NYSE Dow Jones finished today at:

[bigdog]

Wall Street’s big rally keeps rolling, and the S&P 500 rose for a fourth straight day Wednesday to sit just 1.7% below its record.

The S&P 500 climbed 21.26 points, or 0.6%, to 3,327.77, echoing gains for stocks across Europe and Asia. If the U.S. market has just a few more days like that, it will erase the last of the historic losses it's taken since February because of the coronavirus pandemic and the recession it caused.

The Dow Jones Industrial Average rose 373.05, or 1.4%, to 27,201.52, and the Nasdaq composite added 57.23, or 0.5%, to set another record at 10,998.40.

Much of Wall Street’s focus this week has been on Washington, where Congress and White House officials are negotiating on more aid for an economy that's shown some improvement but is still hobbling. Investors say such a package is crucial and needs to arrive quickly, with millions of Americans still out of work and $600 in weekly unemployment benefits from the U.S. government having recently expired.

Treasury Secretary Steven Mnuchin said late Tuesday that the two sides set a goal of reaching an agreement by the end of the week to permit a vote next week, though negotiators said the two sides remain far apart on key issues.

The pressure on Washington to act quickly is mounting. A report on Wednesday suggested that hiring was far weaker last month than economists expected. Private employers added just 167,000 jobs, according to a survey by payroll processor ADP, well below the 1.2 million that economists had forecast.

It highlights the damage that a resurgence in coronavirus cases across much of the country is doing to the economy. It also puts an even brighter spotlight on Friday’s more comprehensive jobs report coming from the Labor Department.

Investors across the stock market seem to be assuming that Congress will reach a deal sooner rather than later, as well as that the economy will continue to improve despite the pandemic, said Willie Delwiche, investment strategist at Baird.

“If either one of those gets challenged, then you could see more volatility in stocks,” he said.

ASX 200 to bounce back.
It looks set to be a better day of trade for the ASX 200 index on Thursday. According to the latest SPI futures, the benchmark index is expected to open the day 27 points or 0.45% higher this morning. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 1.4%, the S&P 500 climb 0.65%, and the Nasdaq index push 0.5% higher.

https://www.usnews.com/news/busines...xed-amid-jitters-over-us-stimulus-china-trade

Wall Street Keeps Rallying; S&P 500 Back Within 2% of Record
Stocks climbed again on Wall Street, giving the S&P 500 index its fourth straight gain and pulling it within 2% of the record high it set in February.
By Associated Press, Wire Service Content Aug. 5, 2020, at 4:26 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Wall Street’s big rally keeps rolling, and the S&P 500 rose for a fourth straight day Wednesday to sit just 1.7% below its record.

The S&P 500 climbed 21.26 points, or 0.6%, to 3,327.77, echoing gains for stocks across Europe and Asia. If the U.S. market has just a few more days like that, it will erase the last of the historic losses it's taken since February because of the coronavirus pandemic and the recession it caused.

The Dow Jones Industrial Average rose 373.05, or 1.4%, to 27,201.52, and the Nasdaq composite added 57.23, or 0.5%, to set another record at 10,998.40.

Much of Wall Street’s focus this week has been on Washington, where Congress and White House officials are negotiating on more aid for an economy that's shown some improvement but is still hobbling. Investors say such a package is crucial and needs to arrive quickly, with millions of Americans still out of work and $600 in weekly unemployment benefits from the U.S. government having recently expired.

Treasury Secretary Steven Mnuchin said late Tuesday that the two sides set a goal of reaching an agreement by the end of the week to permit a vote next week, though negotiators said the two sides remain far apart on key issues.

The pressure on Washington to act quickly is mounting. A report on Wednesday suggested that hiring was far weaker last month than economists expected. Private employers added just 167,000 jobs, according to a survey by payroll processor ADP, well below the 1.2 million that economists had forecast.

It highlights the damage that a resurgence in coronavirus cases across much of the country is doing to the economy. It also puts an even brighter spotlight on Friday’s more comprehensive jobs report coming from the Labor Department.

Investors across the stock market seem to be assuming that Congress will reach a deal sooner rather than later, as well as that the economy will continue to improve despite the pandemic, said Willie Delwiche, investment strategist at Baird.

“If either one of those gets challenged, then you could see more volatility in stocks,” he said.

The Walt Disney Co. rose 8.8% for one of the biggest gains in the S&P 500 after the media giant reported a profit for the spring that beat Wall Street’s expectations, even if it was down sharply from a year earlier.

Prudential Financial rose 6.2%, helping to drive the financial sector to one of the market's bigger gains, after it likewise reported results that weren't as bad as analysts had forecast.

That’s been the trend across much of the market this reporting season. Stocks have continued to climb even though S&P 500 companies appear to be on track to report a roughly 34% drop in earnings per share from a year earlier, according to FactSet. That's in part because investors had prepared for an even steeper drop.

“The overall theme from earnings has been ‘not as bad as we feared,'" Delwiche said. "Estimates came down, and now everybody’s beating that really low bar. Management is as in the dark as everyone else, in terms of what the path of this recovery is going to be. Everyone is kind of waiting to see what happens next in terms of the recovery.”

Investors are betting that the plunge in profits will prove to be only temporary and that earnings will recover as economies reopen and a vaccine for the new coronavirus hopefully gets developed to help the world get closer to normal.

Shares of biotech company Novavax jumped 10.4% after it reported data on its vaccine candidate for COVID-19. Analysts cautioned not to over-interpret the data but called it encouraging.

A better-than-expected reading on the nation's services sector also added to the mixed picture on the economy. The services sector includes retail, health care and transportation, and it makes up the bulk of the U.S. economy. It grew in July for the second straight month, according to a survey by the Institute for Supply Management, and accelerated when economists were expecting a slight slowdown.

Even within that report, though, were seeds of concern. Growth in new orders helped to drive the reading higher, but employment trends in the report weren't as encouraging.

Treasury yields rose, reclaiming some of their lost ground from a day before when they sank to a nearly five-month low. The yield on the 10-year Treasury climbed to 0.54% from 0.51% late Tuesday.

Yields have remained very low as investors have continued to worry about the weak economy and as the Federal Reserve has unleashed massive amounts of stimulus.

Gold rose even further into record territory, continuing its strong climb since the spring amid nervousness about the economy and super-low interest rates. Gold for delivery in December, the most actively traded contract, rose $28.30 to settle at $2,049.30 per ounce.

In Europe, Germany’s DAX returned 0.5%, and France’s CAC 40 rose 0.9%. The FTSE 100 in London added 1.1%.

In Asia, Japan’s Nikkei 225 slipped 0.3%, but South Korea’s Kospi added 1.4%. Hong Kong’s Hang Seng rose 0.6%, and stocks in Shanghai inched up 0.2%.

Benchmark U.S. crude rose 49 cents to settle at $42.19 per barrel. Brent crude, the international standard, added 74 cents to $45.17 a barrel.

 

[bigdog]

Stocks perked higher on Wall Street Thursday after a report showed the pace of layoffs across the country is slowing, though it remains incredibly high.

The S&P 500 rose 21.39, or 0.6%, to 3,349.16, as investors also waited for Congress and the White House to reach a hoped-for deal on more aid for the economy. It was the fifth straight gain for the index, which now hangs just 1.1% below its record set in February. Early in the spring, when panic about the pandemic was at its height, the S&P 500 had been down nearly 34%.

The Dow Jones Industrial Average climbed 185.46, or 0.7%, to 27,386.98 after it and other indexes waffled between smaller gains and losses for much of the day. The Nasdaq composite rose 109.67, or 1%, to 11,108.07 and set another record.

The day’s headline economic report showed that nearly 1.2 million workers applied for unemployment benefits last week. It would have been an astounding number before the coronavirus pandemic leveled the economy. But it’s a slight slowdown from the prior week’s tally, and it was also not as bad as economists were expecting.

“The market is searching for footholds of good news,” said Nela Richardson, investment strategist at Edward Jones. “The fact that nearly 1.2 million jobless claims in a single week is considered good news shows you how far we’ve deteriorated in the labor market.”

It was also the first drop in jobless claims following two weeks of increases, and economists called it an encouraging step. But the threat of more business closures due to the continuing pandemic means the path remains treacherous.

Investors have been pushing stocks higher despite such worries, in part on expectations that Washington will work through partisan disagreements and strike a deal on more assistance for out-of-work Americans, along with other measures.

Investors say it’s crucial that the aid comes, and quickly, after $600 weekly in jobless benefits from the U.S. government recently expired. The economy has shown signs of improvement since the spring, but it’s still hobbling, and worries are high that it may backtrack amid a resurgence in coronavirus counts.

Democrats and Republicans traded criticism of each other on Thursday, following a Wednesday session that produced no progress. Negotiations are continuing, and both sides have set a goal of reaching a deal by week’s end, even if that increasingly appears to be out of reach.

Richardson said the possibility of President Donald Trump using his executive authority to extend coronavirus relief if Congress fails to reach a deal may have helped lift the market Thursday.

Despite the market’s gains, slightly more stocks fell in the S&P 500 than rose, with the health care sector the heaviest weight on the index.

ASX 200 to edge lower.
The ASX 200 index looks set to end the week in a subdued fashion. According to the latest SPI futures, the benchmark index is expected to open the day 7 points or 0.1% lower this morning. This is despite a positive night of trade on Wall Street which saw the Dow Jones rise 0.6%, the S&P 500 climb 0.65%, and the Nasdaq index storm 1% higher. This follows the release of better than expected U.S. jobs data.

https://apnews.com/d2bcea000dada47f34144d189d858359

Wall Street perks up as S&P 500 pulls within 1.1% of record
By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — Stocks perked higher on Wall Street Thursday after a report showed the pace of layoffs across the country is slowing, though it remains incredibly high.

The S&P 500 rose 21.39, or 0.6%, to 3,349.16, as investors also waited for Congress and the White House to reach a hoped-for deal on more aid for the economy. It was the fifth straight gain for the index, which now hangs just 1.1% below its record set in February. Early in the spring, when panic about the pandemic was at its height, the S&P 500 had been down nearly 34%.

The Dow Jones Industrial Average climbed 185.46, or 0.7%, to 27,386.98 after it and other indexes waffled between smaller gains and losses for much of the day. The Nasdaq composite rose 109.67, or 1%, to 11,108.07 and set another record.

The day’s headline economic report showed that nearly 1.2 million workers applied for unemployment benefits last week. It would have been an astounding number before the coronavirus pandemic leveled the economy. But it’s a slight slowdown from the prior week’s tally, and it was also not as bad as economists were expecting.

“The market is searching for footholds of good news,” said Nela Richardson, investment strategist at Edward Jones. “The fact that nearly 1.2 million jobless claims in a single week is considered good news shows you how far we’ve deteriorated in the labor market.”

It was also the first drop in jobless claims following two weeks of increases, and economists called it an encouraging step. But the threat of more business closures due to the continuing pandemic means the path remains treacherous.

Investors have been pushing stocks higher despite such worries, in part on expectations that Washington will work through partisan disagreements and strike a deal on more assistance for out-of-work Americans, along with other measures.

Investors say it’s crucial that the aid comes, and quickly, after $600 weekly in jobless benefits from the U.S. government recently expired. The economy has shown signs of improvement since the spring, but it’s still hobbling, and worries are high that it may backtrack amid a resurgence in coronavirus counts.

Democrats and Republicans traded criticism of each other on Thursday, following a Wednesday session that produced no progress. Negotiations are continuing, and both sides have set a goal of reaching a deal by week’s end, even if that increasingly appears to be out of reach.

Richardson said the possibility of President Donald Trump using his executive authority to extend coronavirus relief if Congress fails to reach a deal may have helped lift the market Thursday.

Despite the market’s gains, slightly more stocks fell in the S&P 500 than rose, with the health care sector the heaviest weight on the index. Becton Dickinson sank 8.4% after it gave a forecast for earnings this fiscal year that fell short of analysts’ expectations.

Western Digital, which makes hard disks and other storage for electronics, slumped 16.1% for the largest loss in the S&P 500 after it gave a profit forecast for the current quarter that wasn’t as strong as Wall Street’s.

More gains for Apple helped to lift the market. The iPhone maker reported blowout profits for the spring a week ago, and its stock has climbed every day since then. The gains have been so strong that it may become the country’s first company to be worth $2 trillion. After rising 3.5% Thursday, it’s at roughly $1.93 trillion.

Sealed Air, the company behind Bubble Wrap and Cryovac packaging, rose 8.8% for one of the biggest gains in the S&P 500 after it reported stronger earnings for the latest quarter than analysts forecast. It also gave a better-than-expected estimate for earnings this year.

The yield on the 10-year Treasury dipped to 0.53% from 0.54% late Wednesday. It pared a steeper drop from the morning, but it remains very low amid worries about the economy and as the Federal Reserve has pinned short-term rates at nearly zero.

Some analysts have been concerned about the wide disconnect between the bond market, which is still showing so much caution, and the stock market, which has rallied back toward record heights. Even though the stock market is not the economy — it’s increasingly dominated by a handful of Big Tech companies that can profit even during a pandemic, and profit is what drives stock prices in the long run — critics say the degree of the gap between them is concerning.

Gold also continued its record run as investors looked for safety. Gold for delivery in December rose $20.10 to settle at $2,069.40 per ounce.

Benchmark U.S. crude oil slipped 24 cents to settle at $41.95 per barrel. Brent crude, the international standard, fell 8 cents to $45.09 a barrel.

In European stocks markets, Germany’s DAX lost 0.5%, and France’s CAC 40 fell 1%. The FTSE 100 in London dropped 1.3%.

Asian markets were mixed. Japan’s Nikkei 225 slipped 0.4%, but South Korea’s Kospi rose 1.3%. The Hang Seng in Hong Kong lost 0.7%, but stocks in Shanghai added 0.3%.

 

[bigdog]

Wall Street’s big rally let off the accelerator on Friday, despite a better-than-expected report on the U.S. job market, amid worries about worsening U.S.-China tensions and whether Washington can deliver more aid for the economy.

The S&P 500 inched up 2.12 points, or 0.1%, to 3,351.28 to eke out a sixth straight gain, after being down most of the day. It's back within 1% of its record for the first time since February. The Dow Jones Industrial Average added 46.50, or 0.2%, to 27,433.48.

Technology stocks fell, though, on worries that China could retaliate for President Donald Trump’s latest escalation against Chinese tech companies. The Nasdaq composite dropped 97.09, or 0.9%, to 11,010.98 after setting a record Thursday. It’s a rare stumble for big tech stocks, which have soared on expectations they can keep raking in profits regardless of the pandemic.

“The Chinese aren’t going to take this lightly,” said Quincy Krosby, chief market strategist at Prudential Financial. “They’ve already suggested they might take it to court. The point is the market is projecting we’re going to see a ratcheting up of tensions between the U.S. and China, and it could focus on technology.”

The day’s headline economic report was an encouraging one for investors: Employers added nearly 1.8 million jobs last month, about 185,000 more than economists had forecast. Analysts said they found some encouraging trends throughout the report, such as a stronger-than-expected rise in average hourly earnings.

“Yes, future employment data will likely slow due to more COVID-19 restrictions, but for now you have to be quite impressed with how far we’ve come the last few months,” Ryan Detrick, chief investment strategist for LPL Financial, said in a statement.

Several areas of the market that tend to rise when investor upgrade their expectations for the economy rallied.

Stocks of smaller companies climbed more than their bigger rivals, and the Russell 2000 index of small-cap stocks jumped 24.56, or 1.6%, to 1,569.18. Treasury yields also rose. Financial stocks, which have swung sharply with prospects for the economy and interest rates, had the biggest gain of the 11 sectors that make up the S&P 500. Seven out of 10 stocks within the index rose for the day.

Still, the jobs report also showed that hiring slowed in July after two months of acceleration, and the job market remains far below where it was before the pandemic.

Analysts said the better-than-expected jobs report may also have removed some of the urgency from talks on Capitol Hill, where Congress and White House officials have been negotiating on a hoped-for deal on more aid for the economy. They had set an informal Friday deadline to reach the outlines of an agreement, including benefits for unemployed workers, and Treasury Secretary Steven Mnuchin came out of talks Friday saying no progress was made.

https://www.usnews.com/news/busines...-skid-amid-virus-woes-china-us-trade-tensions

S&P 500 Ekes Out 6th Straight Gain Following Jobs Report
Wall Street’s big rally let off the accelerator on Friday, despite a better-than-expected report on the U.S. job market, amid worries about worsening U.S.-China tensions and whether Washington can deliver more aid for the economy.
By Associated Press, Wire Service Content Aug. 7, 2020, at 5:31 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Wall Street’s big rally let off the accelerator on Friday, despite a better-than-expected report on the U.S. job market, amid worries about worsening U.S.-China tensions and whether Washington can deliver more aid for the economy.

The S&P 500 inched up 2.12 points, or 0.1%, to 3,351.28 to eke out a sixth straight gain, after being down most of the day. It's back within 1% of its record for the first time since February. The Dow Jones Industrial Average added 46.50, or 0.2%, to 27,433.48.

Technology stocks fell, though, on worries that China could retaliate for President Donald Trump’s latest escalation against Chinese tech companies. The Nasdaq composite dropped 97.09, or 0.9%, to 11,010.98 after setting a record Thursday. It’s a rare stumble for big tech stocks, which have soared on expectations they can keep raking in profits regardless of the pandemic.

“The Chinese aren’t going to take this lightly,” said Quincy Krosby, chief market strategist at Prudential Financial. “They’ve already suggested they might take it to court. The point is the market is projecting we’re going to see a ratcheting up of tensions between the U.S. and China, and it could focus on technology.”

The day’s headline economic report was an encouraging one for investors: Employers added nearly 1.8 million jobs last month, about 185,000 more than economists had forecast. Analysts said they found some encouraging trends throughout the report, such as a stronger-than-expected rise in average hourly earnings.

“Yes, future employment data will likely slow due to more COVID-19 restrictions, but for now you have to be quite impressed with how far we’ve come the last few months,” Ryan Detrick, chief investment strategist for LPL Financial, said in a statement.

Several areas of the market that tend to rise when investor upgrade their expectations for the economy rallied.

Stocks of smaller companies climbed more than their bigger rivals, and the Russell 2000 index of small-cap stocks jumped 24.56, or 1.6%, to 1,569.18. Treasury yields also rose. Financial stocks, which have swung sharply with prospects for the economy and interest rates, had the biggest gain of the 11 sectors that make up the S&P 500. Seven out of 10 stocks within the index rose for the day.

Still, the jobs report also showed that hiring slowed in July after two months of acceleration, and the job market remains far below where it was before the pandemic.

Analysts said the better-than-expected jobs report may also have removed some of the urgency from talks on Capitol Hill, where Congress and White House officials have been negotiating on a hoped-for deal on more aid for the economy. They had set an informal Friday deadline to reach the outlines of an agreement, including benefits for unemployed workers, and Treasury Secretary Steven Mnuchin came out of talks Friday saying no progress was made.

Mnuchin said Trump is considering executive orders to address some of the issues without Congress, but critics question how much impact they would have.

Investors say Washington needs to act quickly because $600 in weekly unemployment benefits from the federal government just expired. The economy has shown signs of improvement since the spring but is still hobbling, and concerns are rising that it could backtrack amid a resurgence in coronavirus counts.

“The market clearly believes that a package is necessary to cushion the downside of the pandemic-induced slowdown in the economy,” Prudential Financial’s Krosby said. And even though last month's jobs gains were bigger than expected, “it still suggests there’s a long way to go to heal the labor market.”

The market also focused on Trump's order for a sweeping but vague ban on dealings with the Chinese owners of popular social media apps TikTok and WeChat on security grounds.

China’s government criticized the move as “political manipulation.”

Tensions between the world’s two largest economies have been escalating for years, highlighted by the U.S.-China trade war that seemed to have reached at least a temporary truce early this year. But tough talk has continued to flow, with Trump keying in on TikTok in particular recently.

The escalating U.S.-China tensions helped send tech stocks in the S&P 500 down 1.6% Friday, more than quintuple the loss of any of the other 10 sectors that make up the index.

Even Apple, whose stock has been nearly unstoppable through the pandemic, slumped. It fell 2.3% for its first drop in eight days.

The yield on the 10-year Treasury rose to 0.56% from 0.53% late Thursday.

Gold slipped, a rare step back following its record-setting run as investors seek safety amid a weak global economy, trade tensions and low interest rates. An ounce of gold to be delivered in December lost $41.40 to settle at $2,028.00.

Benchmark U.S. crude fell 73 cents to settle at $41.22 per barrel. Brent crude, the international standard, lost 69 cents to $44.40 a barrel.

In China, stocks in Shanghai lost 1%. The Hang Seng in Hong Kong dropped 1.6%, while Japan’s Nikkei 225 slipped 0.4% and South Korea’s Kospi added 0.4%.

In Europe, Germany’s DAX returned 0.7%, and France’s CAC 40 rose 0.1%. The FTSE 100 in London added 0.1%.

2143

 

[bigdog]

ASX 200 expected to charge higher.
The ASX 200 looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points or 0.7% higher on Monday. This is despite it being a reasonably subdued finish to the week on Wall Street. On Friday the Dow Jones rose 0.2%, the S&P 500 edged slightly higher, and the Nasdaq index fell 0.9%.

 

[bigdog]

U.S. stock indexes closed mostly higher Monday, nudging the S&P 500 within striking distance of its all-time high set in February.

The S&P 500 rose 0.3% after wavering between small gains and losses in the early going. The benchmark index is now within 1% of its last record high.

The gains came on the first trading day since President Donald Trump announced several stopgap moves to aid the economy in response to the collapse of talks on Capitol Hill for a bigger rescue package.

Trump signed executive orders over the weekend to extend an expired benefit for unemployed workers, among other things. The orders were more limited than what investors hoped to see from a full rescue bill for the economy, but hopes remain that the White House and Congress can return to talks and find a compromise.

The S&P 500 gained 9.19 points to 3,360.47. The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27,791.44. The Nasdaq composite lost 42.63 points, or 0.4%, to 10,968.36.

Most stocks across Wall Street rose, with hotels, cruise operators and airlines — among the hardest-hit companies due to the pandemic — seeing the biggest gains. Smaller stocks also had a strong showing, pushing the Russell 2000 index up 15.49 points, or 1%, to 1,584.67. Losses in technology, health care and communication services stocks, which have been among the biggest gainers this year, kept the market's gains in check.

“The more economically sensitive stocks are driving the market higher,” said Brent Schutte, chief investment strategist of Northwestern Mutual Wealth Management. “The rest of the market today and over the past few days is doing better.”

MGM Resorts International jumped 13.8% for the biggest gain in the S&P 500 after IAC disclosed that it had built a roughly $1 billion stake in the company. Like other businesses that depend on people feeling safe enough to travel, MGM Resorts has been pummeled by the pandemic, and its shares more than halved in March alone. Barry Diller, IAC’s chairman, called it a “once in a decade” opportunity, citing its potential to move business online.

But losses for technology stocks weighed on the market. It's a continuation of their struggles from Friday, when worries rose that worsening U.S.-China relations could mean retaliations against the U.S. tech industry. It's a relatively rare setback for the industry, which has been the year’s biggest winner so far and cruised through much of the pandemic. Critics had already been calling tech stocks overpriced, even after accounting for their huge and resilient profits.

The S&P 500 extended its winning streak to seven days, its longest since the spring of 2019. The benchmark index has nearly reached the record high it set in February, before the pandemic pancaked the economy into recession. It had been down nearly 34% in March.

ASX 200 expected to edge higher.
The ASX 200 is poised to edge higher on Tuesday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set to open the day 1 point higher. Over in the United States, the Dow Jones jumped 1.3%, the S&P 500 rose 0.3%, and the Nasdaq index fell 0.4%.

https://www.usnews.com/news/busines...res-mostly-higher-on-stimulus-moves-jobs-data

Stocks Rise on Wall Street; S&P 500 Within 1% of Record
Stocks closed mostly higher on Wall Street after shrugging off a bumpy start Monday, nudging the S&P 500 within striking distance of its all-time high set in February.
By Associated Press, Wire Service Content Aug. 10, 2020, at 5:07 p.m.

By STAN CHOE, ALEX VEIGA and DAMIAN J. TROISE, AP Business Writers

U.S. stock indexes closed mostly higher Monday, nudging the S&P 500 within striking distance of its all-time high set in February.

The S&P 500 rose 0.3% after wavering between small gains and losses in the early going. The benchmark index is now within 1% of its last record high.

The gains came on the first trading day since President Donald Trump announced several stopgap moves to aid the economy in response to the collapse of talks on Capitol Hill for a bigger rescue package.

Trump signed executive orders over the weekend to extend an expired benefit for unemployed workers, among other things. The orders were more limited than what investors hoped to see from a full rescue bill for the economy, but hopes remain that the White House and Congress can return to talks and find a compromise.

The S&P 500 gained 9.19 points to 3,360.47. The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27,791.44. The Nasdaq composite lost 42.63 points, or 0.4%, to 10,968.36.

Most stocks across Wall Street rose, with hotels, cruise operators and airlines — among the hardest-hit companies due to the pandemic — seeing the biggest gains. Smaller stocks also had a strong showing, pushing the Russell 2000 index up 15.49 points, or 1%, to 1,584.67. Losses in technology, health care and communication services stocks, which have been among the biggest gainers this year, kept the market's gains in check.

“The more economically sensitive stocks are driving the market higher,” said Brent Schutte, chief investment strategist of Northwestern Mutual Wealth Management. “The rest of the market today and over the past few days is doing better.”

MGM Resorts International jumped 13.8% for the biggest gain in the S&P 500 after IAC disclosed that it had built a roughly $1 billion stake in the company. Like other businesses that depend on people feeling safe enough to travel, MGM Resorts has been pummeled by the pandemic, and its shares more than halved in March alone. Barry Diller, IAC’s chairman, called it a “once in a decade” opportunity, citing its potential to move business online.

But losses for technology stocks weighed on the market. It's a continuation of their struggles from Friday, when worries rose that worsening U.S.-China relations could mean retaliations against the U.S. tech industry. It's a relatively rare setback for the industry, which has been the year’s biggest winner so far and cruised through much of the pandemic. Critics had already been calling tech stocks overpriced, even after accounting for their huge and resilient profits.

The S&P 500 extended its winning streak to seven days, its longest since the spring of 2019. The benchmark index has nearly reached the record high it set in February, before the pandemic pancaked the economy into recession. It had been down nearly 34% in March.

Investors have been saying the economy needs another big lifeline from Washington, and quickly, after $600 in weekly unemployment benefits for workers from the federal government expired with July's end. But talks broke apart on Friday, and Trump issued his executive orders on Saturday. Both the White House and congressional Democrats indicated Sunday they wanted to resume negotiations, but no talks were scheduled.

Almost immediately after Trump signed the orders, critics said the moves did not go far enough to support the economy and questioned how they would work.

The economy has shown some signs of improvement since the spring but it is still struggling. Friday's jobs report showed a larger-than-expected increase in hiring across the economy during July, but also a slowdown in job growth amid worries that a resurgence in coronavirus infections could force the economy to backtrack.

The impasse on Capitol Hill is just one of several big forces pushing on markets, not even including the rising number of coronavirus counts around the world.

Rising toward the top of the list in recent weeks has been growing antagonism between the United States and China, the world’s largest economies. The latest move in their escalating tensions was China’s announcement of unspecified sanctions against 11 U.S. politicians and heads of organizations promoting democratic causes, including Senators Marco Rubio and Ted Cruz.

The two sides are scheduled to hold trade talks at the end of the week.

Chinese stocks rose earlier in the morning, along with many other markets around the world.

Stocks in Shanghai climbed 0.8%, and South Korea's Kospi added 1.5%. The Hang Seng in Hong Kong, though, dipped 0.6% after the authorities arrested pro-democracy media tycoon Jimmy Lai and some of his associates on suspicion of collusion with foreign powers.

In Europe, Germany's DAX returned 0.1%, and France's CAC 40 gained 0.4%. The FTSE 100 in London added 0.3%.

The yield on the 10-year Treasury rose to 0.58% from 0.56% late Friday.

Benchmark U.S. crude oil for September delivery rose 72 cents to settle at $41.94 a barrel. Brent crude oil for October delivery rose 59 cents to $44.99 a barrel.

Gold added 0.6% to $2,039.70 per ounce.

 

[bigdog]

Wall Street pumped the brakes on its recent rally Tuesday, as a late slide in big technology companies left stocks broadly lower, erasing an early gain.

The reversal left the S&P 500 with a 0.8% loss after having been up 0.6% earlier. The decline in big-name technology stocks like Apple and Microsoft, plus losses in health care and communications stocks, outweighed gains in financial, industrial and energy companies. Tech stocks have far outpaced the rest of the market this year as investors bet they could still thrive in a stay-at-home economy.

The pullback ended the S&P 500′s seven-day winning streak. Despite the sell-off, the benchmark index remains within 2% of the all-time high it reached in February, reflecting a stunning turnaround from a nearly 34% tumble in March when the coronavirus pandemic sent stocks into a nosedive.

Investors have grown more confident in recent weeks amid some positive economic data and better-than-expected second-quarter results from companies, suggesting corporate profits could be headed higher in the second half of this year and in 2021. Traders are also increasingly optimistic that the many pharmaceutical companies working on ways to treat COVID-19 will deliver a working vaccine in the coming months.

“What is a risk worth taking is the assumption that a vaccine will be made available around year-end, and that this vaccine will help eliminate the virus in the coming year,” said Sam Stovall, chief investment strategist at CFRA Research.

The S&P 500 fell 26.78 points to 3,333.69. The Dow Jones Industrial Average dropped 104.53 points, or 0.4%, to 27,686.91. The Nasdaq composite lost 185.53 points, or 1.7%, to 10,782.82. The Russell 2000 index of small company stocks gave up 9.57 points, or 0.6%, to 1,575.10.

European and Asian markets closed broadly higher. Treasury yields rose, a sign that pessimism about the economy is easing. Oil prices fell.

The stock market is on pace for its fifth month of gains in a row, even as the broader U.S. economy continues to struggle. While there have been some positive signs, including a larger-than-expected increase in hiring in July, the economy remains hobbled by high unemployment and an uneven reopening by businesses as the number of new confirmed coronavirus cases has increased in recent weeks. The outlook for a full economic recovery is clouded by worries that the resurgence in infections could force the economy to backtrack.

Unprecedented actions by the Federal Reserve to stabilize markets this spring, including lowering interest rates and ramping up bond purchases, have made stocks attractive relative to other assets and given traders enough confidence to keep snapping up stocks.

ASX 200 expected to edge higher.
It could be another positive day for the ASX 200 on Wednesday, despite a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set rise 5 points or 0.1% at the open. On Wall Street, the major indices gave back their gains to end the day deep in the red. The Dow Jones fell 0.4%, the S&P 500 dropped 0.8%, and the Nasdaq index fell 1.7%.

https://apnews.com/f78de7f4ee05601d32d5c7ec53f83d00

Late drop leaves S&P 500 lower, breaking a 7-day win streak
By ALEX VEIGA and DAMIAN J. TROISE

Wall Street pumped the brakes on its recent rally Tuesday, as a late slide in big technology companies left stocks broadly lower, erasing an early gain.

The reversal left the S&P 500 with a 0.8% loss after having been up 0.6% earlier. The decline in big-name technology stocks like Apple and Microsoft, plus losses in health care and communications stocks, outweighed gains in financial, industrial and energy companies. Tech stocks have far outpaced the rest of the market this year as investors bet they could still thrive in a stay-at-home economy.

The pullback ended the S&P 500′s seven-day winning streak. Despite the sell-off, the benchmark index remains within 2% of the all-time high it reached in February, reflecting a stunning turnaround from a nearly 34% tumble in March when the coronavirus pandemic sent stocks into a nosedive.

Investors have grown more confident in recent weeks amid some positive economic data and better-than-expected second-quarter results from companies, suggesting corporate profits could be headed higher in the second half of this year and in 2021. Traders are also increasingly optimistic that the many pharmaceutical companies working on ways to treat COVID-19 will deliver a working vaccine in the coming months.

“What is a risk worth taking is the assumption that a vaccine will be made available around year-end, and that this vaccine will help eliminate the virus in the coming year,” said Sam Stovall, chief investment strategist at CFRA Research.

The S&P 500 fell 26.78 points to 3,333.69. The Dow Jones Industrial Average dropped 104.53 points, or 0.4%, to 27,686.91. The Nasdaq composite lost 185.53 points, or 1.7%, to 10,782.82. The Russell 2000 index of small company stocks gave up 9.57 points, or 0.6%, to 1,575.10.

European and Asian markets closed broadly higher. Treasury yields rose, a sign that pessimism about the economy is easing. Oil prices fell.

The stock market is on pace for its fifth month of gains in a row, even as the broader U.S. economy continues to struggle. While there have been some positive signs, including a larger-than-expected increase in hiring in July, the economy remains hobbled by high unemployment and an uneven reopening by businesses as the number of new confirmed coronavirus cases has increased in recent weeks. The outlook for a full economic recovery is clouded by worries that the resurgence in infections could force the economy to backtrack.

Unprecedented actions by the Federal Reserve to stabilize markets this spring, including lowering interest rates and ramping up bond purchases, have made stocks attractive relative to other assets and given traders enough confidence to keep snapping up stocks.

Meanwhile, investors continue to keep an eye on Washington for a fresh lifeline for the U.S. economy. On Saturday, Trump issued executive orders to extend an expired benefit for unemployed workers, among other things, in response to a collapse of negotiations on Capitol Hill for another economic rescue bill. Critics said the moves did not go far enough to support the economy and questioned how they would work.

While talks between Democrats and Republicans on a new economic relief package appear to have stalled, investors are still optimistic both sides will reach an agreement.

“The markets do show that they believe something is going to get passed,” said Tom Martin, senior portfolio manager at Globalt Investments.

Traders also have been grappling with uncertainty over widening antagonisms between the United States and China, the world’s largest economies. The two sides are scheduled to hold virtual trade talks at the end of the week.

The yield on the 10-year Treasury rose to 0.64% from 0.57% late Monday, a big move.

Oil prices closed lower after being up earlier. Benchmark U.S. crude oil for September delivery fell 0.8% to settle at $41.61 per barrel. Brent crude oil for October delivery fell 1.1% to settle at $44.50 per barrel.

 

[bigdog]

Stocks marched broadly higher on Wall Street Wednesday, briefly nudging the S&P 500 above its all-time closing high set in February, before the coronavirus pandemic led to a historic market plunge.

The benchmark index notched a 1.4% gain, its eighth in nine days. It ended within 0.2% of its record high from Feb. 19, before the coronavirus prompted the sudden shutdown of much of the economy.

Big technology stocks led the way higher once again. Health care and communication services stocks also had a strong showing. The rally followed gains for stocks across Europe and much of Asia, while Treasury yields continued their sharp increase after a report on inflation came in higher than expected for the second straight day.

The S&P 500 rose 46.66 points to 3,380.35. The Dow Jones Industrial Average gained 289.93 points, or 1%, to 27,976.84. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 229.42 points, or 2.1%, to 11,012.24. The Russell 2000 index of small company stocks picked up 8.15 points, or 0.5%, to 1,583.25.

Indexes in Europe closed broadly higher. Asian markets were mixed.

The U.S. stock market is on the edge of erasing the last of the losses taken after the coronavirus pandemic crushed the economy into recession, even though the economy is still hobbling despite some recent improvements. In March, the S&P 500 had been down nearly 34% from its record.

Much of the rebound has been due to massive amounts of support from the Federal Reserve, which has slashed interest rates to nearly zero and propped up far-ranging corners of the bond market to keep the economy’s head above water. The ultra-low interest rates mean investors are getting paid very little to own bonds, which pushes some into stocks, boosting their prices.

Congress has also offered unprecedented amounts of aid, though it’s hit a seeming impasse in negotiations to re-up its assistance.

All that support has investors willing to look a few months or a year into the future, when a vaccine for the new coronavirus will hopefully be available and helping the economy get back to normal. More importantly for stock prices, the expectation is that corporate profits will also rebound from their current coronavirus-caused hole.

“Economic data is coming in much better than expected; the earnings season is much better than expected,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “You couple all of those things with the massive amounts of fiscal and monetary stimulus taking place. That’s why we’ve seen the (market) rally so quickly off its low and at the magnitude that we’ve seen.”

Wall Street’s gains on Wednesday were widespread, with two-thirds of the stocks in the S&P 500 higher.

Technology stocks were among the biggest forces prodding the market higher. It’s a return to form for them, following a mini-stumble in recent days.

ASX 200 expected to jump.
The ASX 200 looks set to jump higher on Thursday after a very positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set rise 43 points or 0.7% at the open. In the United States the Dow Jones rose 1.05%, the S&P 500 climbed 1.4%, and the Nasdaq index stormed 2.1% higher.

https://www.usnews.com/news/busines...ly-lower-in-asia-after-retreat-on-wall-street

Stocks Rebound on Wall Street, S&P 500 Trades Above Record
The S&P 500 briefly traded above its record closing high Wednesday, nearly erasing the last of the historic losses it took due to the coronavirus pandemic.
By Associated Press, Wire Service Content Aug. 12, 2020, at 5:53 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Stocks marched broadly higher on Wall Street Wednesday, briefly nudging the S&P 500 above its all-time closing high set in February, before the coronavirus pandemic led to a historic market plunge.

The benchmark index notched a 1.4% gain, its eighth in nine days. It ended within 0.2% of its record high from Feb. 19, before the coronavirus prompted the sudden shutdown of much of the economy.

Big technology stocks led the way higher once again. Health care and communication services stocks also had a strong showing. The rally followed gains for stocks across Europe and much of Asia, while Treasury yields continued their sharp increase after a report on inflation came in higher than expected for the second straight day.

The S&P 500 rose 46.66 points to 3,380.35. The Dow Jones Industrial Average gained 289.93 points, or 1%, to 27,976.84. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 229.42 points, or 2.1%, to 11,012.24. The Russell 2000 index of small company stocks picked up 8.15 points, or 0.5%, to 1,583.25.

Indexes in Europe closed broadly higher. Asian markets were mixed.

The U.S. stock market is on the edge of erasing the last of the losses taken after the coronavirus pandemic crushed the economy into recession, even though the economy is still hobbling despite some recent improvements. In March, the S&P 500 had been down nearly 34% from its record.

Much of the rebound has been due to massive amounts of support from the Federal Reserve, which has slashed interest rates to nearly zero and propped up far-ranging corners of the bond market to keep the economy’s head above water. The ultra-low interest rates mean investors are getting paid very little to own bonds, which pushes some into stocks, boosting their prices.

Congress has also offered unprecedented amounts of aid, though it’s hit a seeming impasse in negotiations to re-up its assistance.

All that support has investors willing to look a few months or a year into the future, when a vaccine for the new coronavirus will hopefully be available and helping the economy get back to normal. More importantly for stock prices, the expectation is that corporate profits will also rebound from their current coronavirus-caused hole.

“Economic data is coming in much better than expected; the earnings season is much better than expected,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “You couple all of those things with the massive amounts of fiscal and monetary stimulus taking place. That’s why we’ve seen the (market) rally so quickly off its low and at the magnitude that we’ve seen.”

Wall Street’s gains on Wednesday were widespread, with two-thirds of the stocks in the S&P 500 higher.

Technology stocks were among the biggest forces prodding the market higher. It’s a return to form for them, following a mini-stumble in recent days.

Big tech-oriented giants like Apple, Microsoft and Amazon have been the year’s biggest winners, carrying the stock market through the pandemic despite the worries about the economy, on expectations they’ll continue to deliver strong growth regardless of whether people are quarantined.

Tesla jumped another 13.1% Wednesday after announcing a 5-for-1 split of its stock, in hopes of making the price of each share more affordable to investors. The stock has surged past $1,400 after starting the year a little below $420.

The yield on the 10-year Treasury rose to 0.67% from 0.66% late Tuesday. It's jumped sharply since sitting at 0.57% late Monday.

A report on Wednesday showed that inflation remains very low, but it ticked up more last month than economists expected. Economists debated how much value the report has, given that inflation is likely to remain weak with the pandemic flattening the economy.

If inflation were to reappear, it could weaken the Federal Reserve's commitment to keeping interest rates low and could ultimately draw some investors away from stocks.

Other risks also continue to loom over the market, including worsening tensions between the United States and China, which are the world's largest economies. Technology companies have been in focus in particular, and worries about potential retaliation by China were a big reason for U.S. tech stocks' struggles earlier in the week.

Partisan rancor in Washington is also threatening the possibility of more assistance for the economy. A $600 weekly unemployment benefit from the U.S. government expired at the end of July, and investors say the economy needs another big lifeline from Washington. President Donald Trump signed several executive orders this past weekend to offer some assistance, but critics say they fall well short of what’s needed.

The recent rise in yields has also slowed the supersonic ascent for gold recently. The metal's price has shot to record highs this year, benefiting from increased demand by investors looking for safety amid the pandemic but not interested in the low yields offered by bonds.

Gold for December delivery rose $2.70 to $1,949.00 an ounce a day after plunging by more than $90 an ounce.

Oil prices rose. Benchmark U.S. crude oil for September delivery rose $1.06 to settle at $42.67 a barrel Wednesday. Brent crude oil for October delivery rose 93 cents to $45.43 a barrel.

 

[bigdog]

Another afternoon fade for stocks left Wall Street just shy of a record on Thursday, after the S&P 500 briefly crossed above its all-time closing high for the second straight day.

The S&P 500 dipped 6.92 points, or 0.2%, to 3,373.43. At one point during the day, it climbed above 3,386.15. That’s the record closing level it set in February, before investors appreciated how much devastation the new coronavirus would cause for the global economy.

The Dow Jones Industrial Average dipped 80.12, or 0.3%, to 27,896.72. The Nasdaq composite climbed 30.27, or 0.3%, to 11,042.50.

It’s just the second loss for the S&P 500 in the last 10 days. The index began stumbling in the early afternoon, as Treasury yields were accelerating following an auction of 30-year bonds by the U.S. government. Higher yields mean prices for bonds were falling.

“We saw a sell-off in bonds, and that led to a little bit of weakness in stocks,” said JJ Kinahan, chief strategist at TD Ameritrade. “It’s not a terrible day by any stretch of the imagination, but it’s also a summer day,” which are traditionally slow for markets.

Yields had already perked up before the auction, following a report showing that 963,000 U.S. workers filed for unemployment benefits last week. It’s an incredibly high number of layoffs, but it’s also the first time the tally has dropped below 1 million since March, before widespread business lockdowns caused a tsunami of layoffs.

Economists said the drop in jobless claims, which was better than the market was expecting, is an encouraging step. But they also cautioned that it could be more of an outlier than a trend, and more data reports are needed to confirm it.

The yield on the 10-year Treasury climbed to 0.71%. It was at 0.57% just on Monday.

Wall Street has erased almost all of the nearly 34% drop the S&P 500 suffered from late February into March, even though the economy is still hobbled despite some recent improvements.

Massive efforts to support the economy by the Federal Reserve and U.S. government helped trigger the rally, and investors are now waiting for Congress and the White House to deliver another round of aid after unemployment benefits and other measures in the last tranche expired.

ASX 200 expected to edge lower.
The ASX 200 looks set to edge lower this morning after a disappointing night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set to edge a single point lower at the open. In the United States the Dow Jones fell 0.3%, the S&P 500 dropped 0.2%, and the Nasdaq index rose 0.3% higher.

https://www.usnews.com/news/busines...-mixed-led-by-tokyo-gains-after-wall-st-rally

Wall Street Falls Just Short of Record for S&P 500, Again
Another afternoon fade for stocks left Wall Street just shy of its record heights on Thursday.
By Associated Press, Wire Service Content Aug. 13, 2020, at 5:09 p.m.

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writer

NEW YORK (AP) — Another afternoon fade for stocks left Wall Street just shy of a record on Thursday, after the S&P 500 briefly crossed above its all-time closing high for the second straight day.

The S&P 500 dipped 6.92 points, or 0.2%, to 3,373.43. At one point during the day, it climbed above 3,386.15. That’s the record closing level it set in February, before investors appreciated how much devastation the new coronavirus would cause for the global economy.

The Dow Jones Industrial Average dipped 80.12, or 0.3%, to 27,896.72. The Nasdaq composite climbed 30.27, or 0.3%, to 11,042.50.

It’s just the second loss for the S&P 500 in the last 10 days. The index began stumbling in the early afternoon, as Treasury yields were accelerating following an auction of 30-year bonds by the U.S. government. Higher yields mean prices for bonds were falling.

“We saw a sell-off in bonds, and that led to a little bit of weakness in stocks,” said JJ Kinahan, chief strategist at TD Ameritrade. “It’s not a terrible day by any stretch of the imagination, but it’s also a summer day,” which are traditionally slow for markets.

Yields had already perked up before the auction, following a report showing that 963,000 U.S. workers filed for unemployment benefits last week. It’s an incredibly high number of layoffs, but it’s also the first time the tally has dropped below 1 million since March, before widespread business lockdowns caused a tsunami of layoffs.

Economists said the drop in jobless claims, which was better than the market was expecting, is an encouraging step. But they also cautioned that it could be more of an outlier than a trend, and more data reports are needed to confirm it.

The yield on the 10-year Treasury climbed to 0.71%. It was at 0.57% just on Monday.

Wall Street has erased almost all of the nearly 34% drop the S&P 500 suffered from late February into March, even though the economy is still hobbled despite some recent improvements.

Massive efforts to support the economy by the Federal Reserve and U.S. government helped trigger the rally, and investors are now waiting for Congress and the White House to deliver another round of aid after unemployment benefits and other measures in the last tranche expired.

Democrats and Republicans are still far apart, but hope remains on Wall Street that they’ll reach a deal on stimulus that investors say is crucially needed.

“The news out of D.C. has really been shrugged off by the market,” said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management.

He said investors have also gained more confidence about a broader economic recovery as data reports continue to show steady improvements.

“There’s still a lot of weakness, but various parts of the data are showing improvement,” he said. “There’s a moderation, but not a reversal.”

Most stocks in the S&P 500 and across Wall Street were weaker on Thursday. Energy producers had some of the sharpest losses, but resilience for Apple and several other Big Tech stocks helped to keep the losses in check.

“The pause in stocks right now is more related to the fact that the S&P 500 is essentially battling with an all-time high right now,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “There’s a huge level of (technical) resistance.”

He said it’s similar to how the market scuffled for several weeks until late July, when it turned positive for 2020 again.

Cisco Systems slumped 11.2% for the biggest loss in the S&P 500, even though it reported better results for its latest quarter than Wall Street expected. It gave a forecast for the current quarter that fell short of analysts’ forecasts.

In Asian stock markets, Japan’s benchmark Nikkei 225 jumped 1.8%, South Korea’s Kospi gained 0.2% and Hong Kong’s Hang Seng slipped 0.1%. Stocks in Shanghai were virtually flat.

In European markets, Germany’s DAX lost 0.5%, and France’s CAC 40 fell 0.6%. The FTSE 100 in London dropped 1.5%.

Benchmark U.S. crude fell 43 cents to settle at $42.24 per barrel. Brent crude, the international standard, fell 47 cents to $44.96 a barrel.

Gold for delivery in December rose $21.40 to settle at $1,970.40 per ounce.

 

[bigdog]

Stock indexes barely budged on Wall Street Friday, leaving the S&P 500 just shy of its record once again.

The S&P 500 edged down 0.58, or less than 0.1%, to 3,372.85 after drifting between small gains and losses throughout the day. They’re the latest meandering moves for the market, which has taken a pause after erasing almost all of the steep losses caused by the coronavirus pandemic.

In each of the prior two days, the S&P 500 made a brief run above its record closing high, which was set in February, only to fade in the afternoon. It remains within 0.4% of its record.

Wall Street was nearly evenly split between stocks that rose and fell, and the moves were almost uniformly modest. The Dow Jones Industrial Average inched up 34.30 points, or 0.1%, to 27,931.02, while the Nasdaq composite dipped 23.20, or 0.2%, to 11,019.30.

Consumer spending is the main locomotive for the U.S. economy, and a report on Friday showed some more improvements for U.S. retailers, though less than economists expected.

Sales at grocery stores, gas stations and other retailers rose 1.2% last month from June. It’s the third straight month of gains, following a historic plunge in the spring, but it marked a sharp slowdown from June's 8.4% growth. It also fell short of the 2% growth that economists were expecting.

The report showed that the economy is now “more in a gentle phase of recovery," said Mike Zigmont, director of trading and research at Harvest Volatility Management.

“It’s positive, but it’s not as ballistic as it was before,” he said.

Economists say consumer spending could be under more pressure following the expiration of U.S. government programs to aid the economy, including $600 in extra unemployment benefits each week. Investors say it’s crucial that Washington deliver another lifeline to the economy, and markets seem to be assuming a deal will happen.

But Democrats and Republicans say they remain far apart on a possible compromise.

“Congress has to follow up on the stimulus package because they essentially promised it,” Zigmont said.

https://www.usnews.com/news/busines...ixed-on-weak-china-data-worries-over-pandemic

Stocks Barely Budge on Wall Street; S&P 500 Just Shy of High
Major stock indexes on Wall Street ended Friday more or less where they started after a day of drifting between small gains and losses.
By Associated Press, Wire Service Content Aug. 14, 2020, at 5:04 p.m.

By STAN CHOE and DAMIAN J. TROISE, AP Business Writers

NEW YORK (AP) — Stock indexes barely budged on Wall Street Friday, leaving the S&P 500 just shy of its record once again.

The S&P 500 edged down 0.58, or less than 0.1%, to 3,372.85 after drifting between small gains and losses throughout the day. They’re the latest meandering moves for the market, which has taken a pause after erasing almost all of the steep losses caused by the coronavirus pandemic.

In each of the prior two days, the S&P 500 made a brief run above its record closing high, which was set in February, only to fade in the afternoon. It remains within 0.4% of its record.

Wall Street was nearly evenly split between stocks that rose and fell, and the moves were almost uniformly modest. The Dow Jones Industrial Average inched up 34.30 points, or 0.1%, to 27,931.02, while the Nasdaq composite dipped 23.20, or 0.2%, to 11,019.30.

Consumer spending is the main locomotive for the U.S. economy, and a report on Friday showed some more improvements for U.S. retailers, though less than economists expected.

Sales at grocery stores, gas stations and other retailers rose 1.2% last month from June. It’s the third straight month of gains, following a historic plunge in the spring, but it marked a sharp slowdown from June's 8.4% growth. It also fell short of the 2% growth that economists were expecting.

The report showed that the economy is now “more in a gentle phase of recovery," said Mike Zigmont, director of trading and research at Harvest Volatility Management.

“It’s positive, but it’s not as ballistic as it was before,” he said.

Economists say consumer spending could be under more pressure following the expiration of U.S. government programs to aid the economy, including $600 in extra unemployment benefits each week. Investors say it’s crucial that Washington deliver another lifeline to the economy, and markets seem to be assuming a deal will happen.

But Democrats and Republicans say they remain far apart on a possible compromise.

“Congress has to follow up on the stimulus package because they essentially promised it,” Zigmont said.

“Main Street America is counting on it,” he said. “You can’t pull the rug out from under the world.”

The day's trading was notably quiet, with only a few stocks in the S&P 500 falling even 2%. Among the biggest gainers in the index was Applied Materials, which rose 3.9%. The tech company reported stronger results for the summer than analysts expected and also gave a better-than-expected forecast for the current quarter.

Outside the S&P 500, shares of German biopharmaceutical company CureVac more than tripled in their first day of trading. After selling shares at $16 in an initial public offering, the stock jumped to $55.90. The company, whose backers include the Bill & Melinda Gates Foundation and the German government, is developing a vaccine against COVID-19 and other medicines using messenger RNA.

Friday's drift for the S&P 500 left it with a gain of 0.6% for the week. It's the sixth rise in the last seven weeks for the index, but it's also the slowest in the last three.

Treasury yields also slowed their big jump from earlier in the week. The yield on the 10-year Treasury held steady at 0.71%. It had been at 0.57% just on Monday. It climbed through the week after a couple reports on inflation came in higher than expected and after the U.S. Treasury auctioned off more bonds to help cover the government’s huge deficit.

In Europe, stocks trended lower after Britain said it was imposing a 14-day quarantine on travelers from France, which said it would respond in kind. Tourism and travel stocks were hit particularly hard, such as budget airlines easyJet and IAG.

France’s CAC 40 dropped 1.6%, while Germany’s DAX lost 0.7%. The FTSE 100 in London fell 1.5%.

Asian markets were mixed after China reported its factory output rose 4.8% in July from a year earlier, on par with June’s increase. Retail sales fell 1.1%, as consumers remain cautious.

Japan’s benchmark Nikkei 225 gained 0.2%, and South Korea’s Kospi slipped 1.2%. Hong Kong’s Hang Seng dipped 0.2% after gyrating earlier in the day, while stocks in Shanghai gained 1.2%.

Benchmark U.S. crude oil slipped 23 cents to settle at $42.01 per barrel. Brent crude, the international standard, fell 16 cents to $44.80.

Gold for delivery in December fell $20.60 to settle at $1,949.80 per ounce.

2488

 

[bigdog]

ASX futures pointing lower.
The benchmark ASX 200 looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is poised to open the week 58 points or 0.95% lower on Monday. This follows a reasonably underwhelming finish to the week on Wall Street. On Friday the Dow Jones rose 0.1%, the S&P 500 was flat, and the Nasdaq index fell 0.2%.

 

[bigdog]

Wall Street nudged a bit higher on Monday, and the S&P 500 teased even closer to its record high.

The benchmark index rose 9.14 points, or 0.3%, to 3,381.99. Earlier in the day, it briefly crossed above its record closing level of 3,386.15, which was set on Feb. 19 before the pandemic shut down businesses worldwide and created the worst recession in decades. It’s the third time in the last four trading days the index has risen above that record, only to fade later in the day.

Most other U.S. stock indexes also made gains. The Nasdaq composite rose 110.42, or 1%, to 11,129.73, and the smaller stocks in the Russell 2000 index gained 7.59, or 0.5%, to 1,585.47.

The Dow Jones Industrial Average was an outlier and slipped 86.11, or 0.3%, to 27,844.91.

“It seems like a nothing day until you realize we’re sitting right on an all-time high for the S&P 500,” said Mark Hackett, chief of investment research at Nationwide.

The S&P 500 added onto its three-week rally, even though investors are still waiting for Congress to offer more aid to the economy. Investors say it’s crucial that the support comes, particularly after $600 in weekly unemployment benefits and other stimulus from the U.S. government expired.

Markets seem to be banking on Democrats and Republicans coming to a deal, even though both sides say they remain far apart. Without the lifeline, analysts say the economy won’t be able to make the recovery that investors have been assuming is on the way. And that assumption is a huge reason the stock market is as high as it is.

“Hence, another round of stimulus is the difference between ensuring that the economic recovery continues uninterrupted and a meaningful short-term pullback in growth,” Morgan Stanley strategist Michael Zezas wrote in a report.

Investors seem willing to wait for a deal, for now. But if it gets deep into September, and Democrats and Republicans still remain far apart in their negotiations on the size of the deal, Zezas said it may be too close to the election to get one done.

Wall Street was nearly evenly split between stocks rising and falling Monday, with tech stocks again helping to lead the way. They’ve been remarkably resilient through the pandemic as investors build up bets they can continue to grow as work-from-home and other trends accelerate.

Tech stocks across the S&P 500 climbed 0.5%, and they alone accounted for about two-thirds of the index’s gain. Nvidia jumped 6.7% for one of the biggest gains in the index, and Microsoft added 0.7%.

ASX 200 expected to rebound.
The benchmark ASX 200 looks set to rebound on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.55% higher this morning. This follows a positive start to the week on Wall Street, which saw the Dow Jones fall 0.2%, but the S&P 500 rise 0.3% and the Nasdaq jump 1%. The latter could be good news for locally listed tech shares which tend to follow its lead.

https://apnews.com/ff2d0a25cffc7361b19a3c63cc83a3b5

Gains for tech stocks nudge S&P 500 even closer to record
By STAN CHOE and DAMIAN J. TROISE

NEW YORK (AP) — Wall Street nudged a bit higher on Monday, and the S&P 500 teased even closer to its record high.

The benchmark index rose 9.14 points, or 0.3%, to 3,381.99. Earlier in the day, it briefly crossed above its record closing level of 3,386.15, which was set on Feb. 19 before the pandemic shut down businesses worldwide and created the worst recession in decades. It’s the third time in the last four trading days the index has risen above that record, only to fade later in the day.

Most other U.S. stock indexes also made gains. The Nasdaq composite rose 110.42, or 1%, to 11,129.73, and the smaller stocks in the Russell 2000 index gained 7.59, or 0.5%, to 1,585.47.

The Dow Jones Industrial Average was an outlier and slipped 86.11, or 0.3%, to 27,844.91.

“It seems like a nothing day until you realize we’re sitting right on an all-time high for the S&P 500,” said Mark Hackett, chief of investment research at Nationwide.

The S&P 500 added onto its three-week rally, even though investors are still waiting for Congress to offer more aid to the economy. Investors say it’s crucial that the support comes, particularly after $600 in weekly unemployment benefits and other stimulus from the U.S. government expired.

Markets seem to be banking on Democrats and Republicans coming to a deal, even though both sides say they remain far apart. Without the lifeline, analysts say the economy won’t be able to make the recovery that investors have been assuming is on the way. And that assumption is a huge reason the stock market is as high as it is.

“Hence, another round of stimulus is the difference between ensuring that the economic recovery continues uninterrupted and a meaningful short-term pullback in growth,” Morgan Stanley strategist Michael Zezas wrote in a report.

Investors seem willing to wait for a deal, for now. But if it gets deep into September, and Democrats and Republicans still remain far apart in their negotiations on the size of the deal, Zezas said it may be too close to the election to get one done.

Wall Street was nearly evenly split between stocks rising and falling Monday, with tech stocks again helping to lead the way. They’ve been remarkably resilient through the pandemic as investors build up bets they can continue to grow as work-from-home and other trends accelerate.

Tech stocks across the S&P 500 climbed 0.5%, and they alone accounted for about two-thirds of the index’s gain. Nvidia jumped 6.7% for one of the biggest gains in the index, and Microsoft added 0.7%.

But losses for financial and energy stocks helped restrain the market’s gains. These areas tend to rise and fall with expectations for the economy, and they had been showing a bit more life in recent weeks in an encouraging sign for market watchers.

Smaller stocks and transportation stocks have also been making gains recently, said Nationwide’s Hackett, who called it “good news for the sustainability of the rally.”

“It’s very hard for Microsoft, Amazon and Tesla to continue to do all the heavy lifting,” he said. “You’re going to need some help from others.”

Shares of several banks were under pressure Monday after Warren Buffett’s Berkshire Hathaway disclosed that it cut back its investments in them. Wells Fargo slumped 3.3% after the famed value investor trimmed Berkshire Hathaway’s ownership stake by about a quarter.

Treasury yields moderated a bit, following the big run for the 10-year yield last week. It dipped to 0.68% from 0.71% late Friday. It had zoomed upward from 0.56% through the week.

Higher yields can be an indication that investors are upgrading their expectations for inflation and the economy. But they can also pull some buyers away from stocks into bonds, hurting stock prices in the process.

European stock markets rose modestly. In Germany, the DAX returned 0.1%, and France’s CAC 40 added 0.2%. The FTSE 100 in London rose 0.6%.

In Asia, Japan’s Nikkei 225 fell 0.8% after data showed the world’s third-largest economy shrank at an annual rate of 27.8% in April-June, the worst contraction on record.

Hong Kong’s Hang Seng gained 0.7%, and stocks in Shanghai jumped 2.3% after analysts said actions by China’s central bank raised the possibility of more support ahead for the market.

Benchmark U.S. crude oil added 88 cents to settle at $42.89 per barrel. Brent crude, the international standard, rose 57 cents to $45.37 per barrel.

Gold for delivery in December climbed $48.90 to settle at $1,998.70 per ounce.

 

[bigdog]

Wall Street clawed back the last of the historic, frenzied losses unleashed by the new coronavirus, as the S&P 500 closed at an all-time high Tuesday.

The day’s move was a relatively mild one, nudging the index up 7.79 points, or 0.2%, to 3,389.78. That eclipses the S&P 500′s previous record closing high of 3,386.15, which was set Feb. 19, before the pandemic shut down businesses around the world and knocked economies into their worst recessions in decades.

The S&P 500′s milestone caps a furious, 51.5% rally that began in late March. The index, which is the benchmark for many stock funds at the heart of 401(k) plans, is now up nearly 5% for the year.

The stock market’s sprint back to an all-time high also means that the gut-wrenching, nearly 34% plunge for the S&P 500 from Feb. 19 through March 23 was the quickest bear market on record, clocking in at just one month. By comparison, it's taken the average bear market 19.6 months to bottom out, according to S&P Dow Jones Indices.

Tremendous amounts of aid from the Federal Reserve and Congress helped launch the rally, which built higher on signs of budding growth in the economy. More recently, blowout corporate profit reports from technology giants such as Apple and Microsoft and earnings from harder-hit industries that weren’t as bad as expected have helped boost stock prices.

The S&P 500 spent the past few days within striking distance of a new high, but fell short of the milestone until finally breaking through on Tuesday.

The Dow Jones Industrial Average fell 66.84 points, or 0.2%, to 27,778.07. It remains 6% below its record set in February. The Nasdaq composite had already returned to a record, thanks to huge gains for the big tech stocks that dominate it. It hit a new one Tuesday, climbing 81.12 points, or 0.7%, to 11,210.84.

The lightning recovery is even more noteworthy considering how much the economy is still struggling and how uncertain the path ahead remains. Millions of Americans are continuing to get unemployment benefits, and businesses across the country are still shutting their doors. COVID-19 continues to spread throughout the world, with more than 5.4 million known cases and 170,000 deaths in the United States alone.

Many investors acknowledge the disconnect between the stock market and the broader economy, but they say the rally has been built on top of several supports.

Key among them is that the Federal Reserve and Congress have plowed trillions of dollars into the economy, to keep it from plunging even more deeply and to prevent a full-blown financial crisis. Their unprecedented moves helped halt the S&P 500’s free-fall in March.

More recently, the stock market’s rally has morphed from relief that the worst-case scenario of a full-blown financial crisis is off the table to hopes that the economy is on the mend. As widespread lockdowns of businesses have eased since the spring, data from across the economy have been showing improvements.

A report last week said 963,000 U.S. workers filed for unemployment benefits, for example. It’s a sickeningly high number, but it’s also the first time the tally has dropped below 1 million since March. And on Tuesday the government reported that construction of new U.S. homes surged 22.6% last month, the third straight month of gains. With such budding economic improvements in hand, investors are looking ahead to later this year or 2021 when profits recover further and a vaccine for COVID-19 hits the market.

The five biggest companies in the S&P 500 by market value, meanwhile, have continued to appear recession-proof. These Big Tech companies increasingly drive the S&P 500’s movements almost by themselves, and they’ve benefited from the pandemic because it accelerated work-from-home and other tech trends. Apple has more than doubled since the market's recent bottom on March 23, while Facebook is up 77% and Amazon is up 74%.

The market’s huge gains have been slowing in recent weeks, and many investors say the easiest gains have been made. But optimism remains strong across much of Wall Street. At Goldman Sachs, strategist David Kostin raised his year-end forecast for the S&P 500 to 3,600 from an earlier outlook for 3,000.

At the same time, though, many risks are still hanging over the market.

ASX 200 to edge lower.
The benchmark ASX 200 is expected to edge lower on Wednesday morning. According to the latest SPI futures, the benchmark index is poised to open the day 6 points of 0.1% lower. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 0.25%, but the S&P 500 rise 0.2% and the Nasdaq storm 0.7% higher.

https://www.usnews.com/news/busines...ed-after-tech-rally-takes-s-p-500-near-record

S&P 500 Closes at a Record, Erasing Last of Pandemic Losses
Wall Street clawed back the last of the historic, frenzied losses unleashed by the coronavirus, as the S&P 500 closed at an all-time high Tuesday.
By Associated Press, Wire Service Content Aug. 18, 2020, at 5:31 p.m.

By STAN CHOE, ALEX VEIGA and DAMIAN J. TROISE, AP Business Writers

Wall Street clawed back the last of the historic, frenzied losses unleashed by the new coronavirus, as the S&P 500 closed at an all-time high Tuesday.

The day’s move was a relatively mild one, nudging the index up 7.79 points, or 0.2%, to 3,389.78. That eclipses the S&P 500′s previous record closing high of 3,386.15, which was set Feb. 19, before the pandemic shut down businesses around the world and knocked economies into their worst recessions in decades.

The S&P 500′s milestone caps a furious, 51.5% rally that began in late March. The index, which is the benchmark for many stock funds at the heart of 401(k) plans, is now up nearly 5% for the year.

The stock market’s sprint back to an all-time high also means that the gut-wrenching, nearly 34% plunge for the S&P 500 from Feb. 19 through March 23 was the quickest bear market on record, clocking in at just one month. By comparison, it's taken the average bear market 19.6 months to bottom out, according to S&P Dow Jones Indices.

Tremendous amounts of aid from the Federal Reserve and Congress helped launch the rally, which built higher on signs of budding growth in the economy. More recently, blowout corporate profit reports from technology giants such as Apple and Microsoft and earnings from harder-hit industries that weren’t as bad as expected have helped boost stock prices.

The S&P 500 spent the past few days within striking distance of a new high, but fell short of the milestone until finally breaking through on Tuesday.

The Dow Jones Industrial Average fell 66.84 points, or 0.2%, to 27,778.07. It remains 6% below its record set in February. The Nasdaq composite had already returned to a record, thanks to huge gains for the big tech stocks that dominate it. It hit a new one Tuesday, climbing 81.12 points, or 0.7%, to 11,210.84.

The lightning recovery is even more noteworthy considering how much the economy is still struggling and how uncertain the path ahead remains. Millions of Americans are continuing to get unemployment benefits, and businesses across the country are still shutting their doors. COVID-19 continues to spread throughout the world, with more than 5.4 million known cases and 170,000 deaths in the United States alone.

Many investors acknowledge the disconnect between the stock market and the broader economy, but they say the rally has been built on top of several supports.

Key among them is that the Federal Reserve and Congress have plowed trillions of dollars into the economy, to keep it from plunging even more deeply and to prevent a full-blown financial crisis. Their unprecedented moves helped halt the S&P 500’s free-fall in March.

More recently, the stock market’s rally has morphed from relief that the worst-case scenario of a full-blown financial crisis is off the table to hopes that the economy is on the mend. As widespread lockdowns of businesses have eased since the spring, data from across the economy have been showing improvements.

A report last week said 963,000 U.S. workers filed for unemployment benefits, for example. It’s a sickeningly high number, but it’s also the first time the tally has dropped below 1 million since March. And on Tuesday the government reported that construction of new U.S. homes surged 22.6% last month, the third straight month of gains. With such budding economic improvements in hand, investors are looking ahead to later this year or 2021 when profits recover further and a vaccine for COVID-19 hits the market.

The five biggest companies in the S&P 500 by market value, meanwhile, have continued to appear recession-proof. These Big Tech companies increasingly drive the S&P 500’s movements almost by themselves, and they’ve benefited from the pandemic because it accelerated work-from-home and other tech trends. Apple has more than doubled since the market's recent bottom on March 23, while Facebook is up 77% and Amazon is up 74%.

The market’s huge gains have been slowing in recent weeks, and many investors say the easiest gains have been made. But optimism remains strong across much of Wall Street. At Goldman Sachs, strategist David Kostin raised his year-end forecast for the S&P 500 to 3,600 from an earlier outlook for 3,000.

At the same time, though, many risks are still hanging over the market.

Investors are still waiting to see if Congress and the White House can get past their partisan differences and agree on more aid for the economy. Without the stimulus, analysts say the economy won’t be able to make the recovery that investors have been assuming is on the way. And that assumption is a huge reason the stock market is as high as it is.

Rising tensions between the United States and China, meanwhile, threaten trade between the world’s two largest economies. Tech stocks have had a few stumbles recently amid worries that China could retaliate against U.S. moves by targeting U.S. chip makers and others.

Perhaps the biggest threat of all is if a vaccine for COVID-19 fails come to the market as quickly as markets are expecting. That could quickly take a chunk out of the market’s huge rally.

For now, though, the market’s momentum remains on a gentle upward slope. Even Treasury yields have recently been making a move higher, though their ascent slowed on Tuesday.

The yield on the 10-year Treasury dipped to 0.67% from 0.69% late Monday. In March, the yield had touched its record low just beneath 0.34%.

Higher yields can be an indication that investors are upgrading their expectations for inflation and the economy. But they can also pull some buyers away from stocks into bonds, hurting stock prices in the process.

“It’s important to recognize that the bond market doesn’t seem to trust this rally,” said Brian Price, head of investment management for Commonwealth Financial Network.

 

[bigdog]

The S&P 500 pulled back from its newly set record on Wednesday after a meandering day of trading took a late turn lower.

The benchmark index fell 14.93 points, or 0.4%, to 3,374.85, a day after it wiped out the last of its losses created by the pandemic and surpassed its Feb. 19 peak.

The Dow Jones Industrial Average also gave up an earlier gain and lost 85.19, or 0.3%, to 27,692.88. The Nasdaq composite dropped 64.38, or 0.6%, to 11,146.46.

Indexes turned lower in the afternoon after the Federal Reserve released the minutes from its latest policy meeting. The central bank has been one of the main pillars propping up the market after it slashed short-term interest rates to their record low and essentially promised to buy as many bonds as it takes to keep markets running smoothly.

The Fed’s minutes showed again that policy makers are finding it difficult to forecast the path of the economy, which will depend greatly on what happens with the virus.

Treasury yields also rose after the minutes showed, among other things, that several Fed officials said trying to set upper limits for yields beyond ultrashort-term rates would provide only a modest help. Some investors have been speculating that could be a step the Fed would take next to help the economy.

The yield on the 10-year Treasury rose to 0.68% from 0.67% late Tuesday. It had been as low as 0.64% earlier in the morning.

Across the stock market, momentum has largely remained solid. But it’s slowed recently after roaring back from a terrifying plummet of nearly 34% in February and March. Trading has been so tepid that it took the S&P 500 several attempts to break its record after pulling within 1% of the mark a week and a half ago.

“The elevator went down very quickly, so to speak,” Nancy Davis, chief investment officer of Quadratic Capital, said of the market’s plunge earlier this year. “And now we’ve been climbing the stairs back up, and we’re higher than we were before.”

This is a traditionally slow time of the year for stocks, and the market is also still in wait-and-see mode on several fronts.

Investors still seem to believe that Congress and the White House will reach a deal to deliver more aid to the economy after federal unemployment benefits and other stimulus expired. Democrats and Republicans have been stuck at an impasse and sniping back and forth, but investors are seeing speculation about a possible scaled-down version of aid passing Congress, said Willie Delwiche, investment strategist at Baird.

Beyond Capitol Hill, investors are also waiting for more developments on the rising tensions between the United States and China. The world’s largest economies have longstanding trade issues, and President Donald Trump has recently been targeting Chinese tech companies in particular.

ASX 200 expected to edge lower.
The benchmark ASX 200 looks set to end its winning streak on Thursday. According to the latest SPI futures, the benchmark index is poised to open the day 14 points or 0.23% lower. This follows a disappointing night of trade on Wall Street which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.45%, and the Nasdaq tumble 0.6% lower.

https://www.usnews.com/news/busines...ance-in-asia-after-s-p-500-logs-all-time-high

S&P 500 Takes a Step Back After Setting Record; Yields Rise
The S&P 500 pulled back from its newly set record on Wednesday after a meandering day of trading took a late turn lower.
By Associated Press, Wire Service Content Aug. 19, 2020, at 4:49 p.m.

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — The S&P 500 pulled back from its newly set record on Wednesday after a meandering day of trading took a late turn lower.

The benchmark index fell 14.93 points, or 0.4%, to 3,374.85, a day after it wiped out the last of its losses created by the pandemic and surpassed its Feb. 19 peak.

The Dow Jones Industrial Average also gave up an earlier gain and lost 85.19, or 0.3%, to 27,692.88. The Nasdaq composite dropped 64.38, or 0.6%, to 11,146.46.

Indexes turned lower in the afternoon after the Federal Reserve released the minutes from its latest policy meeting. The central bank has been one of the main pillars propping up the market after it slashed short-term interest rates to their record low and essentially promised to buy as many bonds as it takes to keep markets running smoothly.

The Fed’s minutes showed again that policy makers are finding it difficult to forecast the path of the economy, which will depend greatly on what happens with the virus.

Treasury yields also rose after the minutes showed, among other things, that several Fed officials said trying to set upper limits for yields beyond ultrashort-term rates would provide only a modest help. Some investors have been speculating that could be a step the Fed would take next to help the economy.

The yield on the 10-year Treasury rose to 0.68% from 0.67% late Tuesday. It had been as low as 0.64% earlier in the morning.

Across the stock market, momentum has largely remained solid. But it’s slowed recently after roaring back from a terrifying plummet of nearly 34% in February and March. Trading has been so tepid that it took the S&P 500 several attempts to break its record after pulling within 1% of the mark a week and a half ago.

“The elevator went down very quickly, so to speak,” Nancy Davis, chief investment officer of Quadratic Capital, said of the market’s plunge earlier this year. “And now we’ve been climbing the stairs back up, and we’re higher than we were before.”

This is a traditionally slow time of the year for stocks, and the market is also still in wait-and-see mode on several fronts.

Investors still seem to believe that Congress and the White House will reach a deal to deliver more aid to the economy after federal unemployment benefits and other stimulus expired. Democrats and Republicans have been stuck at an impasse and sniping back and forth, but investors are seeing speculation about a possible scaled-down version of aid passing Congress, said Willie Delwiche, investment strategist at Baird.

Beyond Capitol Hill, investors are also waiting for more developments on the rising tensions between the United States and China. The world’s largest economies have longstanding trade issues, and President Donald Trump has recently been targeting Chinese tech companies in particular.

Also hanging over the market is the upcoming U.S. election, with the big changes in tax and other policies that it can create. Democrats formally nominated Joe Biden late Tuesday to run against Trump for the White House in November's election.

Earnings reporting season for big U.S companies has nearly wrapped up, with businesses in the S&P 500 on track to report a sharp decline in their profits for the spring, but not as bad as Wall Street expected. More than 93% of the earnings reports are in, and the index is on pace for a roughly 33% drop from the prior year.

Target jumped 12.7% for the biggest gain in the S&P 500 after it reported results for the spring that easily beat Wall Street’s expectations.

But TJX, the operator of T.J. Maxx and Marshalls, slumped 5.4% after its results fell short of analysts’ forecasts.

Apple continued its run of dominance and rose 0.1%. Earlier in the day, its total market value briefly topped $2 trillion, the first time a U.S. company has crossed that threshold. It's the latest accolade for Big Tech, which has thrived as the pandemic accelerates work-from-home and other tech-friendly trends.

“While we talk about the S&P 500 at an all-time high, really it’s a handful of stocks at all-time highs," said Delwiche. "Maybe beyond the headlines of what the index is doing, stocks are actually endorsing the bond market view that there’s still a lot of work to be done with respect to a Main Street recovery, and that message gets overwhelmed in a cap-weighted index like the S&P 500, where you have five to seven stocks rallying and that makes the index look really good.”

In European stock markets, the German DAX returned 0.7%. The French CAC 40 rose 0.8%, and the FTSE 100 in London added 0.6%.

In Asia, Japan’s Nikkei 225 rose 0.3%, and South Korea’s Kospi gained 0.5%. Stocks in Shanghai slumped 1.2%, and the Hang Seng in Hong Kong lost 0.7%.

Benchmark U.S. crude oil rose 4 cents to settle at $42.93 per barrel. Brent crude, the international standard, fell 9 cents to $45.37 a barrel.

 

[bigdog]

Big technology companies powered more gains on Wall Street Thursday, even as most stocks fell following more discouraging data on the economy.

The S&P 500 rose 0.3% after rallying back from an earlier 0.6% loss as investors weighed new government data showing an increase in the number of Americans who sought unemployment aid last week. A separate report from the Federal Reserve Bank of Philadelphia said that manufacturing activity in its region is slowing. Like the jobless claims report, that reading was also weaker than economists had forecast.

The discouraging reports helped send two out of every three stocks in the S&P 500 lower. Energy producers and financial companies had some of the sharpest drops. Treasury yields also fell, reflecting caution in the market.

But tech stocks in the S&P 500 nevertheless rose 1.4%, continuing a remarkable run of resilience that has carried through the pandemic. The industry has been delivering big profits as the pandemic accelerates work-from-home and other tech-friendly trends. And because they’re among the biggest stocks by total market value, their movements carry more weight on the index.

The S&P 500 rose 10.66 points to 3,385.51. The gains kept the benchmark index close to its record level. The Dow Jones Industrial Average gained 46.85 points, or 0.2%, to 27,739.73.

The strength in tech stocks, meanwhile, helped lift the Nasdaq composite up 118.49 points, or 1.1%, to 11,264.95, a record high. Smaller companies didn't fare as well. The Russell 2000 index lost 7.76 points, or 0.5%, to 1,564.30.

The initial downward move for stocks Tuesday followed a government report indicating that slightly more than 1.1 million U.S. workers applied for unemployment benefits last week. That’s up from 971,000 the prior week and an indication that the pace of improvements for layoffs may be stalling.

The number of jobless claims had been on a steady march downward since March, and the prior week marked the first time the total had eased below 1 million since just before the pandemic shuttered businesses across the country.

“The market’s looking through” the worse-than-expected report on jobless claims, said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “The trend is for continued improvement in the labor market.”

Still, with so much uncertainty still hanging over markets, he said he wouldn’t be surprised to see it take a “time out” after the S&P 500 returned to a record high on Tuesday.

“From here I think you need new good news,” Wren said.

Thursday’s back-and-forth moves for the broader market follow up on its sudden loss of momentum Wednesday. Stock indexes began dipping immediately after the Federal Reserve released the minutes from its last meeting.

The Fed has been a central reason for the stock market’s rocket ride back to record heights, due to its promises to keep short-term interest rates at their record low of nearly zero and to continue buying reams of bonds to support markets. The Fed’s minutes showed that policymakers still find it very difficult to predict the path of the economy, which depends so much on what happens with the virus.

They also showed that several Fed officials aren’t very excited about the idea of putting caps on yields beyond ultrashort-term rates, a move that some investors had been speculating could be next for the central bank to help markets.

ASX 200 expected to push higher.
It looks set to be a positive end to the week for the benchmark ASX 200. According to the latest SPI futures, the benchmark index is poised to open the day 12 points or 0.20% higher this morning. This follows a strong night of trade on Wall Street which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.3%, and the Nasdaq storm 1.1% higher.

https://www.usnews.com/news/busines...retreat-after-fed-minutes-bring-reality-check

Tech Gains Send Indexes Higher Even as Other Stocks Fall
Major indexes managed to eke out gains on Wall Street even as most stocks fell following more discouraging data on the economy.
By Associated Press, Wire Service Content Aug. 20, 2020, at 4:47 p.m.

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Big technology companies powered more gains on Wall Street Thursday, even as most stocks fell following more discouraging data on the economy.

The S&P 500 rose 0.3% after rallying back from an earlier 0.6% loss as investors weighed new government data showing an increase in the number of Americans who sought unemployment aid last week. A separate report from the Federal Reserve Bank of Philadelphia said that manufacturing activity in its region is slowing. Like the jobless claims report, that reading was also weaker than economists had forecast.

The discouraging reports helped send two out of every three stocks in the S&P 500 lower. Energy producers and financial companies had some of the sharpest drops. Treasury yields also fell, reflecting caution in the market.

But tech stocks in the S&P 500 nevertheless rose 1.4%, continuing a remarkable run of resilience that has carried through the pandemic. The industry has been delivering big profits as the pandemic accelerates work-from-home and other tech-friendly trends. And because they’re among the biggest stocks by total market value, their movements carry more weight on the index.

The S&P 500 rose 10.66 points to 3,385.51. The gains kept the benchmark index close to its record level. The Dow Jones Industrial Average gained 46.85 points, or 0.2%, to 27,739.73.

The strength in tech stocks, meanwhile, helped lift the Nasdaq composite up 118.49 points, or 1.1%, to 11,264.95, a record high. Smaller companies didn't fare as well. The Russell 2000 index lost 7.76 points, or 0.5%, to 1,564.30.

The initial downward move for stocks Tuesday followed a government report indicating that slightly more than 1.1 million U.S. workers applied for unemployment benefits last week. That’s up from 971,000 the prior week and an indication that the pace of improvements for layoffs may be stalling.

The number of jobless claims had been on a steady march downward since March, and the prior week marked the first time the total had eased below 1 million since just before the pandemic shuttered businesses across the country.

“The market’s looking through” the worse-than-expected report on jobless claims, said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “The trend is for continued improvement in the labor market.”

Still, with so much uncertainty still hanging over markets, he said he wouldn’t be surprised to see it take a “time out” after the S&P 500 returned to a record high on Tuesday.

“From here I think you need new good news,” Wren said.

Thursday’s back-and-forth moves for the broader market follow up on its sudden loss of momentum Wednesday. Stock indexes began dipping immediately after the Federal Reserve released the minutes from its last meeting.

The Fed has been a central reason for the stock market’s rocket ride back to record heights, due to its promises to keep short-term interest rates at their record low of nearly zero and to continue buying reams of bonds to support markets. The Fed’s minutes showed that policymakers still find it very difficult to predict the path of the economy, which depends so much on what happens with the virus.

They also showed that several Fed officials aren’t very excited about the idea of putting caps on yields beyond ultrashort-term rates, a move that some investors had been speculating could be next for the central bank to help markets.

Apple was among the stocks the led the tech sector's gains Tuesday. The iPhone maker rose 2.2% and is once again flirting with a total market value of $2 trillion. It's the first U.S. stock to cross that threshold.

Intel rose 1.7% after it said it will speed up $10 billion in buybacks of its own stock because it sees the price as cheap relative to its value.

Uber and Lyft bounced higher after an appeals court said the ride-hailing giants can continue treating their drivers as independent contractors in California while an appeal works its way through the court. Both companies had threatened to shut down if a ruling went into effect Friday morning that would have forced them to treat all their drivers as employees, a change they said would be impossible to accomplish overnight. Uber jumped 6.8% and Lyft gained 5.8%.

The yield on the 10-year Treasury fell to 0.65% from 0.67% late Wednesday.

Stock markets in Europe closed broadly lower. The German DAX lost 1.1%. The French CAC 40 fell 1.3%, and the FTSE 100 in London dropped 1.6%. That followed a weak showing in Asian markets.

Benchmark U.S. crude oil for September delivery fell 35 cents to $42.58 a barrel Thursday. Brent crude oil for October delivery fell 47 cents to $44.90 a barrel.

 

[bigdog]

The S&P 500 ticked higher to close at another all-time high Friday, powered by strength for technology stocks and a couple reports on the U.S. economy that were better than expected.

The benchmark index rose 11.65 points, or 0.3%, to 3,397.16, even though the majority of stocks in the index weakened. It followed up on losses across Europe after more discouraging reports there indicated a slowdown in its economies.

The Dow Jones Industrial Average climbed 190.60, or 0.7%, to 27,930.33, and the Nasdaq composite added 46.85, or 0.4%, to 11,311.80.

The S&P 500 surpassed its prior closing high of 3,389.78, which was set on Tuesday after the index erased the last of its historic losses from the coronavirus pandemic. Despite its record-setting week, the market's momentum has slowed recently after roaring back from its nearly 34% plunge from late February into March.

The S&P 500 rose 0.7% for the week. It was the seventh gain for the index in the last eight weeks, but the last two have been the most modest during that stretch.

Investors are still waiting for more clarity on several fronts, which could drive the next big move up or down.

The economy has shown some signs of stalling recently, with Friday’s reports from Europe the latest reminder that a steady rise in coronavirus cases may be undermining growth. They follow a U.S. report from Thursday that showed that the number of workers applying for unemployment benefits picked up last week.

But the picture remains mixed. A separate report from IHS Markit on Friday said preliminary data suggests output from the U.S. private sector is at an 18-month high. Sales of previously occupied homes were also stronger in July than economists expected, as activity exploded in every region of the country.

Those reports helped the U.S. stock market recover from declines earlier in the morning.

https://www.usnews.com/news/busines...es-track-wall-street-gains-amid-vaccine-hopes

S&P 500 Ticks Higher to Record, Powered Again by Tech Stocks
The S&P 500 ticked higher to close at another all-time high Friday, powered by strength for technology stocks and better-than-expected reports on the U.S. economy.
By Associated Press, Wire Service Content Aug. 21, 2020, at 4:44 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — The S&P 500 ticked higher to close at another all-time high Friday, powered by strength for technology stocks and a couple reports on the U.S. economy that were better than expected.

The benchmark index rose 11.65 points, or 0.3%, to 3,397.16, even though the majority of stocks in the index weakened. It followed up on losses across Europe after more discouraging reports there indicated a slowdown in its economies.

The Dow Jones Industrial Average climbed 190.60, or 0.7%, to 27,930.33, and the Nasdaq composite added 46.85, or 0.4%, to 11,311.80.

The S&P 500 surpassed its prior closing high of 3,389.78, which was set on Tuesday after the index erased the last of its historic losses from the coronavirus pandemic. Despite its record-setting week, the market's momentum has slowed recently after roaring back from its nearly 34% plunge from late February into March.

The S&P 500 rose 0.7% for the week. It was the seventh gain for the index in the last eight weeks, but the last two have been the most modest during that stretch.

Investors are still waiting for more clarity on several fronts, which could drive the next big move up or down.

The economy has shown some signs of stalling recently, with Friday’s reports from Europe the latest reminder that a steady rise in coronavirus cases may be undermining growth. They follow a U.S. report from Thursday that showed that the number of workers applying for unemployment benefits picked up last week.

But the picture remains mixed. A separate report from IHS Markit on Friday said preliminary data suggests output from the U.S. private sector is at an 18-month high. Sales of previously occupied homes were also stronger in July than economists expected, as activity exploded in every region of the country.

Those reports helped the U.S. stock market recover from declines earlier in the morning.

“The housing market is strong,” said Quincy Krosby, chief market strategist at Prudential Financial. "This week has been about housing. Each one of these reports has been strong.”

Stocks of homebuilders climbed following the data, including a 3.2% rise for D.R. Horton. But it was additional gains for tech stocks that did the most work in the S&P 500's rally.

Most stocks on Wall Street fell, and the smaller companies in the Russell 2000 small-cap index lost 11.83, or 0.8%, to 1,552.48. Even within the S&P 500 index of big companies, 56% of stocks were lower, with energy producers and financial stocks dropping. But a 1.2% rise for tech stocks in the S&P 500 helped offset that.

Tech has remained remarkably resilient through the pandemic and continued to churn out big profits as work-from-home and other tech-friendly trends accelerate. Apple, which this week became the first U.S. company to have a market value of more than $2 trillion, rose 5.2%.

Big tech stocks, which generally have strong balance sheets and deliver strong growth, will likely continue to be attractive to investors as long as there are questions about economic growth, said Krosby.

“One of the most important factors in this market and for the broadening of the market in order to include those names that have not participated is: You want to see the unemployment landscape heal, and you want to see those initial unemployment claims come down,” she said. "That’s a major focus for analysts because we’re a consumer-led economy. People need jobs in order to consume.”

Deere was another big winner after it reported profit for the latest quarter that was double what Wall Street expected. Its shares rose 4.4%.

The Federal Reserve is continuing to prop up markets and the economy by keeping interest rates at nearly zero and buying reams of bonds. But stimulus from Congress has lapsed, and Democrats and Republicans on Capitol Hill continue to haggle.

Investors say the economy and markets need another round of big support from Congress for the recovery to continue.

“Ultimately, it will take some combination of bad data, bad markets and good politics to break the impasse,” economist Ethan Harris wrote in a BofA Global Research report. “Meanwhile, every passing week without meaningful legislation lengthens the mini-recession. This is not the kind of August break this economy needs.”

Beyond Capitol Hill, investors are also waiting for the latest developments in the rising tensions between the world's two largest economies.

China’s Commerce Ministry on Thursday said that Chinese and U.S. trade envoys will hold a meeting by phone “in the near future” to discuss an agreement aimed at resolving their tariff war. No details on timing were given.

The yield on the 10-year Treasury dipped to 0.63% from 0.64% late Thursday.

In European stock markets, Germany's DAX slipped 0.5%. France’s CAC 40 fell 0.3%, while the FTSE 100 in London lost 0.2%.

Earlier, Asian markets closed higher. Japan's Nikkei 225 gained 0.2%, South Korea’s Kospi rose 1.3% and Hong Kong’s Hang Seng added 1.3%.

Benchmark U.S. crude oil fell 48 cents to settle at $42.34 per barrel. Brent crude, the international standard, lost 55 cents to $44.35 per barrel.

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[bigdog]

ASX futures pointing lower.
The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is poised to open the week 11 points or 0.2% lower. This is despite a solid finish to the week on Wall Street with all three major indices recording gains. The Dow Jones rose 0.7%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.4% higher.

 

[bigdog]

Stocks plowed higher on Wall Street Monday, as hopes for a COVID-19 treatment and vaccine had investors looking ahead to the possibility of a healthier economy that has shed the virus.

The S&P 500 rallied 34.12, or 1%, to 3,431.28 and added to the all-time high it set last week, when it erased the last of its losses from the coronavirus pandemic. It followed up on solid gains for stock markets across much of Europe and Asia.

The Dow Jones Industrial Average rose 378.13, or 1.4%, to 28,308.46, and the Nasdaq composite added 67.92, or 0.6%, to 11,379.72.

Hope was rising as pharmaceutical companies continue to work toward a possible vaccine for COVID-19 and after the U.S. government on Sunday approved an emergency authorization to allow the use of convalescent plasma to treat patients. The plasma comes from patients who have recovered from the coronavirus, and it may help people battling the disease, though global health officials say the therapy is still experimental.

Such hopes helped invigorate shares of industries that have been badly beaten down by what's become the new normal of pandemic life. Airlines climbed, for example, amid the possibility that people may feel safe enough to travel again in the future. Delta Air Lines rose 9.3%, and American Airlines Group added 10.5%.

One winner of the new normal, Zoom Video Communications, stumbled. Its shares fell 2.6% after it reported partial outages in its Zoom Meetings service, which has become the default way for classrooms and businesses around the world to communicate. By midday on the East Coast, it said it had resolved the issue.

The market’s gains were relatively broad, and more than 80% of the stocks in the S&P 500 were higher. Financial companies, energy producers and other areas of the market closely tied to the economy's strength helped lead the way.

The moves come as investors hope the virus' spread continues to slow and the economy continues to improve, said Keith Buchanan, portfolio manager at Globalt Investments.

“We’re just making sure that the trends we’ve seen as of late from the virus continue to materialize,” he said. “We want to start to see marginal, steady improvement.”

ASX 200 expected to rise again.
It looks set to be another positive day for the ASX 200 after Wall Street started the week very strongly. According to the latest SPI futures, the benchmark index is poised to open the day 41 points or 0.7% higher this morning. In the United States, the Dow Jones jumped 1.35%, the S&P 500 climbed 1%, and the Nasdaq index pushed 0.6% higher. News that the Trump administration is considering fast tracking an experimental coronavirus vaccine developed in the UK lifted markets.

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US Stocks Join Global Rally Amid COVID Treatment Hopes
Stocks plowed further into record territory on Wall Street.
By Associated Press, Wire Service Content Aug. 24, 2020, at 6:21 p.m.

By STAN CHOE and DAMIAN J. TROISE, AP Business Writers

NEW YORK (AP) — Stocks plowed higher on Wall Street Monday, as hopes for a COVID-19 treatment and vaccine had investors looking ahead to the possibility of a healthier economy that has shed the virus.

The S&P 500 rallied 34.12, or 1%, to 3,431.28 and added to the all-time high it set last week, when it erased the last of its losses from the coronavirus pandemic. It followed up on solid gains for stock markets across much of Europe and Asia.

The Dow Jones Industrial Average rose 378.13, or 1.4%, to 28,308.46, and the Nasdaq composite added 67.92, or 0.6%, to 11,379.72.

Hope was rising as pharmaceutical companies continue to work toward a possible vaccine for COVID-19 and after the U.S. government on Sunday approved an emergency authorization to allow the use of convalescent plasma to treat patients. The plasma comes from patients who have recovered from the coronavirus, and it may help people battling the disease, though global health officials say the therapy is still experimental.

Such hopes helped invigorate shares of industries that have been badly beaten down by what's become the new normal of pandemic life. Airlines climbed, for example, amid the possibility that people may feel safe enough to travel again in the future. Delta Air Lines rose 9.3%, and American Airlines Group added 10.5%.

One winner of the new normal, Zoom Video Communications, stumbled. Its shares fell 2.6% after it reported partial outages in its Zoom Meetings service, which has become the default way for classrooms and businesses around the world to communicate. By midday on the East Coast, it said it had resolved the issue.

The market’s gains were relatively broad, and more than 80% of the stocks in the S&P 500 were higher. Financial companies, energy producers and other areas of the market closely tied to the economy's strength helped lead the way.

The moves come as investors hope the virus' spread continues to slow and the economy continues to improve, said Keith Buchanan, portfolio manager at Globalt Investments.

“We’re just making sure that the trends we’ve seen as of late from the virus continue to materialize,” he said. “We want to start to see marginal, steady improvement.”

Whether the stock market's gains continue to broaden out is an important marker for analysts, because much of its gains in its return to a record have come from only a handful of Big Tech companies. Apple, Amazon and other tech giants have benefited from the pandemic because it’s accelerated work-from-home, shop-from-home and other trends that are very profitable for them. But all that concentration of gains in a small cadre of companies can increase risk for the market.

Last week, the S&P 500 would have been down if not for the performance of a single stock: Apple, whose 8.2% spurt also made it the first U.S. stock to be worth a total of $2 trillion. And the dominance for Big Tech in the stock market has been stretching back for years.

“This is not new news nor is it likely, in our view, to derail the new bull market,” Morgan Stanley equity strategist Michael Wilson wrote in a report. “However, we do think it’s a precursor to the first tradable correction, which could begin imminently.”

Several other risks also continue to hang over the market.

Congress is continuing to argue about whether and how to deliver another round of aid to the economy. Investors say the assistance is crucial following the expiration of weekly unemployment benefits and other stimulus from Washington’s last round of aid.

Critics also say the market may have run too high, too quickly, even after acknowledging that investors are setting prices for stocks now based on where they see earnings trending in the future. The S&P 500 is trading close to levels last seen when the dot-com bubble was deflating in the early 2000s, based on stock prices relative to expected earnings in the next 12 months.

Of course, underlying all that remains the Federal Reserve. It has slashed short-term interest rates to nearly zero and is likely to keep them there for a while. At the same time, it continues to buy reams of bonds to support markets and the economy.

Investors are waiting to hear from Fed Chair Jerome Powell later this week at a speech that he would normally give at Jackson Hole, Wyoming. But the 2020 economic policy symposium will be online.

Investors closely follow speeches given at the annual Jackson Hole event, where Fed officials in the past have made huge market-moving headlines. This year’s event is titled “Navigating the Decade Ahead: Implications for Monetary Policy.”

Meanwhile, some big names in the Dow Jones Industrial Average are slated to be dropped from the 30-company index. Exxon Mobil, Pfizer and Raytheon Technologies will be replaced before trading opens next Monday by Salesforce.com, Amgen and Honeywell International, S&P Dow Jones Indices said late Monday.

Exxon has been the longest-running member of the Dow. It was first added to the index in 1928 when the oil giant was still named Standard Oil of New Jersey. The company changed its name to Exxon in 1972.

The yield on the 10-year Treasury rose to 0.65% from 0.64% late Friday.

In European stock markets, the German DAX returned 2.4%. France’s CAC 40 rose 2.3%, and the FTSE 100 in London added 1.7%.

In Asia, Japan’s Nikkei 225 rose 0.3%, and the Kospi in Seoul gained 1.1%. Hong Kong’s Hang Seng climbed 1.7%, and stocks in Shanghai added 0.1%.

Benchmark U.S. crude oil rose 28 cents to settle at $42.62 per barrel. Brent crude, the international standard, rose 78 cents to $45.13 a barrel.

 

[bigdog]

Stocks were mixed on Wall Street Tuesday, but gains were strong enough for tech companies and other pockets of the market to carry the S&P 500 to its fourth straight gain and another record high.

The benchmark index rose 12.34, or 0.4%, to 3,443.62, even though slightly more stocks within it sank than rose. The Dow Jones Industrial Average fell 60.02, or 0.2%, to 28,248.44, and the Nasdaq composite rose 86.75, or 0.8%, to 11,466.47.

The modest moves followed some more mixed data reports on the economy. One showed that consumer confidence unexpectedly dropped this month, contrary to economists’ forecast for a strengthening. Another said sales of new homes accelerated faster than economists expected last month. They fit in with a general slowing of the economy recently, following its plummet into recession earlier this year and subsequent, initial burst off the bottom.

Earlier in the morning, most stocks on Wall Street had been edging higher after the United States and China said they held constructive talks as they negotiate how to implement their “Phase 1” deal, which set a truce in their trade war.

“We had three days of record highs” for the S&P 500 earlier in the past week, said Adam Taback, chief investment officer for Wells Fargo Private Wealth Management. “It’s not surprising to see some resistance here.”

The market has been making a lot of small moves recently on snippets of news about the virus, developments on a potential vaccine for it and other concerns. But the economy is still hurting, with airlines running at a fraction of their capacities and restaurants still mostly empty.

“That’s not an economy that’s back to normal,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “Ultimately, the economy doesn’t fully reopen until we get a vaccine or a therapeutic,” he said.

For the moment, though, he said, “People are willing to see that the world’s cup is slightly half-full right now."

Adding to the cup was an announcement from the U.S. Trade Representative that “both sides see progress" following trade talks between the world's two largest economies. China’s Ministry of Commerce said the two sides discussed strengthening coordination of their economic policies, though it gave no details.

Tensions between the United States and China have been ramping up recently, with President Donald Trump targeting Chinese technology companies in particular. The worsening relationship has been one of the bigger concerns for investors, particularly given how destructive the escalating tariffs of the U.S.-China trade war were for the global economy earlier.

Other concerns for the market include whether Congress can get past its partisan disagreements to agree on sending more aid to the economy, which investors say is desperately needed, and whether stock prices have become too expensive relative to how much profit companies are producing.

But none of those concerns has been loud enough to keep the S&P 500 from plowing to new record heights by the day.

Underlying it all is massive support for markets and the economy from the Federal Reserve. The central bank has slashed short-term rates to nearly zero and is buying all kinds of bonds, which helps drive some investors into the stock market and push up its prices.

The Fed’s chair, Jerome Powell, will give a highly anticipated speech later this week, where investors expect to hear him talk about next steps for monetary policy.

ASX 200 poised to sink lower.
The ASX 200 looks set to end its winning streak on Wednesday. According to the latest SPI futures, the benchmark index is poised to drop 31 points or 0.5% lower at the open. This is despite it being a reasonably positive night of trade on Wall Street. The Dow Jones fell 0.2% but the S&P 500 rose 0.35% and the Nasdaq jumped 0.75%.

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S&P 500 Shakes off a Bumpy Start, Pushes to Another Record
Stocks shook off a slow start on Wall Street and pushed gradually higher in the afternoon, leaving the S&P 500 at another record high.
By Associated Press, Wire Service Content Aug. 25, 2020, at 4:33 p.m.

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Stocks were mixed on Wall Street Tuesday, but gains were strong enough for tech companies and other pockets of the market to carry the S&P 500 to its fourth straight gain and another record high.

The benchmark index rose 12.34, or 0.4%, to 3,443.62, even though slightly more stocks within it sank than rose. The Dow Jones Industrial Average fell 60.02, or 0.2%, to 28,248.44, and the Nasdaq composite rose 86.75, or 0.8%, to 11,466.47.

The modest moves followed some more mixed data reports on the economy. One showed that consumer confidence unexpectedly dropped this month, contrary to economists’ forecast for a strengthening. Another said sales of new homes accelerated faster than economists expected last month. They fit in with a general slowing of the economy recently, following its plummet into recession earlier this year and subsequent, initial burst off the bottom.

Earlier in the morning, most stocks on Wall Street had been edging higher after the United States and China said they held constructive talks as they negotiate how to implement their “Phase 1” deal, which set a truce in their trade war.

“We had three days of record highs” for the S&P 500 earlier in the past week, said Adam Taback, chief investment officer for Wells Fargo Private Wealth Management. “It’s not surprising to see some resistance here.”

The market has been making a lot of small moves recently on snippets of news about the virus, developments on a potential vaccine for it and other concerns. But the economy is still hurting, with airlines running at a fraction of their capacities and restaurants still mostly empty.

“That’s not an economy that’s back to normal,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “Ultimately, the economy doesn’t fully reopen until we get a vaccine or a therapeutic,” he said.

For the moment, though, he said, “People are willing to see that the world’s cup is slightly half-full right now."

Adding to the cup was an announcement from the U.S. Trade Representative that “both sides see progress" following trade talks between the world's two largest economies. China’s Ministry of Commerce said the two sides discussed strengthening coordination of their economic policies, though it gave no details.

Tensions between the United States and China have been ramping up recently, with President Donald Trump targeting Chinese technology companies in particular. The worsening relationship has been one of the bigger concerns for investors, particularly given how destructive the escalating tariffs of the U.S.-China trade war were for the global economy earlier.

Other concerns for the market include whether Congress can get past its partisan disagreements to agree on sending more aid to the economy, which investors say is desperately needed, and whether stock prices have become too expensive relative to how much profit companies are producing.

But none of those concerns has been loud enough to keep the S&P 500 from plowing to new record heights by the day.

Underlying it all is massive support for markets and the economy from the Federal Reserve. The central bank has slashed short-term rates to nearly zero and is buying all kinds of bonds, which helps drive some investors into the stock market and push up its prices.

The Fed’s chair, Jerome Powell, will give a highly anticipated speech later this week, where investors expect to hear him talk about next steps for monetary policy.

He'll likely touch on many topics, including inflation and the need for more help from Congress. "But most of all, it will be a reality check that we have a very fragile economy and they still have a number of concerns out there,” said Taback of Wells Fargo Private Wealth Management.

The yield on the 10-year Treasury rose to 0.68% from 0.64% late Monday.

Shares of Exxon Mobil, Pfizer and Raytheon Technologies all slipped in their first trading after an announcement that they’ll drop out of the Dow Jones Industrial Average before trading opens Monday. Exxon Mobil dropped 3.2%, Pfizer fell 1.1% and Raytheon lost 1.5%.

Salesforce.com, Amgen and Honeywell International will replace the trio. All three rose at least 3%.

S&P Dow Jones Indices said it’s making the moves because Apple is about to split its stock, which will result in a lower share price. Because the Dow’s movements are based on how much a company’s share price is — not how much the company is worth in total, like other indexes — the stock split would have reduced the technology industry’s weight in the Dow.

In European stock markets, the French CAC 40 and German DAX were both close to flat. The FTSE 100 in London fell 1.1%.

Asian markets were mixed. Japan’s Nikkei 225 rose 1.4%, and South Korea’s Kospi jumped 1.6%. The Hang Seng in Hong Kong lost 0.3%, while stocks in Shanghai slipped 0.4%

Benchmark U.S. crude oil rose 73 cents to settle at $43.35 per barrel as Hurricane Laura barrels toward the U.S. Gulf coast, home to much of the country's energy production. Brent crude, the international standard, gained 73 cents to $45.86 a barrel.

Wholesale gasoline for September delivery rose 3 cents, or 2.1%, to $1.40 a gallon amid worries that the hurricane could damage refineries and cut off supplies.

 

[bigdog]

More blowout profit reports from big tech companies pushed the S&P 500 to an all-time high Wednesday.

The benchmark index rose 1%, even though most of the stocks within it closed lower. Technology stocks accounted for the lion's share of the gains, outweighing losses in health care, utilities, energy and other sectors.

The S&P 500 has been notching record highs this month, adding to its remarkable turnaround this year from a nearly 34% skid this spring as the pandemic ravaged the economy. While the market's movements have remained almost relentlessly upward in recent weeks, powered largely by big technology stocks, its momentum has slowed. Recent data reports have shown a mixed picture on the economy, where activity has largely slowed following its initial rebound from its plummet into recession.

Still, the latest economic data provided more reason for investor optimism. The Commerce Department said Wednesday that orders for transportation equipment, computers and other long-lasting goods jumped more in July from June than economists expected. One closely watched number in the report, which gives an indication of business investment plans, rose 1.9% in July.

“The economy continues to show signs of recovery,” said Patrick Schaffer, global investment specialist at J.P. Morgan Private Bank. “Virus containment strategies seem more targeted and less blunt than they were in the initial phases.” of the pandemic.

The S&P 500 gained 35.11 points to 3,478.73. The Dow Jones Industrial Average rose 83.48 points, or 0.3%, to 28,331.92. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 198.59 points, or 1.7%, to 11,665.06, its third-straight record high. Smaller companies struggled. The Russell 2000 index of small-cap stocks fell 11.02 points, or 0.7%, to 1,560.19.

On Thursday, the market will pay close attention as the Federal Reserve’s chair gives a highly anticipated speech on monetary policy. Jerome Powell will be speaking as part of the Fed’s annual economic symposium, which is usually held in Jackson Hole, Wyoming, where past Fed officials have made big market-moving announcements.

Many investors expect Powell to talk about inflation, as well as the importance of Congress delivering more aid for the economy after much of its last round of stimulus expired. Many investors are still assuming Congress will eventually reach a deal on such aid, but partisan disagreements have prevented one so far.

The Fed has been one of the primary reasons for the stock market’s return to a record, after it pledged to keep short-term interest rates at their record low and to continue to buy bonds to support the economy.

Tech stocks in the S&P 500 accounted for more than 57% of the S&P 500's overall gain. It continues a longstanding run on Wall Street, where investors continue to pile into companies that can deliver strong growth even if the economy is weak or quarantined

ASX 200 expected to rebound.
It looks set to be a much better day of trade for the ASX 200 on Thursday after stocks on Wall Street surged higher overnight. According to the latest SPI futures, the benchmark index is expected to rise 16 points or 0.25% higher at the open. In the United States the Dow Jones rose 0.3%, the S&P 500 jumped 1%, and the Nasdaq stormed a massive 1.7% higher. The latter could mean local tech shares have a strong day.

https://www.usnews.com/news/busines...es-lower-as-investors-await-fed-chairs-speech

More Blowout Profits From Tech Companies Push S&P 500 Higher
More blowout profit reports from big tech companies pushed the S&P 500 to another record high on Wednesday.
By Associated Press, Wire Service Content Aug. 26, 2020, at 5:10 p.m.

By STAN CHOE, ALEX VEIGA and DAMIAN J. TROISE, AP Business Writers

More blowout profit reports from big tech companies pushed the S&P 500 to an all-time high Wednesday.

The benchmark index rose 1%, even though most of the stocks within it closed lower. Technology stocks accounted for the lion's share of the gains, outweighing losses in health care, utilities, energy and other sectors.

The S&P 500 has been notching record highs this month, adding to its remarkable turnaround this year from a nearly 34% skid this spring as the pandemic ravaged the economy. While the market's movements have remained almost relentlessly upward in recent weeks, powered largely by big technology stocks, its momentum has slowed. Recent data reports have shown a mixed picture on the economy, where activity has largely slowed following its initial rebound from its plummet into recession.

Still, the latest economic data provided more reason for investor optimism. The Commerce Department said Wednesday that orders for transportation equipment, computers and other long-lasting goods jumped more in July from June than economists expected. One closely watched number in the report, which gives an indication of business investment plans, rose 1.9% in July.

“The economy continues to show signs of recovery,” said Patrick Schaffer, global investment specialist at J.P. Morgan Private Bank. “Virus containment strategies seem more targeted and less blunt than they were in the initial phases.” of the pandemic.

The S&P 500 gained 35.11 points to 3,478.73. The Dow Jones Industrial Average rose 83.48 points, or 0.3%, to 28,331.92. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 198.59 points, or 1.7%, to 11,665.06, its third-straight record high. Smaller companies struggled. The Russell 2000 index of small-cap stocks fell 11.02 points, or 0.7%, to 1,560.19.

On Thursday, the market will pay close attention as the Federal Reserve’s chair gives a highly anticipated speech on monetary policy. Jerome Powell will be speaking as part of the Fed’s annual economic symposium, which is usually held in Jackson Hole, Wyoming, where past Fed officials have made big market-moving announcements.

Many investors expect Powell to talk about inflation, as well as the importance of Congress delivering more aid for the economy after much of its last round of stimulus expired. Many investors are still assuming Congress will eventually reach a deal on such aid, but partisan disagreements have prevented one so far.

The Fed has been one of the primary reasons for the stock market’s return to a record, after it pledged to keep short-term interest rates at their record low and to continue to buy bonds to support the economy.

“I think the Fed is going to continue to go all in,” said Brad McMillan, chief investment officer for Commonwealth Financial Network, noting that the central bank is also increasingly serious about wanting to boost inflation.

“The speculation is they’ll move to an average inflation target, which will let inflation run hot for awhile,” he said.

The yield on the 10-year Treasury rose to 0.69% from 0.68% late Tuesday. It’s been climbing in recent weeks, up from 0.53% at the end of July, and it tends to move with investors’ expectations for the economy and inflation.

If yields move high enough, it could rattle the stock market because higher rates can draw investors back into bonds and away from stocks. The recent ultra-low rates have helped technology and other high-growth stocks in particular. But analysts say the 10-year Treasury yield would need to get closer to 1% to drive real concerns.

The latest tech stock to be minted a blue chip surged 26%, making it the biggest gainer in the S&P 500, after giving a profit report for its latest quarter that Wall Street analysts called “stupendous.” Salesforce.com will join the Dow Jones Industrial Average when trading begins on Monday, replacing Exxon Mobil in the measure of 30 blue-chip stocks.

Other technology stocks also had a good day, with Adobe up 9.1%. Hewlett Packard Enterprise gained 3.6% following its own better-than-expected profit report.

Tech stocks in the S&P 500 accounted for more than 57% of the S&P 500's overall gain. It continues a longstanding run on Wall Street, where investors continue to pile into companies that can deliver strong growth even if the economy is weak or quarantined.

“The market is just reflecting how the world has changed and how these (tech) companies are better positioned to take advantage of it,” McMillan said.

Cruise line operators were among the biggest decliners Wednesday. Norwegian Cruise Line fell 6.1%, while Carnival dropped 3.8%.

In European stock markets, the German DAX returned 1%, and the French CAC 40 rose 0.8%. The FTSE 100 in London added 0.1%. Asian markets made mostly modest moves. Japan’s Nikkei 225 and Hong Kong’s Hang Seng indexes were virtually flat, and South Korea’s Kospi added 0.1%. Stocks in Shanghai fell 1.3%.

Benchmark U.S. crude oil for October delivery rose 4 cents to $43.39 a barrel Wednesday. Brent crude oil for October delivery fell 22 cents to $45.64 a barrel. Oil has been ticking higher as Hurricane Laura barrels toward the U.S. Gulf Coast, potentially putting energy production at risk.

 

[bigdog]

The S&P 500 ticked further into record territory on Thursday after the Federal Reserve made a major overhaul to its strategy, one that could keep interest rates low for longer.

The benchmark index rose 0.2%, to another all-time high, but it veered through a jumbled day of trading to get there. Prices for stocks, bonds and gold all made several U-turns after Fed Chair Jerome Powell gave a highly anticipated speech. In it, he essentially said the Fed may continue efforts to prop up the economy even if inflation rises above its target level of 2%, as long as it had been weak before then.

The change in the Fed's strategy is a huge deal for markets. The central bank has been the superhero repeatedly rescuing them from crises through the years, by slashing short-term interest rates and buying all kinds of bonds. The momentous announcement was widely expected on Wall Street, if not on Thursday then later this year, but trading was nevertheless erratic following it.

The Dow Jones Industrial Average climbed 160.35 points, or 0.6%, to 28,492.27 after fading back from an earlier gain of 302 points. The Nasdaq composite, meanwhile, fell 39.72 points, or 0.3%, to 11,625.34 after paring an earlier loss of 1%.

The benchmark S&P 500 gained 5.82 points to 3,484.55 to set a closing record for the fifth straight day. It's surged nearly 56% since late March after the immense support of the Fed helped halt its earlier free-fall and erase its pandemic losses. Low rates often act like steroids for stocks, allowing their prices to rise faster than corporate profits.

“The era of easy money is here,” said Mike Loewengart, managing director of investment strategy at E-Trade Financial.

Treasury yields fell immediately after Powell began talking, but then started bouncing up and down. The yield of the 10-year Treasury was at 0.74% after stocks stopped trading on Wall Street, up from 0.68% late Wednesday. The 30-year yield climbed to 1.50% from 1.41%.

ASX 200 expected to drop.
Unfortunately, the ASX 200 could end the week on a disappointing note on Friday. According to the latest SPI futures, the benchmark index is expected to fall 11 points or 0.2% at the open. This is despite the majority of stocks in the United States pushing higher overnight. The Dow Jones rose 0.6% and the S&P 500 climbed 0.2%, whereas the Nasdaq fell 0.35%.

https://www.usnews.com/news/busines...an-stocks-mixed-ahead-of-us-fed-chairs-speech

S&P 500 Ticks up as 'Era of Easy Money' Looks Set to Last
The S&P 500 ticked further into record territory on Thursday after the Federal Reserve made a major overhaul to its strategy, one that could keep interest rates low for longer.
By Associated Press, Wire Service Content Aug. 27, 2020, at 4:31 p.m.

By STAN CHOE and DAMIAN J. TROISE, AP Business Writers

NEW YORK (AP) — The S&P 500 ticked further into record territory on Thursday after the Federal Reserve made a major overhaul to its strategy, one that could keep interest rates low for longer.

The benchmark index rose 0.2%, to another all-time high, but it veered through a jumbled day of trading to get there. Prices for stocks, bonds and gold all made several U-turns after Fed Chair Jerome Powell gave a highly anticipated speech. In it, he essentially said the Fed may continue efforts to prop up the economy even if inflation rises above its target level of 2%, as long as it had been weak before then.

The change in the Fed's strategy is a huge deal for markets. The central bank has been the superhero repeatedly rescuing them from crises through the years, by slashing short-term interest rates and buying all kinds of bonds. The momentous announcement was widely expected on Wall Street, if not on Thursday then later this year, but trading was nevertheless erratic following it.

The Dow Jones Industrial Average climbed 160.35 points, or 0.6%, to 28,492.27 after fading back from an earlier gain of 302 points. The Nasdaq composite, meanwhile, fell 39.72 points, or 0.3%, to 11,625.34 after paring an earlier loss of 1%.

The benchmark S&P 500 gained 5.82 points to 3,484.55 to set a closing record for the fifth straight day. It's surged nearly 56% since late March after the immense support of the Fed helped halt its earlier free-fall and erase its pandemic losses. Low rates often act like steroids for stocks, allowing their prices to rise faster than corporate profits.

“The era of easy money is here,” said Mike Loewengart, managing director of investment strategy at E-Trade Financial.

Treasury yields fell immediately after Powell began talking, but then started bouncing up and down. The yield of the 10-year Treasury was at 0.74% after stocks stopped trading on Wall Street, up from 0.68% late Wednesday. The 30-year yield climbed to 1.50% from 1.41%.

Shorter-term Treasury yields were more subdued, and the two-year yield held at 0.14%. The widening gap between short- and longer-term yields could be an indication of higher expectations for the economy or inflation among investors.

Gold for delivery in December fell $19.90 to settle at $1,932.60 per ounce. Earlier, it had leaped to $1,968.80 after Powell began talking. Lower Treasury yields can drive demand for gold from investors seeking safety but not interested in the lower interest payments coming from bonds.

Earlier in the morning, a report showed the pace of layoffs sweeping the country remains incredibly high but may be slowing. A little more than 1 million U.S. workers applied for unemployment benefits last week, which was a dip from the slightly more than 1.1 million the prior week.

“It puts a spotlight on the heavy lifting the economy is going to need to get people back in the jobs market,” said Marvin Loh, senior global macro strategist at State Street.

He said investors are still banking on Congress delivering another round of aid for the economy, which could include benefits for unemployed workers. Much of Congress' last round of stimulus has expired, and investors say a renewal is critical, though partisan disagreements have prevented a deal.

“It’s a necessary result that has to come out of Washington sooner rather than later,” Loh said.

In another report, the government also said that the economy looks like it shrank at an annual rate of 31.7% in the spring quarter. That would be the sharpest quarterly drop on record, but it’s not as bad as the Commerce Department’s earlier estimate of 32.9%.

Abbott Laboratories jumped 7.8% for one of the biggest gains in the S&P 500 after federal regulators gave emergency use authorization for its COVID-19 test, which can provide results in 15 minutes and will cost only $5.

Stocks of companies that sorely need people feeling comfortable enough with the pandemic to get back to “normal” life were also strong. Live Nation Entertainment rose 8.8%, Norwegian Cruise Line was up 5.9% and United Airlines rallied 5.8%.

Financial stocks had the biggest gain among the 11 sectors that make up the S&P 500, up 1.7%. A higher 10-year Treasury yield allows for higher rates on mortgages and other loans, which boosts profits for banks. JPMorgan Chase gained 3.3%, and Wells Fargo rose 2.3%.

Counterbalancing those gains were losses for some big tech and internet companies, which gave back some of their slingshot, earlier gains. Apple slipped 1.2%. It's coming off four straight weeks where it rocketed up by 3% to 14.7%.

In European stock markets, the German DAX lost 0.7%, and France's CAC 40 slipped 0.6%. The FTSE 100 in London was down 0.8%.

In Asia, Japan's Nikkei 225 slipped 0.4%, and South Korea's Kospi lost 1%. The Hang Seng in Hong Kong fell 0.8%, and stocks in Shanghai rose 0.6%.

Benchmark U.S. crude oil fell 35 cents to settle at $43.04 per barrel. Brent crude, the international standard, lost 55 cents to $45.09 per barrel.