US stocks gain after Nvidia results, despite Google slump
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Traders working on the floor of the New York Stock Exchange on Nov 21.
PHOTO: EPA-EFE
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NEW YORK – Wall Street stocks shook off early weakness and pushed higher on Nov 21 following solid Nvidia results, while Alphabet tumbled after the US authorities called for Google to be dismantled.
Nvidia itself had a volatile day, finishing modestly higher after several reversals. The chip company reported a whopping US$19 billion (S$25.57 billion) in profits, although investors wondered if its current rate of stupendous growth is sustainable.
But stocks rose as a “relief trade” after the Nvidia report, said Briefing.com analyst Patrick O’Hare.
The Dow Jones Industrial Average finished up 1.1 per cent at 43,870.35.
The broad-based S&P 500 gained 0.5 per cent to 5,948.71, while the tech-rich Nasdaq Composite Index edged up less than 0.1 per cent to 18,972.42.
Mr O’Hare called the Nov 21 rally a “broad-based move”, noting nine of 11 sectors rose and adding that investors are hopeful about a year-end rally.
Sales of previously owned homes in the United States picked up in October, industry data showed, fuelling hopes that a slump in the sector may be ending.
Among individual companies, Google parent Alphabet tumbled 4.6 per cent after the Department of Justice (DOJ) asked a federal court to order Google to sell its widely used Chrome browser
DOJ also asked the court to ban deals for Google to be the default search engine on smartphones and prevent it from exploiting its Android mobile operating system.
Google is expected to make its recommendations in a filing in December and rival sides will argue their positions at a hearing in April.
Deere & Co jumped 8.1 per cent as it reported better-than-expected earnings despite suffering a 28 per cent drop in revenues. AFP
