Stocks Swing To Loss As COVID-19 Surge Hits Optimism

Nvidia (NVDA) also delivered quarterly earnings on Wednesday, where it beat both revenue and earnings expectations. The firm’s share price still fell back in after-hours trading, however, as the company predicted a decline in data centre sales – a division that has been a key growth driver in 2020.

S&P 500: -1.2% Wednesday, +10.4% YTD (SPX, SPY)

Dow Jones Industrial Average: -1.2% Wednesday, +3.2% YTD (DIA)

Nasdaq Composite: -0.8% Wednesday, +31.5% YTD (COMP)

Micro Focus soars 30% on upbeat outlook

After gaining 0.9% on Wednesday, the FTSE 250 is now back into single-digit loss territory in 2020, at -9.98%. Business software firm Micro Focus International (MFGP) was the biggest winner in the index yesterday, with its share price jumping 30% after delivering a promising forecast in its earnings report. Year-to-date, the firm’s share price is still down more than 60%.

The FTSE 100 was led to its 0.3% gain on Wednesday by RSA Insurance Group (RSAIF), homebuilder Taylor Wimpey (TWODF) and energy firm SSE (SSEZY), which all added more than 4%. There were no major events on Wednesday affecting sentiment, but pharmaceutical company Pfizer offered up additional data on the efficacy of its COVID-19 vaccine, which showed it protected 94% of over 65-year-olds in a phase three trial.

FTSE 100: +0.3% Wednesday, -15.3% YTD

FTSE 250: +0.9% Wednesday, -10% YTD

What to watch

Intuit: Finance and accounting software firm Intuit (INTU) has gained 35% in 2020, including a 14% increase over the past three months. The firm sells popular products TurboTax and QuickBooks, and owns a huge portion of the online tax preparation market in the US. Intuit delivers its latest set of quarterly earnings today, after beating expectations last quarter. Wall Street analysts’ expectations for the firm have ticked up over the past three months, with an earnings per share figure of $0.41 anticipated for the latest quarter.

NetEase: Chinese internet technology firm NetEase (NTES) is a major provider of online and mobile games and internet services in China. The company has a Nasdaq listing in the US, and has added nearly 40% to its share price year-to-date. Netease delivers its latest quarterly update on Thursday morning New York time, with its dividend and how gaming demand has sustained in China after several months of COVID-19 being effectively contained. Wall Street analysts lean heavily towards a buy rating on the stock.

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