Nasdaq Leads Major Indices, US Stocks Continue Rebound
Nasdaq led major indices Tuesday, up by 1.7 percent or 78.36 points to 4564.29 due to a rise in tech shares, several reports out Tuesday said.
According to Nasdaq.com, the Nasdaq Composite Index has increased by 1.6 percent in October. Tech stocks advanced following rumors of a possible Pay partnership between Alibaba and Apple, pushing the tech-heavy benchmark higher. Alibaba (BABA) shares climbed 1.9 percent to $99.68 that day, while Apple (AAPL) rose to $106.74, USA Today revealed.
In a separate report, equity research firm Zacks revealed Facebook Inc. (FB) has beaten its earnings estimates for the tech giant, after the social media firm reported an EPS for the past quarter of 33 cents per share. Facebook also beat expectations on revenue by $80 billion, posting $3.20 billion total revenue against Zack’s $3.12 billion estimate.
The Dow Jones Industrial Average was also a big winner Tuesday, edging higher by 187.81 or 1.1 percent to 17005.75.
The S&P 500 also rose by 1.2 percent to 1985.05 the same day, getting out of the red by 0.6 percent in October. Small-cap benchmark The Russell 2000 meanwhile jumped 31.98 points, representing a 2.9 percent to 1149.45. It failed to get into the black with 0.2 percent losses.
A massive broad market sell-off dragged American stocks down in mid-October as the global stock market plunged on fears of a global economic slowdown, tensions in the Middle East, and Ebola, The Guardian revealed. Nasdaq.com reported that the Dow Jones dipped by 5.3 percent, while the S&P 500 dropped by 5.6 percent for the month at that time. Nasdaq also went down during that period by 6.2 percent.
Stocks have rallied since, as companies report better-than-expected earnings and the release of positive economic data.
“We thought the selloff was unfounded, and now people are buying into the notion that it wasn't based on any change in the fundamentals,” David Lefkowitz of UBS Wealth Management was quoted as saying by Nasdaq.com. “It's very good for the stock market.”
Should U.S. stocks stall again, investors could consider buying into stocks to hedge their portfolio against losses on other national markets. Investors could buy tech stocks such as Audioboom (LSE: BOOM), for instance, on the London Stock Exchange as detailed in a Benzinga report on British blue chips.
Globally recognized as the “YouTube of Audio,” Audioboom has more than doubled its share prices from 5 GBX to 15 GBX following a reverse merger with One Delta. Arden Partners, an equity research firm and stockbroker in London, gives the stock a “Buy” rating and forecasts the stock to reach 14 GBX by the end of the year.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.