Alphabet Is Adding to Its Trillion Dollar Capitalization as the Dow Prepares to Hit Another All-Time High

U.S. stocks are looking to cap a strong week with more gains.

Dow Jones Industrial Average futures are up 0.3%, S&P 500 futures are 0.2% higher. Nasdaq Composite futures have risen 0.4%. For the week, the Dow and S&P have each gained about 1.6%. The Nasdaq is up about 1.9%.

Early earnings reports from banks and other businesses, such as Delta Air Lines (ticker: DAL), as well as the signing of the U.S.-China phase one trade deal have fueled the rally.

Overseas stocks are strong too Friday too. Hong Kong’s Hang Seng Index is up 0.6%. Europe’s FTSE 100 Index has risen 0.9%.

And several individual stocks are on the move too in premarket trading. 

Gap (GPS) shares are up about 5.5%. The company said it is no longer spinning off its Old Navy unit. Gap appears to be zigging while other companies are zagging.

Spinoffs are popular on Wall Street. There are about 10 spins pending including companies such as United Technologies (UTX) and Marathon Petroleum (MPC). XPO Logistics (XPO) announced Wednesday evening it might spin assets to generate shareholder value. Its stock jumped 15% on the news. Spins off announcements usually generate a stock market bump.

That happened to Gap stock. Back in February 2019, when Gap announced its intention to spin Old Navy, shares rose about $4, or 16%. Since then, however, the stock declined to below $19. possible the stock market performance is one reason the company re-evaluated the spin strategy.

Google parent Alphabet (GOOGL) stock is up another 0.8% in premarket trading. Shares of the search giant crossed the $1 trillion mark Thursday. When a stock is worth a trillion dollars, even small moves mean real money—0.8% is $8 billion dollars in stock market value.

Not all stocks, however, are rising in Friday premarket trading.

CSX (CSX) shares are down 3.2%. The company announced earnings Thursday evening. The railroad earned 99 cents in the fourth quarter, a little better than Wall Street expected. But the company also said it expects sales to fall in 2020 because of, in part, falling coal volumes.

Twitter (TWTR) shares are also falling in premarket trading, by about 1.7%. Broker UBS downgraded the stock from Buy to Hold.

Write to Al Root at

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