The Dow Jones New York Stock Exchange closed more than 300 points on Thursday (28 Jan), hailing the strong performance of listed companies. In addition, the number of US unemployed people fell more than expected, the market also gained a positive factor from investors’ concerns about the stock market bubble caused by retail investors to buy stocks. GameStop, the famous US video game store.
The Dow Jones Industrial Average closed at 30,603.36, up 300.19, or + 0.99%, while the S&P 500 closed at 3,787.38, up 36.61, or + 0.98%, and the Nasdaq closed at 13,337.16, up 66.56, or + 0.50%.
New York Stocks rebound in response to bright US labor data The US Department of Labor said the number of first-time unemployment benefits dropped 67,000 to 847,000 last week. That was lower than analysts had forecast of 875,000 from the 914,000 reported earlier this week.
The 11 stocks calculated in the S & P500 index all rose. Led by the banking index rose 1.92 percent, JP Morgan shares jumped 1.7 percent, Bank of America shares jumped 1.64 percent, Morgan Stanley shares rose 1.42 percent, Goldman Sachs shares gained 0.62 percent.
The strong performance of listed companies is another factor that helped boost the market. Apple Inc. posted revenues of $ 1.114 billion in the first quarter of 2021, marking the first time Apple has surpassed the $ 100 billion mark in a single quarter.
Facebook Inc. reported net profit of $ 1122 billion, or $ 3.88 per share in 4Q20, up from the same period of 2019 at $ 7.35 billion, or $ 2.56 per share. Facebook’s operations were driven by ad revenue from e-commerce retailers.
However, Apple shares closed down 3.5 percent as investors were disappointed that Apple did not release earnings estimates for the next quarter.
Facebook shares fell 2.6 percent after the company expressed concern that 2021 earnings outlook might face challenges. Because Apple Inc. has changed its privacy policy. Which may affect Facebook’s ad revenue Which Facebook expects Apple has updated the operating system on the iPhone to iOS 14 will start to affect Facebook’s revenue in the first quarter of this year.
American Airlines shares jumped 9.3 percent, while Comcast shares jumped 6.57 percent after the two companies released higher-than-expected earnings in 4Q20.
GameStop shares closed down 44.29 percent after news of Robinhood, an app that investors can trade shares for free online. Has issued a rule to limit the trading of GameStop shares by setting a higher margin. And allow investors to sell the shares they hold But it will not be able to buy new shares, with Robinhood said the measure is aimed at stopping stock market volatility.
The White House announced a close eye on the volatility and bubble in Wall Street. After GameStop’s share price has jumped 1,700% since the start of this month. It is seen as a gathering of US retail investors to preach big hedge funds that are often speculated by selling stock in the market.
Tesla shares fell 3.32 percent after the company released a 4Q20 profit of 24 cents / share, up from the same period a year ago of 11 cents / share, but that figure was lower than analysts had expected. $ 1.02 / share, the first time in more than a year that Tesla’s profit was below expectations.
For US economic data that was released last night. The Commerce Department released its No. 1 estimate of gross domestic product (GDP) for the fourth quarter of 2020, indicating that the US economy expanded 4.0 percent quarterly. And lower than analysts had expected at 4.3%.
At the same time, the US Department of Commerce reported. New home sales rose 1.6% to 842,000 units in December. Below analysts had forecast of 865,000 units.
Other US economic data due to be released today include: December Personal Consumption Price Index (PCE), pending home sales in December, and January Consumer Confidence Index From the University of Michigan
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