Tech shares bounce as US stocks end mostly up

NEW YORK (AFP) – Resurgent technology shares boosted Wall Street stocks Wednesday (July 5) despite the sagging fortunes of petroleum producers and electric-car company Tesla.

Big tech names, including Amazon, Google parent Alphabet and Microsoft, all climbed more than 1 per cent as investors again stepped in to take advantage of intermittent weakness in the sector.

But oil producers, including ExxonMobil, Chevron and ConocoPhillips, all tumbled at least 1.5 per cent as oil prices fell sharply on worries that Russia won’t deepen output cuts to boost prices.

The Dow Jones Industrial Average finished virtually flat at 21,477.97.

The broad-based S&P 500 added 0.2 per cent at 2,432.54, while the tech-rich Nasdaq Composite Index jumped 0.7 per cent to 6,150.86.

Meeting minutes released by the Federal Reserve showed disagreement among policy makers on the timing of interest rate hikes into next year and the timeframe for winding down the Fed’s multi-trillion-dollar investment holdings.

Analysts are looking ahead to Friday’s release of the June employment report, expected to show an addition of 173,000 jobs.

Tesla slumped 7.2 per cent after Goldman Sachs slashed its price target on the carmaker due to expectations for lower car deliveries.

Another auto stock, car parts and tools supplier, O’Reilly Automotive, plummeted 18.9 per cent after warning that second-quarter comparable stores growth was 1.7 per cent, below the three to five percent growth previously projected, due to weak consumer demand.

Autozone, which also sells car parts and supplies, dropped 9.6 per cent.

Payment processing company Vantiv fell 2.4 per cent after announcing plans to buy British rival Worldpay for about US$11 billion (S$15 billion).