueled by expectations of a coronavirus relief package and by a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season. Apple Inc jumped ahead of an event on Tuesday, when it is expected to unveil its newest iPhones

Reuters October 13, 2020 06:05:35 IST
Apple and Amazon drive rally on Wall Street

Apple and Amazon drive rally on Wall Street

By Noel Randewich

(Reuters) - Wall Street ended sharply higher on Monday, fueled by expectations of a coronavirus relief package and by a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season.

Apple Inc jumped ahead of an event on Tuesday, when it is expected to unveil its newest iPhones.

Amazon rallied ahead of its annual Prime Day shopping event on Oct. 13 and 14. Microsoft also jumped, helping lift the S&P 500 information technology index sharply.

The S&P 500 was about 1% below its record closing high from Sept. 2, nearly recovering from most of a 9% pullback last month.

"Apple is crushing it. There's some euphoria around the name," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York. "The market leaders are once again the tech names, supported by the fact that the economy continues to expand."

Optimistic sentiment dominated after the Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill as negotiations on a broader package ran into resistance.

"It looks like the administration wants a deal done before the election," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "Now it's up to the Republican Senate to figure out how big the number is going to be."

Many investors view Democratic candidate Joe Biden as more likely to raise taxes, and for months have seen a second term for Trump, who favors deregulation, as better for the overall stock market.

However, with growing expectations of a Democratic win in next month's presidential election, investors are increasingly pointing to potential benefits of a Biden presidency, such as greater infrastructure spending and less global trade uncertainty.

Betting odds aggregated by RealClearPolitics suggest bettors see a 67% chance Biden will win and a 33% chance for Trump, the greatest gap so far between the two candidates.

With the Oct. 15 presidential debate officially canceled, Trump plans to travel to key battleground states this week as his doctor declared he was no longer a transmission risk for the novel coronavirus .

Results from big U.S. banks will be in focus this week, with JPMorgan & Co and Citigroup set to report on Tuesday.

Overall, analysts expect third-quarter earnings for S&P 500 companies to fall 21% from a year earlier, smaller than a 31% slump in the second quarter.

"Earnings are expected to be negative, but I think most people would say, 'Yes, but we set the bar so low that we will probably beat Q3 numbers the way we beat Q2 numbers'," said Sam Stovall, chief investment strategist at CFRA in New York.

Unofficially, the Dow Jones Industrial Average <.DJI> rose 250.03 points, or 0.87%, to 28,836.93, the S&P 500 <.SPX> gained 56.93 points, or 1.64%, to 3,534.06 and the Nasdaq Composite <.IXIC> added 296.32 points, or 2.56%, to 11,876.26. The S&P 500 energy index <.SPNY> fell as oil prices dropped on easing supply worries. [O/R]

Twitter Inc jumped after Deutsche Bank upgraded the social media company's shares to "buy" on expectations of continued growth in 2021.

(Additional reporting by Medha Singh and Shivani Kumaresan in Bengaluru, and Sinead Carew in New York; Editing by Marguerita Choy)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.