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World Shares Mostly Higher Friday 02/27 04:46
World shares were mostly higher on Friday after the worst day for Nvidia's
stock since last spring dragged U.S. stocks lower.
BANGKOK (AP) -- World shares were mostly higher on Friday after the worst
day for Nvidia's stock since last spring dragged U.S. stocks lower.
U.S. futures fell as investors focused on comments by Block CEO Jack Dorsey
on his company's decision to lay off 40% of its workforce because of
labor-saving artificial intelligence.
The future for the S&P 500 edged 0.1% lower while that for the Dow Jones
Industrial Average fell 0.3%.
Germany's DAX rose 0.3% to 25,373.74, while the CAC 40 picked up less than
0.1% to 8,625.54. Britain's FTSE 100 gained 0.5% to 10,904.24.
In Asian trading, Tokyo's Nikkei 225 edged 0.2% higher to 58,850.27.
In Hong Kong, the Hang Seng jumped 1% to 26,630.54, while the Shanghai
Composite index advanced 0.4% to 4,162.88.
South Korea's Kospi lost 1% to 6,244.13 as traders sold to lock in profits
from recent gains.
Australia's S&P/ASX 200 closed 0.3% higher at 9,198.60, while India's Sensex
lost 0.8%.
On Thursday, the S&P 500 shed 0.5% and the Dow industrials added less than
0.1%. The Nasdaq composite sank 1.2%. to 22,878.38.
U.S. inflation data is due out later Friday. A report showed that the number
of U.S. workers applying for unemployment benefits ticked up last week, but not
by any more than economists expected. It also remains relatively low compared
with history.
Nvidia, whose chips are helping to power the AI boom, reported another
stellar quarter of profit growth that breezed past analysts' expectations. Its
forecast for revenue in the current quarter again topped Wall Street estimates.
But such blowout performances have become so typical for Nvidia that they're
losing their oomph. Its stock sank 5.5% for its worst loss since April.
Shares in Block, formerly known as Square, gained 5% on Thursday before it
reported better than expected earnings, and then shot up more than 20% after
the markets closed following Dorsey's comments on laying off about 4,000 of its
10,000 employees.
"We believe Block will be signficantly more valuable as a smaller, faster,
intelligence-native company. Everything we do from here is in service of that,"
Dorsey wrote in a letter to shareholders.
Dorsey "just did what most CEOs have only whispered about in boardrooms,"
Stephen Innes of SPI Asset Management wrote in a commentary.
"For years we've debated whether AI would dent jobs at the margin. Now we
have a public case study where the CEO explicitly says intelligence tools have
changed what it means to build and run a company," he said.
Elsewhere on Wall Street, shares in streaming giant Netflix jumped 7.9% in
pre-market trading after it walked away from its bid to buy Warner Bros.
Discovery's studio and streaming business. That put Skydance-owned Paramount in
a position to take over its Hollywood rival.
Netflix said the price required to buy Warner after its board announced that
Paramount's offer was superior would make it a deal that is "no longer
financially attractive."
On Thursday, Warner Bros. shares edged down 0.3% after the entertainment
giant reported a $252 million loss for the fourth quarter.
In other dealings early Friday, U.S. benchmark crude oil gained 89 cents to
$66.10 per barrel. Crude prices have been swinging while the United States and
Iran held indirect talks about Iran's nuclear program. A barrel of U.S. crude
briefly fell as low as $63.60 on Thursday before it bounced back.
The two sides walked away from the latest talks without a deal. That left
the danger of another Mideast war on the table as the U.S. has gathered a
massive fleet of aircraft and warships in the region.
A peaceful solution would lessen the threat of war, which could disrupt the
global flow of oil and drive prices higher.
Brent crude, the international standard, gained 79 cents early Friday to
$71.63 per barrel.
The U.S. dollar rose to 156.18 Japanese yen from 156.13 yen. The euro rose
to $1.1805 from $1.1796.
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