Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Beijing time on September 10, the technology sector recorded its best one-day performance since April, leading to a rebound in U.S. stocks. By the close, the Dow was up 439.58 points, or 1.6 per cent, at 27,940.47, the Standard and Poor’s 500 index was up 67.12 points, or 2.01 per cent, at 3,398.96 and the Nasdaq was up 293.87 points, or 2.71 per cent, at 11,141.56.

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Most of the major U.S. tech giants rose:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Major U.S. tech giants.

Most of China’s major technology stocks rose:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

China’s major technology stocks.

China’s stock price.

Most of the other mid-cap stocks rose, including:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other mid-cap stocks rose.

Companies that were flat on the previous trading day include:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other Chinese stocks that were flat from the previous trading day.

Falling companies include:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other mid-cap stocks fell.

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Sohu’s shares have fallen about 12% since the last earnings report

In the month or so since its last earnings report, Sohu’s shares have fallen about 12 per cent, underperforming the S.P. 500. On a non-US GAAP basis, Sohu’s second-quarter loss was $2.04 per share, well above Zacks’ expectations of 12 cents and $1.35 a year earlier, while revenue fell 9 percent to $421 million. Revenue from the advertising business fell 13 percent to $279 million, while revenue from online games rose 4 percent to $106 million. Sogou’s revenue fell 14 percent to $261 million, while ride-between revenue rose 3 percent to $109 million. Sohu’s gross margin narrowed by 200 basis points to 41% in the second quarter, with online advertising from 33% to 23% and online games from 82% to 78%. As of June 30, 2020, Sohu held cash and cash equivalents worth $1.35 billion, down from $1.53 billion as of March 31. Sohu expects brand advertising revenue to fall 9 to 20 percent in the third quarter and online games revenue to fall 12 to 21 percent. Analysts also cut their forecasts for Sohu’s third-quarter results.

Currently, Sohu has an A rating on growth, but only an F on growth momentum. Overall, Sohu has a VGM rating of B. Zacks has a “hold” rating on Sohu’s stock. Sohu shares rose $0.59, or 3.28 percent, to close at $18.56 in regular trading today.

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

500 Lottery Network’s Swedish business resumes operations, shares jump nearly 21%

The Swedish business has resumed operations, the 500 Lottery Network announced today. The Multi Group, part of the 500 Lottery Network, has resumed operations in Sweden after obtaining a two-year licence from the Swedish e-gaming regulator’s lottery and gaming business. In the last fiscal year ended December 31, 2019, The Multi Group accounted for about 89.7 percent of the net revenue of the 500 lottery network, of which about 61.3 percent came from Sweden. In the first quarter of this year, the net revenue of the 500 lottery network was 3.064 million yuan, compared with 11.6 million yuan in the same period last year, down 73.3% year-on-year. Among them, The European online lottery betting business and the online betting business contributed $3 million, accounting for 96.8% of net revenue. The decrease in net revenue was mainly due to a $5.2 million decrease in revenue due to the suspension of the company’s operations in Sweden and a $3.3 million decrease in revenue from the discontinuation of its sports information services business in China from March 2019. In its first-quarter results, 500 Lottery said It had suspended its operations in Sweden because it had not completed renewals before the license expired. The Multi Group has submitted all applications and is in close communication with Swedish regulators to complete the renewal process. In regular trading today, 500 Lottery’s shares rose $0.7, or 20.9 percent, to close at $4.05, after touching hit an intra-market high of $4.23.

U.S./Foreign Technology Stocks.

Most of the other foreign technology stocks rose, including:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other foreign technology stocks rose.

Companies that were flat on the previous trading day include:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other foreign technology stocks were flat from the previous session.

Falling companies include:

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Other foreign technology stocks fell.

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Microsoft jumps more than 4% on Morgan Stanley’s expected dividend hike

Microsoft shares rose $8.63, or 4.26 percent, to close at $211.29 in regular trading today, after touching an in-hours high of $214.84, largely because Morgan Stanley analysts raised their target prices on the grounds that they could raise dividends in the coming weeks. Keith Weiss, an analyst at Morgan Stanley, raised Microsoft’s target price by $15 to $245 and maintained an “overweight” rating on Microsoft’s stock, which he expects to announce a five-cent dividend increase in mid-September. Mr Weiss believes a strong fourth-quarter result, a 13 per cent rise in profits, makes it possible for Microsoft to raise its dividend by 10 per cent if it is conservative. Microsoft’s shares are up about 34 percent so far this year. Microsoft’s market capitalisation was about $1.6 trillion at the close of trading today. Analysts at Janus Henderson noted last month that Microsoft’s dividend increase would be a rare move in the final months of the year, despite being a blue-chip stock. Janus Henderson estimates that dividends paid to shareholders by global companies will fall by 17 to 23 per cent by 2020, meaning they will reduce their returns to shareholders by about $400bn. It would be the biggest dividend cut since the 2009 global financial crisis. Microsoft approved a quarterly dividend of 51 cents per share on June 17 and will be paid to shareholders on Thursday.

Technology sector drives U.S. stocks to rebound, dividend expectations push Microsoft up more than 4%

Tesla jumps nearly 11% after falling in early September to create buying opportunities

Tesla shares rose 6.2 percent in pre-market trading today. Tesla shares opened higher in regular trading, opening at $356.6, up $36.7, or 10.92 percent, at $366.28, from the previous session’s close of $330.21. On Tuesday, Tesla suffered its biggest one-day drop on record. Tesla’s share price rose today, a sign that some investors believe it has fallen too much. Tesla’s shares fell more than 30 percent between September 1 and September 8. Tesla’s share price rose today, meaning some investors believe the fall in early September has created buying opportunities. Another reason Tesla shares are rising today may be the general market’s long-term view of growth stocks. Many growth stocks experienced a similar sell-off in early September, but investors seem to be seizing the opportunity to buy them back at lower prices. Today’s market’s long-term view of growth stocks and technology stocks may have helped push Tesla’s share price higher. Investors should expect a shake-up in Tesla’s share price, not just because growth stocks themselves are more prone to volatility, but also because Tesla’s share price has risen a staggering 677 percent over the past 12 months. Such an increase means that it is almost inevitable that it will be shaken.