Big tech lags as stocks power higher

By Jonathan Garber FOXBusiness

Amazon, Apple, Microsoft and Tesla were trading at or near record highs.

U.S. equity markets traded higher Tuesday morning as Silicon Valley giants pared their early gains, pulling the Nasdaq Composite behind the other major averages.

The Dow Jones Industrial Average gained 309 points, or 1.16 percent, in early trading while the S&P 500 rose 0.73 percent. The Nasdaq Composite, meanwhile, traded up 0.21 percent and was on track for its 29th record-high close this year.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES26970.52+289.65+1.09%
SP500S&P 5003271.89+20.05+0.62%
I:COMPNASDAQ COMPOSITE INDEX10750.778676-16.31-0.15%

The benchmark S&P 500 clawed its way back into positive territory for 2020 a day earlier. Tech stalwarts Amazon Inc., Apple Inc., Microsoft Corp. and Tesla Inc. were in focus.

TickerSecurityLastChangeChange %
AMZNAMAZON.COM INC.3,139.75-57.09-1.79%
AAPLAPPLE INC.392.33-1.10-0.28%
MSFTMICROSOFT CORP.210.73-0.87-0.41%
TSLATESLA INC.1,619.19-23.81-1.45%

Meanwhile, legacy tech behemoth IBM Corp. beat on both the top and bottom lines Monday as revenue from its cloud-computing business rose 30 percent to $6.3 billion, benefitting from the growing practice of working from home during the COVID-19 pandemic.

In food and beverages, Coca-Cola Co. profit fell 32 percent from a year ago as lockdowns due to COVID-19 slowed sales to restaurants, bars and other entertainment venues.

Defense contractor Lockheed Martin Corp. said its order backlog topped $150 billion and raised its full-year 2020 outlook.

TickerSecurityLastChangeChange %
IBMINTERNATIONAL BUSINESS MACHINES CORP.128.41+2.04+1.61%
KOCOCA-COLA COMPANY47.60+1.48+3.21%
LMTLOCKHEED MARTIN CORPORATION372.21+6.68+1.83%

In deals, eBay Inc. sold its classified ads business to Norway-based Adevinta in a $9.2 billion deal that consists of $2.5 billion cash and 540 million shares of Adevinta.

Professional networking platform LinkedIn Corp. is eliminating 960 jobs, or 6 percent of its workforce, as COVID-19 has slowed demand for its products.

Tapestry Inc. CEO Jide Zeitlin stepped aside for personal reasons and will be replaced by Chief Financial Officer Joanne Crevoiserat on an interim basis. The company owns the Coach and Kate Spade brands.

TickerSecurityLastChangeChange %
EBAYEBAY INC.57.20-1.26-2.16%
LNKDn.a.n.a.n.a.n.a.
TPRTAPESTRY INC.13.54+0.42+3.24%

Looking at commodities, West Texas Intermediate crude oil tacked on $1.15 to reach $41.96 per barrel while gold gained $23.50 to $1,840.90 an ounce.

U.S. Treasurys ticked higher, pushing the yield on the 10-year note down 1 basis point to 0.61 percent.

Germany’s DAX rose 1.55 percent and France’s CAC climbed 0.93 percent after European Union leaders agreed on a 1.8 trillion-euro ($2.06 trillion) spending package to cushion the region from economic fallout related to COVID-19. Britain’s FTSE added 0.31 percent.

In Asia, Hong Kong’s Hang Seng paced the advance, climbing 2.31 percent, while Japan’s Nikkei and China’s Shanghai Composite rallied 0.73 percent and 0.2 percent, respectively.

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