S&P 500 gains 35 points, another record as tech giants soar


the S&P 500 Index (SNPINDEX: ^ SPX) gained 35 points, a solid 1%, on August 26, setting another all-time high, pushed higher by huge gains from tech giants Salesforce.com (NYSE: CRM), Netflix (NASDAQ: NFLX), Adobe (NASDAQ: ADBE), and Facebook (NASDAQ: FB).

The massive surge from these four companies, which ended the day with a combined market cap of nearly $ 1.5 trillion, helped support the market on a day when more stocks lost than gained.

Image source: Getty Images.

Salesforce Reports Huge Revenue Bump, Adding to Dow’s Additional Momentum

Shares of the CRM software giant jumped 26% today, after announcing second-quarter sales rose 29%, topping $ 5 billion for the first time, which has boosted expectations for the rest of the year. The huge profit bump comes just a day after the company’s announcement of the stake in the Dow Jones Industrial Average (INDICES DJ: ^ DJI) on August 31, as part of a big index shuffle.

Together, Salesforce stocks have gained an incredible 31% this week. Bet the folks at Dow wish they had pulled the trigger to get the tech giant into the mix a little earlier.

Netflix subscriber survey boosts market share

The streaming giant added nearly 26 million subscribers in the first half of 2020, an incredible number that has almost certainly been exploited by the millions of people around the world trapped in their homes due to the coronavirus pandemic.

Well, investors received what appears to be good news today, when a note from an analyst at Piper Sandler reported a recent investigation which indicated that most of these clients will stay after the coronavirus. Netflix shares jumped 12% on the day.

Facebook increases despite Apple advertising risk; Adobe goes higher

In a corporate blog post published today, social media giant Facebook said that AppleThe upcoming release of iOS 14 would have a negative impact on its advertising activities on the company’s devices. The latest version of iOS includes a number of anti-tracking features that make it harder for Facebook to serve ads through other apps. According to the article, tests indicate that the loss of personalization results in a drop of more than 50% in ad revenue.

In response, Facebook shares jumped 8%. This is not what you would expect from a business that relies on advertising for the vast majority of its cash flow and has a large portion of its most active users logging into Facebook and Instagram apps on an iPhone. .

Facebook wasn’t the only tech giant making its way today. Adobe shares gained over 9%, a huge move for a $ 230 billion = more market cap company that hasn’t made big announcements.

Future benefits

Discount retailers Dollar tree (NASDAQ: DLTR) and General Dollar (NYSE: DG) both publish their quarterly results on August 27, as do specialty retailers Ulta Beauty (NASDAQ: ULTA) and Difference (NYSE: GPS).

Discounters are expected to see sales that have held up better than specialists in the beauty and apparel segments, as both sell basic consumer goods including food and cleaning products. But all four will help give investors more data on what’s going on in the real world – not just in the last quarter, but also in the weeks after the quarter ended, and since the federal hike expired. of $ 600 in weekly unemployment payments.

While a coronavirus vaccine and treatments remain the key to moving forward in any meaningful way, each retailer that reports gives us a bit more information about the here and now, and it can be useful information. to have.


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