Blue chip stocks, technology stocks weak, Dow rose 1.3percent, Kodak plummeted nearly 30percent

category:Finance
 Blue chip stocks, technology stocks weak, Dow rose 1.3percent, Kodak plummeted nearly 30percent


The Dow Jones industrial average rose 357.96 points, or 1.3%, to 27791.44, driven by cyclical stocks. Boeing is up more than 5%, Caterpillars shares are up more than 5%, and JPMorgan Chase is up 1.2%. The standard & Poors 500 index rose 0.27% to close at 3360.47, with energy and industrial sectors both up more than 2.4%. Mondays gains put the S & P 500 below a record high of less than 1%. On the other hand, the performance of the Nasdaq composite index was relatively weak, falling 0.4% to 10968.36 points. Traders began to reduce their positions in large technology stocks, including Facebook and Facebook, which fell more than 2%, Microsoft fell 1.99%, Amazon fell 0.6%, and Googles parent company alphabet fell 0.1%.

Most banking stocks rose, with JPMorgan Chase up 1.33%, Goldman Sachs up 0.53%, Citigroup up 1.44%, Morgan Stanley up 0.46%, Bank of America up 1.74%, Wells Fargo down 1.44%. Aviation, tourism and other stocks all rose, American Airlines, Delta Airlines rose more than 7%, Royal Caribbean cruise rose more than 10%.

In terms of China capital stocks, Tencent music released good results in the second quarter, with revenue of 6.93 billion yuan, a year-on-year increase of 17.5%, and an expected 6.86 billion yuan, of which online music subscription revenue increased by 64.7% to 1.31 billion yuan; net profit was 939 million yuan, expected to be 908 million yuan, 927 million yuan in the same period last year; but mobile online music monthly live users were 651 million, down 0.9% month on month; mobile social media month The number of live users was 236 million, down 7.8% month on month. Tencent music rose nearly 2% after the better than expected earnings announcement.

Other Chinese stocks were mixed, with Alibaba down 1.61%, Jingdong down 0.92%, baidu up 0.05%, Weibo up 2.88%, pinduoduo down 0.76% and Weilai auto up 5.85%.

Chris Larkin, manager of financial trading and investment products at e-trade, said: we are beginning to enter an unstable week. The S & P 500 index is only one step away from its highest level in history. It is crucial to break through the important psychological barrier earlier, while the trade situation and the US government stimulus plan need to be carefully considered.

Kodak shares closed down 28.13%. According to foreign media reports, after the U.S. Securities and Exchange Commission launched an investigation into the disclosure of the companys $765 million federal loan, relevant agencies announced the suspension of the loan. Kodak once plummeted by 40%. Novel coronavirus pneumonia loan was announced the day before Trump announced the conclusion of a new Kodak pneumonia loan agreement.

Weak performance in technology stocks may signal the start of a rotation

The weak performance of technology stocks and the start of the blue chip rotation showed signs from last week. Matt Stucky, portfolio manager at Northwest mutual wealth management, said: since last Friday, the strong off farm employment data has continued to this day, which has made trading in more value and cyclical stocks more active. Earlier laggard industrial stocks performed better than many technology stocks in August.

This can also be seen from the performance of the stock index. Since the end of July, the Dow Jones Industrial Average has risen 4.8%, more than 3% of the Nasdaq 100 index, and August is expected to be the best month for the Dow components in the past two years.

Some market participants believe that bargain hunting has also intensified the rotation between value stocks and technology stocks. Many technology stocks have been overbought in technical indicators, and the risk / return ratio will rise. Therefore, investors will sell overbought stocks and buy undervalued stocks. A new round of fiscal stimulus plan is expected to be reached this week. On Friday, the negotiations between the White House and the house of Representatives on the latest round of fiscal stimulus bill failed. Then, U.S. President trump signed a series of executive orders, including the extension of unemployment benefits, temporary wage tax deferral, tenant eviction protection and student loan relief. Although House Speaker Pelosi questioned the presidents executive orders as unconstitutional, trump insisted that they would better serve the economic recovery. In an interview with foreign media on Monday, U.S. Treasury Secretary manuchin also said he expected to reach a compromise with the Democratic Party on the new rescue plan this week. Source: Yang Qian, editor in charge of Finance and Economics_ NF4425

Some market participants believe that bargain hunting has also intensified the rotation between value stocks and technology stocks. Many technology stocks have been overbought in technical indicators, and the risk / return ratio will rise. Therefore, investors will sell overbought stocks and buy undervalued stocks.

A new round of fiscal stimulus is expected this week

On Friday, the latest round of negotiations between the White House and the house of Representatives failed. President trump signed a series of executive orders, including extending unemployment benefits, deferring temporary payroll tax, protecting tenants from eviction and reducing student loans. Although House Speaker Pelosi questioned the presidents executive orders as unconstitutional, trump insisted that they would better serve the economic recovery.

In an interview with foreign media on Monday, U.S. Treasury Secretary manuchin also said he expected to reach a compromise with the Democratic Party on the new rescue plan this week.