Stocks on Wall Street were broadly stronger as healthy consumer spending data and healthy results from the likes of PepsiCo and United Airlines propelled the major indices higher. Netflix will report after the bell.
US tech companies, including Nvidia, gained after Taiwan Semiconductor Manufacturing Co posted a record profit and said it will accelerate construction of plants in the world’s biggest economy to meet the swelling demand for smartphone and artificial intelligence computing chips.
Meanwhile, Meta Platforms dipped after the social media giant settled a data privacy claim taken by shareholders.
And space company Rocket Lab reached new highs, climbing for a second day after a Bank of America analyst raised its price target on the favourite among Sharesies investors.
Nice surprise
Stocks on Wall Street were stronger after US retail sales grew more than expected in June and jobless claims fell, alleviating some fears about the waning strength of the world’s biggest economy.
“The data are nominal in terms, so includes the impact of higher inflation, but the market still saw the data as conveying a picture of robust spending, despite policy uncertainty and high mortgage rates,” Bank of New Zealand senior markets strategist Jason Wong said in a note, referring to the retail sales figures.
The kiwi dollar traded at 59.26 US cents at 7am in Auckland from 59.28 cents yesterday.
The Nasdaq was up 0.8% in late trading as tech stocks rallied after TSMC reported a record quarterly profit and said it would speed up construction of its second and third plants in Arizona, US, by several quarters to meet the growing demand from American customers. Chipmaker Nvidia gained 1.1%.
Meanwhile, the S&P 500 advanced 0.6% with PepsiCo and United Airlines both beating earnings expectations, with investors turning their minds to the latest reporting season. Streaming giant Netflix is poised to report after trading closes.
Space is the place
Space company Rocket Lab – a favourite among local Sharesies investors – jumped 8.2% to US$51.58 in late trading, extending its gains after Bank of America Securities analyst Ron Epstein this week raised his target price on the stock to US$50 from US$30, and retained a ‘buy’ rating.
Meanwhile, Meta dipped 0.3% in late trading after the social media firm settled a data privacy suit brought by shareholders about the company’s response to the Cambridge Analytica scandal, claiming the company then called Facebook didn't ensure it protected users' data..
Antipodean markets are set to follow Wall Street higher, with Australian futures pointing to a 0.5% gain for the S&P/ASX 200 index when it opens.
No local data is scheduled for today.