Newport Legacy wealth management Seoul Korea Agree to this article.
Dow newbie Walgreens Boots Alliance shares slump after Amazon.com buy online pharmacy PillPack
U.S. stock-market indexes closed higher on Thursday, with broad-based gains led by a rally in financials and technology sectors.
The S&P 500 financials sector rose nearly 1% and snapped a 13-day slump, its longest losing streak ever.
What did the main benchmarks do?
The Dow Jones Industrial Average DJIA, +0.41% rose 98.46 points to finish at 24,216.05, a gain of 0.4%. The blue-chip average remained below its 200-day moving average as it came off its lowest close since early May.
Equities have been volatile, with major indexes seeing big swings in both directions, often in the same session, and usually in response to changing headlines about trade policy. However, they remain in the fairly tight trading range that indexes have been mired in for months.
Thus far this week, the Dow is off 1.4%, the S&P has lost 1.6%, and the Nasdaq has lost 2.5%. For the second quarter, the Dow is up 0.5%, the S&P has gained 2.9%, and the Nasdaq is up 6.2%.
For 2018, the Dow has lost 2%, the S&P has gained 1.6%, and the Nasdaq has surged 8.7% on the back of steep gains in large-capitalization technology and internet companies.
What’s driving markets?
Recent trading has largely been dictated by trade policy and shifting views over whether tensions between the U.S. and its major trading partners are escalating, and how severe an impact protectionist policies could have on the global economy.
On Wednesday, the Trump’s administration backed away from invoking executive authority to impose a crackdown on Chinese investment in the U.S., but strategists are still sounding wary about what could be ahead. Washington has moved or threatened to impose tariffs on hundreds of billions of dollars worth of imports from China, while Beijing has vowed to retaliate. The U.S. is also mired in trade spats with the European Union, Mexico and Canada.
What did economic data show?
The growth in the U.S. economy in the first quarter was trimmed to 2% from 2.2%.
While this largely reflects lower spending on health care, and a somewhat smaller buildup in inventories, it could be another reason for investors to feel cautious. Market participants have grown increasingly concerned that the economy could be in the late stage of the economic cycle, and this year has seen a sharp drop in the number of fund managers who expect the economy to be stronger in a year’s time.
Weekly jobless claims rose by 9,000 in the latest week, a bigger increase than had been expected, although they remain near their lowest level in decades.
Check out: MarketWatch’s Economic Calendar
What are strategists saying?
“After 13 straight days of declines, financials finally bounced back. It’s good to see the leadership from this sector,” said Lindsey Bell, investment strategist at CFRA.
“Given the current environment when there lots of uncertainty surrounding global trade, investors continue to go to growth, such as technology shares and domestic stocks such as small-caps. Despite recent rotation, there has not been a real change in this sentiment,” Bell said.
“No one wants to see a downward revision [in GDP]—especially after tax reform should have provided a jolt to the economy, not the opposite. But keep in mind, these are first-quarter estimates, and the labor market has been on fire the past few months, so many suspect this will be short lived,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial.
“For investors, today’s numbers punctuate a wild month of market events mostly spurred by trade drama. Volatility has returned and is expected to stick around for a while as the prospect of more aggressive Fed action may throw the markets a curveball,” he said.
Which stocks are in focus?
Shares in BJ’s Wholesale Club Holdings Inc. BJ, +29.41% surged 29% in their trading debut. The operator of 215 warehouse clubs in 16 states, largely along the eastern seaboard, is returning to the public markets after a seven-year spell as a private company.
Amazon.com Inc. AMZN, +0.06% agreed to buy PillPack, an online pharmacy that presorts medications into different doses and handles both refills and renewals. Terms of the agreement weren’t disclosed. Shares of Amazon rose 2.5%.
Among notable competitors, Dow newcomerWalgreens Boots Alliance Inc.WBA, +0.50% sank 10% after the deal was announced, despite it reporting third-quarter results that beat expectations and lifting the lower end of its guidance range. CVC Health Corporation CVS, +0.21% fell 6.1%.
Shares in spice maker McCormick & Co. MKC, +8.40% jumped 8.4% after the company reported second-quarter results that topped analyst forecasts.
Arsanis Inc. ASNS, -78.01% plummeted 78% after it said it was discontinuing a Phase 2 trial of a treatment for pneumonia in high-risk, mechanically ventilated patients after determining that it was unlikely to meet its main goals.
What did other markets do?
—Victor Reklaitis contributed to this report