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Stock Market Today: Dow racks up gains to close higher on tech strength


Stock Market Today: Dow racks up gains to close higher on tech strength By

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AuthorYasin EbrahimStock Markets

Published Nov 20, 2023 00:02
Updated Nov 20, 2023 22:08

© Reuters — The Dow closed higher Monday, ahead of the release of minutes from the Federal Reserve’s September meeting and earnings from Nvidia that will likely set the tone for big tech in a holiday-shortened week.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average rose 203 points, or 0.6%, higher, S&P 500 rose 0.8%, and Nasdaq Composite climbed 1.1%. 

Microsoft closes at record after boosting AI push with Altman hire

Microsoft (NASDAQ:MSFT) rose 2% to close at a record high after it hired Sam Altman to lead a new advanced artificial intelligence research team, just days after he was forced out as CEO of OpenAI. Reuters reported that OpenAI’s staff has threatened to quit the artificial intelligence startup and join former Altman unless the board resigns.

“Altman is now leading the company key AI efforts which we expect many key scientists and developers to leave OpenAI and head directly to Microsoft,” Wedbush said in a note.

Nvidia hits record ahead of earnings

Chipmaker Nvidia (NASDAQ:NVDA) rose 2% to close at an all-time high ahead of its quarterly results on Tuesday that have recently served as a barometer of AI demand. 

The chipmaker’s guidance will be closely watched at a time when many are weighing on impact on demand from U.S. chip restrictions on shipments to China and rising competitions from hyperscale customers including Microsoft, which recently launched its own AI chip.  

Boeing flies on Deutsche Bank upgrade; Citigroup makes slew of management changes

Boeing Co (NYSE:BA) rose more than 4% after Deutsche Bank upgraded its rating on the aircraft maker to buy rating from hold as a step up in aircraft deliveries is expected to boost cash flow.

“Aircraft deliveries are accelerating, and we think there’s a credible case to be made that this improved performance can be sustained,” Deutsche Bank said.

Citigroup (NYSE:C) closed just below the flatline after CEO Jane Fraser announced a series of management changes, according to a memo to staff, in an effort to streamline the business.

Bristol Myers Squibb slip as cancer treatment delayed by FDA 

Bristol-Myers Squibb Company (NYSE:BMY) fell 4% to keep a lid on gains in the broader health care sector lower as the drugmaker and partner 2seventy bio’s blood cancer therapy faces a delay on gaining approval for expanded use of their blood cancer therapy. 

The Federal Drug Administration plans to hold an advisory panel to review the application for expanded approval rather than decide on an approval, which was initially scheduled for Dec. 16.

Energy stocks rise as oil gains on hopes of further output cuts

Energy stocks were pushed higher by rising oil prices on bets that major producers could discuss deeper output cuts when they meet later this month. 

By 14:30 ET, the U.S. crude futures settled 2.3% higher at $77.60 a barrel, while the Brent contract climbed 2.1% to $82.32 a barrel. 

Crude gained 4% on Friday and has continued to rise Monday after Reuters reported, citing sources, that the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, is set to consider whether to make additional oil supply cuts to shore up prices when it meets on Nov. 26.

OPEC+ has already pledged total oil output cuts of 5.16 million barrels per day, or about 5% of daily global demand, in a series of steps that started in late 2022.

Fed minutes loom large

With the focus very much on what the policymakers at the U.S. central bank are going to do next with interest rates, the minutes from its Oct. 31-Nov. 1 meeting on Tuesday, a day earlier than usual, due to this week’s Thanksgiving holiday, will be in the spotlight.

Details in the minutes, however, are likely to stale on arrival following the recent flurry of Fed speak.

“With respect to the FOMC minutes, they are likely somewhat stale at this point given the volume of Fedspeak since the meeting, as well as the recent easing of financial conditions over the past couple of weeks,” Deutsche Bank said in a note.

Traders have nearly fully priced in the likelihood that the Fed will keep interest rates unchanged in December, with odds increasing that the next move will be a cut, likely by the start of summer next year.

Zoom rises in afterhours following beat and raise in Q3

Zoom Video Communications Inc (NASDAQ:ZM) rose more than 1% in afterhours trading as the video platform company lifted its annual guidance following Q3 results that beat on both the top and bottom lines.

The company said it now expects full-year adjusted EPS in a range of $4.93 to $4.95 and revenue of $4.506B and $4.511B from a prior estimate for adjusted EPS of $4.63 to $4.67 on revenue of between $4.485B and $4.495B.

(Peter Nurse and Oliver Gray contributed to this item.)

Stock Market Today: Dow racks up gains to close higher on tech strength

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