Twitter Surges Thanks To Jack Dorsey
Monday was a good day for Twitter (TWTR, +8.88%) as the company saw an increase of 7% in their share price. This came after a SEC filing revealed that Jack Dorsey, who is the co-founder and interim CEO of the company, had purchased 31,627 Twitter shares. These stocks were priced at $27.67 each which means that Dorsey laid out $875,021 for the purchase. These shares were purchased on Friday last week yet Dorsey took to Twitter on Monday to say that his recent investment was an investment in Twitter's future. By afternoon trade, the shares of the social media company had surged 7%. Interestingly, other Twitter insiders are also getting in on this action and according to a separate SEC filing, Peter Currie, who is a board member at Twitter, also purchased 9,200 shares on Friday. When Dick Costolo stepped down as CEO, it was Dorsey who sold 400,000 shares of Twitter stock. While analysts view his latest move as positive, they have also warned that it needs to be viewed within a broader perspective. That is, while Twitter executives are now buying shares in the company, these are only small amounts compared to how many they have already sold. Another boost for Twitter on Monday came after Monness, Crespi, Hardy & Co. upgraded the company from neutral to buy. This pushed the share price up 2% in morning trade. In addition, the analysts set a new price target of $35. Twitter is currently trading at $29.39 a share.
In U.S. trading on Monday, stocks traded sharply higher while continuously testing new intraday highs. This boost came in response to comments by one of the Federal Reserve officials which suggested that an interest rate hike in September might not happen while a bounce back in Chinese stocks also supported the markets. According to Federal Reserve Vice Chairman Stanley Fischer, the first interest rate hike by the central bank is more likely to occur after inflation returns closer to the Fed’s target of around 2 percent. The inflation rate is currently sitting closer to zero. At the close of trading, the Dow Jones Industrial Average (DJIA) rose 1.3%, or 228 points, to 17,602 and these gains were led by Apple Inc. which was up 3.5% as well as Caterpillar Inc. which was also up 3.5%. Also on the upside was the tech heavy Nasdaq Composite Index (COMP) which advanced 1.2%, or 60 points, to 5,104 while the S&P 500 index (SPX) rose 1.2%, or 26 points, to 2,103.
On Monday, the U.S. dollar traded lower in quiet trade. Despite this decline, the greenback remained supported by the positive employment data that was released out of the U.S. on Friday. The EUR/USD traded at 1.0974, up 0.10% while the GBP/USD traded at 1.5540, up 0.33%. Against the currencies in New Zealand, Australia and Switzerland, the U.S. dollar traded higher with the NZD/USD down 0.72% at 0.6590, the AUD/USD down 0.42% at 0.7387 while the USD/CHF traded at 0.9864, up 0.27 percent. The Japanese yen also trader lower against the USD with the USD/JPY up 0.25% at 124.58, while the U.S. dollar index was at 97.57, down 0.09%.
Crude oil prices rebounded on Monday by more than 3% and this came after a rally in U.S. diesel and gasoline. This was prompted by an outage at the refinery which helped crude futures to advance early in the session from its multi-month lows. In addition, as a result of a decline in the U.S. dollar (USD) to near a 2-week low, oil and other commodities which are denominated in the USD, became more affordable to holders of other currencies such as the euro (EUR). WTI crude oil for delivery in September traded at $44.67, up $0.80, or 1.9%, on the NYMEX. This was up from its session low in Asian trading at $43.35 a barrel which marked its lowest price in the last four and a half months. Meanwhile, Brent crude oil for delivery in September traded at $50.11 a barrel by 1:26pm ET, up 3%, or $1.50, on the ICE Futures Exchange in London.