'Performance Effect' Twitter Surge, Intel Slump... Tech Stocks Lead NYSE Rally (Comprehensive)

by Paek Jongmin

Published 23 Jul.2021 06:34(KST)

Updated 23 Jul.2021 07:23(KST)

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[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange succeeded in rising for the third consecutive day. Despite an increase in new COVID-19 cases in the U.S. and weak economic indicators, strong earnings from tech stocks led the market gains.

On the 22nd (local time), the Dow Jones Industrial Average rose 25.35 points (0.07%) to close at 34,823.35, the S&P 500 index increased 8.79 points (0.20%) to 4,367.48, and the Nasdaq index gained 52.64 points (0.36%) to finish at 14,684.60.

Before the market opened that day, last week's initial jobless claims were reported to have increased more than expected. Experts had forecasted 350,000 claims, but the actual figure rose by 51,000 from the previous week to 419,000 new unemployment benefit applications. This was interpreted as a sign that progress in U.S. employment recovery remains difficult.

The Chicago Federal Reserve Bank announced that the June national activity index slowed to 0.09 from 0.26 in the previous month, signaling a deceleration in economic recovery.

Tech stocks remained strong that day as well. Amazon and Facebook rose 1.4%, and Salesforce.com increased by 2.5%. Microsoft gained 1.6% following Citigroup's upward revision of its target price.

Apple also rose 1% after a report suggested strong demand ahead of its earnings announcement next week.

Bank stocks fell about 1% amid little change in Treasury yields.

Corporate earnings continued to show strength.

Twitter, which reported earnings after the market closed, recorded its strongest revenue growth since 2014 and surged 5% in after-hours trading.

Semiconductor company Intel exceeded expectations for its second-quarter earnings due to increased PC sales but showed weakness in after-hours trading amid less optimistic future outlooks.