Investing.com – US stocks reopened Tuesday as confidence in tech stocks weathered the first major correction in months.
This belief is reflected in the strong interest in the IPO of two software companies later on Tuesday: Snowflake and JFrog. Both companies raised their marketing price ranges on Monday, and now Snowflake is set to enter the market with a valuation of around $ 30 billion.
The market was not scared by the data showing that the industrial production recovery in the US stopped in August, increasing only 0.4%, which is the weakest growth in four months. At the same time, the July gain was revised to 3.5% from 3.0%. Redbook Research's monthly survey of the retail sector also showed a slight deterioration in conditions in August. Taken together, the data indicate a moderate weakening of the economy.
By 09:40 am ET (1:40 pm GMT), the Dow Jones Industrial Average was up 126 points, or 0.5%, to 28.119. The SPDR S&P 500 (NYSE: SPY) rose 0.9%, and the Nasdaq Composite returned to its habit of outperforming the competition, climbing 1.5%.
The army of retail investors that drove the rally this summer seem to have taken last week's sell-off as more than a fall worth buying back, especially through the options market. Analysts at Goldman Sachs Group Inc (NYSE: GS) indicated that open interest in call options on individual stocks now equals open interest in put options on the index, which is unprecedented in at least 10 years.
New growth from tech giants brought additional 4.9% to Tesla Inc (NASDAQ: TSLA), 2.3% to Apple (NASDAQ: AAPL) and 1.8% to Amazon (NASDAQ: AMZN) with little or no news … At the very least, Amazon shares have been helped by Monday's announcements of another 100,000 hiring across North America.
DraftKings Inc (NASDAQ: DKNG) continued to hit new all-time highs after it announced on Monday its groundbreaking partnership with Disney-owned (NYSE: DIS) cable sports channel ESPN. DraftKings rose 1.4%, while Caesars Entertainment Corporation (NASDAQ: CZR) and William Hill PLC (LON: WMH), two other companies in the ESPN deal, rose 0.9% and 4 , 6%, respectively.
Nextera Energy Inc (NYSE: NEE), which announced a 4-to-1 split after trading closed on Monday, also hit a historic high. The decision by the renewable energy company comes at a time when wildfires on the Pacific coast have rekindled the climate change debate.
By Jeffrey Smith