The Dow Jones Industrial Average surged by more than 575 points today on Wall Street, closing up almost 560 points for its highest close since July 20, 2018. The surge on the last trading day of the week marks the largest one-day point gain in history. Shares of Microsoft rose more than 4 percent as investors believe that the tech giant is up for grabs following news that long-time partner Apple is shopping its content library to streaming services, according to Bloomberg.
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Shares of Apple rose 1.7 percent after it came out earlier in the week that it was looking to monetize its video content library by putting it up for sale. The move, while surprising to some, may help Apple to increase profits. Apple CEO Tim Cook also told CNBC that the company “wants to be in all things,” when asked if Apple was targeting areas beyond its core product area.
Microsoft jumped 4.7 percent this afternoon, accounting for almost two-thirds of the Dow’s 558-point gain. Amazon was the biggest gainer of the three largest U.S. tech companies, jumping more than 2 percent. Overall, technology stocks ended up out-performing other sectors of the stock market.
“The consumer and investor data suggest that several technology companies are in line for a massive earnings upgrade in the future, as more people want services from these companies and as the data continues to show that online shopping continues to lead to growth in many of these companies’ businesses,” said Bob Doll, chief equity strategist at Nuveen Asset Management, in a note today.
Dow, S&P 500 Winners and Losers Today, June 6, 2019
The S&P 500 gained 24 points, or 0.9 percent. Information technology stocks rose more than 1 percent, and almost all of the stocks rose by more than 1 percent. Higher oil prices added to the stock market’s gains today. Oil settled more than $1 higher at $71.94 per barrel. The U.S. National Hurricane Center warned of large swells approaching U.S. and Mexican coasts, while tensions between the U.S. and Iran were also heating up. In other news, Chicago has banned Uber, Lyft and other ride-hailing companies from operating in the city during the heat wave and health emergency, joining a couple dozen U.S. cities.
Facebook topped the day’s losers list, falling more than 1 percent as analysts continue to warn that the growing prevalence of privacy concerns and growing competition could adversely affect the social media giant. Amazon slid 0.5 percent. General Electric, once the most valuable public company in the world, sunk as much as 3.8 percent this afternoon after announcing it would cut tens of thousands of jobs and selling its transportation division.