Dow Jones Carries Winning Rally to Fourth Day
Dow Jones Industrial Average (DJIA) rise 0.8%, translating to 236 points at the stock market’s open on Wednesday. The Dow finally secures its 27,000-point mark, signifying index’s fourth day of the rally.
The DJIA is 3% above their 50-day line and 2% advance from the 200-day average. Blue chips and small caps fuel the upward trajectory.
Among top performers is Novavax, an American vaccine developer company. The biotech firm revealed a successful early-phase trial of the COVID-19 vaccine, spiking stocks by 16%. The company began the year below five and now reached 157.17 points.
Similarly, the Dow-listed oil and energy companies Exxon Mobil and Chevron rose 1% each. The unprecedented surge is the result of the explosion in Beirut, resulting in 1.7% higher price in crude futures.
In its overall performance, the Dow Jones is still down by 6% for the year and 10% away from its record-high performance in February.
This is driven by the trudging flow of coronavirus stimulus relief, where lawmakers are deadlocked over issues notably on the extension of unemployment benefits. U.S. jobs reports reveal a 1.2 million new initial jobless claim for the week ending August 1.
However, this is better than analyst projections, and the lowest additions since the lockdowns began. But July hiring still disappoints, with small business rehiring rate low.
So far in the year, Dow Jones performed behind S&P 500, signifying a looming leadership rotation in the stock trading indices.
On Wednesday, the Dow is the biggest performer among Wall Street’s significant three recordings 373.05 surge. Although in overall performance, declining stocks gain ground against those in an upward trend, with 1,462 to 1,413 in NYSE.
After Earnings Report Release, Disney Pulls Dow Jones Up
The third-quarter report for the fiscal year is out. Disney reports a surprising Q3 profit after breaching 100 million subscriptions in its various streaming platforms.
The House of Mouse erupted 9% in stock gain after it posed 8-cent increase from an expected 43-cent loss.
However, it recorded an $11.78 billion revenue from an expected $12.37billion. The company took $3.5 billion from its operating income, resulting from the closing of theme parks in the U.S. and overseas locations and the government’s issue of the no-sail policy until mid-September.
Good news ahead follows as Mulan live-action will stream on Disney+ for $30. The announcement of the Star-branded streaming service Disney acquired from Fox will launch in 2021 is another profit driver investors will look forward to for the coming year.
Indonesia imposes 10% VAT on entertainment providers, including Disney+. With a 270 million population, the biggest country in Southeast Asia’s move will deliver negative repercussions of Disney’s user traffic.
Meanwhile, a golden cross indicating a potential rally formed in the Dow Jones after nearly five months of sluggish performance. The cross came a month after S&P 500 experience the same phenomenon.
Tech firms are the main drivers of the potential surge, where market witness an uptrend rally in the months following lockdowns. The Nasdaq hits a new record of high, gained 0.2%, knocking its fifth-day rally while S&P is up 2.4% for the year.
