US markets extended their rally on Wednesday following comments from Canadian Prime Minister Justin Trudeau regarding trade negotiations strengthened investor sentiment, whilst a strong performance from tech companies saw the FANG stocks lead gains.
Despite comments from President Trump yesterday accusing Google (GOOGL) and Facebook (FB) of bias and the tech companies taking advantage of people, both stocks rose +1.51% and +1.60%, respectively. Amazon (AMZN) shares rose +3.4% after broker Morgan Stanley (MS) raised their price target predicting a $1.2 trillion valuation.
Amazon’s rise saw the consumer discretionary sector rise +1.12% and be the performing S&P 500 sector out of its 10 other counterparts. Yet, despite most the spotlight being on tech some of the losers overnight include Dicks’s Sporting Goods (DKS) falling -2.2% following a poor earnings report along with American Eagle Outfitters (AEO) falling -6.5%.
In currency markets the dollar rose +0.5% against the Japanese yen, +0.4% against the Australian dollar and +0.1% against the New Zealand dollar. The strength we saw in the US dollar was supported by data showing US economic growth was stronger than initially expected in the second quarter. GPD grew 4.2% up from 4.1% as reported in July by the Commerce Department. The euro remained flat at $1.1700 and the Canadian dollar rose +0.2% against the US dollar to $1.2909.
Chart of the Day: Amazon.com Inc (AMZN) Daily Chart