Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Nasdaq posts a record close as media stocks continue climbing on merger talk

The Dow fell around 20 points as a decline in financial stocks overshadowed Walt Disney's gains
Wall Street
Media stocks gave the Nasdaq a 60-point boost

The US benchmarks ended the day on a mixed note.

The tech-heavy Nasdaq posted a record close, seeing a more than 60-point boost as media stocks continue to benefit from mergers.

The Dow Jones Industrial Average fell more than 20 points as Walt Disney Co (NYSE:DIS) gains were offset by a decline in financial stocks.

The S&P 500 saw slight gains, ending the day up around 7 points.  

Up north, the TSX jumped more than 60 points as gains in gold and tech made up for healthcare losses.

The Russell 2000 small-cap index saw minimal gains, boosted by Etsy Inc (NASDAQ:ETSY) and Teligent Inc (NASDAQ:TLGT).

1 PM: Fears of a flattening yield curve are weighing on the Dow

Fears of a flattening yield curve are weighing on the Dow Jones Industrial Average in midday trade. The central bank has signaled that it plans to hike rates beyond neutral in short order. The markets are now anticipating a total of four quarter-point rate hikes in 2018, up from three previously.

That explains why the Dow Jones Industrial Average ticked down 28.63 points, or 0.12% to 25,171 while the S&P 500 gained 0.3% to 2783.

The tech-laden Nasdaq Composite index jumped 0.8% to 7,756 led by Comcast Corp. which was up nearly 4% after BTIG analyst Rich Greenfield said it has a "surprisingly good chance" of winning a bidding war against Walt Disney Co. for Twenty-First Century Fox assets. Walt Disney shares were also up nearly 2% on the New York Stock Exchange to US$108.34.

The small-cap Russell 2000 index was up 3.18 points or 0.19% up to 1,679.72.

10 AM: US stocks open higher due to a solid May retail sales report

US stocks jumped higher out of the starting gate Thursday as optimistic economic data and a resurgence in takeovers lifted investors' spirits.

A report from the Commerce department that US retail sales climbed 0.8% in May, recording their best performance since last November, contributed to the positive vibes in the market.

The report followed yesterday’s decision by the Federal Reserve to hike interest rates for the second time this year on the view that the labor market is steadying and economic activity in the US is “rising at a solid rate”.

The federal funds target rate is now between 1.75 and 2 per cent, which marks its highest level in almost a decade.

Early in the trading session, the Dow Jones Industrial average added almost 80 points to hover at 25,281, led higher by Walt Disney, UnitedHealth Group and Caterpillar.

The S&P 500, meanwhile, clung closer to break-even levels, adding almost 9 points to trade at 2,784 while the tech-heavy Nasdaq jumped 42 points to climb to 7,738, led by Comcast, MercadoLibre, Charter Communications and DISH Network Corp.

Up in Canada, Toronto’s TSX added 33 points to trade at 16,299 while the Russell 2000 index of small-cap stocks stayed flat at 1,679.6.

The rosy news on the retail sales front also comes on the back of the European Central Bank’s move to keep interest rates unchanged at 0% until at least the middle of next year. Europe’s central bank is also taking the significant step of ending its quantitative easing program, whereby it buys back tens of billions of euros worth of government bonds every month to prop up the EU’s economic performance.  

Merger activity also pushed up share prices. Comcast (NASDAQ:CMCSA) shares were trading 4.8% higher at US$33.88 after the cable operator swooped in with a US$65bn all-cash offer for a chunk of the assets held by 21st Century Fox. 21st Century Fox’s shares also rose 1.36% to US$44.25 in the wake of the offer.


No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use