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Market Rebounds: Tech Leads Dow Higher After Previous Day’s Sell-Off |
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The Dow ended Wednesday on a positive note, rebounding from previous losses as investors seized the opportunity to buy discounted stocks, particularly in the tech sector. This surge followed a downturn triggered by a higher-than-expected U.S. inflation report the day before. By 4:00 PM ET (9:00 PM GMT), the Dow Jones Industrial Average climbed 0.4%, or 151 points, while the S&P 500 gained 0.9%, and the Nasdaq Composite surged by 1.3%. Uber Technologies Inc (NYSE: UBER) reached a new 52-week high, surging by 14% after announcing a $7 billion stock buyback program and forecasting robust growth in gross bookings, expecting mid to high-teens growth over the next three years. LYFT Inc (NASDAQ: LYFT) saw a remarkable 35% jump following its impressive quarterly results and guidance. The company reported increased gross bookings and cost savings, prompting Wall Street analysts, including Wedbush, to upgrade its outlook, raising the price target to $15 from $14. However, Lyft’s afterhours surge on Tuesday was tempered after the company corrected its 2024 adjusted EBITDA margin expansion forecast from 500 to 50 basis points. Federal Reserve officials reiterated their commitment to combatting inflation. Vice Chair Michael Barr expressed confidence in inflation easing towards the 2% target, acknowledging potential bumps along the way. Meanwhile, Federal Reserve Bank of Chicago President Austan Goolsbee suggested that even with unexpected inflation upticks, the Fed remains poised to act, though this stance was challenged by Tuesday’s inflation data showing slower than anticipated progress. Airbnb faced a slight decline, slipping over 1% after cautioning about moderating growth due to challenging year-on-year comparisons. Kraft Heinz Co (NASDAQ: KHC) reported fourth-quarter sales below expectations, attributing the shortfall to decreased demand following recent price increases. Consequently, shares in the company dropped by more than 5%. On a positive note, Robinhood Markets (NASDAQ: HOOD) experienced a 13% surge, driven by strong guidance and quarterly results exceeding estimates, particularly fueled by increased cryptocurrency and options trading. JMP Securities highlighted Robinhood’s favorable momentum and disciplined financial management, upgrading its price target to $25 from $23. With a solid financial position and no debt, the company remains attractively valued with an enterprise value of just $5.5 billion, according to JMP Securities. |
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Bridgewater Associates Bolsters Investment in Nvidia, Expands Portfolio in High-Growth Tech Stocks In a recent disclosure, Bridgewater Associates, the hedge fund led by billionaire Ray Dalio, revealed a significant surge in its holdings of chipmaker Nvidia (NASDAQ: NVDA) by a staggering 458% by the close of last year. The fund also diversified its investments by increasing exposure to other key players in the tech sector, often referred to as the “Magnificent Seven,” which have been instrumental in propelling market gains. Bridgewater’s stake in Nvidia, the world’s leading chipmaker, surged to 268,489 shares, valued at $133 million as of December’s end. Nvidia’s remarkable performance, with shares soaring 47% throughout the year, momentarily propelled it ahead of Google-parent Alphabet (NASDAQ: GOOGL) in market capitalization, securing its position as the third-largest U.S. company, boasting a market cap exceeding $1.8 trillion. Additionally, Bridgewater acquired approximately 500,000 new shares in Alphabet, bringing its total holdings to 2 million shares by the close of the fourth quarter, valued at $286 million. The hedge fund also expanded its position in Meta (NASDAQ: META), reaching 666,059 shares, while initiating a relatively smaller position in Apple (NASDAQ: AAPL), acquiring 1,109 shares. Its exposure to Microsoft (NASDAQ: MSFT) remained steady at 197,732 shares. These investment maneuvers were disclosed in 13-F filings, providing insights into the holdings of typically secretive hedge funds and institutional investors, albeit with a retrospective view. While Alphabet shares have seen a 4% increase year-to-date, Meta’s have surged by 33%. In contrast, Tesla (NASDAQ: TSLA) and Apple have experienced declines of 24.6% and 5%, respectively, since the beginning of the year. Bridgewater also augmented its holdings in Eli Lilly (NYSE: LLY), a prominent manufacturer of new weight-loss drugs, which have gained significant traction in the market. The fund added 255,619 new shares of Eli Lilly in the last quarter of 2023, bringing its total holdings to 317,586 shares, as the company’s stock surged by 29% throughout the year. |
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Thursday, the day where investors eagerly await the opening bell like kids on Christmas morning, hoping for presents in the form of bullish markets and delightful returns. It’s the day when financial fortitude meets a touch of luck, where every trade feels like a strategic game of chess, except the stakes are higher and the pieces are made of money. So, grab your coffee, buckle up, and get ready to ride the rollercoaster of investing on this thrilling Thursday! |