 By Nicholas Jasinski | Tuesday, September 1
On
a Zoom. Stock indexes drifted
higher today, to close near their best levels of the session. The S&P
500 and Nasdaq
Composite both set record highs, up
0.8% and 1.4%, respectively. Up 0.8% today, the Dow
Jones Industrial Average is about 3% away from its Feb. 12
all-time close.
Recent
global economic data releases have generally supported the thesis of a
continued rebound in activity as coronavirus-related restrictions are eased.
The latest
supporting data point today came in the form of the August U.S.
Manufacturing Purchasing Managers’ Index from the Institute
for Supply Management. The index came in at 56,
up 1.8 points from July and ahead of the 54.5 consensus estimate. It’s the
third month in a row indicating expanding manufacturing activity, following
three months of contraction that began in March.
That manufacturing
economy strength boosted materials sector stocks today, with big gains for
companies exposed to industrial metals and chemicals. Albemarle rose 7%
and WestRock added 6%. Eastman
Chemical, Dow, and LyondellBasell Industries each gained about 5%.
There was
plenty of other notable action today on the individual stock level.
"Story stocks" in particular captured investors' and traders'
attention.
Zoom Video
Communications stock soared almost 41%
today after releasing earnings
following yesterday's close. It reported a 355% surge in revenue
from a year ago, and handily beat Wall Street estimates on both the top
and bottom lines. Management's guidance implied further growth ahead, and
analysts gushed over the staying power of Zoom's video conferencing services
long after the pandemic will have passed.
The stock is
up more than sixfold in 2020, and now sports a market capitalization of
close to $130 billion—more
than IBM.
Zoom's
vertiginous rise inspired big gains in other stay-at-home beneficiaries
today. Investors presumably bought further into the message that the boost to
their businesses will stick. DocuSign jumped 20.5%, Netflix added 5.1%, Slack Technologies closed up 4.5%, and Teladoc Health rose 4%.
 |
DJIA: +0.76% to 28,645.66
S&P 500: +0.75% to 3,526.65 Nasdaq: +1.39% to 11,939.67
The Hot
Stock: L Brands +7.3%
The Biggest Loser: Mylan -5.4%
Best Sector:
Materials +2.8%
Worst Sector: Utilities -1.2%  |
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