Dow closes higher with the rebound of technology; Job data reviewed by Investing.com

From Yassin Ebrahim

Investing.com – Dow cut losses to close higher on Thursday, driven by growth sectors, as investors bought a decline at Microsoft after a performance warning and dismissed signs that the Federal Reserve is not considering a pause to raise interest rates. later this year.

They rose by 1.3%, 433 points, jumped by 2.7% and added 1.8%.

Microsoft (NASDAQ 🙂 cut its losses, although it cut its profit and revenue forecasts for the fourth quarter as the strong dollar is expected to weigh on foreign revenues. Its shares closed nearly 1% higher.

The technology giant now expects earnings in the range of $ 2.24 and $ 2.32 per share, which is lower than the previous forecast of $ 2.28 to $ 2.35 per share. Revenue for the quarter fell to between $ 51.94 billion and $ 52.74 billion, from a previous range of $ 52.40 billion to $ 53.20 billion.

Other technology stocks recovered from a day-to-date collapse led by Meta Platforms (NASDAQ 🙂 as investors bought the decline, which followed Wednesday’s announcement from social media company that Cheryl Sandberg is stepping down as chief operating officer. this year.

The shares of the chips were supported by the profits of NVIDIA (NASDAQ 🙂 and Advanced Micro Devices (NASDAQ 🙂 before the Investors’ Day on June 9.

The technology was also backed by rising government bond yields, even as Federal Reserve Vice President Lael Brainard lowered expectations that the Fed could halt rising interest rates in September.

“It’s very difficult to see a pause in September,” Brainard said. “We still have a long way to go to reduce inflation to our 2% target.

The remarks came after data showing less than expected private job gains in May.

rose 128,000 in May, down from 202,000 in April, according to a report released Thursday by ADP and Moody’s Analytics. This was well below the economists’ forecast of 300,000.

The personal wage report, which sometimes served as a precursor to the May payrolls expected to be published on Friday, is not a reliable indicator.

“At first glance, therefore, the report seems to support our forecast by consensus on tomorrow’s official issue, but ADP is not a reliable indicator of official salary numbers,” said Pantheon Macroeconomics.

Economists estimate that the US economy added about 325,000 jobs in May.

Energy stocks were the only sector to end the day in the red, although oil prices rose by more than 1% after OPEC and its allies agreed to increase production in July and August.

Valero Energy (NYSE 🙂 and Diamondback Energy (NASDAQ 🙂 were among the biggest gains in the energy sector.

In other news, GameStop (NYSE 🙂 rose 10% after reporting wider than expected, which is “almost entirely driven by higher SG&A costs as management continues to aggressively hire blockchain gaming professionals. trade and technology and operations, “Wedbush said in a note.