NYSE Dow Jones finished today at:

[bigdog]

The gains keep piling up on Wall Street, and the S&P 500 rallied again on Friday to close out its fifth straight winning week.

The benchmark index rose 23.46, or 0.7%, to 3,508.01, setting another record high and several more superlatives. It was the seventh straight day of gains for the index. It also capped a 3.3% rally for the week to cement its longest weekly winning streak since December, before the coronavirus pandemic swept the world and sent economies tumbling into recession.

The Dow Jones Industrial Average rallied 161.60, or 0.6%, to 28,653.87 and clawed its way back to a tiny gain for the year. It’s just 0.4%, but it's the first time the Dow has been up for 2020 since late February.

The Nasdaq composite climbed 70.30, or 0.6%, to 11,695.63 to set another record. It’s lapped the other U.S. stock indexes many times over, thanks to market-leading gains for big technology stocks, and it's up 30.3% for 2020 so far.

A report released before trading began showed that U.S. consumer spending grew more in July than economists expected. That’s key because consumer spending is the main driver of the nation’s economy. Consumers increased their spending by 1.9% for the third straight month of gains, though it was a slowdown from June’s 6.2% growth.

Income also rose by 0.4% for Americans last month, snapping back from a drop in June. It adds to other reports showing the economy has improved since the worst of the business lockdowns of the spring, though it remains well below where it was before the pandemic. Data recently has also been relatively mixed.

Ulta Beauty, a company that relies on consumers opening their wallets, jumped 5.8% for one of the biggest gains in the S&P 500 after it reported a drop in profit for the latest quarter that wasn’t as bad as Wall Street analysts expected.

Technology stocks also again helped to pull the market higher. HP rose 6.1% after it reported better profit for the latest quarter than analysts expected. The pandemic means more people are working and learning — and printing documents — from home, which helps sales of all kinds of products for HP.

Stocks are continuing to rise after the Federal Reserve on Thursday unveiled a change in strategy that likely means interest rates will stay low for a long time, even if inflation rises above the 2% target level of the central bank. It's something Fed Chair Jerome Powell called a form of “average inflation targeting” in a widely anticipated speech, and its full ramifications are still to be determined.

“Markets are trying to figure out what the Fed actually meant by its average inflation target,” said Jamie Cox, managing partner for Harris Financial Group.

https://www.usnews.com/news/busines...-as-fed-chair-says-interest-rates-to-stay-low

S&P 500 Rises to Close Out Longest Weekly Win Streak of 2020
More gains for stocks Friday gave the S&P 500 its fifth straight winning week.
By Associated Press, Wire Service Content Aug. 28, 2020, at 4:34 p.m.

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

NEW YORK (AP) — The gains keep piling up on Wall Street, and the S&P 500 rallied again on Friday to close out its fifth straight winning week.

The benchmark index rose 23.46, or 0.7%, to 3,508.01, setting another record high and several more superlatives. It was the seventh straight day of gains for the index. It also capped a 3.3% rally for the week to cement its longest weekly winning streak since December, before the coronavirus pandemic swept the world and sent economies tumbling into recession.

The Dow Jones Industrial Average rallied 161.60, or 0.6%, to 28,653.87 and clawed its way back to a tiny gain for the year. It’s just 0.4%, but it's the first time the Dow has been up for 2020 since late February.

The Nasdaq composite climbed 70.30, or 0.6%, to 11,695.63 to set another record. It’s lapped the other U.S. stock indexes many times over, thanks to market-leading gains for big technology stocks, and it's up 30.3% for 2020 so far.

A report released before trading began showed that U.S. consumer spending grew more in July than economists expected. That’s key because consumer spending is the main driver of the nation’s economy. Consumers increased their spending by 1.9% for the third straight month of gains, though it was a slowdown from June’s 6.2% growth.

Income also rose by 0.4% for Americans last month, snapping back from a drop in June. It adds to other reports showing the economy has improved since the worst of the business lockdowns of the spring, though it remains well below where it was before the pandemic. Data recently has also been relatively mixed.

Ulta Beauty, a company that relies on consumers opening their wallets, jumped 5.8% for one of the biggest gains in the S&P 500 after it reported a drop in profit for the latest quarter that wasn’t as bad as Wall Street analysts expected.

Technology stocks also again helped to pull the market higher. HP rose 6.1% after it reported better profit for the latest quarter than analysts expected. The pandemic means more people are working and learning — and printing documents — from home, which helps sales of all kinds of products for HP.

Stocks are continuing to rise after the Federal Reserve on Thursday unveiled a change in strategy that likely means interest rates will stay low for a long time, even if inflation rises above the 2% target level of the central bank. It's something Fed Chair Jerome Powell called a form of “average inflation targeting” in a widely anticipated speech, and its full ramifications are still to be determined.

“Markets are trying to figure out what the Fed actually meant by its average inflation target,” said Jamie Cox, managing partner for Harris Financial Group.

Low interest rates and massive amounts of bond purchases by the Fed have helped prop up the economy, and they’re a central reason the S&P 500 has been able to recover from its nearly 34% plunge earlier this year, even though the pandemic is still raging.

With aid from the Federal Reserve firmly in place, investors want to see Congress also deliver more support for the economy. Weekly benefits that it approved earlier for unemployed workers have run out, and investors say the economy desperately needs another lifeline from Capitol Hill to carry it through its current weakness.

“You can already see some cracks forming in what consumer spending will look like if there isn’t much support in the future,” Cox said.

House Speaker Nancy Pelosi and the White House’s chief of staff resumed talks on a big aid package Thursday, the first attempt to restart talks after negotiations fell apart earlier this month. But no deal seems imminent with both sides remaining far apart.

Stock indexes abroad were mixed as the Fed’s momentous decision continued to work its way through currency and other markets.

In Europe, Germany’s DAX lost 0.5%, and France’s CAC 40 slipped 0.3%. The FTSE 100 in London was down 0.6%.

The Nikkei 225 lost 1.4% after Japanese Prime Minister Shinzo Abe said he is resigning due to health problems. Abe stepped down from a brief earlier term as prime minister in 2007, also for health reasons. He recently became Japan’s longest continuously serving prime minister.

Elsewhere in Asia, Hong Kong’s Hang Seng climbed 0.6%, South Korea’s Kospi added 0.4% and stocks in Shanghai jumped 1.6%.

The yield on the 10-year Treasury gave back a bit of its big rise from the day before, dipping to 0.73% from 0.74% late Thursday. The 30-year yield rose to 1.51% from 1.50%.

Longer-term yields remain well above shorter-term yields, including the two-year yield at 0.14%. A wider gap between them can indicate rising investor expectations for the economy and inflation in the future.

Benchmark U.S. crude oil slipped 7 cents to settle at $42.97 per barrel. Brent crude, the international standard, fell 4 cents to $45.05 a barrel.

098

 

[bigdog]

ASX 200 to drop lower.
The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is expected to open the week a disappointing 40 points lower. This is despite Wall Street finishing the week strongly on Friday. The Dow Jones climbed 0.6%, the S&P 500 rose 0.8%, and the Nasdaq pushed 0.6% higher.

 

[bigdog]

Stocks ended lower on Wall Street Monday, but the market still closed out August with its fifth monthly gain in a row.

The S&P 500 fell 0.2% after spending much of the day wavering between gains and losses of less than 0.1%. The modest decline, which snapped the index's seven-day winning streak, came as losses in financial, industrial and energy companies outweighed gains in technology stocks.

The benchmark index finished the month with a 7% gain, making it the S&P 500's best August since 1986. It's now up 8.3% this year. The Nasdaq composite, meanwhile, added to its recent string of milestones, closing at an all-time high.

The market's latest strong monthly finish extends a remarkable comeback for Wall Street since the coronavirus pandemic knocked financial markets into a steep skid and the global economy into recession.

Encouraging economic data as broad swaths of the economy have reopened this summer have helped stoke investor optimism about a recovery. The question is whether that's going to be enough to keep the market moving higher when so much uncertainty remains about the pandemic's lasting impact on companies and consumers.

“People need to be careful here because what we have is an exuberant rally sitting on the foundation of a shaky recovery,” said David Kelly, chief global strategist at JPMorgan Funds. He added that there will likely be a market correction “that brings us back down to Earth.”

The S&P 500 fell 7.70 points to 3,500.31. The Dow Jones Industrial Average lost 223.82 points, or 0.8%, to 28,430.05.

The Nasdaq rose 79.82 points, or 0.7%, to 11,775.46. The index, heavily weighted with tech stocks, has led the market's rebound this year. It finished August with a 9.6% gain and it's up 31.2% for the year. The Russell 2000 index of small company stocks fell 16.47 points, or 1%, to 1,561.88.

Low interest rates and massive amounts of bond purchases by the Federal Reserve have helped prop up the economy, and they’re a central reason the S&P 500 has been able to recover from its nearly 34% plunge earlier this year, even though the pandemic is still raging.

Congress has also offered unprecedented amounts of aid, though it’s hit a seeming impasse in negotiations to re-up its assistance. Weekly benefits that it approved earlier for unemployed workers have run out, and investors say the economy desperately needs another lifeline from Capitol Hill to carry it through its current weakness.

Investors have been largely 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. The market is also betting that corporate profits will rebound next year from their current coronavirus-caused hole.

ASX 200 expected to sink lower.
It looks set to be a disappointing start to the month for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is expected to fall 61 points or 1% lower this morning. This follows a mixed start to the week on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.2%, and the Nasdaq push 0.7% higher.

https://www.usnews.com/news/busines...eakly-but-are-still-headed-for-a-monthly-gain

Stocks End a Bumpy Day Mostly Lower, Still Notch August Gain
Stocks ended mostly lower on Wall Street Monday as the market gave back some of its recent gains following a five-week winning streak.
By Associated Press, Wire Service Content Aug. 31, 2020, at 5:28 p.m.

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

Stocks ended lower on Wall Street Monday, but the market still closed out August with its fifth monthly gain in a row.

The S&P 500 fell 0.2% after spending much of the day wavering between gains and losses of less than 0.1%. The modest decline, which snapped the index's seven-day winning streak, came as losses in financial, industrial and energy companies outweighed gains in technology stocks.

The benchmark index finished the month with a 7% gain, making it the S&P 500's best August since 1986. It's now up 8.3% this year. The Nasdaq composite, meanwhile, added to its recent string of milestones, closing at an all-time high.

The market's latest strong monthly finish extends a remarkable comeback for Wall Street since the coronavirus pandemic knocked financial markets into a steep skid and the global economy into recession.

Encouraging economic data as broad swaths of the economy have reopened this summer have helped stoke investor optimism about a recovery. The question is whether that's going to be enough to keep the market moving higher when so much uncertainty remains about the pandemic's lasting impact on companies and consumers.

“People need to be careful here because what we have is an exuberant rally sitting on the foundation of a shaky recovery,” said David Kelly, chief global strategist at JPMorgan Funds. He added that there will likely be a market correction “that brings us back down to Earth.”

The S&P 500 fell 7.70 points to 3,500.31. The Dow Jones Industrial Average lost 223.82 points, or 0.8%, to 28,430.05.

The Nasdaq rose 79.82 points, or 0.7%, to 11,775.46. The index, heavily weighted with tech stocks, has led the market's rebound this year. It finished August with a 9.6% gain and it's up 31.2% for the year. The Russell 2000 index of small company stocks fell 16.47 points, or 1%, to 1,561.88.

Low interest rates and massive amounts of bond purchases by the Federal Reserve have helped prop up the economy, and they’re a central reason the S&P 500 has been able to recover from its nearly 34% plunge earlier this year, even though the pandemic is still raging.

Congress has also offered unprecedented amounts of aid, though it’s hit a seeming impasse in negotiations to re-up its assistance. Weekly benefits that it approved earlier for unemployed workers have run out, and investors say the economy desperately needs another lifeline from Capitol Hill to carry it through its current weakness.

Investors have been largely 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. The market is also betting that corporate profits will rebound next year from their current coronavirus-caused hole.

Still, the economy, which despite strong housing sector growth and modest improvements in retail sales and unemployment, remains in a deep recession — a stark contrast to Wall Street’s roaring comeback the past five months.

Part of the reason some of the recent economic reports have been strong, such as retail sales, is that the figures were bouncing back from steep declines due to the broad shutdown of businesses in the spring. Economic data in the next few months are not likely to be as eye-popping, said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

“We're here because of the euphoria around some of the economic numbers as the economy has reopened,” she said. “The second half of this year, the last quarter of this year, is going to be a bit more challenging for the (stock) market than we've seen over the past three months.”

Another factor that may weigh on the market is history. Since 1950, September has been, on average, the weakest month of the year for stocks, according to LPL Financial. And the last two times that the S&P 500 ended August ended with a gain of more than 5% it went on to lose all of those gains in September.

“Well, 2020 has laughed at many of these things, but be aware September is indeed the worst month of the year on average,” Ryan Detrick, chief market strategist at LPL Financial, wrote in a commentary.

Monday was the first day of trading in the Dow since the 30-company average had its lineup of companies revamped. Salesforce.com, Amgen and Honeywell International are replacing Exxon Mobil, Pfizer and Raytheon Technologies. The shuffle was triggered by a 4-for-1 stock split in Dow member Apple. Tesla also had a 5-for-1 stock split that took effect Monday. Apple was up 3.4%, while Tesla vaulted 12.6%.

Markets in Europe closed broadly lower. The DAX in Germany fell 0.7%, while the CAC 40 in France lost 1.1%. Stock markets in the United Kingdom were closed for a holiday.

The yield on the 10-year Treasury slipped to 0.70% from 0.72% late Friday.

Oil prices fell. Benchmark U.S. crude oil for October delivery fell 36 cents to $42.61 a barrel Monday. Brent crude oil for November delivery dropped 53 cents to $45.28 a barrel.

Asian markets closed broadly lower except for Japan, where the market got a boost by gains for five major trading companies after investor Warren Buffett’s Berkshire Hathaway announced it bought stakes of just over 5% in those companies. Gains in Japanese factory output also helped lift sentiment.

 

[bigdog]

Wall Street kicked off September with another set of milestones Tuesday, as an afternoon rally carried the S&P 500 and Nasdaq composite to all-time highs.

The S&P 500 bounced back from a modest loss in the early going to finish 0.8% higher a day after the benchmark index wrapped up its fifth monthly gain in a row. More strength in technology stocks and solid gains in retailers and other companies that rely on consumers offset declines in health care companies and elsewhere in the market. Treasury yields fell.

Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said stocks “have fast become a buy high, sell higher market, and for good reason.” Sandven said investors are right to take a “glass half full” view of the strengths underlying the market, which could continue to trend upward.

“This has largely been a technology-driven market, and as tech goes so will the broad index,” he said.

The S&P 500 gained 26.34 points to 3,526.65. The index set several new highs last month. The Dow Jones Industrial Average recovered from an early, 139-point skid, climbing 215.61 points, or 0.8%, to 28,645.66.

The Nasdaq composite rose 164.21 points, or 1.4%, to 11,939.67. The Russell 2000 index of smaller company stocks also bounced back from an sluggish start, adding 16.71 points, or 1.1%, to 1,578.58.

The stock market has continued its remarkable turnaround since plunging nearly 34% early this year as the coronavirus pandemic knocked the economy into a recession. The S&P 500 closed out August with a 7% gain, its best showing since April. It’s now up 9.2% this year, while the tech-driven rally has powered the Nasdaq to a gain of more than 33%.

Encouraging data as broad swaths of the economy have reopened this summer have helped stoke investor optimism about a recovery. The question is whether that’s going to be enough to keep the market moving higher when so much uncertainty remains about the pandemic’s lasting impact on companies and consumers.

Whether the market can sustain its upward trajectory in September, traditionally the worst month for stocks, will depend on how several potentially market-moving variables play out the next few months. Will Congress reach a deal on another economic stimulus bill? Will coronavirus infections surge as students in states where schools are due to reopen go back to the classroom? How will the elections shake out?


ASX 200 to rebound.
The ASX 200 looks set to end its losing streak on Wednesday. According to the latest SPI futures, the benchmark index is expected to rise 28 points 0.5% higher at the open. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 0.75%, the S&P 500 climb 0.75%, and the Nasdaq storm 1.4% higher.

https://apnews.com/c5490618c7d2de2b01762787fd5482e7

US stocks start September off with more gains, led by tech
By ALEX VEIGA an hour ago

Wall Street kicked off September with another set of milestones Tuesday, as an afternoon rally carried the S&P 500 and Nasdaq composite to all-time highs.

The S&P 500 bounced back from a modest loss in the early going to finish 0.8% higher a day after the benchmark index wrapped up its fifth monthly gain in a row. More strength in technology stocks and solid gains in retailers and other companies that rely on consumers offset declines in health care companies and elsewhere in the market. Treasury yields fell.

Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said stocks “have fast become a buy high, sell higher market, and for good reason.” Sandven said investors are right to take a “glass half full” view of the strengths underlying the market, which could continue to trend upward.

“This has largely been a technology-driven market, and as tech goes so will the broad index,” he said.

The S&P 500 gained 26.34 points to 3,526.65. The index set several new highs last month. The Dow Jones Industrial Average recovered from an early, 139-point skid, climbing 215.61 points, or 0.8%, to 28,645.66.

The Nasdaq composite rose 164.21 points, or 1.4%, to 11,939.67. The Russell 2000 index of smaller company stocks also bounced back from an sluggish start, adding 16.71 points, or 1.1%, to 1,578.58.

The stock market has continued its remarkable turnaround since plunging nearly 34% early this year as the coronavirus pandemic knocked the economy into a recession. The S&P 500 closed out August with a 7% gain, its best showing since April. It’s now up 9.2% this year, while the tech-driven rally has powered the Nasdaq to a gain of more than 33%.

Encouraging data as broad swaths of the economy have reopened this summer have helped stoke investor optimism about a recovery. The question is whether that’s going to be enough to keep the market moving higher when so much uncertainty remains about the pandemic’s lasting impact on companies and consumers.

Whether the market can sustain its upward trajectory in September, traditionally the worst month for stocks, will depend on how several potentially market-moving variables play out the next few months. Will Congress reach a deal on another economic stimulus bill? Will coronavirus infections surge as students in states where schools are due to reopen go back to the classroom? How will the elections shake out?

“It’s a market that’s at all-time highs, but not without risks,” Sandven said.

Traders have been favoring technology stocks as the pandemic has dragged on, forcing millions of people to rely more than ever on internet-connected devices and online services for work, home schooling and communication.

Apple climbed 4% Tuesday. It’s up more than 82% this year. Meanwhile, Zoom Video Communications soared 40.8%, a day after the now-ubiquitous video conferencing service reported another quarter of explosive growth.

Another recent high-flyer, Tesla, fell 4.7% after the electric car maker said it would sell up to $5 billion in stock. Tesla has risen more than five-fold this year and did a five-for-one stock split on Monday.

Walmart was among the biggest gainers in the S&P 500 as investors welcomed news of the retail giant’s debut later this month of a of a service offering members same-day delivery, fuel discounts and other perks. The stock rose 6.3%.

Stocks perked up Tuesday following the release of some better-than-expected economic data. The Commerce Department said U.S. construction spending edged higher in July, breaking a string of losses due to disruptions caused by the pandemic. And the Institute for Supply Management said its latest manufacturing index increased last month, reflecting a faster pace of expansion by American factories.

Investors will be looking for more clues on the state of the economic recovery this week amid what is going to be a busy week for economic news, including the government’s monthly U.S. jobs report on Friday.

The yield on the 10-year Treasury fell to 0.68% from 0.71% late Monday.

Oil prices rose. Benchmark U.S. crude oil for October delivery rose 15 cents to $42.76 a barrel. Brent crude oil for November delivery rose 30 cents to $45.58 a barrel.

Tuesday’s gains for U.S. stocks followed a mostly downbeat finish in European markets. France’s CAC 40 fell 0.2%, while Germany’s DAX added 0.1%. Britain’s FTSE 100 lost 1.7% a day after it was closed for a public holiday. Asian markets ended mixed.

 

[bigdog]

The Dow Jones Industrial Average surged more than 450 points Wednesday as the stock market notched its best day in nearly two months.

The S&P 500 rose 1.5%, it's best day since July 6. The benchmark index and the Nasdaq composite each hit new highs, extending Wall Street’s milestone-setting run in recent weeks.

Health care, technology and communications companies drove the rally. Technology stocks, which have led the market's rebound this year, briefly stumbled in the early going, but gained strength into the afternoon. Energy companies fell as oil prices closed lower. Treasury yields were mixed.

Speculation that negotiators in Congress and the White House will reach an agreement on a coronavirus relief package and optimism that a COVID-19 vaccine will become available this year helped put traders in a buying mood Wednesday, said J.J. Kinahan, chief strategist with TD Ameritrade.

“That, along with the fact that people continue to want to buy the stocks that have performed so well,” he said. “You look around for alternatives to put your money in right now and there really aren't many great places to say ‘this is where I want to have my money.’”

“There’s a desire on both sides and they’re recognizing they are going to have to come to a deal some time soon,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

The S&P 500 gained 54.19 points to 3,580.84, it's best say since July 6. The Dow Jones Industrial Average rose 454.84 points, or 1.6%, to 29,100.50. The Nasdaq composite recovered from an early slide, adding 116.78 points, or 1%, to 12,056.44.

The benchmark S&P 500 index is up 10.8% so far this year following a five month streak of gains, while the Nasdaq is up 34.4%, driven by huge gains for technology giants like Apple.

Low interest rates and massive amounts of bond purchases by the Federal Reserve have helped prop up the economy, and they’re a central reason the S&P 500 has been able to recover from its nearly 34% plunge earlier this year. Wall Street's push higher has been powered by gains in technology stocks that investors expect will remain safe bets throughout the pandemic and beyond, reflecting how reliant people have become on internet-connected devices and online services while spending more time at home.

Improving data on business reopenings, recent company earnings reports that have been less worse than feared and encouraging signs as drugmakers race to develop a vaccine for COVID-19 by the end of the year have fueled investor optimism that the economy will bounce back from a deep recession.

ASX 200 to charge higher again.
The ASX 200 looks set to continue its recovery on Thursday. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. This follows an extremely positive night of trade on Wall Street which saw the Dow Jones storm 1.75% higher, the S&P 500 jump 1.55%, and the Nasdaq push 1% higher.

https://www.usnews.com/news/busines...d-higher-add-to-markets-solid-string-of-gains

Wall Street Has Biggest Gain Since July, Sets More Records
The stock market jumped to its biggest gain since July on Wednesday, sending the S&P 500 up 1.5%.
By Associated Press, Wire Service Content Sept. 2, 2020, at 4:59 p.m.

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

The Dow Jones Industrial Average surged more than 450 points Wednesday as the stock market notched its best day in nearly two months.

The S&P 500 rose 1.5%, it's best day since July 6. The benchmark index and the Nasdaq composite each hit new highs, extending Wall Street’s milestone-setting run in recent weeks.

Health care, technology and communications companies drove the rally. Technology stocks, which have led the market's rebound this year, briefly stumbled in the early going, but gained strength into the afternoon. Energy companies fell as oil prices closed lower. Treasury yields were mixed.

Speculation that negotiators in Congress and the White House will reach an agreement on a coronavirus relief package and optimism that a COVID-19 vaccine will become available this year helped put traders in a buying mood Wednesday, said J.J. Kinahan, chief strategist with TD Ameritrade.

“That, along with the fact that people continue to want to buy the stocks that have performed so well,” he said. “You look around for alternatives to put your money in right now and there really aren't many great places to say ‘this is where I want to have my money.’”

“There’s a desire on both sides and they’re recognizing they are going to have to come to a deal some time soon,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

The S&P 500 gained 54.19 points to 3,580.84, it's best say since July 6. The Dow Jones Industrial Average rose 454.84 points, or 1.6%, to 29,100.50. The Nasdaq composite recovered from an early slide, adding 116.78 points, or 1%, to 12,056.44.

The benchmark S&P 500 index is up 10.8% so far this year following a five month streak of gains, while the Nasdaq is up 34.4%, driven by huge gains for technology giants like Apple.

Low interest rates and massive amounts of bond purchases by the Federal Reserve have helped prop up the economy, and they’re a central reason the S&P 500 has been able to recover from its nearly 34% plunge earlier this year. Wall Street's push higher has been powered by gains in technology stocks that investors expect will remain safe bets throughout the pandemic and beyond, reflecting how reliant people have become on internet-connected devices and online services while spending more time at home.

Improving data on business reopenings, recent company earnings reports that have been less worse than feared and encouraging signs as drugmakers race to develop a vaccine for COVID-19 by the end of the year have fueled investor optimism that the economy will bounce back from a deep recession.

DraftKings was among the big gainers, vaulting 8% after announcing that basketball legend Michael Jordan would take an ownership stake in the company in exchange for becoming a special adviser to the sports betting site.

Macy’s rose 0.6% after reporting a quarterly loss that was much smaller than analysts were anticipating. The department store chain said its digital sales rose more than 50% in the latest quarter.

Treasury yields were mixed. The yield on the 10-year Treasury note fell to 0.65% from 0.67% late Tuesday, while the yield on the 2-year note rose to 0.14% from 0.12%.

Oil prices fell. Benchmark U.S. crude oil for October delivery slid $1.25 to $41.51 a barrel Wednesday. Brent crude oil for November delivery dropped $1.15 to $44.43 a barrel.

 

[bigdog]

Wall Street’s euphoria took a break Thursday, as steep losses in technology stocks dragged the rest of the market down with them.

The S&P 500 fell 3.5%, the biggest decline for stocks since early June, when investors were dealing with a surge of coronavirus infections in places like Florida, Texas and Arizona. There seemed to be no explicit catalyst for the sell-off, with economic data coming in roughly where the market had expected and no companies issuing foreboding warnings.

That said, the market felt due for a breather, investors said. Both the S&P 500 and Nasdaq hit record highs just the day before. Prior to Thursday, the S&P 500 had risen nine out of the previous 10 days.

Apple dropped 8%, Amazon lost 4.6% and Facebook gave back 3.8%. The Big Tech stocks have made massive gains this year. Investors have been betting those companies would continue posting huge profits as people spend even more time online with their devices. They’ve also assigned lofty market values to new-found darlings such as Zoom Video Communications as many Americans work remotely and students do online learning.

Market watchers have been questioning recently whether those gains were overdone. Apple is still up 64.7% for the year, and Amazon is up 82.3%. Zoom’s gain for the year is still a whopping 460.4%.

”There’s really very little to justify (these stocks’ upward move) other than euphoria,” said Mark Hackett, chief of investment research at Nationwide.

Hackett also noted the market has “embedded very optimistic assumptions” about the virus’s impact on the economy, as well as on prospects for Congress and the White House coming up with another economic relief package.

The government reported that the number of Americans who applied for unemployment benefits fell last week to 881,000, slightly better than what economists had expected. That said, companies are still letting workers go at numbers well above those seen in the Great Recession, meaning the jobs picture remains still extremely bleak despite recent improvements.

The stock market has rallied this spring and summer after plunging in March as investors realized the economic toll the coronavirus pandemic was going to cause. Most of the rally has been on strong performances from tech stocks, but also a hope that the worst of the pandemic is in the past, despite rising infections in schools and the possibility of a second surge of infections in the fall. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.

Investors will be paying close attention Friday when the Labor Department releases its August job report. Economists surveyed by FactSet forecast that the U.S. economy created 1.4 million jobs in August, but that would be down from 1.74 million jobs in July. Tens of millions of Americans remain unemployed however, as seen by this week’s unemployment benefits numbers.

If the jobs numbers do not deliver, it’s unlikely the stock market will rally much higher from here, analysts said.

The Dow Jones Industrial Average fell 807.77 points, or 2.8%, to 28,292.73. It was briefly down 1,000 points earlier. The day before, the Dow crossed 29,000 for the first time since February.

The S&P 500 index lost 125.78 points, or 3.5%, to close as 3,455.06. The technology-heavy Nasdaq dropped 598.34 points, or 5%, to 11,458.10.

ASX 200 to crash lower.
It looks set to be a very disappointing end to the week for the ASX 200 following a terrible night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to crash 120 points or 2% lower at the open. On Wall Street the Dow Jones sank 2.8% lower, the S&P 500 dropped 3.5%, and the Nasdaq crashed 5% lower. Apple shares were a major drag, falling 8% overnight. This appears to have been driven by profit taking.

https://www.usnews.com/news/busines...n-stock-markets-mixed-after-wall-street-surge

Tech Slump Sends Stock Market to Its Biggest Loss Since June
Stocks fell sharply on Wall Street Thursday as high-flying technology companies took a tumble after months of spectacular gains.
By Associated Press, Wire Service Content Sept. 3, 2020, at 5:26 p.m.

KEN SWEET and DAMIAN TROISE, AP Business Writers

NEW YORK (AP) — Wall Street’s euphoria took a break Thursday, as steep losses in technology stocks dragged the rest of the market down with them.

The S&P 500 fell 3.5%, the biggest decline for stocks since early June, when investors were dealing with a surge of coronavirus infections in places like Florida, Texas and Arizona. There seemed to be no explicit catalyst for the sell-off, with economic data coming in roughly where the market had expected and no companies issuing foreboding warnings.

That said, the market felt due for a breather, investors said. Both the S&P 500 and Nasdaq hit record highs just the day before. Prior to Thursday, the S&P 500 had risen nine out of the previous 10 days.

Apple dropped 8%, Amazon lost 4.6% and Facebook gave back 3.8%. The Big Tech stocks have made massive gains this year. Investors have been betting those companies would continue posting huge profits as people spend even more time online with their devices. They’ve also assigned lofty market values to new-found darlings such as Zoom Video Communications as many Americans work remotely and students do online learning.

Market watchers have been questioning recently whether those gains were overdone. Apple is still up 64.7% for the year, and Amazon is up 82.3%. Zoom’s gain for the year is still a whopping 460.4%.

”There’s really very little to justify (these stocks’ upward move) other than euphoria,” said Mark Hackett, chief of investment research at Nationwide.

Hackett also noted the market has “embedded very optimistic assumptions” about the virus’s impact on the economy, as well as on prospects for Congress and the White House coming up with another economic relief package.

The government reported that the number of Americans who applied for unemployment benefits fell last week to 881,000, slightly better than what economists had expected. That said, companies are still letting workers go at numbers well above those seen in the Great Recession, meaning the jobs picture remains still extremely bleak despite recent improvements.

The stock market has rallied this spring and summer after plunging in March as investors realized the economic toll the coronavirus pandemic was going to cause. Most of the rally has been on strong performances from tech stocks, but also a hope that the worst of the pandemic is in the past, despite rising infections in schools and the possibility of a second surge of infections in the fall. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.

Investors will be paying close attention Friday when the Labor Department releases its August job report. Economists surveyed by FactSet forecast that the U.S. economy created 1.4 million jobs in August, but that would be down from 1.74 million jobs in July. Tens of millions of Americans remain unemployed however, as seen by this week’s unemployment benefits numbers.

If the jobs numbers do not deliver, it’s unlikely the stock market will rally much higher from here, analysts said.

The Dow Jones Industrial Average fell 807.77 points, or 2.8%, to 28,292.73. It was briefly down 1,000 points earlier. The day before, the Dow crossed 29,000 for the first time since February.

The S&P 500 index lost 125.78 points, or 3.5%, to close as 3,455.06. The technology-heavy Nasdaq dropped 598.34 points, or 5%, to 11,458.10.

Along with the biggest technology stocks, semiconductor companies also fell sharply. Nvidia, Qorvo and Advanced Micro Devices fell 8% or more. Even with Thursday’s drop Nvidia is still the biggest gainer in the S&P 500 so far this year.

The stocks that were doing better than the rest of the market were companies that have been beaten down this year: travel companies and airlines. Carnival Corp rose 5.2%, Norwegian Cruise Lines rose 3.8% and Royal Caribbean climbed 2.7%.

 

[Knobby22]

The USA tech stocks have been going up in a straight line. A correction is a necessity and expected.

 

[bigdog]

The USA tech stocks have been going up in a straight line. A correction is a necessity and expected.

The stock market closed out its worst week in more than two months Friday as a second straight day of turbulent trading ended with more losses.

The S&P 500 fell 0.8%, although the index did claw most of the way back from a 3.1% skid earlier in the day. A slide in technology stocks again did much of the damage.

The two-day sell-off came after the S&P 500 set new highs earlier in the week and had its best day in nearly two months. There wasn’t a particular catalyst for continued selling in the high-flying tech sector, but analysts noted that those stocks had posted gigantic gains so far this year that many thought were overdone.

“We had a fast and furious rally at the end of August and we’ve given it back,” said Barry Bannister, head of institutional equity strategy at Stifel. “Investors are like a herd of gazelle on the Serengeti; it doesn’t take much to spook them. They’re alarmed and on the move.”

The selling followed a Labor Department report showing that U.S. hiring slowed to 1.4 million last month, the fewest jobs added since the economy started bouncing back from the initial shock of the pandemic, even as the nation's unemployment rate improved to 8.4% from 10.2%. The U.S. economy has recovered about half the 22 million jobs lost to the pandemic.

The S&P 500 fell 28.10 points to 3,426.96. The Dow Jones Industrial Average lost 159.42 points, or 0.6%, to 28,133.31. The index had swung sharply during the day, between a loss of as much as 628 points and a gain of as much as 247.

The technology-heavy Nasdaq dropped 144.97 points, or 1.3%, to 11,313.13. The slide added to the index's 5% skid from the day before.

The VIX, a gauge of how much volatility investors expect in the market, has been rising. Even so, traders were not shifting funds into traditional safe-haven assets like U.S. government bonds and precious metals, a sign that the sell-off was not necessarily a reaction to jitters about the economy.

“A lot of people were piling into the (tech) trade and there are a lot of gains to be made," said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. "This is more an instance of profit-taking, rather than true panic.”

https://www.usnews.com/news/busines...llow-wall-street-lower-as-investors-pull-back

Stocks Claw Back Some of Their Losses in Another Rocky Day
The stock market ended a second straight day of turbulent trading with more losses Friday, but managed to recoup some lost ground by the end of the day.
By Associated Press, Wire Service Content Sept. 4, 2020, at 5:33 p.m.

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

The stock market closed out its worst week in more than two months Friday as a second straight day of turbulent trading ended with more losses.

The S&P 500 fell 0.8%, although the index did claw most of the way back from a 3.1% skid earlier in the day. A slide in technology stocks again did much of the damage.

The two-day sell-off came after the S&P 500 set new highs earlier in the week and had its best day in nearly two months. There wasn’t a particular catalyst for continued selling in the high-flying tech sector, but analysts noted that those stocks had posted gigantic gains so far this year that many thought were overdone.

“We had a fast and furious rally at the end of August and we’ve given it back,” said Barry Bannister, head of institutional equity strategy at Stifel. “Investors are like a herd of gazelle on the Serengeti; it doesn’t take much to spook them. They’re alarmed and on the move.”

The selling followed a Labor Department report showing that U.S. hiring slowed to 1.4 million last month, the fewest jobs added since the economy started bouncing back from the initial shock of the pandemic, even as the nation's unemployment rate improved to 8.4% from 10.2%. The U.S. economy has recovered about half the 22 million jobs lost to the pandemic.

The S&P 500 fell 28.10 points to 3,426.96. The Dow Jones Industrial Average lost 159.42 points, or 0.6%, to 28,133.31. The index had swung sharply during the day, between a loss of as much as 628 points and a gain of as much as 247.

The technology-heavy Nasdaq dropped 144.97 points, or 1.3%, to 11,313.13. The slide added to the index's 5% skid from the day before.

The VIX, a gauge of how much volatility investors expect in the market, has been rising. Even so, traders were not shifting funds into traditional safe-haven assets like U.S. government bonds and precious metals, a sign that the sell-off was not necessarily a reaction to jitters about the economy.

“A lot of people were piling into the (tech) trade and there are a lot of gains to be made," said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. "This is more an instance of profit-taking, rather than true panic.”

She noted it's not unusual for traders to pocket recent gains ahead of a holiday weekend. U.S. markets will be closed Monday for Labor Day.

The 10-year Treasury yield rose to 0.72%, up from 0.62% late Thursday, a big move. The higher yields helped send financial stocks higher, since banks can lend money at higher rates once yields rise in the bond market. Capital One Financial rose 4.7%

Thursday’s sell-off followed a euphoric rise in recent weeks led by big technology stocks. Investors have been betting technology companies will keep making huge profits as people spend even more time online with their devices during the pandemic, making new market darlings of companies like Zoom Video Communications as many Americans work remotely and students do online learning.

Some of the tech high flyers racked up more losses Friday. Nvidia fell 3%, though the chipmaker is still up more than twofold this year.

Apple was down for much of the day before ending with only a 0.1% gain, Amazon dropped 2.2% and Zoom fell 3%. And yet, Apple is still up 64.8% this year, while Amazon is up 78.3%. And Zoom is up more than 443% for the year. Even with this week's pullback, technology is up 28.8% this year, well ahead of the S&P 500's 10 other sectors.

“The tech gains were so far, so quick that it was almost concerning, so the reversal of that is natural volatility," Roth said. “We should expect to see some larger corrections.”

Despite this week's stumble, the S&P 500 is up 6.1% for the year following a five-month comeback from its lows in the spring. The Nasdaq, meanwhile, is up 26.1% for the year. The market's turnaround has been driven by low interest rates, massive amounts of spending on bond purchases by the Federal Reserve and other central banks, and encouraging economic trends as businesses have begun to reopen.

Many investors are also betting that a coronavirus vaccine will arrive later this year and clear the way for a recovery for the economy and corporate profits. Hopes also remain that Congress and the White House will come up with another economic relief package.

“Unless Congress agrees to spend more money to stimulate the economy and close the output gap, it’s very hard for us to grow,” Bannister said.

Stock indexes in Europe fell, shedding early gains. Markets in China also closed broadly lower.

446

 

[bigdog]

NYSE closed for Monday September 7 Labor Day Holiday

ASX 200 to drop lower gain.
It looks set to be another disappointing day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 36 points or 0.6% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.8%, and the Nasdaq index tumble 1.3% lower.

 

[bigdog]

NYSE closed for Monday September 7 Labor Day Holiday

European stocks rallied on Monday after a mixed close in Asia, while Wall Street remained closed for Labor Day after turning in its biggest weekly decline in more than two months.

Investors have been encouraged by hopes for a coronavirus vaccine and central bank infusions of cash into struggling economies. But forecasters warn the rise in prices might be outrunning uncertain economic activity as case numbers rise in the United States and some other countries. Some are re-imposing anti-disease controls that disrupt business.

“The question now is whether there will be a sustained unwinding in this frothy market, or if conviction about fresh central bank liquidity and fear of missing out kicks in once again,” analysts at Mizuho Bank said in a report.

One possible sign the decline might be temporary: demand for government bonds and other assets considered safe havens in an extended down market “has not come flooding back in," the analysts said.

In Europe, the FTSE 100 in London rose 2.4% to close at 5,937.40 and Frankfurt's DAX added 2% to 13,100.28 after industrial production figures showed a third consecutive monthly increase. The CAC 40 in Paris rose 1.8% to 5,053.72.

U.S. trading in stocks was due to remain shut for the holiday. On Friday, the S&P 500 slid 0.8%. The Dow lost 0.6% and the tech-heavy Nasdaq dropped 1.3%.

In Asia, the Shanghai Composite Index lost 1.8% to 3,292.59 after Chinese customs data showed August export growth accelerated to 9.5% over a year earlier while imports edged lower.

Shares in China’s most advanced semiconductor manufacturer, SMIC, fell 22.9% in Hong Kong following news that Washington is considering limiting its access to U.S. manufacturing technology. The company has denied suggestions it assists China’s military development.

The Nikkei 225 in Tokyo shed 0.5% to 23,089.95 while the Hang Seng in Hong Kong lost 0.4% to 24,589.65.

ASX 200 futures pointing higher.
The ASX 200 index looks set to push higher again on Tuesday. According to the latest SPI futures, the benchmark index is expected rise 38 points or 0.65% at the open. This follows a very positive start to the week on European markets. The DAX rose 2% and the FTSE jumped 2.4% during overnight trade. Wall Street was closed for the Labor Day holiday.

NYSE closed for Monday September 7 Labor Day Holiday

https://www.usnews.com/news/busines...global-markets-mixed-after-wall-street-slides

Stocks Rally in Europe, US Trading Closed for Holiday
European stock markets have closed with strong gains after a more subdued day in Asia.
By Associated Press, Wire Service Content Sept. 7, 2020, at 12:07 p.m.

By JOE McDONALD, AP Business Writer

BEIJING (AP) — European stocks rallied on Monday after a mixed close in Asia, while Wall Street remained closed for Labor Day after turning in its biggest weekly decline in more than two months.

Investors have been encouraged by hopes for a coronavirus vaccine and central bank infusions of cash into struggling economies. But forecasters warn the rise in prices might be outrunning uncertain economic activity as case numbers rise in the United States and some other countries. Some are re-imposing anti-disease controls that disrupt business.

“The question now is whether there will be a sustained unwinding in this frothy market, or if conviction about fresh central bank liquidity and fear of missing out kicks in once again,” analysts at Mizuho Bank said in a report.

One possible sign the decline might be temporary: demand for government bonds and other assets considered safe havens in an extended down market “has not come flooding back in," the analysts said.

In Europe, the FTSE 100 in London rose 2.4% to close at 5,937.40 and Frankfurt's DAX added 2% to 13,100.28 after industrial production figures showed a third consecutive monthly increase. The CAC 40 in Paris rose 1.8% to 5,053.72.

U.S. trading in stocks was due to remain shut for the holiday. On Friday, the S&P 500 slid 0.8%. The Dow lost 0.6% and the tech-heavy Nasdaq dropped 1.3%.

In Asia, the Shanghai Composite Index lost 1.8% to 3,292.59 after Chinese customs data showed August export growth accelerated to 9.5% over a year earlier while imports edged lower.

Shares in China’s most advanced semiconductor manufacturer, SMIC, fell 22.9% in Hong Kong following news that Washington is considering limiting its access to U.S. manufacturing technology. The company has denied suggestions it assists China’s military development.

The Nikkei 225 in Tokyo shed 0.5% to 23,089.95 while the Hang Seng in Hong Kong lost 0.4% to 24,589.65.

The Kospi in Seoul advanced 0.7% to 2,384.42 while Sydney’s S&P-ASX 200 shed 0.3% to 5,944.80.

Wall Street’s slide on Friday followed a Labor Department report that showed U.S. hiring slowed to 1.4 million last month. That was fewest jobs added since the economy started bouncing back from the initial shock of the pandemic. The United States has recovered about half the 22 million jobs lost to the pandemic.

In energy markets, benchmark U.S. crude oil for October delivery fell 70 cents to $39.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost $1.60 to $39.77 on Friday. Brent crude for November delivery, the international standard, declined 67 cents to $41.99 per barrel in London. It shed $1.41 the previous session to $42.66.

The dollar edged up to 106.31 yen from 106.21 yen on Friday. The euro fell to $1.1818 from $1.1852.

 

[bigdog]

Big technology stocks tumbled again on Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high-flyers carrying Wall Street to record heights.

The S&P 500 fell 95.12, or 2.8%, to 3,331.84 and clinched its first three-day losing streak in nearly three months. Big names that were the main reasons for the market’s rocket ride back from its pandemic-caused losses were among the heaviest weights. Apple sank 6.7%, Microsoft pulled 5.4% lower and tech stocks across the index were down 4.6%.

The Dow Jones Industrial Average lost 632.42 points, or 2.2%, to 27,500.89. The Nasdaq composite, which is packed with tech stocks, dropped 465.44, or 4.1%, to 10,847.69 and is down 10% since it set its latest record on Wednesday.

Tech stocks had been the darlings of Wall Street on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up nearly 23% for 2020 so far, and Amazon has rocketed 70.5%, even when unemployment remains high and much of the economy is limping ahead.

Analysts say a flurry of activity for stock options of Big Tech companies goosed the gains even further recently. With certain kinds of options, investors can make huge profits on a stock, without having to pay for its full share price, as long as the stock’s price keeps rising. If enough of these kinds of stock options are getting sold, it can create a buying frenzy for the stock that accelerates the gains even more.

But all that activity can unwind quickly and send prices tumbling if momentum turns, which is what happened last week. Apple stock dropped 3.1% for just its second weekly loss in the last 14 weeks. It's lost 14.1% over the last three days.

Critics have long been saying that big technology stocks had shot too high, even after accounting for their strong profit growth. Such high-growth stocks have been trouncing the performance of stocks that look like better bargains, which are called “value stocks” by investors, by margins wide enough to raise eyebrows along Wall Street.

“The growth versus value outperformance was at an unheard of extreme at the end of August,” said Sam Stovall, chief investment strategist at CFRA.

That gap began to narrow on Thursday, when tech stocks began cracking and the Dow fell more than 800 points, and that “showed investors that tech stocks and growth stocks can fall just as easily as they rise,” Stovall said.

“It’s a reminder that we’re still in 2020,” said Willie Delwiche, investment strategist at Baird. “The degree of selling we’ve seen the past few days is just a reminder that volatility is still around.”

The trigger for last week’s turnaround may have been expectations that longer-term interest rates will rise, according to strategists at Morgan Stanley. Low rates often act like steroids for stocks, encouraging investors to pay higher prices for stocks relative to corporate profits, which can benefit high-growth stocks in particular.

The yield on the 10-year Treasury fell to 0.67% from 0.72% late Friday. But it’s notably higher than the 0.53% it was offering at the end of July.

Tesla has been one of the brightest examples of Big Tech’s wild movements, and it surged 74.1% in August alone. It slumped 21.1% Tuesday, its worst loss since it began trading a decade ago, amid disappointment that it won’t be joining the S&P 500 anytime soon.

The company behind the S&P 500 announced the inclusion of several companies in the benchmark index, including Etsy. Some investors thought Tesla would be among them, which can create huge bouts of buying as index funds automatically fold the stock into their portfolios.

The big question for the stock market is whether the losses can stay mostly confined to the tech area, which had been soaring so quickly earlier and looked to be the most expensive part of the market.

ASX 200 expected to sink lower.
The ASX 200 looks set to give back yesterday’s gains and more on Wednesday after a disappointing start to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to sink 96 points or 1.6% lower at the open. Wall Street returned from the Labor day holiday and saw the Dow Jones fall 2%, the S&P 500 drop 2.6%, and the Nasdaq crash 4%. Tesla shares were particularly poor performers, sinking 20% lower.

https://www.usnews.com/news/busines...se-as-us-set-to-reopen-from-labor-day-holiday

Tech’s Sudden Sell-Off Continues; Nasdaq Sinks 10% in 3 Days
Big technology stocks tumbled again on Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high-flyers carrying Wall Street to record heights.
By Associated Press, Wire Service Content Sept. 8, 2020, at 5:36 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Big technology stocks tumbled again on Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high-flyers carrying Wall Street to record heights.

The S&P 500 fell 95.12, or 2.8%, to 3,331.84 and clinched its first three-day losing streak in nearly three months. Big names that were the main reasons for the market’s rocket ride back from its pandemic-caused losses were among the heaviest weights. Apple sank 6.7%, Microsoft pulled 5.4% lower and tech stocks across the index were down 4.6%.

The Dow Jones Industrial Average lost 632.42 points, or 2.2%, to 27,500.89. The Nasdaq composite, which is packed with tech stocks, dropped 465.44, or 4.1%, to 10,847.69 and is down 10% since it set its latest record on Wednesday.

Tech stocks had been the darlings of Wall Street on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up nearly 23% for 2020 so far, and Amazon has rocketed 70.5%, even when unemployment remains high and much of the economy is limping ahead.

Analysts say a flurry of activity for stock options of Big Tech companies goosed the gains even further recently. With certain kinds of options, investors can make huge profits on a stock, without having to pay for its full share price, as long as the stock’s price keeps rising. If enough of these kinds of stock options are getting sold, it can create a buying frenzy for the stock that accelerates the gains even more.

But all that activity can unwind quickly and send prices tumbling if momentum turns, which is what happened last week. Apple stock dropped 3.1% for just its second weekly loss in the last 14 weeks. It's lost 14.1% over the last three days.

Critics have long been saying that big technology stocks had shot too high, even after accounting for their strong profit growth. Such high-growth stocks have been trouncing the performance of stocks that look like better bargains, which are called “value stocks” by investors, by margins wide enough to raise eyebrows along Wall Street.

“The growth versus value outperformance was at an unheard of extreme at the end of August,” said Sam Stovall, chief investment strategist at CFRA.

That gap began to narrow on Thursday, when tech stocks began cracking and the Dow fell more than 800 points, and that “showed investors that tech stocks and growth stocks can fall just as easily as they rise,” Stovall said.

“It’s a reminder that we’re still in 2020,” said Willie Delwiche, investment strategist at Baird. “The degree of selling we’ve seen the past few days is just a reminder that volatility is still around.”

The trigger for last week’s turnaround may have been expectations that longer-term interest rates will rise, according to strategists at Morgan Stanley. Low rates often act like steroids for stocks, encouraging investors to pay higher prices for stocks relative to corporate profits, which can benefit high-growth stocks in particular.

The yield on the 10-year Treasury fell to 0.67% from 0.72% late Friday. But it’s notably higher than the 0.53% it was offering at the end of July.

Tesla has been one of the brightest examples of Big Tech’s wild movements, and it surged 74.1% in August alone. It slumped 21.1% Tuesday, its worst loss since it began trading a decade ago, amid disappointment that it won’t be joining the S&P 500 anytime soon.

The company behind the S&P 500 announced the inclusion of several companies in the benchmark index, including Etsy. Some investors thought Tesla would be among them, which can create huge bouts of buying as index funds automatically fold the stock into their portfolios.

The big question for the stock market is whether the losses can stay mostly confined to the tech area, which had been soaring so quickly earlier and looked to be the most expensive part of the market.

“How resilient can the stocks beneath the surface be?” said Delwiche. “If they hold up, that would fit with a healthy correction,” which is what traders call a drop of 10% for the market and can mark a short-term breather for stocks in the midst of an upward run.

“If they don’t, then it could be something more significant.”

Beyond the tech stock slump, other worries are also hanging over the stock market, which had been setting record highs just last week.

Pessimism is rising that Democrats and Republicans in Washington will be able to find a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic. Investors have been largely assuming that a deal would eventually pass, but recent talks between government leaders have yielded no progress.

President Donald Trump is also talking about “decoupling” the U.S. economy from China, as the presidential campaign heats up. The relationship between the world’s two largest economies has been on edge for years, and all the uncertainty threatens to exacerbate the global economy’s already shaky standing.

Energy stocks had some of Wall Street’s sharpest drops as the price of oil tumbled. Apache lost 10.7%, and Diamondback Energy fell 10% after benchmark U.S. crude sank $3.01 to $36.76 per barrel. Brent crude, the international standard, lost $2.23 to $39.78.

But the market's losses were widespread, with nearly 90% of the stocks in the S&P 500 lower.

Among the few gainers was General Motors. It rose 7.9% after it said it’s taking an ownership stake in electric-vehicle company Nikola, which itself surged 40.8%.

European stock markets sank, following modest gains in Asia.

 

[bigdog]

Wall Street snapped back to life on Wednesday, recovering from its worst stretch of losses in months, as the bloodletting for big technology stocks came to at least a temporary halt.

Apple, Amazon and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground. They helped the S&P 500 rally 67.12, or 2%, to 3,398.96. It was the best day in three months for the index, which recovered a little more than a quarter of its losses from the prior three days.

The Dow Jones Industrial Average climbed 439.58, or 1.6%, to 27,940.47. The Nasdaq composite, which includes many tech stocks, rose 293.87, or 2.7%, to 11,141.56. It had dropped 10% over the previous three days.

Tesla, which has made some of the wildest moves in recent months, rose 10.9%. A day earlier, it plunged 21.1% for its worst day since its shares began trading a decade ago. In August, it surged 74.1%.

Selling over the last week in the market had focused on such tech superstars, which earlier zoomed through the pandemic amid expectations that they would benefit from the new stay-at-home economy. Blockbuster spring profit reports from many of them emboldened investors, who bid their stock prices up to levels that critics called too expensive, even after accounting for their powerful growth.

A flurry of buying of stock options for big tech stocks may have helped further goose the gains, analysts say.

That helped the S&P 500 and Nasdaq push repeatedly to record highs as recently as last week, even though the economy is still struggling with the coronavirus pandemic. But the fever broke on Thursday, with the S&P 500 dropping 7% in three days, its steepest loss over such a timeframe in nearly three months.

“The fact is that there was a broad consensus that it was overbought, and the rally was overextended and due for some sort of pullback,” said Quincy Krosby, chief market strategist at Prudential Financial.

Still to be determined is whether the sell-off was just a blowing-off of some steam for tech stocks that had gotten overheated — or whether it was the beginning of a more widespread downturn.

It doesn’t help that September is traditionally a weak month for stocks, Krosby said. “Is this the pause, or are we due for more selling?”

Other sectors didn’t get as expensive as technology during the recent run-up. Banks and other financial stocks in the S&P 500 are still down more than 19% for 2020 so far, for example. But challenges continue to loom over the entire market, including uncertainty about how the pandemic will progress.

Trade issues remain a worry for markets, and the souring U.S.-China relationship gets the brightest spotlight. But that’s not the only potential hot spot.

ASX 200 expected to rebound.
It looks set to be a much better day for the ASX 200 on Thursday after Wall Street rebounded overnight. According to the latest SPI futures, the benchmark index is expected to jump 78 points or 1.3% higher at the open. On Wall Street the Dow Jones rose 1.6%, the S&P 500 climbed 2%, and the Nasdaq stormed 2.7% higher.

https://apnews.com/573d0dff1743879a6b78dab432d920ed

Stocks bounce back on Wall Street as tech bloodletting halts
By STAN CHOE, ALEX VEIGA and DAMIAN J. TROISE

NEW YORK (AP) — Wall Street snapped back to life on Wednesday, recovering from its worst stretch of losses in months, as the bloodletting for big technology stocks came to at least a temporary halt.

Apple, Amazon and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground. They helped the S&P 500 rally 67.12, or 2%, to 3,398.96. It was the best day in three months for the index, which recovered a little more than a quarter of its losses from the prior three days.

The Dow Jones Industrial Average climbed 439.58, or 1.6%, to 27,940.47. The Nasdaq composite, which includes many tech stocks, rose 293.87, or 2.7%, to 11,141.56. It had dropped 10% over the previous three days.

Tesla, which has made some of the wildest moves in recent months, rose 10.9%. A day earlier, it plunged 21.1% for its worst day since its shares began trading a decade ago. In August, it surged 74.1%.

Selling over the last week in the market had focused on such tech superstars, which earlier zoomed through the pandemic amid expectations that they would benefit from the new stay-at-home economy. Blockbuster spring profit reports from many of them emboldened investors, who bid their stock prices up to levels that critics called too expensive, even after accounting for their powerful growth.

A flurry of buying of stock options for big tech stocks may have helped further goose the gains, analysts say.

That helped the S&P 500 and Nasdaq push repeatedly to record highs as recently as last week, even though the economy is still struggling with the coronavirus pandemic. But the fever broke on Thursday, with the S&P 500 dropping 7% in three days, its steepest loss over such a timeframe in nearly three months.

“The fact is that there was a broad consensus that it was overbought, and the rally was overextended and due for some sort of pullback,” said Quincy Krosby, chief market strategist at Prudential Financial.

Still to be determined is whether the sell-off was just a blowing-off of some steam for tech stocks that had gotten overheated — or whether it was the beginning of a more widespread downturn.

It doesn’t help that September is traditionally a weak month for stocks, Krosby said. “Is this the pause, or are we due for more selling?”

Other sectors didn’t get as expensive as technology during the recent run-up. Banks and other financial stocks in the S&P 500 are still down more than 19% for 2020 so far, for example. But challenges continue to loom over the entire market, including uncertainty about how the pandemic will progress.

Trade issues remain a worry for markets, and the souring U.S.-China relationship gets the brightest spotlight. But that’s not the only potential hot spot.

Tiffany lost 6.4% after European luxury giant LVMH ended its $14.5 billion takeover deal for the jewelry retailer. LVMH said it made the move in part because the French government requested a delay due to the threat of proposed U.S. tariffs on French products.

Investors are also waiting for Congress to deliver more aid to the economy after unemployment benefits and other stimulus that it approved earlier ran out. Investors say it’s critical that the economy get such stimulus, but partisan disagreements have Congress at an apparent impasse.

A Senate vote this week on a trimmed-down relief package proposed by Republicans has only a slim chance of passage as Democrats insist on more sweeping aid.

The stock market’s rally started in late March following massive amounts of aid from the Federal Reserve and Congress. It accelerated as the economy showed signs of improvement. Corporate profit reports for the spring that weren’t as disastrous as expected also helped lift the market.

Late Tuesday, Slack Technologies also reported what analysts called a good quarter, with revenue topping expectations. But the company reported billings that were weaker than expected, and its stock tumbled 13.9%.

Hopes for a potential COVID-19 vaccine also helped the S&P 500 erase all of its nearly 34% loss from earlier in the pandemic. U.S-listed shares of AstraZeneca slipped 2% Wednesday, though, after it put late-stage studies of its vaccine candidate on temporary hold while it investigates whether a recipient’s illness is a side effect of the shot.

Treasury yields ticked higher, with the 10-year yield rising to 0.69% from 0.68% late Tuesday.

Crude oil clawed back some of its slide from the prior day. Benchmark U.S. crude rose $1.29 to settle at $38.05 per barrel. Brent crude, the international standard, added $1.01 to $40.79 per barrel.

European stocks closed higher, while Asian markets fell.

 

[bigdog]

Technology and energy companies led a broad sell-off on Wall Street Thursday that wiped out nearly all of the market's gains from a strong rally the day before.

The S&P 500 lost 1.8% after having been up briefly by 0.8% in the early going. The slide cut deeply into the benchmark index's 2% gain on Wednesday. The latest gyrations follow a wild stretch where the S&P 500 careened from its worst three-day slump since June to its best day in nearly three months.

Tech stocks accounted for the biggest share of the broad sell-off. The sector has been at the center of the market’s swings, hurt by criticism that their recession-defying surge in recent months was overdone. The Nasdaq, which is full of tech stocks, slumped 10% from last Thursday through Tuesday and recovered for a 2.7% gain Wednesday. It lost most of that ground Thursday, falling 2% after shedding an early gain.

Health care stocks and companies that rely on consumer spending also took hefty losses. Energy companies fell the most as the price of U.S. crude oil prices dropped 2%. Treasury yields also fell, a sign of caution in the market. The price of gold rose 0.5%.

The market will likely lack any solid direction for the next few months as investors weigh several key issues, said Rod von Lipsey, managing director at UBS Private Wealth Management.

“Two things everybody is waiting for: Who is going to win the election, and are we going to find a vaccine for the virus?” he said. “Those two questions are impossible for us to answer in this particular quarter.”

The S&P 500 fell 59.77 points to 3,339.19, its fourth decline in five days. The index is on pace for its second straight weekly loss. The Dow Jones Industrial Average dropped 405.89 points, or 1.5%, to 27,534.58. The Nasdaq gave up 221.97 points to 10,919.59. The Russell 2000 index of smaller company stocks lost 18.73 points, or 1.2%, to 1,507.75.

Thursday’s selling followed a batch of new economic data on jobs and wholesale prices. The government said that 884,000 workers applied for unemployment benefits last week. The number was flat from last week’s number, which was revised higher, and it’s the lowest it’s been since the number of layoffs began exploding in March due to the coronavirus pandemic.

But the tally was still higher than economists expected, and it’s an indication that layoffs remain stuck at a dispiritingly high level. Economists called the report disappointing.

A separate report showed that inflation remains very weak at the wholesale level, though it was stronger last month than economists had forecast. The Federal Reserve has said that it’s willing to allow inflation to run higher than its target level before raising interest rates, if inflation had been too low before that. That’s key for investors because low rates can boost stock prices.

Von Lipsey said big investors are either waiting on the sidelines or in a neutral position on expectations that markets will stay volatile through the uncertainty.

“We’re not all sure where the economy is going to head from here,” he said.

Treasury yields initially held up following the release of the economic reports, but then turned lower by mid-afternoon. The yield on the 10-year note fell to 0.68% from 0.70% late Wednesday.

The market’s focus continues to be on big technology stocks, in large part because they’ve grown so big that their movements can move broad market indexes almost by themselves. Apple, Microsoft, Amazon, Facebook and Google’s parent company alone account for 23% of the S&P 500, for example.

Many analysts say the recent tumult for technology stocks isn’t that surprising given how high they had soared. Apple more than doubled in less than five months through the pandemic, Tesla surged 74.1% last month alone and Zoom Video Communications earlier this month was up nearly 573% for 2020.

ASX 200 poised to slide lower.
The ASX 200 looks set to end the week on a disappointing note. According to the latest SPI futures, the benchmark index is expected to slide 78 points or 1.3% lower at the open. This follows a poor night of trade on Wall Street which saw the Dow Jones fall 1.45%, the S&P 500 drop 1.75%, and the Nasdaq tumble 2% lower.

https://www.usnews.com/news/busines...in-after-wall-street-rebounds-from-tech-slump

US Stocks Turn Lower Again as a Wild Trading Week Continues
Stocks gave up an early gain and moved steadily lower all day, erasing nearly all of a rally from a day earlier and extending their losses for the week.
By Associated Press, Wire Service Content Sept. 10, 2020, at 5:03 p.m.

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

. (AP) — Technology and energy companies led a broad sell-off on Wall Street Thursday that wiped out nearly all of the market's gains from a strong rally the day before.

The S&P 500 lost 1.8% after having been up briefly by 0.8% in the early going. The slide cut deeply into the benchmark index's 2% gain on Wednesday. The latest gyrations follow a wild stretch where the S&P 500 careened from its worst three-day slump since June to its best day in nearly three months.

Tech stocks accounted for the biggest share of the broad sell-off. The sector has been at the center of the market’s swings, hurt by criticism that their recession-defying surge in recent months was overdone. The Nasdaq, which is full of tech stocks, slumped 10% from last Thursday through Tuesday and recovered for a 2.7% gain Wednesday. It lost most of that ground Thursday, falling 2% after shedding an early gain.

Health care stocks and companies that rely on consumer spending also took hefty losses. Energy companies fell the most as the price of U.S. crude oil prices dropped 2%. Treasury yields also fell, a sign of caution in the market. The price of gold rose 0.5%.

The market will likely lack any solid direction for the next few months as investors weigh several key issues, said Rod von Lipsey, managing director at UBS Private Wealth Management.

“Two things everybody is waiting for: Who is going to win the election, and are we going to find a vaccine for the virus?” he said. “Those two questions are impossible for us to answer in this particular quarter.”

The S&P 500 fell 59.77 points to 3,339.19, its fourth decline in five days. The index is on pace for its second straight weekly loss. The Dow Jones Industrial Average dropped 405.89 points, or 1.5%, to 27,534.58. The Nasdaq gave up 221.97 points to 10,919.59. The Russell 2000 index of smaller company stocks lost 18.73 points, or 1.2%, to 1,507.75.

Thursday’s selling followed a batch of new economic data on jobs and wholesale prices. The government said that 884,000 workers applied for unemployment benefits last week. The number was flat from last week’s number, which was revised higher, and it’s the lowest it’s been since the number of layoffs began exploding in March due to the coronavirus pandemic.

But the tally was still higher than economists expected, and it’s an indication that layoffs remain stuck at a dispiritingly high level. Economists called the report disappointing.

A separate report showed that inflation remains very weak at the wholesale level, though it was stronger last month than economists had forecast. The Federal Reserve has said that it’s willing to allow inflation to run higher than its target level before raising interest rates, if inflation had been too low before that. That’s key for investors because low rates can boost stock prices.

Von Lipsey said big investors are either waiting on the sidelines or in a neutral position on expectations that markets will stay volatile through the uncertainty.

“We’re not all sure where the economy is going to head from here,” he said.

Treasury yields initially held up following the release of the economic reports, but then turned lower by mid-afternoon. The yield on the 10-year note fell to 0.68% from 0.70% late Wednesday.

The market’s focus continues to be on big technology stocks, in large part because they’ve grown so big that their movements can move broad market indexes almost by themselves. Apple, Microsoft, Amazon, Facebook and Google’s parent company alone account for 23% of the S&P 500, for example.

Many analysts say the recent tumult for technology stocks isn’t that surprising given how high they had soared. Apple more than doubled in less than five months through the pandemic, Tesla surged 74.1% last month alone and Zoom Video Communications earlier this month was up nearly 573% for 2020.

While Big Tech is indeed benefiting from the shift to online life that the pandemic and ensuing stay-at-home economy has accelerated, critics said their stocks prices simply shot too high. This past week’s sell-off blew off some of that steam, but analysts question how much selling is left in the pipeline.

Apple rose as much as 2.7% Thursday morning, but lost its gains and closed 3.3% lower. Tesla rose 1.4%, while Zoom slid 1.3%.

The selling comes as the odds grow longer that Congress will be able to deliver more aid to the economy before November's elections, support that many investors say is crucial after federal unemployment benefits and other stimulus expired. Partisan disagreements on Capitol Hill have kept Congress at a seeming impasse. On Thursday, Democrats blocked a Republican bill that they said shortchanged pressing national needs. It’s unclear whether bipartisan talks on a bill will resume.

Quest Diagnostics rose 3.2% after it raised its forecasts for sales and profits this year. Energy producers were among the biggest decliners. Occidental Petroleum fell 7.9%, and Devon Energy dropped 7.4%.

European stock markets closed mostly lower. The German DAX lost 0.2%, and the French CAC 40 fell 0.4%. The FTSE 100 in London dropped 0.2%. Asian markets finished mixed.

 

[bigdog]

Wall Street closed out its worst week since June with another day of churning trading Friday, as big technology stocks resumed their suddenly weakened ways.

The S&P 500 rose 1.78, or 0.1%, to 3,340.97, but only after a roller-coaster day where a gain of 0.9% gave way to a loss of 0.9%. It kept swinging up and down after that, the latest examples of the lightning-quick shifts in momentum that have rocked Wall Street recently. Through the tumultuous week, the S&P 500 lost 2.5% to clinch its its first back-to-back weekly loss in four months.

The Nasdaq composite, which includes many of the superstar tech stocks that have been the focus of the market’s recent selling, lost 66.05, or 0.6%, to 10,853.55 after also flip-flopping between gains and losses. Its 4.1% drop for the week was its worst since market panic was peaking about the coronavirus and stocks hit a bottom in late March.

The Dow Jones Industrial Average rose 131.06, or 0.5%, to 27,665.64, but not before careening between a gain of 294 points and a loss of 86 points.

Analysts expect swings to continue to rattle markets for weeks, if not months, as investors wait for more clarity on several key issues. At the head of the list of uncertainties is what to do with Big Tech stocks, which critics have long said were due for a slide after soaring too high through the summer.

“The technology sell-off continues,” said Phil Orlando, chief equity market strategist at Federated Hermes. “We don’t think this is anything more than a technical pullback that’s cleansing. It’s healthy and was anticipated.”

Apple, Amazon and others soared through the pandemic as their businesses boomed despite the recession. The coronavirus accelerated a shift to online life that’s benefited them, and a pile-on of investors into Big Tech sent their share prices soaring to levels that critics said were overvalued.

Apple had a nearly irrepressible run this summer where it rose in 12 out of 13 weeks. Zoom Video Communications surged above $450 per share earlier this month after starting the year at less than $70.

That all came to an abrupt halt last week. Worries that the stocks had gotten overheated helped send the S&P 500 to its worst three-day run in nearly three months, and the Nasdaq composite slid 10%. Tech stocks recovered a bit on Wednesday, and they seemed to regain their stride Thursday morning, only for an afternoon swoon to batter them again.

On Friday, tech stocks again swung from gains to losses. The fluctuations came even after Oracle reported stronger profit for its latest quarter than analysts expected. After leaping as much as 7.9% in the morning, its stock slipped 0.6%.

Big Tech and the high-growth area of the stock market "just got ahead of itself,” said Jason Pride, chief investment officer of private wealth at Glenmede. “It doesn’t matter how it got there, it matters that it got there and now we’re kind of deflating that overvaluation a little bit.”

After rising as much as 1.5% shortly after trading began, Apple fell back to a loss of 1.3%. It dropped 7.4% over the week, its worst since March. Movements for it and other Big Tech stocks matter more than ever for broad market indexes because their immense size means they can influence the S&P 500 almost by themselves. Five Big Tech companies make up nearly 23% of the index’s entire value.

One big factor that remains in the stock market’s favor is the Federal Reserve, which continues to pump aid into the economy. It has slashed short-term interest rates to record lows and bought up all kinds of bonds to support markets. It also said recently it will keep delivering stimulus even if inflation rises above its target level, as long as inflation had been well under it before then.

A report on Friday showed that inflation remains low, though it was higher than economists expected. Consumer prices rose 1.3% in August from a year earlier, a shade above the 1.2% that investors were expecting.

https://www.usnews.com/news/busines...mixed-after-another-wall-street-tech-sell-off

Tech Falters Again as Wall Street Ends Worst Week in Months
Wall Street closed out its worst week since June with another day of churning trading Friday.
By Associated Press, Wire Service Content Sept. 11, 2020, at 4:37 p.m.

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

NEW YORK (AP) — Wall Street closed out its worst week since June with another day of churning trading Friday, as big technology stocks resumed their suddenly weakened ways.

The S&P 500 rose 1.78, or 0.1%, to 3,340.97, but only after a roller-coaster day where a gain of 0.9% gave way to a loss of 0.9%. It kept swinging up and down after that, the latest examples of the lightning-quick shifts in momentum that have rocked Wall Street recently. Through the tumultuous week, the S&P 500 lost 2.5% to clinch its its first back-to-back weekly loss in four months.

The Nasdaq composite, which includes many of the superstar tech stocks that have been the focus of the market’s recent selling, lost 66.05, or 0.6%, to 10,853.55 after also flip-flopping between gains and losses. Its 4.1% drop for the week was its worst since market panic was peaking about the coronavirus and stocks hit a bottom in late March.

The Dow Jones Industrial Average rose 131.06, or 0.5%, to 27,665.64, but not before careening between a gain of 294 points and a loss of 86 points.

Analysts expect swings to continue to rattle markets for weeks, if not months, as investors wait for more clarity on several key issues. At the head of the list of uncertainties is what to do with Big Tech stocks, which critics have long said were due for a slide after soaring too high through the summer.

“The technology sell-off continues,” said Phil Orlando, chief equity market strategist at Federated Hermes. “We don’t think this is anything more than a technical pullback that’s cleansing. It’s healthy and was anticipated.”

Apple, Amazon and others soared through the pandemic as their businesses boomed despite the recession. The coronavirus accelerated a shift to online life that’s benefited them, and a pile-on of investors into Big Tech sent their share prices soaring to levels that critics said were overvalued.

Apple had a nearly irrepressible run this summer where it rose in 12 out of 13 weeks. Zoom Video Communications surged above $450 per share earlier this month after starting the year at less than $70.

That all came to an abrupt halt last week. Worries that the stocks had gotten overheated helped send the S&P 500 to its worst three-day run in nearly three months, and the Nasdaq composite slid 10%. Tech stocks recovered a bit on Wednesday, and they seemed to regain their stride Thursday morning, only for an afternoon swoon to batter them again.

On Friday, tech stocks again swung from gains to losses. The fluctuations came even after Oracle reported stronger profit for its latest quarter than analysts expected. After leaping as much as 7.9% in the morning, its stock slipped 0.6%.

Big Tech and the high-growth area of the stock market "just got ahead of itself,” said Jason Pride, chief investment officer of private wealth at Glenmede. “It doesn’t matter how it got there, it matters that it got there and now we’re kind of deflating that overvaluation a little bit.”

After rising as much as 1.5% shortly after trading began, Apple fell back to a loss of 1.3%. It dropped 7.4% over the week, its worst since March. Movements for it and other Big Tech stocks matter more than ever for broad market indexes because their immense size means they can influence the S&P 500 almost by themselves. Five Big Tech companies make up nearly 23% of the index’s entire value.

One big factor that remains in the stock market’s favor is the Federal Reserve, which continues to pump aid into the economy. It has slashed short-term interest rates to record lows and bought up all kinds of bonds to support markets. It also said recently it will keep delivering stimulus even if inflation rises above its target level, as long as inflation had been well under it before then.

A report on Friday showed that inflation remains low, though it was higher than economists expected. Consumer prices rose 1.3% in August from a year earlier, a shade above the 1.2% that investors were expecting.

The yield on the 10-year Treasury slipped to 0.66% from 0.68% late Thursday.

Unprecedented amounts of aid from Congress, along with the Federal Reserve, also helped the stock market halt its nearly 34% plummet in late March.

But it looks less likely by the day that Congress will approve more support for the limping economy before the November elections, even though investors say such stimulus is crucial after unemployment benefits and other stimulus has expired. Senate Democrats on Thursday shot down a scaled-back package proposed by Republicans, saying it shortchanged too many needs.

Investors are also worried about all the uncertainty that elections bring generally, which can result in big changes for tax laws and regulations that affect corporate profits. Concerns are likewise high about trade tensions between the United States and China, among other major economies, and whether the expectations building for a coming COVID-19 vaccine prove to be too optimistic.

European stock markets made modest moves. The German DAX was close to flat, and the French CAC 40 rose 0.2%. The FTSE 100 in London rose 0.5%

Asian markets were stronger. Japan’s Nikkei 225 rose 0.7%, the Hang Seng in Hong Kong climbed 0.8% and stocks in Shanghai added 0.8%. The Kospi in South Korea was close to flat.

3820

 

[bigdog]

ASX 200 expected to rise.

It looks set to be a better day of trade for the ASX 200 index. According to the latest SPI futures, the ASX 200 is poised to start the week higher. Current futures contracts are pointing to a 4-point or 0.1% gain at the open. This follows a reasonably positive night of trade on Wall Street on Friday which saw the Dow Jones rise 0.5%, the S&P 500 edge slightly higher, and the Nasdaq fall 0.6%.

 

[bigdog]

Wall Street kicked off the week with a broad rally Monday, clawing back much of the stock market's losses from last week.

The S&P 500 rose 1.3%, led by gains in technology, health care and financial stocks. Small company stocks were among the biggest gainers. The rally reversed a big slice of the index's 2.5% slide last week, when the S&P 500 posted its biggest weekly decline since June. Treasury yields were mostly higher.

The market's strong start to the week is a reversal after a mostly downward shift in the market this month led by a sell-off in high-flying tech stocks that many analysts said was long overdue.

“We’ve been due for a little bit of a pullback, and we’ve experienced that so far in September,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We still have a positive outlook into the end of the year, but we believe market chop will be the norm.”

The S&P 500 gained 42.57 points to 3,383.54. The Dow Jones Industrial Average rose 327.69 points, or 1.2%, to 27,993.33. The Nasdaq, which includes many tech stocks, picked up 203.11 points, or 1.9%, to 11,056.65. Small company stocks climbed more than the rest of the market, sending the Russell 2000 higher. The index rose 39.70 points, or 2.7%, to 1,536.97.

Several big corporate deals helped put investors in a buying mood Monday. Nvidia jumped 5.8% after announcing plans to buy fellow chipmaker Arm Holdings in a deal worth up to $40 billion. Oracle climbed 4.3% after the business software maker beat out Microsoft to become the “trusted technology provider” of TikTok, the popular video-sharing app based in China. And the stock of Immunomedics nearly doubled after the cancer drug specialist agreed to be acquired by Gilead Sciences in a $21 billion deal. Gilead shares rose 2.2%.

AstraZeneca added 0.5% following news over the weekend that clinical trials for the pharmaceutical company's coronavirus vaccine will resume after being paused due to a reported side-effect in a patient in the U.K. The vaccine is seen as one of the strongest contenders among the dozens of coronavirus vaccines being tested.

Wall Street has been riding a surge in volatility the past couple of weeks as investors turned cautious following a five-month rally for stocks fueled largely by a run-up in big tech companies.

The pandemic accelerated the use of online services by businesses and individuals, driving shares of Apple, Amazon, Microsoft, Zoom Video and other tech companies sharply higher through the summer. But concerns that the high-flying tech stocks had soared too high have put investors in a selling mood in September. The S&P 500 is down 3.3% so far this month, while the Nasdaq has pulled back 6.1%.

ASX 200 expected to edge lower.
The ASX 200 index looks set to edge lower today despite a very strong start to the week on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 8 points or 0.15% lower. On Wall Street the Dow Jones rose 1.2%, the S&P 500 climbed 1.3%, and the Nasdaq jumped 1.9% higher.









https://www.usnews.com/news/busines...s-rise-as-investors-look-ahead-to-fed-meeting

Wall Street Posts Solid Gains After Surge in Corporate Deals
Wall Street ended solidly higher Monday following a burst of big corporate deals.
By Associated Press, Wire Service Content Sept. 14, 2020, at 5:05 p.m.

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

Wall Street kicked off the week with a broad rally Monday, clawing back much of the stock market's losses from last week.

The S&P 500 rose 1.3%, led by gains in technology, health care and financial stocks. Small company stocks were among the biggest gainers. The rally reversed a big slice of the index's 2.5% slide last week, when the S&P 500 posted its biggest weekly decline since June. Treasury yields were mostly higher.

The market's strong start to the week is a reversal after a mostly downward shift in the market this month led by a sell-off in high-flying tech stocks that many analysts said was long overdue.

“We’ve been due for a little bit of a pullback, and we’ve experienced that so far in September,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We still have a positive outlook into the end of the year, but we believe market chop will be the norm.”

The S&P 500 gained 42.57 points to 3,383.54. The Dow Jones Industrial Average rose 327.69 points, or 1.2%, to 27,993.33. The Nasdaq, which includes many tech stocks, picked up 203.11 points, or 1.9%, to 11,056.65. Small company stocks climbed more than the rest of the market, sending the Russell 2000 higher. The index rose 39.70 points, or 2.7%, to 1,536.97.

Several big corporate deals helped put investors in a buying mood Monday. Nvidia jumped 5.8% after announcing plans to buy fellow chipmaker Arm Holdings in a deal worth up to $40 billion. Oracle climbed 4.3% after the business software maker beat out Microsoft to become the “trusted technology provider” of TikTok, the popular video-sharing app based in China. And the stock of Immunomedics nearly doubled after the cancer drug specialist agreed to be acquired by Gilead Sciences in a $21 billion deal. Gilead shares rose 2.2%.

AstraZeneca added 0.5% following news over the weekend that clinical trials for the pharmaceutical company's coronavirus vaccine will resume after being paused due to a reported side-effect in a patient in the U.K. The vaccine is seen as one of the strongest contenders among the dozens of coronavirus vaccines being tested.

Wall Street has been riding a surge in volatility the past couple of weeks as investors turned cautious following a five-month rally for stocks fueled largely by a run-up in big tech companies.

The pandemic accelerated the use of online services by businesses and individuals, driving shares of Apple, Amazon, Microsoft, Zoom Video and other tech companies sharply higher through the summer. But concerns that the high-flying tech stocks had soared too high have put investors in a selling mood in September. The S&P 500 is down 3.3% so far this month, while the Nasdaq has pulled back 6.1%.

“We know that momentum is going to slow a little bit, that’s expected,” said Esty Dwek, head of global market strategy at Natixis Investment Managers. “It wasn’t supposed to be, or it was never going to be a straight line without any bumps in the road.”

Despite their September stumble, stocks retain much of their gains since setting record highs less than two weeks ago. The S&P 500 is up 4.7% for the year. The Nasdaq is up 23.2%. Even so, analysts expect more volatility for stocks in the months ahead as the market navigates uncertainty over the outcome of the election, pessimism that Democrats and Republicans in Washington will be able to reach a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic.

One big factor that remains in the stock market’s favor is the Federal Reserve, which continues to pump aid into the economy. It has slashed short-term interest rates to record lows and bought up all kinds of bonds to support markets. It also said recently it will keep delivering stimulus even if inflation rises above its target level, as long as inflation had been well under it before then.

Investors will be focused this week on the central bank's latest interest rate and economic policy update on Wednesday, following a two-day meeting of policymakers. After the July meeting, the Fed kept its key interest rate unchanged at a record low near zero. Fed policymakers also pledged to keep rates low until they are confident that the economy has weathered the pandemic-induced recession.

Low rates often act like steroids for Wall Street, encouraging investors to pay higher prices for stocks relative to corporate profits, which can benefit high-growth stocks in particular.

Traders also will have their eye on a batch of new data due out this week on U.S. home construction, retail sales and consumer sentiment. Housing has been a highlight of the economic recovery as ultra-low interest rates have helped drive home sales and spurred builders to ramp up construction. Homebuilder stocks have been climbing even during the market pullback much of this month.

The yield on the 10-year Treasury rose to 0.68% from 0.67% late Friday.

European markets ended mixed, while Asian markets closed broadly higher.

 

[bigdog]

Stocks overcame a late-afternoon burst of selling and closed higher Tuesday, as gains in big technology companies outweighed losses in banks and elsewhere in the market.

The S&P 500 rose 0.5% after being up 1.1% earlier. It's the second straight sizable gains for the benchmark index following its worst week since June.

High-flying technology stocks, which have been driving the market higher throughout the pandemic, abruptly lost altitude earlier this month amid worries that their prices had simply climbed too high, even after taking into account their tremendous growth.

But the past two days has marked a reversal of that trend, with shares in technology companies and others that play a key role in online access and commerce climbing again. Microsoft rose 1.6% Tuesday, while Amazon gained 1.7% and Zoom Video climbed 1.8%.

A key reason tech stocks are climbing again is that investors' expectations that the companies' profits will boom as even more of daily life shifts online haven't changed.

“The things that are doing well or are beneficiaries or are working in this environment, for good reason, are the things that are going up,” said Tom Martin, senior portfolio manager with Globalt Investments. “That isn’t going to change until we get a notable change in one of the things that are uncertain: The virus itself and the effect that’s having on the economy, and whether we get anything new on the fiscal stimulus front.”

The S&P 500 rose 17.66 points to 3,401.20. The Dow Jones Industrial Average inched up 2.27 points, or less than 0.1%, to 27,995.60. The index swung between a gain of 237 points and loss of 61. The Nasdaq, which is heavily weighted with tech stocks, climbed 133.67 points, or 1.2%, to 11,190.32.

Stocks of smaller companies eked out a tiny gain. The Russell 2000 index of small-caps picked up 1.18 points, or 0.1%, to 1,538.15.
Because tech companies have grown so massive, their movements alone can dictate the market’s performance more than ever. Tech stocks as a group account for nearly 28% of the S&P 500, and they’re up 3.1% this week after slumping more than 4% in each of the prior two weeks.

Analysts expect more volatility for stocks in the months ahead as the market navigates uncertainty over the outcome of the election, pessimism that Democrats and Republicans in Washington will be able to reach a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic.

Investors weighed a batch of mixed global economic data Tuesday.

Stocks in Europe and much of Asia ticked higher following reports showing retail sales in China were higher last month than a year earlier for the first such growth this year, after the pandemic pancaked the world’s second-largest economy. In Europe’s largest economy, a reading on German economic confidence rose more than expected.

In the United States, a report showed that industrial production also strengthened last month. But the growth wasn’t as strong as economists were expecting. Other reports showed that manufacturing in New York State is expanding more than economists expected, as are import and export prices.

ASX 200 expected to storm higher.

It looks set to be a positive day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 48 points or 0.8% higher this morning. This follows a reasonably positive night of trade on Wall Street. The Dow Jones was flat, the S&P 500 climbed 0.5%, and the Nasdaq charged 1.2% higher.

https://www.usnews.com/news/business/articles/2020-09-15/asian-markets-mixed-after-wall-street-rises-on-dealmaking

Stocks Give up Part of an Early Gain but Still End Higher
Stocks gave up part of their gains from earlier in the day but still closed higher on Wall Street Tuesday.

By Associated Press, Wire Service Content Sept. 15, 2020, at 4:46 p.m.


By STAN CHOE and ALEX VEIGA, AP Business Writers
Stocks overcame a late-afternoon burst of selling and closed higher Tuesday, as gains in big technology companies outweighed losses in banks and elsewhere in the market.

The S&P 500 rose 0.5% after being up 1.1% earlier. It's the second straight sizable gains for the benchmark index following its worst week since June.

High-flying technology stocks, which have been driving the market higher throughout the pandemic, abruptly lost altitude earlier this month amid worries that their prices had simply climbed too high, even after taking into account their tremendous growth.

But the past two days has marked a reversal of that trend, with shares in technology companies and others that play a key role in online access and commerce climbing again. Microsoft rose 1.6% Tuesday, while Amazon gained 1.7% and Zoom Video climbed 1.8%.

A key reason tech stocks are climbing again is that investors' expectations that the companies' profits will boom as even more of daily life shifts online haven't changed.

“The things that are doing well or are beneficiaries or are working in this environment, for good reason, are the things that are going up,” said Tom Martin, senior portfolio manager with Globalt Investments. “That isn’t going to change until we get a notable change in one of the things that are uncertain: The virus itself and the effect that’s having on the economy, and whether we get anything new on the fiscal stimulus front.”

The S&P 500 rose 17.66 points to 3,401.20. The Dow Jones Industrial Average inched up 2.27 points, or less than 0.1%, to 27,995.60. The index swung between a gain of 237 points and loss of 61. The Nasdaq, which is heavily weighted with tech stocks, climbed 133.67 points, or 1.2%, to 11,190.32.

Stocks of smaller companies eked out a tiny gain. The Russell 2000 index of small-caps picked up 1.18 points, or 0.1%, to 1,538.15.
Because tech companies have grown so massive, their movements alone can dictate the market’s performance more than ever. Tech stocks as a group account for nearly 28% of the S&P 500, and they’re up 3.1% this week after slumping more than 4% in each of the prior two weeks.

Analysts expect more volatility for stocks in the months ahead as the market navigates uncertainty over the outcome of the election, pessimism that Democrats and Republicans in Washington will be able to reach a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic.

Investors weighed a batch of mixed global economic data Tuesday.

Stocks in Europe and much of Asia ticked higher following reports showing retail sales in China were higher last month than a year earlier for the first such growth this year, after the pandemic pancaked the world’s second-largest economy. In Europe’s largest economy, a reading on German economic confidence rose more than expected.

In the United States, a report showed that industrial production also strengthened last month. But the growth wasn’t as strong as economists were expecting. Other reports showed that manufacturing in New York State is expanding more than economists expected, as are import and export prices.

Treasury yields were relatively steady. The yield on the 10-year Treasury was at 0.67%, unchanged from late Monday. The 30-year yield ticked up to 1.44% from 1.41%.

Shorter-term rates remain pinned at lower levels on expectations that the Federal Reserve will keep its benchmark rate at nearly zero for some time to help the economy recover. The central bank is beginning its latest meeting on interest-rate policy Tuesday, and it will announce its decision on Wednesday. Economists say it could change some of the language around its existing pledge to buy bonds to support markets, but they expect no major news.

On the losing side was Carnival, which dropped 10.8%, making it the biggest decliner in the S&P 500. The cruise ship operator said it may sell up to $1 billion in stock to raise cash, and it reported a preliminary $2.9 billion loss for its latest quarter. More encouragingly, it also said its advance bookings for the second half of 2021 are similar to where booking positions were in 2018 for the second half of 2019, before the coronavirus pummeled the industry.

Financial stocks were also laggards. JPMorgan Chase fell 3.1%, losing an earlier modest gain. It trimmed its forecast for this year's net interest income, which measures how much profit it makes from interest payments for loans and other products after subtracting the interest it pays out on deposits.

In European stock markets, Germany’s DAX returned 0.2%, and the French CAC 40 rose 0.3%. The FTSE 100 in London climbed 1.3%. Markets in Asia ended mostly higher.

 

[bigdog]

Stocks closed lower on Wall Street Wednesday after a rally following the Federal Reserve's latest interest rate policy update faded in the final hour of trading.

The S&P 500 fell 0.5% after having been up 0.6% following the 2 p.m. Eastern time Fed announcement. The central bank signaled it will keep interest rates near zero into 2023 and issued a slightly less dire outlook for economic growth and unemployment this year.
The Fed's decision to leave rates unchanged had been widely expected by Wall Street and continues the central bank's policy of unprecedented support for financial markets since the pandemic knocked the economy into a recession.

“The Fed confirmed what we all thought, rates at 0% are here to stay, probably for years,” said Ryan Detrick, chief market strategist for LPL Financial. “A better economy and a dovish Fed, that is a nice combo.”

The S&P 500 lost 15.71 points to 3,385.49. The Dow Jones Industrial average rose 36.78 points, or 0.1%, to 28,032.38. It had earlier been up by 369 points. The Nasdaq composite lost 139.85 points, or 1.3%, to 11,050.47.

Smaller stocks rose more than the rest of the market, and the Russell 2000 index of small-caps gained 14.17 points, or 0.9%, to 1,552.33.
The market's pullback snapped a three-day winning streak for the S&P 500, which is down 3.3% so far this month after five-straight monthly gains.

One of the primary reasons Wall Street has roared back to record heights this year despite the still-raging pandemic is the immense aid from the Federal Reserve. The central bank has cut short-term rates to nearly zero and is buying all kinds of bonds to support markets. Last month, Fed chair Jay Powell outlined a new strategy of providing support even if inflation rises above its target level.

“Don’t fear the Federal Reserve, and don’t fear them making a policy mistake that hurts economic expansion any time in the next three years,” said Mike Zigmont, director of trading and research at Harvest Volatility Management.

“The Fed’s statement today is an affirmation to market participants that a risk-on strategy will continue to be supported by the Fed,” said Lindsey Bell, chief investment strategist at Ally Invest. “This is apparent in their signaling that rates could stay low through 2023 and a reiteration of their shift in focus to inflation and long-term inflation.”

Powell said Wednesday that the economy has recovered more quickly than the Fed had expected. The Fed updated its forecast for GDP to a decline of 3.7% this year compared to a June forecast of a 6.5% drop. On employment, the Fed projected an unemployment rate at the end of the year of 7.6% instead of the 9.3% it projected in June.

Still, Powell acknowledged the economic outlook remains highly uncertain, and heavily dependent on the U.S. getting control of the pandemic.

“A full economic recovery is unlikely until people are confident that it is safe to re-engage in a wide variety of activities,” Powell said.
The economy has improved fitfully since the worst of the lockdowns in the spring. Investors say the economy and markets still crucially need all the support they can get from the Federal Reserve and Congress.

Federal unemployment benefits and other Congressional aid for the economy approved earlier this year have expired, and partisan disagreements on Capitol Hill have prevented their renewal.

A report on Wednesday showed that U.S. retail sales strengthened less than economists expected last month. Part of the shortfall is likely because unemployed workers are no longer getting the $600 boost to their weekly checks that had been coming from the federal government.

Technology stocks led the slide Wednesday, outweighing gains in financial, industrial and energy companies. The pullback in tech stocks marks a reversal from the first two days of this week, when the sector rebounded from a tumultuous two-week sell-off. Gains by big tech stocks have helped drive the market's stunning rebound this year, most recently carrying the S&P 500 to a record high on Sept. 2.

ASX 200 poised to edge lower.

The ASX 200 index looks set to drop lower on Thursday after a mixed night of trade on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 9 points or 0.15% lower this morning. On Wall Street the Dow Jones rose 0.1%, the S&P 500 fell 0.45%, and the Nasdaq tumbled 1.2% lower.

https://www.usnews.com/news/business/articles/2020-09-16/asian-shares-mostly-higher-after-wall-street-gains

US Stocks Close Lower After Fed Rate Decision
Stock indexes are closing lower on Wall Street after a getting a brief boost Wednesday from the Federal Reserve's decision to leave interest rates unchanged at nearly zero.

By Associated Press, Wire Service Content Sept. 16, 2020, at 5:02 p.m.


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

Stocks closed lower on Wall Street Wednesday after a rally following the Federal Reserve's latest interest rate policy update faded in the final hour of trading.

The S&P 500 fell 0.5% after having been up 0.6% following the 2 p.m. Eastern time Fed announcement. The central bank signaled it will keep interest rates near zero into 2023 and issued a slightly less dire outlook for economic growth and unemployment this year.
The Fed's decision to leave rates unchanged had been widely expected by Wall Street and continues the central bank's policy of unprecedented support for financial markets since the pandemic knocked the economy into a recession.

“The Fed confirmed what we all thought, rates at 0% are here to stay, probably for years,” said Ryan Detrick, chief market strategist for LPL Financial. “A better economy and a dovish Fed, that is a nice combo.”

The S&P 500 lost 15.71 points to 3,385.49. The Dow Jones Industrial average rose 36.78 points, or 0.1%, to 28,032.38. It had earlier been up by 369 points. The Nasdaq composite lost 139.85 points, or 1.3%, to 11,050.47.

Smaller stocks rose more than the rest of the market, and the Russell 2000 index of small-caps gained 14.17 points, or 0.9%, to 1,552.33.
The market's pullback snapped a three-day winning streak for the S&P 500, which is down 3.3% so far this month after five-straight monthly gains.

One of the primary reasons Wall Street has roared back to record heights this year despite the still-raging pandemic is the immense aid from the Federal Reserve. The central bank has cut short-term rates to nearly zero and is buying all kinds of bonds to support markets. Last month, Fed chair Jay Powell outlined a new strategy of providing support even if inflation rises above its target level.

“Don’t fear the Federal Reserve, and don’t fear them making a policy mistake that hurts economic expansion any time in the next three years,” said Mike Zigmont, director of trading and research at Harvest Volatility Management.

“The Fed’s statement today is an affirmation to market participants that a risk-on strategy will continue to be supported by the Fed,” said Lindsey Bell, chief investment strategist at Ally Invest. “This is apparent in their signaling that rates could stay low through 2023 and a reiteration of their shift in focus to inflation and long-term inflation.”

Powell said Wednesday that the economy has recovered more quickly than the Fed had expected. The Fed updated its forecast for GDP to a decline of 3.7% this year compared to a June forecast of a 6.5% drop. On employment, the Fed projected an unemployment rate at the end of the year of 7.6% instead of the 9.3% it projected in June.

Still, Powell acknowledged the economic outlook remains highly uncertain, and heavily dependent on the U.S. getting control of the pandemic.

“A full economic recovery is unlikely until people are confident that it is safe to re-engage in a wide variety of activities,” Powell said.
The economy has improved fitfully since the worst of the lockdowns in the spring. Investors say the economy and markets still crucially need all the support they can get from the Federal Reserve and Congress.

Federal unemployment benefits and other Congressional aid for the economy approved earlier this year have expired, and partisan disagreements on Capitol Hill have prevented their renewal.

A report on Wednesday showed that U.S. retail sales strengthened less than economists expected last month. Part of the shortfall is likely because unemployed workers are no longer getting the $600 boost to their weekly checks that had been coming from the federal government.

Technology stocks led the slide Wednesday, outweighing gains in financial, industrial and energy companies. The pullback in tech stocks marks a reversal from the first two days of this week, when the sector rebounded from a tumultuous two-week sell-off. Gains by big tech stocks have helped drive the market's stunning rebound this year, most recently carrying the S&P 500 to a record high on Sept. 2.

FedEx rose 5.8% after reporting stronger profit growth for the latest quarter than analysts expected. The boom in online shopping caused by the coronavirus pandemic has helped lift its revenue. The company said that the growth it expected to see over the next three to five years has happened in just three to five months.

Treasury yields dipped following the retail sales report, but inched higher after the Fed statement. The yield on the 10-year Treasury rose to 0.69% from 0.68% late Tuesday.

Earlier, a separate report from the Organization for Economic Cooperation and Development had said the global economy is not doing as badly as previously expected, especially in the United States and China. It projected the world’s economy will shrink by 4.5% this year, less than the 6% plunge it had predicted in June.

Stock markets in Europe finished mostly higher. The German DAX rose 0.3% and the French CAC 40 rose 0.1%. The FTSE 100 in London fell 0.4%. Markets in Asia ended mixed.

 

[bigdog]

Another slide in technology companies helped pull stocks lower on Wall Street Thursday, extending losses from the day before.

The S&P 500 lost 0.8% after having been down 1.7% earlier. The selling was widespread, with eight of the 11 sectors that make up the benchmark index ending the day lower. The sectors that include Amazon, Facebook and Apple took the heaviest losses.

The selling came a day after the Federal Reserve said it will keep interest rates at nearly zero for years to support the wheezing economy. The statement failed to encourage Wall Street and the S&P 500 recorded its first loss in four days Wednesday.

Low interest rates are usually a boon for investors, sending stocks soaring. So why the sell-off? Analysts gave varying reasons for the market’s weakness. Among them: the gloomy outlook Fed Chair Jerome Powell gave for the economy’s prospects and built-up expectations by some that the Fed would be even more generous with its stimulus. It isn’t the first hangover stocks have suffered following a rate announcement by the Fed.

“The market really got a bunch of nothing from the Fed,” said Shawn Cruz, senior market strategist at TD Ameritrade. “Maybe that would be OK if we were continuing along with the recovery, but the recovery is starting to decelerate.”

While the market took more losses Thursday, they selling eased toward the end of the day. The S&P 500 fell 28.48 points to 3,357.01. The Dow Jones Industrial Average lost 130.40 points, or 0.5%, to 27,901.98. It had been down 384 points.

The Nasdaq composite, which is heavily weighted with technology stocks, slid 140.19 points, or 1.3%, to 10,910.28. The Russell 2000 index of small company stocks gave up 9.73 points, or 0.6%, to 1,542.60.

The sell-off cut into the market’s gains this week on Monday and Tuesday. The S&P 500 is still up 0.5% for the week, but down 4.1% so far this month after five-straight monthly gains.

Another possibility for the downward turn the market has taken the past two days is the diminishing odds that Congress will deliver more aid for the economy anytime soon after benefits for unemployed workers and other stimulus expired recently. Investors say such aid is crucial for the recovery, and Powell talked about the importance of it in a press conference Wednesday.

The Fed’s actions in the wake of the economic slump, along with any further actions, could have a diminishing impact and the latest statements may be a “warning shot across the bow of Congress that they need to do something,” Cruz said.

A report on Thursday showed that another 860,000 workers applied for unemployment benefits last week. But partisan disagreements on Capitol Hill have delayed any renewal of Congressional support.

“Fundamentally, the economy is still moving in the right direction, but the risk of potentially jeopardizing the recovery from reduced fiscal support is becoming uncomfortably high,” Piper Sandler strategist Craig Johnson wrote in a report.

ASX 200 expected to rise.

The ASX 200 index is expected to rise on Friday despite some sizeable declines on Wall Street overnight. According to the latest SPI futures, the benchmark index is poised to open the day 21 points or 0.35% higher this morning. On Wall Street the Dow Jones fell 0.5%, the S&P 500 dropped 0.85%, and the Nasdaq tumbled 1.3% lower.

Tech shares to fall again?

The main drag on U.S. markets overnight was the tech sector once again. Tech giants Apple and Microsoft weighed heavily on the major indices and particularly the Nasdaq. Given how the Australian tech sector has a tendency to follow its lead, Friday could be another difficult day of trade for the likes of Afterpay Ltd (ASX: APT) and Nearmap Ltd (ASX: NEA).

Asia slightly higher despite Wall Street slump, virus fears

TOKYO (AP) — Asian shares were slightly higher Friday despite some investor attention shifting again to the uncertainties in global economies amid the coronavirus pandemic, as reflected in the overnight fall on Wall Street.

apnews.com

Wall Street slumps as Big Tech once again leads decliners
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGAan hour ago


Another slide in technology companies helped pull stocks lower on Wall Street Thursday, extending losses from the day before.

The S&P 500 lost 0.8% after having been down 1.7% earlier. The selling was widespread, with eight of the 11 sectors that make up the benchmark index ending the day lower. The sectors that include Amazon, Facebook and Apple took the heaviest losses.

The selling came a day after the Federal Reserve said it will keep interest rates at nearly zero for years to support the wheezing economy. The statement failed to encourage Wall Street and the S&P 500 recorded its first loss in four days Wednesday.

Low interest rates are usually a boon for investors, sending stocks soaring. So why the sell-off? Analysts gave varying reasons for the market’s weakness. Among them: the gloomy outlook Fed Chair Jerome Powell gave for the economy’s prospects and built-up expectations by some that the Fed would be even more generous with its stimulus. It isn’t the first hangover stocks have suffered following a rate announcement by the Fed.

“The market really got a bunch of nothing from the Fed,” said Shawn Cruz, senior market strategist at TD Ameritrade. “Maybe that would be OK if we were continuing along with the recovery, but the recovery is starting to decelerate.”

While the market took more losses Thursday, they selling eased toward the end of the day. The S&P 500 fell 28.48 points to 3,357.01. The Dow Jones Industrial Average lost 130.40 points, or 0.5%, to 27,901.98. It had been down 384 points.

The Nasdaq composite, which is heavily weighted with technology stocks, slid 140.19 points, or 1.3%, to 10,910.28. The Russell 2000 index of small company stocks gave up 9.73 points, or 0.6%, to 1,542.60.

The sell-off cut into the market’s gains this week on Monday and Tuesday. The S&P 500 is still up 0.5% for the week, but down 4.1% so far this month after five-straight monthly gains.

Another possibility for the downward turn the market has taken the past two days is the diminishing odds that Congress will deliver more aid for the economy anytime soon after benefits for unemployed workers and other stimulus expired recently. Investors say such aid is crucial for the recovery, and Powell talked about the importance of it in a press conference Wednesday.

The Fed’s actions in the wake of the economic slump, along with any further actions, could have a diminishing impact and the latest statements may be a “warning shot across the bow of Congress that they need to do something,” Cruz said.

A report on Thursday showed that another 860,000 workers applied for unemployment benefits last week. But partisan disagreements on Capitol Hill have delayed any renewal of Congressional support.

“Fundamentally, the economy is still moving in the right direction, but the risk of potentially jeopardizing the recovery from reduced fiscal support is becoming uncomfortably high,” Piper Sandler strategist Craig Johnson wrote in a report.

Economists say the impact of Congress’ inaction may already be showing in the data. Retail sales growth weakened last month, for example, as unemployed workers were no longer getting $600 in extra weekly benefits from the federal government. President Donald Trump issued an executive order in early August to provide a scaled-back version of the benefits, but that program is expiring.

Trump urged his fellow Republicans on Wednesday to move toward a big package of aid, which is what Democrats have been arguing for, but negotiations remain far apart.

“People are starting to realize that it does have a pretty big impact to not have that extra money coming in that got cut off at the end of July,” said Sal Bruno, chief investment officer of IndexIQ. “We’ll see if they do get a fiscal package done. If they don’t get it done by the end of this month, the odds go down dramatically.”

The number of workers applying for jobless benefits has been coming down slowly, but it remains historically high.

The high unemployment figures, along with other signs of a weaker recovery and a potential second wave of the virus, are weighing on investors.

“You put that alongside the Fed starting to pull back the punch bowl, or at least not refill it as much as people wanted, it‘s enough to spook markets,” TD Ameritrade’s Cruz said.

Big Tech stocks were again at the center of Wall Street’s selling. After flying through the pandemic on expectations that their strong growth will only continue, Apple and other superstar stocks suddenly lost momentum earlier this month amid worries they had become too expensive.

Apple fell 1.6%, Amazon dropped 2.3% and Facebook lost 3.3%.

Among the gainers was Herman Miller, which jumped 33.5% after reporting much stronger profit for its latest quarter than analysts expected. It benefited from a rush of people buying furniture for home offices they had to suddenly set up due to the pandemic.

Treasury yields fell in a sign of increased caution in the market. The yield on the 10-year Treasury held steady at 0.69%.

Stocks in markets around the world closed lower.

In Europe, the German DAX lost 0.4%, and the French CAC 40 fell 0.7%. The FTSE 100 in London slid 0.5%.

In Asia, Japan’s Nikkei 225 fell 0.7%, South Korea’s Kospi dropped 1.2% and Hong Kong’s Hang Seng lost 1.6%. Stocks in Shanghai slipped 0.4%

 

[bigdog]

Wall Street capped another turbulent week of trading Friday with a broad slide in stocks that left the S&P 500 with its third-straight weekly loss.

The S&P 500 fell 1.1%, led once again by a sell-off in technology companies, with Apple, Amazon and Alphabet weighing particularly on the market. Technology stocks and other companies that powered the market's strong comeback this year have suddenly lost momentum this month amid worries that they have become too expensive.

The sell-off wiped out the last of the solid gains the market saw to start the week. The S&P 500 is on track for its first monthly loss since March. September is historically the worst month for stocks.

“The market has been poised to just pull back, take a breather," said Quincy Krosby, chief market strategist at Prudential Financial. "Raising capital is prudent during a month that is known statistically, historically for being difficult for the market.”

The S&P 500 fell 37.54 points to 3,319.47. The decline marks the the first 3-week losing streak for the benchmark index since last October. The Dow Jones Industrial Average dropped 244.56 points, or 0.9%, to 27,657.42. The Nasdaq composite shed an early gain, losing 116.99 points, or 1.1%, to 10,793.28. Smaller stocks also fell, with the Russell 2000 index of small caps giving up 5.82 points, or 0.4%, to 1,536.78.

Momentum in the market shifted Wednesday after the Federal Reserve said the outlook for the U.S. economy remains uncertain and policymakers expect short-term interest rates to stay at record lows through 2023. Low rates typically turbocharge the market by encouraging investors to pay higher prices for stocks, but some investors may have been looking for the Fed to be more aggressive.

Growth in some areas of the economy has also slowed after supplemental unemployment benefits and other aid from the federal government expired, and partisan disagreements in Congress are holding up a possible renewal of support. Investors say it’s essential that such aid arrives.

“To the extent that you don’t get an additional fiscal cushion, the economy is going to be impacted by it,” said Brian Levitt, global market strategist at Invesco.

Rising tensions between the world’s two largest economies are also continuing to keep markets on edge. The United States said on Friday that it will ban downloads of the Chinese apps TikTok and WeChat on Sunday. It cited national security and data privacy concerns.

President Donald Trump’s targeting of the Chinese tech industry has caused intermittent worries in the market about a possible retaliation against the U.S. industry.

Big Tech stocks have stumbled sharply this month on worries that their prices have grown too expensive following their virtuosic performance through the pandemic. Surging shares of Apple, Microsoft, Amazon and others helped carry Wall Street back to record heights, even as the pandemic walloped much of the economy, as the coronavirus accelerated work-from-home and other trends that benefit them.

But they suddenly lost momentum two weeks ago, causing the market to swing with them. Because these companies have grown so massive, their stock movements have huge sway over broad market indexes, such as the S&P 500.

“We certainly got a little short-term overbought and we headed into a time of the year that is not great for markets,” Levitt said.
On Friday, several Big Tech stocks continued slipping. Apple dropped 3.2%, Microsoft fell 1.2% and Amazon slid 1.8%.

Also on the long list of concerns for markets is how the pandemic progresses, whether a vaccine for COVID-19 could indeed be available in early 2021 as many investors expect and what November’s U.S. presidential election will do to the economy.

https://www.usnews.com/news/business/articles/2020-09-18/asia-mostly-higher-despite-wall-street-slump-virus-fears

US Stocks Fall as Market Decline Extends for Third Week
Stocks are closing lower on Wall Street Friday, as another zig-zag week for markets ends with a third-straight weekly loss for the S&P 500.

By Associated Press, Wire Service Content Sept. 18, 2020, at 5:30 p.m.

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
Wall Street capped another turbulent week of trading Friday with a broad slide in stocks that left the S&P 500 with its third-straight weekly loss.

The S&P 500 fell 1.1%, led once again by a sell-off in technology companies, with Apple, Amazon and Alphabet weighing particularly on the market. Technology stocks and other companies that powered the market's strong comeback this year have suddenly lost momentum this month amid worries that they have become too expensive.

The sell-off wiped out the last of the solid gains the market saw to start the week. The S&P 500 is on track for its first monthly loss since March. September is historically the worst month for stocks.

“The market has been poised to just pull back, take a breather," said Quincy Krosby, chief market strategist at Prudential Financial. "Raising capital is prudent during a month that is known statistically, historically for being difficult for the market.”

The S&P 500 fell 37.54 points to 3,319.47. The decline marks the the first 3-week losing streak for the benchmark index since last October. The Dow Jones Industrial Average dropped 244.56 points, or 0.9%, to 27,657.42. The Nasdaq composite shed an early gain, losing 116.99 points, or 1.1%, to 10,793.28. Smaller stocks also fell, with the Russell 2000 index of small caps giving up 5.82 points, or 0.4%, to 1,536.78.

Momentum in the market shifted Wednesday after the Federal Reserve said the outlook for the U.S. economy remains uncertain and policymakers expect short-term interest rates to stay at record lows through 2023. Low rates typically turbocharge the market by encouraging investors to pay higher prices for stocks, but some investors may have been looking for the Fed to be more aggressive.

Growth in some areas of the economy has also slowed after supplemental unemployment benefits and other aid from the federal government expired, and partisan disagreements in Congress are holding up a possible renewal of support. Investors say it’s essential that such aid arrives.

“To the extent that you don’t get an additional fiscal cushion, the economy is going to be impacted by it,” said Brian Levitt, global market strategist at Invesco.

Rising tensions between the world’s two largest economies are also continuing to keep markets on edge. The United States said on Friday that it will ban downloads of the Chinese apps TikTok and WeChat on Sunday. It cited national security and data privacy concerns.

President Donald Trump’s targeting of the Chinese tech industry has caused intermittent worries in the market about a possible retaliation against the U.S. industry.

Big Tech stocks have stumbled sharply this month on worries that their prices have grown too expensive following their virtuosic performance through the pandemic. Surging shares of Apple, Microsoft, Amazon and others helped carry Wall Street back to record heights, even as the pandemic walloped much of the economy, as the coronavirus accelerated work-from-home and other trends that benefit them.

But they suddenly lost momentum two weeks ago, causing the market to swing with them. Because these companies have grown so massive, their stock movements have huge sway over broad market indexes, such as the S&P 500.

“We certainly got a little short-term overbought and we headed into a time of the year that is not great for markets,” Levitt said.
On Friday, several Big Tech stocks continued slipping. Apple dropped 3.2%, Microsoft fell 1.2% and Amazon slid 1.8%.

Also on the long list of concerns for markets is how the pandemic progresses, whether a vaccine for COVID-19 could indeed be available in early 2021 as many investors expect and what November’s U.S. presidential election will do to the economy.

Treasury yields remain very low, showing the powerful strength of the Federal Reserve and continued expectations by bond investors for only modest economic growth and inflation. The yield on the 10-year Treasury rose to 0.70% from 0.69% late Thursday.

A preliminary report on Friday said that consumer sentiment is improving at a faster pace than economists expected, which is key for an economy where spending by consumers is the main driver. But it follows other reports this week that showed growth in retail sales slowed last month and the number of layoffs across the country remains stubbornly high.

One factor that may have helped make trading bumpier than usual Friday is an event known as “quadruple witching,” which marks the expiration of futures and options on stocks and indexes. The event can drive swings in prices.
Other stock markets around the world made mostly modest moves.

In Europe, the German DAX lost 0.7%, and the French CAC 40 sank 1.2%. The FTSE 100 in London fell 0.7%. Markets in Asia closed mostly higher.

Benchmark U.S. crude oil fell 0.2% to $40.89 to per barrel. Brent crude, the international standard, fell 0.8% to $42.95 per barrel.