The main indexes of the New York Stock Exchange ended today’s trading session into the green, backed by the strong performance of Disney and energy companies.
The blue-chip index Dow Jones Industrial Average, which tracks stocks of the 30 largest US public companies, advanced by 59.44 points, or 0.23%, to 26,064.27 points. The broader S&P 500 added 0.22% to 2,886.08 points, while the technology Nasdaq Composite rose by 0.40% to 7,823.86 points.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.57% to 15.82.
Crude oil prices added more than 4% after earlier today two oil tankers in the Strait of Hormuz were attacked. This supported the stocks of energy companies, which were among the best performing during the session.
The US blamed Iran for the incident. According to US Secretary of State Mike Pompeo, Iran stands behind the attacks.
Still, lingering trade tensions kept investors on edge. Expectations that trade officials from the US and China will clinch a deal on the sidelines of a G-20 meeting in Osaka on June 28-29 have been fading in recent days.
President Donald Trump, who has said he still has plans to meet with Chinese President Xi Jinping later this month, has repeatedly threatened to escalate an already months-long trade war by putting tariffs on almost all of the remaining Chinese imports that are not already impacted by US charges. On the other hand, President Donald Trump’s economic adviser Larry Kudlow said the trade war between the US and China would have far more negative consequences for Beijing than for Washington.
On the bond markets, yields on 10-year and 30-year US Government Securities fell to 2.093% and 2.60%, respectively.
Corporate stocks performance
The entertainment company Disney added more than 4% to its market value after a Morgan Stanley analyst raised the company’s target from 135 USD to 160 USD per share. He refers to Disney’s new streaming service.
The shares of Energy Select Sector SPDR Fund (XLE) rose by more than 1%, with Hess and Phillips 66 being the best-performing company with a rise by more than 2%.
Airlines had a strong day, thanks to an upgrade for American Airlines Group, which was up by 6.4%. Delta Air Lines, Southwest Airlines and United Continental Holdings added 1.95%, 3.09%, and 3.96%, respectively. The NYSE Arca Airline Index jumped 2.4%, putting it on track for the highest close since February 26.
Fiverr, an online marketplace for freelancers, made its debut on the New York Stocks Exchange under the ticket “FVRR” after pricing its IPO at 21 USD per share. The company raised more than 110 million USD. The stock finished its first trading day 90% higher, at 39.90 USD per share.
Cybersecurity company CrowdStrike, which made an IPO yesterday and climbed more than 70% in its first session, continued its rally and closed up 16.5% today.
Corporate earnings reports
The US chipmaker Broadcom reported revenue growth of 10% YoY in the quarter to 5.52 billion USD, compared to 5.68 billion USD expected by analysts. The company earnings, however, beat market expectations to 5.21 USD per share. Broadcom’s biggest business segment, semiconductor solutions, produced 4.09 billion USD in revenue, below the 4.18 billion USD FactSet consensus estimate. The infrastructure software segment, including contributions from the CA business Broadcom acquired in 2018, had revenue of 1.41 billion USD. In recent weeks other semiconductor companies have lowered their forecasts following the US government’s efforts to limit Huawei’s ability to purchase products from US companies. Piper Jaffray analysts Harsh Kumar and Matthew Farrell estimated that Huawei represents 3% of Broadcom’s revenue at about 150 million USD per quarter in a note distributed to clients on May 24. The analysts lowered their full-year earnings and revenue estimates for Broadcom in light of the blacklisting, which was announced in mid-May. Broadcom lowered its guidance for the full 2019 fiscal year, saying it now expects to achieve 22.50 billion USD in revenue in that period. In the previous quarter Broadcom had guided 24.50 billion USD in full-year revenue.