The Nasdaq and S&P 500 closed higher on Wednesday, while the Dow continued its decline for the seventh consecutive day. The Nasdaq closed at a record high, led by a rally in large-cap tech stocks after Walt Disney raised its bid for Twenty-First Century Fox to $71.3 billion surpassing Comcast Corporation’s bid of $65 billion. However, growing fears of a U.S.-China trade war continued to take its toll on the Dow and S&P 500.
The Dow Jones Industrial Average (DJI) declined 0.2%, to close at 24,657.80. The S&P 500 rose 0.2% to close at 2,767.32. The Nasdaq Composite Index closed at a record 7,781.51, rising 0.7%. A total of 6.63 billion shares were traded on Wednesday, lower than the last 20-session average of 6.98 billion shares. Advancers outnumbered advancers on the NYSE by a 1.53-to-1 ratio. On Nasdaq, a 1.80-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow slipped 42.41 points, registering its seventh straight daily loss, its longest losing streak since Mar 2017. The S&P 500 gained 4.73 points although trade war fears continued to take its toll on stocks. Seven of the 11 major S&P 500 sectors ended in positive territory. The Communication Service Select Sector SPDR (XLC) gained 1.2 %, while the Real Estate Select Sector SPDR (XLRE) gained 1.1%.
The tech heavy Nasdaq gained 55.93 points, closing at a record high led by gains in tech and biotechnology stocks. Shares of Facebook (FB - Free Report) and Netflix (NFLX - Free Report) jumped 2.3% and 2.9%. Both Facebook and Netflix closed at record highs. Shares of Amazon increased 0.9%. Amazon has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Walt Disney Raises Bid for Fox
Walt Disney (DIS - Free Report) , which had earlier placed a bid of $52.4 billion to acquire Twenty-First Century Fox’s (FOXA - Free Report) film and television assets. On Jun 12, a federal judge cleared the way, allowing AT&T Inc. (T - Free Report) to acquire Time Warner Inc. for $85 billion.
Immediately after the judgment, Comcast (CMCSA - Free Report) made a counter bid of $65 billion to acquire Fox’s assets. On Wednesday, Disney raised its bid to $71.3 billion, surpassing Comcast’s offer. The new bid sent shares of Fox higher by 7.3%.
Tech Stocks Rally
Trade war fears had been taking its toll on tech companies with significant exposure to China. On Wednesday large cap tech companies bounced back with shares of Facebook, Apple (AAPL - Free Report) and Alphabet, Inc. (GOOGL - Free Report) all rallied. Shares of Apple and Google jumped 0.4% and 0.5%, respectively.
Moreover, as a result of Disney’s new bid to acquire Fox, shares of streaming giants like Netflix and Amazon too surged.
EU Automakers Appeal for No Tariffs
Leading German automakers, Diamler AG, Volkswagen Aktiengesellschaft (VLKAY - Free Report) and BMW, in an effort to find a peaceful solution to ongoing trade spat, showed their support towards abolition of all kinds of tariffs on cars imported between the United States and the European Union. The U.S Ambassador to Germany Richard Grenell now has plans of relaying the support of the German automakers to the Trump administration.
Stocks That Made Headlines
Hess Discovers Oil in Longtail-1 Exploration Well
Hess Corporation (HES - Free Report) reiterated the exploration potential of the Stabroek Block, following the announcement of the eighth oil discovery at the Longtail-1 well, offshore Guyana. (Read More)
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