Stock Market Rally Led by Facebook, Netflix and Moneygram
US market looked bullish on Tuesday, as Dow Jones futures edged higher in early Tuesday, along with the S&P 500 futures and Nasdaq futures, that led to a modest stock market rally, after Facebook, Inc. Common Stock (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX) and other FANG stocks surged on Monday.
Facebook Inc (FB) stock extended gains in after-hours 1.20% on Monday Moneygram International Inc (NASDAQ:MGI) shares soared 153.79% in extended hours on a strategic alliance with the Ripple, or XRP.
Facebook Inc (FB) planned to release a white paper on its planned cryptocurrency, on Tuesday, and a Facebook coin could set to serve some two billion users, and this move will boost e-commerce on Facebook Inc, Instagram and other properties.
Moneygram International Inc (NASDAQ:MGI) also announced a strategic alliance with the Ripple late on Monday. Under the agreement, Ripple will invest some $30 million in MoneyGram, by purchasing an 8%-10% stake at 4.10 a share and it’s a 183% premium above MoneyGram (MGI) stock’s Monday closing at $1.45.
From long time ago, Ripple has argued that its cryptocurrency could lower the transaction fees for the cross-border payments. Ripple (XRP) surged nearly 5% Monday.
On Monday, the Dow Jones futures were a fraction above fair value, and S&P 500 futures rose slightly. The Nasdaq 100 futures were up 0.15%, the stock market rally had a mildly positive on session Monday’s current session. NASDAQ composite gained 0.6%, fueled by the 4% gain by Facebook stock, a 3% pop up by Netflix stock, and fractional gains for Amazon.com Inc (AMZN) and Google parent Alphabet (GOOGL). Tech-heavy index pared the intraday gains to close below its 50-day line and Dow Jones and S&P 500 index that are above their 50-day averages, edged up 0.1%.