The stock markets in the United States fluctuated today and eventually ended the trading slightly higher. The rebound was driven by the positive momentum of the shares of online retailers, Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY).
Yesterday, concerns regarding the potential financial crisis in Portugal resulted in a huge decline of the stock markets. Investors resumed the selloff of their stockholdings in the companies listed at the S&P 500 due to worries about the allegations the Espirito Santo International, the main holding company of Banco Espirito Santo SA (ELI:BES) covered up as much as €1.3 billion hole in its accounts.
Investors were concerned about the strength of Banco Espirito Santo (ELI:BES) and its impact to Portugal as a whole.
Today, Chad Morganlander, a money manager at Nicolaus & Co told Bloomberg, “People are going to keep one eye on earnings and one eye on peripheral debt.” He added, “Debt concerns may trump earnings in the short-term, but as long as we have solid numbers for this quarter, markets overall should be fine.”
On the other hand, Nick Skiming of Ashburton Ltd opined that the U.S. stock markets are expected to rebound during the earnings season. He said, “The U.S. is pretty clearly on the road to recovery. Their GDP, unemployment, and manufacturing figures are all fairly decent. From an economic view, it is the better place to put your money, a natural safe-haven.”
- Dow Jones Industrial Average (DJIA)- 16,943.81 (+0.17%)
- S&P 500- 1,967.57 (+0.15%)
- NASDAQ- 4,415.49 (+0.44%)
- Russell 2000- 1,159.94 (-0.17%)
- EURO STOXX 50 Price EUR- 3,157.59 (+0.21%)
- FTSE 100 Index- 6,690.17 (+0.27%)
- Deutsche Borse AG German Stock Index DAX- 9,666.34 (+0.07%)
- Nikkei 225- 15,164.04 (-0.34%)
- Hong Kong Hang Seng Index- 23,233.45 (-0.02%)
- Shanghai Shenzhen CSI 300 Index- 2,148.01(+0.24%)
Stocks in Focus
The stock price of Amazon.com, Inc. (NASDAQ:AMZN) jumped more than 5% to $346.20 per share after the company submitted a request to the Federal Aviation Administration (FAA) to test drones outside its research laboratory. The e-commerce giant aims to deliver packages less than five pounds using unmanned drones or “octocopters” across the United States.
The shares of eBay Inc (NASDAQ:EBAY) rose more than 2% to $51.50 per share driven by data from Channel advisor that the sales of the online retailer increased 12% in June.
Lorillard Inc. (NYSE:LO) climbed more than 4% to $66.01 per share after the company confirmed that it is in advance negotiations with Reynolds American, Inc. (NYSE:RAI). British American Tobacco PLC (ADR) (NYSEMKT:BTI) (LON:BATS), which owns 42% stake in Reynolds supports the transaction.
The shares of Reynolds Americans, Inc. (NYSE:RAI) declined nearly1% to $61.75 per share while British American Tobacco PLC (ADR) (NYSEMKT:BTI) (LON:BATS) gained more than 1% to GBX 3,564.70 today.