IInvestors returned to a buying mood after two days of intense selling, fueling a large rally that saw all sectors close in the green.
Wall Street’s mood improved Thursday after Soumya Swaminathan, chief scientist for the World Health Organization (WHO), said on Wednesday that vaccines would likely provide some protection against the omicron variant of COVID-19 .
Also in the spotlight was this morning’s weekly jobless claims report, which showed initial jobless claims had risen to 222,000 by Thanksgiving week, surpassing the 52-week low of 194,000 reached the week before. , but lower than the 240,000 demands expected by economists.
Notably, the number of people already receiving unemployment benefits fell below 2 million for the first time since the week ended March 14, 2020.
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Finance (+ 3.0%) and industrial (+ 3.0%) were two of the biggest winners. The Dow Jones Industrial Average led the other major indexes, up 1.8% to 34,639 on the strength of Boeing (BA, + 7.5%). The aerospace giant jumped on the news that Chinese regulators have allowed the Boeing 737 Max to resume flights – the last major market to do so.
The S&P 500 Index (+ 1.4% to 4,577) and the Nasdaq composite (+ 0.8% to 15,381) also ended sharply higher.
Other stock market news today:
- Small cap Russel 2000 jumped 2.7% to 2,206.
- U.S. crude futures contracts rose 1.4% to $ 66.50 a barrel.
- Gold Futures fell 1.2% to close at $ 1,762.70 an ounce.
- Bitcoin rose 0.6% to $ 57,022.10. (Bitcoin trades 24 hours a day; prices shown here are at 4 p.m.)
- Kroger (KR, + 11.0%) was a big winner after earnings – good news for the Berkshire Hathaway portfolio. The grocery chain reported higher-than-expected adjusted earnings of 78 cents per share in the third quarter, while revenue of $ 31.9 billion also beat analysts’ consensus estimate. KR also increased its earnings per share forecast for the full year to a range of $ 3.40 to $ 3.50 from its previous forecast to earnings of $ 3.25 to $ 3.35 per share. Still, CFRA Research analyst Arun Sundaram kept a sell note on Kroger. “KR has performed better than expected since our downgrade earlier this year, in part due to robust home consumption trends and rising food prices, but also, admittedly, strong execution. in a volatile operating environment, ”he wrote in a note. “That said, we continue to question the sustainability of recent results, particularly if revenue loses momentum due to lower inflation or lower volumes. competetion
- Snowflake (SNOW) – another Warren Buffett stock – also saw a rise after earnings, reaching 15.9%. In the third quarter, the cloud-based data platform posted adjusted earnings of 4 cents per share on revenue of $ 334.4 million, more than analysts expected. The company’s product revenue, which jumped 110.4% year-over-year to $ 312.5 million, was a big contributor to total revenue. “We are seeing a long trajectory of rapid revenue growth over the next several years, fueled by an IT transition to a cloud-centric model, digital transformation, and higher spending on machine learning (ML) and data science. Says Ittai Kidron, analyst at Oppenheimer. which has an Outperform (Buy) rating on the stock.
“Prepare for accelerated disruption”
That’s what RBC Capital Markets research directors say in their latest research report, “Preparing for Hyperdrive,” which explores trends in investing.
Among the five themes they see unfolding?
There is “The Quest for Immortality”, in which many factors, from biopharmaceutical innovations to space exploration, extend human life expectancy.
There is also “Artificial Intelligence Activated”, in which artificial intelligence is becoming an increasingly critical part of most businesses – which brings opportunities, but also risks.
The cybersecurity industry is one that appears to play a role across multiple themes, which will become increasingly critical for governments and businesses as the world’s digital transformation continues.
But many who want to participate balk at the high nominal share prices in the industry – not a hindrance for everyone, but certainly for newbie investors and others with little capital to work. Here, we’ve analyzed an accessible trio of cybersecurity stocks – each of which has bright prospects and each of which is trading at less than a hundred dollars a share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.