© Reuters.
By Yasin Ebrahim
Investing.com – The Dow reduced losses to close on Thursday, led by growth sectors as investors bought the fall from Microsoft after a performance warning and rejected signals that the Reserve Federal did not plan to pause interest rate hikes later this year. .
He gained 1.3%, 433 points, jumped 2.7% and added 1.8%.
Microsoft (NASDAQ 🙂 reduced its losses while cutting its fourth-quarter earnings and earnings outlook as a strong dollar is expected to weigh on foreign revenue. Its shares closed almost 1% higher.
The tech giant now expects gains in the $ 2.24 to $ 2.32 per share range, below a previous forecast of $ 2.28 to $ 2.35 per share. Revenue for the quarter fell to $ 51,940 million from $ 52,740 million, down from a previous range of $ 52.4 billion to $ 53.2 billion.
Other technology stocks bounced back from an initial fall, led by Meta Platforms (NASDAQ 🙂 when investors bought the crash following Wednesday’s announcement from social media company that Sheryl Sandberg would step down as director of operations later this year.
Chip shares were supported by earnings of NVIDIA (NASDAQ 🙂 and Advanced Micro Devices (NASDAQ 🙂 before the investor’s day on June 9th.
The technology was also supported by a respite in Treasury yields, although Federal Reserve Vice President Lael Brainard downplayed expectations that the Fed could stop interest rate hikes in September.
“Right now, it’s very hard to see the case for a break,” in September, Brainard said. “We still have a long way to go to reduce inflation to our 2% target.”
The observations came after data showing fewer private earnings than expected for May.
grew by 128,000 in May, down from 202,000 in April, according to a report released Thursday by ADP and Moody’s Analytics. This was well below the economists’ forecast of 300,000.
The private payroll report, which has sometimes served as a precursor to the May non-farm payroll, which was expected to be released on Friday, is not a reliable indicator.
“So at first glance, the report appears to support our below-consensus forecast for tomorrow’s official number, but ADP is not a reliable indicator of official payroll figures,” Pantheon Macroeconomics said.
Economists predict that the U.S. economy created about 325,000 jobs in May.
Energy stocks were the only sector to end the day in the red, although oil prices rose more than 1% after OPEC and its allies agreed to increase production in July and August.
Valero Energy (NYSE 🙂 and Diamondback Energy (NASDAQ 🙂 were among the biggest profits in the energy sector.
In other news, GameStop (NYSE 🙂 rose 10% after reporting a larger-than-expected increase that “was almost entirely driven by higher general and administrative expenses, as management went continue to aggressively hire professionals in blockchain games, e-commerce and technology and operations, ”Wedbush said in a statement.