Technology stocks overshadowed the negative performance of Boeing and moved Dow Jones on the green | Finance and Markets

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The main Wall Street indexes ended today’s trading session on growth thanks to the strong appreciation of technology giants like Apple and Facebook, which succeeded to offset the sharp decline in Boeing’s stock price.

The blue-chip index Dow Jones Industrial Average overcame the negative trend from the last week and rose by more than 200 points to reach 25,650.88 points. The broader benchmark S&P 500 rose by 1.47% to 2,783.30 points with technology sector advancing by 2.17%. The index Nasdaq Composite rose by 2.02% to 7,558.06 points.

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Last week, the main Wall Street indexes recorded their worst weekly performance in 2019 amid growing fears of a possible slowdown in the global economy.

On Sunday, Federal Reserve Chairman Jerome Powell told that he believes the US economy is still strong, although he admitted that the weakness of the global economy may affect the United States.

“I would say there is no reason this economy can not continue to expand”, said Jerome Powell.

Market participants on Monday got a dose of good news with better-than-expected January retail sales results, which marked a turnaround from December’s sharply underwhelming reading. The headline reading on retail sales rose 0.2% in January, following a downwardly revised 1.6% decline in December. The revised December results were even weaker than the 1.2% drop previously reported, which itself had been the worst reading in 9 years.

Corporate stocks performance

Boeing’s stock price fell by 5.3% after the crash or Ethiopian Airlines 737 MAX 8, performing flight ET302. This is the second crash in the last less than six months with this model. Following the accident, three countries banned the use of Boeing 737 MAX planes. Boeing closed at 422.54 USD per share on Friday. However, the stock closed at 400.01 USD on Monday and fell as low as 365.55 USD.

At the same time, Apple shares rose by 3.47%, offsetting Boeing’s losses after Bank of America Merrill Lynch raised its ratings for the smartphone manufacturer from “neutral” to “buy”. The bank also raised its 12-month target price to 210 USD per share from the current 180 USD.

Facebook added 1.46% to its value after Nomura Instinet raised its rating for the company from “neutral” to “buy”. In a letter to customers, analyst Mark Kelley notes the transition made by consumers to Facebook Stories and the increased attention to social messaging. Kelly also raised his target price for the company’s shares from 172 USD to 215 USD.

Shares of Stitch Fix surged more than 20% in extended trading Monday following the release of the personal styling company’s better-than-expected second-quarter earnings and strong full-year outlook.

The stocks of Casey’s General Stores fell nearly 2% after market close Monday following mixed third-quarter earnings.

The stocks of Nvidia rose by more than 6.97% after the company announced the acquisition of Mellanox Technologies for 6.8 billion USD. Mellanox shares also appreciated by 7.78%.

The stocks of other technology companies were also on the rise with Amazon appreciating by 3%, Netflix adding 2.65% and Alphabet Inc expanding by 2.55%.

Corporate earnings reports

The technology company Coupa Software reported earnings per share of 5 cents, compared to the 0 cents forecast by analysts. Revenue was 74.9 million USD, topping estimates of 67.7 million USD.

The convenience store Casey’s General Stores company earned 2.05 billion USD in revenue, missing analysts estimates of 2.13 billion USD. Earnings per share were 1.13 USD, compared to the 95 cents analysts forecast.

The personal styling company Stitch Fix reported better-than-expected second-quarter earnings and strong full-year outlook. Stitch Fix posted earnings per share of 12 cents on revenues of 370 million USD. Wall Street expected earnings of 5 cents on revenues of 365 million USD. During the quarter the Stitch Fix’s active clients increased 18 percent to 2.96 million and beat the estimated 2.95 million.