Many companies are taking off early after coming out with surprisingly positive estimates for the fourth quarter. At the same time, Alibaba is declining sharply.
Wall Street is seeing a rally in early trade after the number of first-time applicants for unemployment benefits fell to its lowest level following the outbreak of the pandemic last week.
268,000 Americans applied for unemployment benefits last week, about 8,000 more than economists had previously expected, according to CNBC.
This is the evolution on Wall Street:
- The S&P 500 rose 0.30 percent
- The Nasdaq is up 0.33 percent
- The Dow Jones index fell 0.03 percent
Among tech companies, computer chip company Nvidia is pulling out after the company reported strong quarterly numbers Wednesday night. The stock rose 10.08 percent in early trading.
Nvidia’s rise comes after the company estimated revenue would end at $7.4 billion in the fourth quarter, well above analysts’ expectations of $6.86 billion, it said. Bloomberg.
At the same time, the company was able to deliver 55 percent growth for the division that works with processors for larger data centers. On the other hand, the sawmill for the auto industry has been disappointing, and it’s tied to the show’s challenges that characterize the world.
Ali Baba is going down hard
On the other side is Chinese e-commerce giant Alibaba, which is down 9.52 percent since the start.
The drop for the Chinese company comes after the company provided quarterly figures earlier on Thursday. Alibaba noted a sharp drop in profits after the company cut the value of investments.
Otherwise, supermarket chains Macy’s and Kohl’s would rise 12 and 10 percent, respectively, after companies provided numbers. The two companies have raised their expectations for now, which could indicate that consumers’ desire to buy is there before Christmas shopping, according to Bloomberg.
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