A roller coaster market rebounded Thursday from yesterday's selloff as rising tech stocks more than offset another day of concerning economic news.
Today's disappointing data came in the form of jobless claims. First-time applications for unemployment benefits ticked higher this week, which was taken as another indication that the economic recovery is slowing down.
Investors responded by piling into big stocks with outsized profit prospects such as Apple (AAPL), Microsoft (MSFT) and Google-parent Alphabet (GOOGL). Indeed, Apple and Microsoft, with gains of 1% and 1.3%, respectively, were among the Dow's top gainers. Google, for its part, chipped in with a 1% rise in shares.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The tech sector may be doing comparatively well this year, but broader market sentiment continues to be a challenge, market strategists say.
"The explosive growth numbers seen earlier this summer – in housing, industrial production, retail sales and elsewhere – have moderated to more-normal levels," says Argus Research. "Stock market optimism has faded, though within the context of a typically down market month. Investors approach what has historically been the best quarter for stocks echoing the uncertainty they felt during the first quarter."
The blue-chip Dow Jones Industrial Average finished the session up 0.2% at 26,815.
Other action in the market today:
- The Nasdaq Composite inched up 0.4% to 10,672.
- The S&P 500 added 0.3% to 3,246.
- The small-cap Russell 2000, up 0.02%, was essentially unchanged at 1,451.
- The yield on the 10-year Treasury Note ticked down to 0.667%.
Don't Sleep on Inexpensive Dividend Payers
It used to be that investors bought tech stocks for their potential for price appreciation, not income. But that changed quite some time ago. Indeed, two of Thursday's Dow stocks to finish in positive territory -- Microsoft and Apple -- are now generous dividend payers. Heck, with the exception of Salesforce.com (CRM), every tech stock in the Dow pays a dividend.
That helps explain, in part, why so many billionaire investors love these stocks, to say nothing of them being some of hedge funds' favorite picks. But one knock on some of the best-known tech dividend payers is that they sport high nominal share prices.
True, if you're looking to bet smaller sums on dividend names, you could always buy fractional shares. But another solution is to invest in cheap dividend stocks that go for, say, less than $15 a share. Happily, there's no shortage of dividend stocks with low nominal share prices, and the tech sector is just one place they can be found.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
