The time tested strategy of ‘buying the dip’ has paid off once again for day traders with US stock markets staging a strong recovery, the Dow Jones up 1.5% and both the S&P 500 and Nasdaq moving 1.6% higher overnight.
The strength comes despite growing warnings of the pandemic worsening as global case numbers and deaths begin to increase once again.
The smaller companies Russell 2000 index was a key beneficiary, jumping 3%, as housing starts were confirmed to have jumped 6.3% in June.
Everything from cruise liner Carnival (NYSE: CCL) airlines and United Airlines (NASDAQ: UAL) benefitted, with both up over 6%.
Netflix misses
Netflix (NASDAQ: NFLX) on the other hand missed expectations in the fourth quarter, adding just 1.54 million subscribers, below the 1.75 million expected. Revenue was slightly ahead of expectations, US$7.34 billion, with price increases a key contributor.
The earnings report was released after the market closed, with Netflix shares set to fall on the miss.
US stock market movers
Here’s how other popular US stocks performed overnight.
- Peloton (NASDAQ: PTON) up 6.7%
- Square (NSYE: SQ) up 5.5%
- Boeing (NYSE: BA) up 4.9%
- Procter & Gamble (NYSE: PG) down 0.5%
- Moderna (NASDAQ: MRNA) down 2.0%
- Pinduoduo (NASDAQ: PDD) down 2.3%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to follow US markets higher at the open on Wednesday. For all the latest, check out Rask Media’s ASX 200 morning report.
