The stock markets in the United States fluctuated and eventually ended the trading session higher today except the Dow Jones Industrial Average (DJIA), after the Federal Reserve announced plans continued reducing its monthly bond-buying activity.
The Federal Reserve cut its bond-buying program to $25 billion as it maintains it schedule to end the stimulus in October.
Coho Capital 2Q20 Commentary: Podcasts, The New Talk Radio
Coho Capital commentary for the second quarter ended June 30, 2020. Q2 2020 hedge fund letters, conferences and more Dear Partners, Coho Capital returned 46.6% during the first half of the year compared to a loss of 3.1% in the S&P 500. Many of our holdings, such as Netflix, Amazon, and Spotify, were perceived beneficiaries Read More
Data also showed the economic growth is better than the expectations of economists. The Department of Commerce reported that the U.S. gross domestic product (GDP) increased 4% in the second quarter. Consumers became more confident in spending as the labor market continues to improve.
Brad Friedlander, a managing partner and co-founder of Angel Oak Capital Advisors “You’re seeing some relief from the market that there is really no major surprise from the FOMC statement. The GDP number was important in building confidence.
In an interview with Betty Liu on Bloomberg Television’s “In the Loop,” Alan Greenspan, former chairman of the Federal Reserve said, “The stock market has recovered so sharply for so long. You have to assume somewhere along the line, and we will get significant correction.”
- Dow Jones Industrial Average (DJIA)- 16,880.36 (-0.19%)
- S&P 500- 1,970.07 (+0.01%)
- NASDAQ- 4,462.90 (+0.45%)
- Russell 2000- 1,146.41 (+0.42%)
- EURO STOXX 50 Price EUR- 3,169.23 (-0.67%)
- FTSE 100 Index- 6,773.44 (-0.50%)
- Deutsche Borse AG German Stock Index DAX- 9,593.68 (-0.62%)
- Nikkei 225- 15,646.23 (+0.18%)
- Hong Kong Hang Seng Index- 24,732.21 (+0.37%)
- Shanghai Shenzhen CSI 300 Index- 2,322.01 (-0.40%)
Stocks in Focus
The stock price of Twitter Inc (NYSE:TWTR) climbed nearly 20% to $46.30 per share after the microblogging company reported outstanding revenue and user growth for the second quarter. Twitter’s revenue increased 124% to $312.2 million, and the number of its monthly active users (MAUs) climbed 25% to 271 million.
The shares of Regeneron Pharmaceuticals Inc (NASDAQ:REGN) gained 5.8% to $322.18 per share after the Food and Drug Administration (FDA) approved Eylea, its injection for the treatment of diabetic macular edema.
Genworth Financial Inc (NYSE:GNW) dropped 14% to $13.98 per share after posting lower than expected second-quarter earnings. The company delivered earnings of $0.31 per share compared with the $0.36 per share expected by analysts.