NYSE Dow Jones finished today at:

[bigdog]

ASX 200 expected to drop lower.

According to the latest SPI futures, the ASX 200 is poised to start the week with a decline. Current futures contracts are pointing to a 36-point or 0.6% decline at the open. This follows a disappointing end to the week on Wall Street on Friday which led to the Dow Jones falling 0.9%, the S&P 500 dropping 1.1%, and the Nasdaq index tumbling 1.1%. This was the third week of declines in a row for Wall Street and due largely to further weakness in the tech sector.

 

[bigdog]

Wall Street slumped Monday as markets tumbled worldwide on worries about the pandemic’s economic pain, though the S&P 500 had pared its losses by the end of the day.

The drops began in Asia as soon as trading opened for the week, and they accelerated in Europe on worries about the possibility of tougher restrictions there to stem rising coronavirus counts. In the U.S., stocks and Treasury yields weakened, while prices sank for oil and other commodities that a healthy economy would demand.

The S&P 500 fell 38.41 points, or 1.2%, to 3,281.06. It extends the index’s losing streak to four days, its longest since stocks were selling off in February on recession worries. But a last-hour recovery helped the index more than halve its loss of 2.7% from earlier in the day.
The Dow Jones Industrial Average fell 509.72, or 1.8%, to 27,147.70 after coming back from an earlier 942 point slide. The Nasdaq composite slipped 14.48, or 0.1%, to 10,778.80 after recovering from a 2.5% drop.

Wall Street has been shaky this month, and the S&P 500 has dropped 8.4% since hitting a record Sept. 2 amid a long list of worries for investors. Chief among them is fear that stocks got too expensive when coronavirus counts are still worsening, Congress is unable to deliver more aid for the economy, U.S.-China tensions are rising and a contentious U.S. election is approaching.

Investors should expect the stock market to stay volatile, perhaps through the November elections, as they wait for these questions to shake out, said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management.

Monday's selling was exacerbated by worries about the possibility of more business restrictions in Europe, particularly as the United States heads into flu season, Draho said, and “some investors may be stepping aside.”

David Joy, chief market strategist at Ameriprise Financial, noted how Monday’s sharpest drops were concentrated in areas of the market most closely tied to the economy’s strength, such as energy companies and raw-material producers.

“It seems to be a broader expression of worry about the economy," he said.

Bank stocks took sharp losses after a report alleged that several continue to profit from illicit dealings with criminal networks despite U.S. crackdowns on money laundering.

Shares of electric and hydrogen-powered truck startup Nikola plunged 19.3% after its founder resigned as executive chairman and left its board amid allegations of fraud. The company has called the allegations false and misleading.

General Motors, which recently signed a partnership deal where it would take an ownership stake in Nikola, fell 4.8%.

Investors are also worried about the diminishing prospects that Congress may soon deliver more aid to the economy. Many investors call such support crucial after extra weekly unemployment benefits and other stimulus expired. But partisan disagreements have held up any renewal of what’s known as the CARES Act.

“The stimulus money from the CARES Act, the impact of that, is running off and there doesn’t seem to be any urgency in Washington to get another package together,” said Joy of Ameriprise Financial..

Partisan rancor is only continuing to rise, deflating hopes further. The sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg is the latest flashpoint dividing the country.

Tensions between the world’s two largest economies are also weighing on markets. President Donald Trump has targeted Chinese tech companies in particular, and the Department of Commerce on Friday announced a list of prohibitions that could eventually cripple U.S. operations of Chinese-owned apps TikTok and WeChat. The government cited national security and data privacy concerns.
That raises the threat of Chinese retaliation against U.S. companies.

ASX 200 expected to tumble lower.

It looks set to be another difficult day of trade for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is poised to fall 54 points or 0.9% at the open. This follows a disappointing start to the week on Wall Street which saw the Dow Jones fall 1.8%, the S&P 500 drop 1.15%, and the Nasdaq index tumble 0.1%. This was driven by concerns over rising coronavirus cases.

https://www.usnews.com/news/business/articles/2020-09-21/global-markets-lower-after-wall-st-declines-for-third-week

Wall Street Falls, S&P 500 Down 1.2% as Global Markets Swoon
Stocks fell on Wall Street Monday as markets tumbled worldwide on worries about the pandemic’s economic pain.

By Associated Press, Wire Service Content Sept. 21, 2020, at 4:59 p.m.


By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
NEW YORK (AP) — Wall Street slumped Monday as markets tumbled worldwide on worries about the pandemic’s economic pain, though the S&P 500 had pared its losses by the end of the day.

The drops began in Asia as soon as trading opened for the week, and they accelerated in Europe on worries about the possibility of tougher restrictions there to stem rising coronavirus counts. In the U.S., stocks and Treasury yields weakened, while prices sank for oil and other commodities that a healthy economy would demand.

The S&P 500 fell 38.41 points, or 1.2%, to 3,281.06. It extends the index’s losing streak to four days, its longest since stocks were selling off in February on recession worries. But a last-hour recovery helped the index more than halve its loss of 2.7% from earlier in the day.
The Dow Jones Industrial Average fell 509.72, or 1.8%, to 27,147.70 after coming back from an earlier 942 point slide. The Nasdaq composite slipped 14.48, or 0.1%, to 10,778.80 after recovering from a 2.5% drop.

Wall Street has been shaky this month, and the S&P 500 has dropped 8.4% since hitting a record Sept. 2 amid a long list of worries for investors. Chief among them is fear that stocks got too expensive when coronavirus counts are still worsening, Congress is unable to deliver more aid for the economy, U.S.-China tensions are rising and a contentious U.S. election is approaching.

Investors should expect the stock market to stay volatile, perhaps through the November elections, as they wait for these questions to shake out, said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management.

Monday's selling was exacerbated by worries about the possibility of more business restrictions in Europe, particularly as the United States heads into flu season, Draho said, and “some investors may be stepping aside.”

David Joy, chief market strategist at Ameriprise Financial, noted how Monday’s sharpest drops were concentrated in areas of the market most closely tied to the economy’s strength, such as energy companies and raw-material producers.

“It seems to be a broader expression of worry about the economy," he said.

Bank stocks took sharp losses after a report alleged that several continue to profit from illicit dealings with criminal networks despite U.S. crackdowns on money laundering.

Shares of electric and hydrogen-powered truck startup Nikola plunged 19.3% after its founder resigned as executive chairman and left its board amid allegations of fraud. The company has called the allegations false and misleading.

General Motors, which recently signed a partnership deal where it would take an ownership stake in Nikola, fell 4.8%.

Investors are also worried about the diminishing prospects that Congress may soon deliver more aid to the economy. Many investors call such support crucial after extra weekly unemployment benefits and other stimulus expired. But partisan disagreements have held up any renewal of what’s known as the CARES Act.

“The stimulus money from the CARES Act, the impact of that, is running off and there doesn’t seem to be any urgency in Washington to get another package together,” said Joy of Ameriprise Financial..

Partisan rancor is only continuing to rise, deflating hopes further. The sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg is the latest flashpoint dividing the country.

Tensions between the world’s two largest economies are also weighing on markets. President Donald Trump has targeted Chinese tech companies in particular, and the Department of Commerce on Friday announced a list of prohibitions that could eventually cripple U.S. operations of Chinese-owned apps TikTok and WeChat. The government cited national security and data privacy concerns.
That raises the threat of Chinese retaliation against U.S. companies.

A U.S. judge over the weekend ordered a delay to the restrictions on WeChat, a communications app popular with Chinese-speaking Americans, on First Amendment grounds.

Trump also said on Saturday he gave his blessing to a proposed deal between TikTok, Oracle and Walmart to create a new company that would likely be based in Texas.

Layered on top of all those concerns for the market is the continuing coronavirus pandemic and its effect on the global economy.
On Sunday, the British government reported 4,422 new coronavirus infections, its biggest daily rise since early May. An official estimate shows new cases and hospital admissions are doubling every week.

Prime Minister Boris Johnson later this week is expected to announce a slate of short-term restrictions that will act as a “circuit breaker” to slow the spread of the disease. The number of cases has been rising quickly in many European countries and while authorities don’t seem ready to return to the tough restrictions on public life that they imposed in the spring, the new wave of the pandemic threatens the economic outlook.

The FTSE 100 in London dropped 3.4%. Other European markets were similarly weak. The German DAX lost 4.4%, and the French CAC 40 fell 3.7%.

In Asia, Hong Kong’s Hang Seng dropped 2.1%, South Korea’s Kospi fell 1% and stocks in Shanghai lost 0.6%.

The yield on the 10-year Treasury fell to 0.66% from 0.69% late Friday.

September's losses for markets are reversing months of remarkable gains. Beginning in late March, when the Federal Reserve and Congress pledged massive amounts of support for the economy, the S&P 500 erased its nearly 34% in losses caused by the pandemic. Signs of budding economic improvements accelerated the gains, but growth has slowed recently.

 

[bigdog]

The S&P 500 climbed 1.1%, led by solid gains in technology and communications stocks, and companies that rely on consumer spending. Banks, health care and energy stocks closed lower. Homebuilders surged following a report showing U.S. home sales jumped in August to their highest level since 2006.

The gains helped the market recover some of its losses a day after stocks tumbled amid a raft of worries about the pandemic and governments’ response to it.

The S&P 500 rose 34.51 points to 3,315.57. The Dow Jones Industrial Average gained 140.48 points, or 0.5%, to 27,288.18. The Nasdaq composite climbed 184.84 points, or 1.7%, to 10,963.64. The Russell 2000 index of small company stocks picked up 11.71 points, or 0.8%, to 1,496.96.

Tuesday's market rebound has been the exception this month. Wall Street has suddenly lost momentum in September following months of powerful gains that returned the S&P 500 to a record. The benchmark S&P 500 index is down 5.3% so far this month, while the Nasdaq is off nearly 7%. A long list of concerns for investors has caused big swings in the market, from worries that stocks have grown too expensive to frustration about Congress’ refusal so far to deliver more aid to the struggling economy.

“Right now it's kind of reality is setting in, looking at valuations and realizing that coronavirus is still prevalent, we don’t have a vaccine and we don’t know who’s going to be in the White House in 2021,” said Lindsey Bell, chief investment strategist at Ally Invest.

Federal Reserve Chair Jerome Powell pressed Congress to act on additional aid for the economy during a House of Representatives committee hearing Tuesday, saying that the economy appears to be improving, but still likely needs more government stimulus. Extra weekly unemployment benefits and other stimulus that Congress approved in March have expired, and some areas of the economy have already slowed as a result.

That support from Congress, along with unprecedented moves by the Federal Reserve to aid markets, helped halt the S&P 500's nearly 34% plummet earlier this year. Investors say it’s crucial that Congress extended more support, but partisan disagreements have blocked the efforts.

The sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg is amping up partisanship across the country, diminishing hopes even further.

Among other concerns for investors are rising tensions between the United States and China, which could lead to a Chinese retaliation against U.S tech companies, as well as the upcoming U.S. elections and all the changes in tax policy and regulations they can create.

All those factors combined to knock the S&P 500 down as much as 2.7% on Monday.

The uneasy trading continued early Tuesday as stock indexes swung from small gains to losses through the morning before steadying by afternoon. Tech stocks in the S&P 500 bounced between a gain of 1.7% and a loss of 0.4%, for example.

Big Tech stocks have lost momentum this month on worries their stocks grew too expensive following a supersonic run through the pandemic. Apple, Amazon and others have benefited from the pandemic because it’s accelerated work-from-home and other trends that boost their profits.

Tech stocks added to their gains Tuesday after a late-afternoon turnaround a day earlier. Apple gained 1.6% while Microsoft rose 2.4%. Amazon climbed 5.7%.

Traders also bid up shares in homebuilders after the National Association of Realtors said that sales of previously occupied U.S. homes rose 2.4% in August to their highest level since 2006. Sales are up 10.5% from a year ago and back to pre-COVID-19 levels of early 2020.

Among the biggest gainers was builder D.R. Horton, which rose 4.7%.

Stocks of companies whose profits are most closely tied to the strength of the economy clawed back some of their sharp losses from the day before, but their movements were also erratic.

ASX 200 futures pointing higher.

The ASX 200 index is expected to bounce back strongly on Wednesday. According to the latest SPI futures, the benchmark index is poised to storm 61 points or 1.06% higher at the open. This follows a very positive night of trade on Wall Street which saw the Dow Jones rise 0.5%, the S&P 500 climb 1.05%, and the Nasdaq index race 1.7% higher.

Tech share recovery to continue.

Australian tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) look set to continue their recovery on Wednesday after the tech-focused Nasdaq index stormed higher overnight. The highlight on the Nasdaq was arguably the Amazon share price, which surged almost 6% higher. Investors appear to believe the tech rout is now over.

https://www.usnews.com/news/business/articles/2020-09-22/asian-shares-track-wall-street-retreat-big-banks-tumble

Wall Street Steadies Itself, Halting 4-Day Losing Streak
Stocks rebounded on Wall Street Tuesday, recovering some of their losses after tumbling on a raft of worries about the pandemic and governments’ response to it.

By Associated Press, Wire Service Content Sept. 22, 2020, at 4:44 p.m.

The S&P 500 climbed 1.1%, led by solid gains in technology and communications stocks, and companies that rely on consumer spending. Banks, health care and energy stocks closed lower. Homebuilders surged following a report showing U.S. home sales jumped in August to their highest level since 2006.

The gains helped the market recover some of its losses a day after stocks tumbled amid a raft of worries about the pandemic and governments’ response to it.

The S&P 500 rose 34.51 points to 3,315.57. The Dow Jones Industrial Average gained 140.48 points, or 0.5%, to 27,288.18. The Nasdaq composite climbed 184.84 points, or 1.7%, to 10,963.64. The Russell 2000 index of small company stocks picked up 11.71 points, or 0.8%, to 1,496.96.

Tuesday's market rebound has been the exception this month. Wall Street has suddenly lost momentum in September following months of powerful gains that returned the S&P 500 to a record. The benchmark S&P 500 index is down 5.3% so far this month, while the Nasdaq is off nearly 7%. A long list of concerns for investors has caused big swings in the market, from worries that stocks have grown too expensive to frustration about Congress’ refusal so far to deliver more aid to the struggling economy.

“Right now it's kind of reality is setting in, looking at valuations and realizing that coronavirus is still prevalent, we don’t have a vaccine and we don’t know who’s going to be in the White House in 2021,” said Lindsey Bell, chief investment strategist at Ally Invest.

Federal Reserve Chair Jerome Powell pressed Congress to act on additional aid for the economy during a House of Representatives committee hearing Tuesday, saying that the economy appears to be improving, but still likely needs more government stimulus. Extra weekly unemployment benefits and other stimulus that Congress approved in March have expired, and some areas of the economy have already slowed as a result.

That support from Congress, along with unprecedented moves by the Federal Reserve to aid markets, helped halt the S&P 500's nearly 34% plummet earlier this year. Investors say it’s crucial that Congress extended more support, but partisan disagreements have blocked the efforts.

The sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg is amping up partisanship across the country, diminishing hopes even further.

Among other concerns for investors are rising tensions between the United States and China, which could lead to a Chinese retaliation against U.S tech companies, as well as the upcoming U.S. elections and all the changes in tax policy and regulations they can create.

All those factors combined to knock the S&P 500 down as much as 2.7% on Monday.

The uneasy trading continued early Tuesday as stock indexes swung from small gains to losses through the morning before steadying by afternoon. Tech stocks in the S&P 500 bounced between a gain of 1.7% and a loss of 0.4%, for example.

Big Tech stocks have lost momentum this month on worries their stocks grew too expensive following a supersonic run through the pandemic. Apple, Amazon and others have benefited from the pandemic because it’s accelerated work-from-home and other trends that boost their profits.

Tech stocks added to their gains Tuesday after a late-afternoon turnaround a day earlier. Apple gained 1.6% while Microsoft rose 2.4%. Amazon climbed 5.7%.

Traders also bid up shares in homebuilders after the National Association of Realtors said that sales of previously occupied U.S. homes rose 2.4% in August to their highest level since 2006. Sales are up 10.5% from a year ago and back to pre-COVID-19 levels of early 2020.

Among the biggest gainers was builder D.R. Horton, which rose 4.7%.

Stocks of companies whose profits are most closely tied to the strength of the economy clawed back some of their sharp losses from the day before, but their movements were also erratic.

Norwegian Cruise Line climbed 2.3%. Energy stocks in the S&P 500 rose as much as 1.6% in the first 20 minutes of trading, only to give all the gains away.

European stocks recovered some of their steep losses from Monday, which were triggered in part by worries that stricter restrictions on businesses may be on the way to stem a resurgence of coronavirus cases.

U.K. Prime Minister Boris Johnson on Tuesday announced a package of new restrictions, including requiring pubs and restaurants to close between 10 p.m. and 5 a.m, but analysts said they were less extreme than some investors worried.

Germany’s DAX returned 0.4%, though it’s still down 4% for the week so far. France’s CAC 40 fell 0.4%, and the FTSE 100 in London fell 0.4%.

In Asia, South Korea’s Kospi fell 2.4%, Hong Kong’s Hang Seng lost 1% and stocks in Shanghai sank 1.3%.

Treasury yields dipped, and the 10-year yield fell to 0.67% from 0.68% late Monday.

 

[bigdog]

Wall Street experienced more whiplash Wednesday as stocks closed broadly lower, wiping out the market's gains from the day before.

The S&P 500 fell 2.4% after giving up an earlier gain. The selling, which accelerated in the afternoon, was widespread, though technology stocks accounted for the biggest losses. The decline deepens the benchmark index's September slide to 7.5% after a five-month rally.

The market has shifted momentum several times recently. This week alone, a Monday swoon brought the S&P 500 to the edge of a 10% drop from its record high set on Sept. 2, what Wall Street calls a correction. It rebounded the following day to snap its first four-day slide since stocks were selling off in February. Wednesday's pullback left the S&P 500 within 0.4% of a correction.

“There have been 23 bull market corrections since World War II, and the average decline has been 14%,” said Sam Stovall, chief investment strategist at CFRA. “I basically see the same kind of decline taking place.”

The S&P 500's bull market began March 23, the low point in the last bear market for stocks. It's up 44.7% since then.

The S&P 500 fell 78.65 points to 3,236.92. The index is on track for its fourth-straight weekly decline. The Dow Jones Industrial Average lost 525.05 points, or 1.9%, to 26,763.13. The Nasdaq composite slid 330.65 points, or 3%, to 10,632.99. The Russell 2000 index of small company stocks gave up 45.50 points, or 3%, to 1,451.46.

Worries about a potential second wave of COVID-19 cases, doubt that lawmakers in Washington will reach a deal on another economic stimulus bill and uncertainty about the election have contributed to stocks' losses this month.

But at the center of the market’s big swings have been Apple, Amazon and other Big Tech stocks. They soared through the pandemic on expectations that their growth will only strengthen as the pandemic accelerates work-from-home and other trends that benefit them. But they began falling early this month amid fears that they had grown too expensive.

“What we’re seeing today, to some degree, is more of the same,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

The three most valuable companies in the S&P 500 led the selling Wednesday. Amazon slid 4.1%, Microsoft dropped 3.3% and Apple lost 4.2% after earlier flirting with a small gain.

“It’s mathematically impossible for a corrective phase in those names not to pull down the entire index,” Sonders said.

Part of this week’s early stumble for stocks was due to worries about European governments imposing tougher restrictions on businesses to slow the spread of the coronavirus, which hurt travel-related companies in particular. But analysts said the U.K. orders announced Tuesday weren’t as extreme as some investors had feared.

ASX 200 to sink lower.

The ASX 200 looks likely to give back a lot of yesterday’s gain on Thursday. According to the latest SPI futures, the benchmark index is poised to drop 60 points or 1% lower at the open. This follows another selloff on Wall Street overnight which saw the Dow Jones fall 1.9%, the S&P 500 drop 2.4%, and the Nasdaq index crash 3% lower. The latter decline could be bad news for the local tech sector.

https://www.usnews.com/news/business/articles/2020-09-23/asian-shares-mixed-as-worries-percolate-over-pandemic

Stocks Close Sharply Lower as Tech Sector Takes Another Hit

U.S. stocks closed sharply lower as losses for technology companies dragged down the major indexes.

By Associated Press, Wire Service Content Sept. 23, 2020, at 5:40 p.m.

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

Wall Street experienced more whiplash Wednesday as stocks closed broadly lower, wiping out the market's gains from the day before.

The S&P 500 fell 2.4% after giving up an earlier gain. The selling, which accelerated in the afternoon, was widespread, though technology stocks accounted for the biggest losses. The decline deepens the benchmark index's September slide to 7.5% after a five-month rally.

The market has shifted momentum several times recently. This week alone, a Monday swoon brought the S&P 500 to the edge of a 10% drop from its record high set on Sept. 2, what Wall Street calls a correction. It rebounded the following day to snap its first four-day slide since stocks were selling off in February. Wednesday's pullback left the S&P 500 within 0.4% of a correction.

“There have been 23 bull market corrections since World War II, and the average decline has been 14%,” said Sam Stovall, chief investment strategist at CFRA. “I basically see the same kind of decline taking place.”

The S&P 500's bull market began March 23, the low point in the last bear market for stocks. It's up 44.7% since then.

The S&P 500 fell 78.65 points to 3,236.92. The index is on track for its fourth-straight weekly decline. The Dow Jones Industrial Average lost 525.05 points, or 1.9%, to 26,763.13. The Nasdaq composite slid 330.65 points, or 3%, to 10,632.99. The Russell 2000 index of small company stocks gave up 45.50 points, or 3%, to 1,451.46.

Worries about a potential second wave of COVID-19 cases, doubt that lawmakers in Washington will reach a deal on another economic stimulus bill and uncertainty about the election have contributed to stocks' losses this month.

But at the center of the market’s big swings have been Apple, Amazon and other Big Tech stocks. They soared through the pandemic on expectations that their growth will only strengthen as the pandemic accelerates work-from-home and other trends that benefit them. But they began falling early this month amid fears that they had grown too expensive.

“What we’re seeing today, to some degree, is more of the same,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

The three most valuable companies in the S&P 500 led the selling Wednesday. Amazon slid 4.1%, Microsoft dropped 3.3% and Apple lost 4.2% after earlier flirting with a small gain.

“It’s mathematically impossible for a corrective phase in those names not to pull down the entire index,” Sonders said.

Nike jumped 8.8%, the biggest gainer in the S&P 500, after it reported much stronger profit than analysts expected.

Johnson & Johnson rose 0.2% as it begins a huge final study to try to prove if a single dose COVID-19 vaccine can protect against the virus. A handful of other vaccines are already in final-stage studies, and investors increasingly expect one to be available within the first three months of 2021. The hope is that it can help the economy get close to normal again and allow strong growth to resume.

Part of this week’s early stumble for stocks was due to worries about European governments imposing tougher restrictions on businesses to slow the spread of the coronavirus, which hurt travel-related companies in particular. But analysts said the U.K. orders announced Tuesday weren’t as extreme as some investors had feared.

European stocks rose despite data showing the region’s economic recovery may be faltering. Business activity is slowing as weakness in the service sector is countering strength in manufacturing, according to preliminary data from a survey of purchasing managers by IHS Markit.

The survey’s composite reading was at a three-month low, though manufacturing was at a 25-month high.

Germany’s DAX returned 0.4%, France’s CAC 40 rose 0.6% and the FTSE 100 in London fell 1.2%. Markets in Asia ended mixed.

Treasury yields were holding relatively steady, and the 10-year yield fell to 0.67% from 0.68%.

Yields have remained very low as the Federal Reserve has said it expects to keep short-term rates at nearly zero for years. Such support helped Wall Street halt its sell-off of nearly 34% earlier this year, along with a big stimulus effort by Congress.

But extra unemployment benefits and other aid from Congress have already expired. Some areas of the economy have seen growth slow as a result, and investors say a renewal is crucial. But partisan disagreements have kept Congress stymied. The vacancy on the Supreme Court following Justice Ruth Bader Ginsburg’s death has deepened the country’s partisan split even more.

Fed Chair Jerome Powell said on Tuesday that the economy would benefit from support by both the central bank and Congress. He testified Wednesday at a hearing for a House subcommittee on the coronavirus crisis and again said the economy will likely need more support.

“The recovery will go faster if there’s support coming both from Congress and from the Fed,” he said.

 

[bigdog]

Stocks eked out modest gains Thursday even as volatility continued to be the dominant force in Wall Street's tumultuous September.

The S&P 500 rose 0.3% after earlier swinging between a loss of 0.9% and a gain of 1.3%. The market notched widespread gains, though technology stocks powered much of the turnaround. Out of the S&P 500′s 11 sectors, only health care ended the day lower.

The market’s momentum has shifted with lightning speed recently, often changing direction by the hour. On Wednesday, the S&P 500 rose to a modest gain when trading began, only to end the day with a 2.4% slump. The benchmark index is now down 9.3% from its record set on Sept. 2 and on pace for its first monthly decline after a five-month rally.

The market’s turbulent run this month comes as investors worry about the upcoming election, the sustainability of the economic recovery and the prospects for Congress to deliver more economic aid for struggling Americans. Uncertainty over how soon drugmakers will be able to develop a coronavirus vaccine is also weighing on investors' mood.

“We’re focused on the strategic and the long-term, rather than the day-to-day, because it’s going to be volatile between now and the election,” said George Rusnak, head of investment strategy at Wells Fargo Private Wealth Management.

The S&P 500 rose 9.67 points to 3,246.59. The Dow Jones Industrial Average gained 52.31 points, or 0.2%, to 26,815.44. The Nasdaq composite added 39.28 points, or 0.4%, to 10,672.27. The Russell 2000 index of small company stocks inched up 0.36 points, or less than 0.1%, to 1,451.82.

Thursday's headline report showed that 870,000 workers filed for unemployment claims last week, a worse number than economists expected. The numbers come as investors are increasingly resigned to Congress not delivering more support for the economy, as many had been expecting, after extra unemployment benefits and other stimulus expired recently.

“Inaction speaks louder than words,” Morgan Stanley strategists wrote in a report. They no longer expect Congress to approve a meaningful stimulus package before the end of the year as part of its base case.

Stocks got a boost from a report showing that sales of new homes accelerated last month, contrary to economists' expectations for a slight slowdown. Homebuilders closed higher, led by a 7.2% gain for Beazer Homes USA.

Trading has been erratic on Wall Street this month, resulting in a sharp pullback for stocks. Several reasons are behind the abrupt tumble, highlighted by worries that stocks simply grew too expensive following their record-setting run through the spring and summer.

Among other concerns weighing on markets are the upcoming U.S. elections, particularly after President Donald Trump's refusal Wednesday to commit to a peaceful transition of power if he lost, and rising tensions between the United States and China.

ASX 200 futures pointing higher.

It looks set to be a better day of trade for the ASX 200 index on Friday. According to the latest SPI futures, the benchmark index is poised to rise 6 points or 0.1% at the open. This follows a positive night of trade on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.3%, and the Nasdaq index push 0.4% higher.

https://www.usnews.com/news/busines...fall-as-caution-sets-in-after-wall-st-retreat

US Stocks End Higher as Market Volatility Continues
U.S. stocks are closing slightly higher Thursday, as volatility continues to be the dominant force in Wall Street’s tumultuous September.
By Associated Press, Wire Service Content Sept. 24, 2020, at 6:02 p.m.

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

Stocks eked out modest gains Thursday even as volatility continued to be the dominant force in Wall Street's tumultuous September.

The S&P 500 rose 0.3% after earlier swinging between a loss of 0.9% and a gain of 1.3%. The market notched widespread gains, though technology stocks powered much of the turnaround. Out of the S&P 500′s 11 sectors, only health care ended the day lower.

The market’s momentum has shifted with lightning speed recently, often changing direction by the hour. On Wednesday, the S&P 500 rose to a modest gain when trading began, only to end the day with a 2.4% slump. The benchmark index is now down 9.3% from its record set on Sept. 2 and on pace for its first monthly decline after a five-month rally.

The market’s turbulent run this month comes as investors worry about the upcoming election, the sustainability of the economic recovery and the prospects for Congress to deliver more economic aid for struggling Americans. Uncertainty over how soon drugmakers will be able to develop a coronavirus vaccine is also weighing on investors' mood.

“We’re focused on the strategic and the long-term, rather than the day-to-day, because it’s going to be volatile between now and the election,” said George Rusnak, head of investment strategy at Wells Fargo Private Wealth Management.

The S&P 500 rose 9.67 points to 3,246.59. The Dow Jones Industrial Average gained 52.31 points, or 0.2%, to 26,815.44. The Nasdaq composite added 39.28 points, or 0.4%, to 10,672.27. The Russell 2000 index of small company stocks inched up 0.36 points, or less than 0.1%, to 1,451.82.

Thursday's headline report showed that 870,000 workers filed for unemployment claims last week, a worse number than economists expected. The numbers come as investors are increasingly resigned to Congress not delivering more support for the economy, as many had been expecting, after extra unemployment benefits and other stimulus expired recently.

“Inaction speaks louder than words,” Morgan Stanley strategists wrote in a report. They no longer expect Congress to approve a meaningful stimulus package before the end of the year as part of its base case.

Stocks got a boost from a report showing that sales of new homes accelerated last month, contrary to economists' expectations for a slight slowdown. Homebuilders closed higher, led by a 7.2% gain for Beazer Homes USA.

Trading has been erratic on Wall Street this month, resulting in a sharp pullback for stocks. Several reasons are behind the abrupt tumble, highlighted by worries that stocks simply grew too expensive following their record-setting run through the spring and summer.

Among other concerns weighing on markets are the upcoming U.S. elections, particularly after President Donald Trump's refusal Wednesday to commit to a peaceful transition of power if he lost, and rising tensions between the United States and China.

Layered on top of it all is the still-raging coronavirus pandemic and the threat that worsening counts around the world could lead to more business restrictions.

It’s a stark shift from late March into early this month, when the S&P 500 soared 60% and more than recovered all its earlier losses on worries about the pandemic-caused recession. Still in investors’ favor is unprecedented support from the Federal Reserve, which is holding short-term interest rates at nearly zero and buying all kinds of bonds to support markets.

But Fed Chair Jerome Powell has said several times in testimony on Capitol Hill this week that the central bank can’t prop up the economy by itself and that the recovery likely needs more help from Congress.

Paralyzing partisanship has prevented a Congressional renewal of aid, and the recent vacancy on the Supreme Court caused by the death of Justice Ruth Bader Ginsburg has deepened the divide.

“The market was hoping for and anticipating some form of fiscal stimulus,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “But that’s taking a backseat.”

Much of the market’s weakness this month has centered on Big Tech, where critics said prices exploded too high even after accounting for the companies' strong growth.

Amazon, Apple and others have seen their revenue continue to rise through the pandemic, as work-from-home and other trends that benefit them take deeper hold. But Amazon shares were up more than 90% for the year just a few weeks ago, for example, and they tumbled in recent weeks.

“It’s a healthy correction after a record run out of bear market territory,” Horneman said.

On Thursday, Amazon closed 0.7% higher after bouncing between gains and losses. Other Big Tech stocks also eked out gains. Apple rose 1%, Microsoft added 1.3% and Google's parent company picked up 1%.

Moves for such stocks have an outsized effect on broad indexes like the S&P 500 because they're the largest companies in the market by value.

The yield on the 10-year Treasury held steady at 0.67%.

In Europe, Germany's DAX fell 0.3% and France's CAC 40 fell 0.8%. The FTSE 100 in London slid 1.3%.

In Asia, Japan's Nikkei 225 fell 1.1%, South Korea's Kospi tumbled 2.6% and Hong Kong's Hang Seng dropped 1.8%. Stocks in Shanghai lost 1.7%.

 

[bigdog]

Stocks shook off another bout of volatile trading and finished solidly higher Friday, led by gains in technology and health care companies. Despite the rally, the S&P 500 still posted its fourth straight weekly loss, extending Wall Street's September swoon.

The S&P 500 rose 1.6% after flip-flopping between small gains and losses a few times in the early going. Stocks have been erratic this month, with indexes setting new highs to start the month and then falling sharply as investors worried that values for some of technology giants had risen too high.

The benchmark index ended the week with a 0.6% loss for its first four-week losing streak in more than a year. The index is now down 5.8% for September, following five straight months of gains.

The S&P 500 came within striking distance of a 10% drop from its all-time high earlier this week, what Wall Street calls a correction. Friday’s gains reflect, in part, traders taking advantage of the selling to snap up stocks at lower prices, said David Lyon, global investment specialist at J.P. Morgan Private Bank.

“You’re getting a market that got close to a 10% correction, so you’re starting to see buyers step in to buy the dip,” Lyon said.

Fund managers also tend to make moves toward the end of a quarter to bolster their portfolios, another reason for the end-of-the-week buying spree, he said.

The S&P 500 rose 51.87 points to 3,298.46. The Dow Jones Industrial Average gained 358.52 points, or 1.3%, to 27,173.96. The Nasdaq composite climbed 241.30 points, or 2.3%, to 10,913.56.

Smaller stocks also notched gains. The Russell 2000 index of small-cap stocks picked up 23.09 points, or 1.6%, to 1,474.91.

Stocks have struggled this month amid a long list of concerns. Chief among them is that stocks may have gotten too expensive following their record-breaking run through the summer, after storming 60% higher. Critics say Big Tech stocks in particular rose too high, even after accounting for their tremendous growth even as the coronavirus weakened the economy.

“This week, and the month of September, is really what we’re calling the give-back month,” Lyon said. ”(Stock) valuations got expensive and this is a natural settling of the market, kind of giving back some of those advance returns that were probably ahead of themselves.”

Big Tech stocks recovered from an early slide. Apple gained 3.8%, Microsoft rose 2.3% and Google's parent company added 1.1%.

Traders also bid up shares in cruise lines. Norwegian Cruise Line notched the biggest gain in the S&P 500, vaulting 13.7%. Carnival jumped 9.7% and Royal Caribbean Group climbed 7.7%.

Recently, investors’ frustration has also grown with the inability of Congress to deliver more aid to the economy after weekly unemployment benefits and other stimulus expired.

Democrats in the House of Representatives are paring back their proposal for stimulus in hopes of jumpstarting talks with the White House, but investors are skeptical something can happen soon. Deep partisan divisions have kept Congress from acting, and tensions are on the rise due to the sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg.

https://www.usnews.com/news/busines...ares-mixed-cheered-by-us-rally-stimulus-hopes

Stocks Post Solid Gains as Technology Shares Lead Rally
U.S. stocks closed with solid gains, the latest shift in a recent stretch of turbulence for the market.
By Associated Press, Wire Service Content Sept. 25, 2020, at 6:26 p.m

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

Stocks shook off another bout of volatile trading and finished solidly higher Friday, led by gains in technology and health care companies. Despite the rally, the S&P 500 still posted its fourth straight weekly loss, extending Wall Street's September swoon.

The S&P 500 rose 1.6% after flip-flopping between small gains and losses a few times in the early going. Stocks have been erratic this month, with indexes setting new highs to start the month and then falling sharply as investors worried that values for some of technology giants had risen too high.

The benchmark index ended the week with a 0.6% loss for its first four-week losing streak in more than a year. The index is now down 5.8% for September, following five straight months of gains.

The S&P 500 came within striking distance of a 10% drop from its all-time high earlier this week, what Wall Street calls a correction. Friday’s gains reflect, in part, traders taking advantage of the selling to snap up stocks at lower prices, said David Lyon, global investment specialist at J.P. Morgan Private Bank.

“You’re getting a market that got close to a 10% correction, so you’re starting to see buyers step in to buy the dip,” Lyon said.

Fund managers also tend to make moves toward the end of a quarter to bolster their portfolios, another reason for the end-of-the-week buying spree, he said.

The S&P 500 rose 51.87 points to 3,298.46. The Dow Jones Industrial Average gained 358.52 points, or 1.3%, to 27,173.96. The Nasdaq composite climbed 241.30 points, or 2.3%, to 10,913.56.

Smaller stocks also notched gains. The Russell 2000 index of small-cap stocks picked up 23.09 points, or 1.6%, to 1,474.91.

Stocks have struggled this month amid a long list of concerns. Chief among them is that stocks may have gotten too expensive following their record-breaking run through the summer, after storming 60% higher. Critics say Big Tech stocks in particular rose too high, even after accounting for their tremendous growth even as the coronavirus weakened the economy.

“This week, and the month of September, is really what we’re calling the give-back month,” Lyon said. ”(Stock) valuations got expensive and this is a natural settling of the market, kind of giving back some of those advance returns that were probably ahead of themselves.”

Big Tech stocks recovered from an early slide. Apple gained 3.8%, Microsoft rose 2.3% and Google's parent company added 1.1%.

Traders also bid up shares in cruise lines. Norwegian Cruise Line notched the biggest gain in the S&P 500, vaulting 13.7%. Carnival jumped 9.7% and Royal Caribbean Group climbed 7.7%.

Recently, investors’ frustration has also grown with the inability of Congress to deliver more aid to the economy after weekly unemployment benefits and other stimulus expired.

Democrats in the House of Representatives are paring back their proposal for stimulus in hopes of jumpstarting talks with the White House, but investors are skeptical something can happen soon. Deep partisan divisions have kept Congress from acting, and tensions are on the rise due to the sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg.

President Donald Trump has also declined to guarantee a peaceful transfer of power if he loses the upcoming election, though other Republicans have pushed back on that idea.

“This stimulus deal needs to go through,” Stephen Innes of AxiCorp said in a commentary. “With the risks building up everywhere you look, it doesn’t seem to be a great time to be trying to pick the bottom of equity markets, but a stimulus relief bill will go a long way to nudging the market along.”

Yet another report on Friday suggested that the economy's recovery is slowing without the support from Capitol Hill. Growth for U.S. orders of machinery and other long-lasting goods was just 0.4% last month, down from 11.7% in July. The figure on durable goods was much weaker than economists had forecast, though several said they saw a mixed picture underneath the headline numbers.

Among other concerns for markets are rising tensions between the United States and China and the possibility that investors’ expectations for a COVID-19 vaccine arriving early next year may prove to be too optimistic.

On top of all the market’s concerns are the pandemic and worries that worsening trends could lead to more profit-choking restrictions on businesses. Novavax surged 10.9% after it said it began a late stage trial of its potential COVID-19 vaccine in the United Kingdom.

Investors pulled $22.8 billion out of stock funds in the week ending Sept. 23, the largest outflow since March, according to a BofA Global Research report.

Wall Street's rally started in late March after the Federal Reserve and Congress pledged massive amounts of support for the economy. Budding economic improvements later in the spring helped accelerate the gains as widespread shutdown orders lifted.

The Fed has pledged to continue to hold short-term rates at nearly zero for years, but its chair Jerome Powell said repeatedly in testimony on Capitol Hill this week that the recovery will likely need more help from Congress as well.

In Europe, stocks closed mostly lower. Germany’s DAX lost 1.1%, and France’s CAC 40 fell 0.7%. The FTSE 100 in London rose 0.3%.

In Asia, Japan’s Nikkei 225 rose 0.5% and South Korea’s Kospi added 0.3%. Hong Kong’s Hang Seng fell 0.3%, and stocks in Shanghai slipped 0.1%.

The yield on the 10-year Treasury held steady at 0.66%.

 

[bigdog]

ASX 200 expected to rise.

It looks set to be a positive day of trade for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 21 points or 0.35% higher this morning. This follows a very strong finish to the week on Wall Street. On Friday night the Dow Jones rose 1.3%, the S&P 500 climbed 1.6%, and the Nasdaq stormed a sizeable 2.25% higher.

 

[bigdog]

Stocks notched solid gains Monday as Wall Street clawed back some of its sharp and sudden September losses.

The S&P 500 rose 1.6%, it's third straight gain. The benchmark index was coming off its first four-week losing streak in more than a year and is on track to close out September with a loss of 4.2% after five months of gains.

The market’s gains were widespread, with more than 90% of the stocks in the S&P 500 higher. Big Tech stocks, which have been getting the most criticism for getting too expensive following their strong pandemic run, did the heaviest lifting. Several companies announced big mergers and acquisitions, which helped to push markets higher.

Optimism that Democrats and Republicans in Congress will reach a deal on another coronavirus relief bill also helped put investors in a buying mood, said Nela Richardson, investment strategist at Edward Jones.

“There’s real concern about a second wave of infections, concern that we’re just riding the coattails of growth that happened after the economy opened up in May,” Richardson said. "Anything that looks like new lifeblood for the economy is read as a positive stimulus.”

The S&P 500 rose 53.14 points to 3,351.60. The Dow Jones Industrial Average gained 410.10 points, or 1.5%, to 27,584.06. The Nasdaq composite climbed 203.96 points, or 1.9%, to 11,117.53. Traders also bid up smaller company stocks, sending the Russell 2000 small-cap index up 35.43 points, or 2.4%, to 1,510.34.

One of the big worries hurting stocks this month has been fears that the market climbed too high and got too expensive through its 60% rally from late March into early September. But several companies announced big mergers and acquisitions, which show that at least some CEOs see value at current prices.

Energy stocks made broad gains after Devon Energy and WPX Energy agreed to combine in an all-stock deal. Devon Energy led the S&P 500 companies higher, climbing 11.1%. WPX Energy rose 16.4%.

Cleveland-Cliffs jumped 11.6% after it said it will buy the U.S. business of steelmaking and mining giant ArcelorMittal for $1.4 billion. ArcelorMittal's U.S.-listed stock rose 10.6%.

Another strong gainer was Uber, which rose 3.2% after it won an appeal that will allow it to keep operating in London.

Big Tech stocks powered much of the S&P 500's gains. Amazon climbed 2.5%, Apple rose 2.4% and Microsoft gained 0.8%. These companies are massive, which gives their stock movements much more sway over the S&P 500 and broad-market indexes than other stocks.

Several factors have been behind the S&P 500's abrupt drop this month, which halted a remarkable return to record heights for Wall Street even as the pandemic continued to rage.

Many of those factors are still in place, which means analysts along Wall Street say the tumultuous trading may not be over.

“We’re not out of the woods yet," Richardson said. "Investors should expect volatility, especially as we get closer to the election.”

Investors are still waiting for Congress to deliver another round of support for the economy after extra unemployment benefits for workers and other stimulus expired. Tensions are still rising between the United States and China. And the upcoming U.S. presidential election still means plenty of uncertainty for investors, from what it could do to corporate tax rates to how long markets will need to wait until after Election Day to discover the winner

ASX 200 expected to storm higher.

The ASX 200 looks set to storm higher on Tuesday after a very positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 37 points or 0.6% higher this morning. On Wall Street the Dow Jones rose 1.5%, the S&P 500 climbed 1.6%, and the Nasdaq stormed a sizeable 1.9% higher.

https://www.usnews.com/news/busines...-up-ahead-of-china-holiday-trump-biden-debate

Wall Street Claws Back Some of Its Losses From September
Wall Street rallied Monday as the stock market clawed back some of its sharp losses from September.
By Associated Press, Wire Service Content Sept. 28, 2020, at 4:39 p.m.

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

Stocks notched solid gains Monday as Wall Street clawed back some of its sharp and sudden September losses.

The S&P 500 rose 1.6%, it's third straight gain. The benchmark index was coming off its first four-week losing streak in more than a year and is on track to close out September with a loss of 4.2% after five months of gains.

The market’s gains were widespread, with more than 90% of the stocks in the S&P 500 higher. Big Tech stocks, which have been getting the most criticism for getting too expensive following their strong pandemic run, did the heaviest lifting. Several companies announced big mergers and acquisitions, which helped to push markets higher.

Optimism that Democrats and Republicans in Congress will reach a deal on another coronavirus relief bill also helped put investors in a buying mood, said Nela Richardson, investment strategist at Edward Jones.

“There’s real concern about a second wave of infections, concern that we’re just riding the coattails of growth that happened after the economy opened up in May,” Richardson said. "Anything that looks like new lifeblood for the economy is read as a positive stimulus.”

The S&P 500 rose 53.14 points to 3,351.60. The Dow Jones Industrial Average gained 410.10 points, or 1.5%, to 27,584.06. The Nasdaq composite climbed 203.96 points, or 1.9%, to 11,117.53. Traders also bid up smaller company stocks, sending the Russell 2000 small-cap index up 35.43 points, or 2.4%, to 1,510.34.

One of the big worries hurting stocks this month has been fears that the market climbed too high and got too expensive through its 60% rally from late March into early September. But several companies announced big mergers and acquisitions, which show that at least some CEOs see value at current prices.

Energy stocks made broad gains after Devon Energy and WPX Energy agreed to combine in an all-stock deal. Devon Energy led the S&P 500 companies higher, climbing 11.1%. WPX Energy rose 16.4%.

Cleveland-Cliffs jumped 11.6% after it said it will buy the U.S. business of steelmaking and mining giant ArcelorMittal for $1.4 billion. ArcelorMittal's U.S.-listed stock rose 10.6%.

Another strong gainer was Uber, which rose 3.2% after it won an appeal that will allow it to keep operating in London.

Big Tech stocks powered much of the S&P 500's gains. Amazon climbed 2.5%, Apple rose 2.4% and Microsoft gained 0.8%. These companies are massive, which gives their stock movements much more sway over the S&P 500 and broad-market indexes than other stocks.

Several factors have been behind the S&P 500's abrupt drop this month, which halted a remarkable return to record heights for Wall Street even as the pandemic continued to rage.

Many of those factors are still in place, which means analysts along Wall Street say the tumultuous trading may not be over.

“We’re not out of the woods yet," Richardson said. "Investors should expect volatility, especially as we get closer to the election.”

Investors are still waiting for Congress to deliver another round of support for the economy after extra unemployment benefits for workers and other stimulus expired. Tensions are still rising between the United States and China. And the upcoming U.S. presidential election still means plenty of uncertainty for investors, from what it could do to corporate tax rates to how long markets will need to wait until after Election Day to discover the winner.

The latest monthly employment report from the government on Friday could help shed some more light on the economic recovery, but it could also mean more volatility for the markets, said Brad McMillan, chief investment officer for Commonwealth Financial Network..

"This week’s going to be all about the jobs numbers, that’s the elephant in the room,” he said.

Countering those uncertainties, though, is the tremendous support that the Federal Reserve is continuing to provide markets and the economy. So are investors’ rising hopes that a vaccine for COVID-19 could become available as soon as early 2021.

European stock markets rallied broadly. The Germany DAX returned 3.2% and the French CAC 40 rose 2.4%. The FTSE 100 in London gained 1.5%.

In Asia, Japan’s Nikkei 225 rose 1.3%, as did South Korea’s Kospi. The Hang Seng in Hong rose 1%, and stocks in Shanghai slipped 0.1% after China’s statistical bureau reported that industrial profits rose 19% in August from a year earlier, as the economy recovered from the pandemic downturn.

The yield on the 10-year Treasury held steady at 0.66%.

 

[bigdog]

Stocks ended with moderate losses Tuesday as investors waited for the first debate between President Donald Trump and Democratic challenger Joe Biden.

Banks, energy companies and stocks that depend on consumer spending had some of the biggest losses. The price of oil fell 3.2%, dragging much of the energy sector down with it.

Some technology stocks, which have long been the biggest driver of this year's stock market moves, posted gains. Advanced Micro Devices closed up nearly 3% and Facebook rose nearly 2%. Twitter closed up 1.3%.

The Trump-Biden debate comes as coronavirus deaths worldwide crossed 1 million. Cases in the U.S. are on the rise again as states attempt to reopen schools and factories. Tens of millions of Americans remain out of work.

Investors remain uncertain whether the recovery that happened over the summer was sustainable, and whether the newest surge of cases will be as dramatic as the one in June. The uncertainty has been a big reason why stocks have struggled in September, after rallying the entire summer. The S&P 500 is on track to fall 4.7% this month, it's worst month since March when the stock market plunged sharply as the coronavirus pandemic spread to the U.S.

ASX 200 expected to tumble.

It looks set to be a tough day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 52 points or 0.9% lower this morning. This follows declines on Wall Street which ended a three-day winning streak. The Dow Jones fell 0.5%, the S&P 500 dropped 0.5%, and the Nasdaq edged 0.3% lower.

https://www.usnews.com/news/busines...-mixed-after-wall-st-rally-ahead-of-us-debate

Stocks End Lower Ahead of First Debate Between Trump, Biden
Stocks ended with moderate losses Tuesday as investors waited for the first debate between President Donald Trump and Democratic challenger Joe Biden.
By Associated Press, Wire Service Content Sept. 29, 2020, at 5:21 p.m.

By KEN SWEET and DAMIAN J. TROISE, AP Business Writers

Stocks ended with moderate losses Tuesday as investors waited for the first debate between President Donald Trump and Democratic challenger Joe Biden.

Banks, energy companies and stocks that depend on consumer spending had some of the biggest losses. The price of oil fell 3.2%, dragging much of the energy sector down with it.

Some technology stocks, which have long been the biggest driver of this year's stock market moves, posted gains. Advanced Micro Devices closed up nearly 3% and Facebook rose nearly 2%. Twitter closed up 1.3%.

The Trump-Biden debate comes as coronavirus deaths worldwide crossed 1 million. Cases in the U.S. are on the rise again as states attempt to reopen schools and factories. Tens of millions of Americans remain out of work.

Investors remain uncertain whether the recovery that happened over the summer was sustainable, and whether the newest surge of cases will be as dramatic as the one in June. The uncertainty has been a big reason why stocks have struggled in September, after rallying the entire summer. The S&P 500 is on track to fall 4.7% this month, it's worst month since March when the stock market plunged sharply as the coronavirus pandemic spread to the U.S.

“The market needs the economy to remain open,” said Mark Hackett, chief of investment research at Nationwide. “We can handle bumpy economic data, but markets are not priced for the economy to shut back down.”

The S&P 500 index fell 16.13 points, or 0.5%, to 3,335.47, after rallying the day before. The Dow Jones Industrial Average dropped 131.40 points, or 0.5%, to 27,452.66 and the technology-heavy Nasdaq composite lost 32.28 points, or 0.3%, to 11,085.25.

Markets are watching the November election’s impact on tax policy and how long it might take to determine the winner. The first presidential debate will likely make headlines, Hackett said, but debates generally don’t move the markets much.

“It’s going to get attention and rightfully so, but there’s so much time and motion that’s going to happen between now and November,” he said.

Investors' confidence has been supported by infusions of central bank support into struggling economies and hopes for development of a coronavirus vaccine.

Congress still is arguing over the size of a new support package after additional unemployment benefits expired. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have agreed to hold another round of stimulus talks. However with the death of Supreme Court Justice Ruth Bader Ginsburg, Congress has redirected much of its attention to President Trump's nominee to replace her.

“I certainly think the markets’ weakness in the past couple of weeks is partially due to the fading hopes for a deal,” Hackett said. “The market has largely come to terms with the low likelihood for a deal to get through.”

The last jobs report before the election will come out on Friday. The number is likely to be not only important for the market to determine whether re-openings are still moving forward, but politically important for both GOP and Democratic messaging heading into the election. Economists expect 850,000 jobs were created in September, with an unemployment rate of 8.2%.

 

[MrChow]

SP500 seems priced for absolute perfection.

To justify 3300 you have to assume:
- Forward Earnings will grow 10% on 2019 for an 180 EPS figure.
- Use the highest Forward PE valuation since Dot Com of 18x.

So basically an optimistic perfect outcome multiplied by an optimistic perfect outcome.

A lot of downside risks over there don't seem to be factored in:
- Flu Season could mean coronavirus effects are yet to peak
- Vaccine assumed to return economy to normal but any complications or delays create downside
- Biden wins and increases company taxes cutting -10% off Forward EPS
- Election wildcards

 

[bigdog]

U.S. stocks rallied on Wednesday, but only after zooming up, down and back up again in a fitting end to what was a wild month and quarter for Wall Street.

Prospects for additional support from Congress for the economy helped drive the day’s trading, as they have for weeks. The S&P 500 shot to a gain of as much as 1.7% after Treasury Secretary Steven Mnuchin told CNBC that he would talk with House Speaker Nancy Pelosi about a potential deal in the afternoon, “and I hope we can get something done.”

But the gains nearly vanished as pessimism rose about Washington’s ability to get past its partisanship and send economic aid that investors say is crucial. The S&P 500 hit its low for the day just after Pelosi said she and Mnuchin “found areas where we are seeking further clarification,” though she said talks will continue.

By the end of trading, momentum had returned, and the S&P 500 rose 27.53 points, or 0.8%, to 3,363.00. The Dow Jones Industrial Average gained 329.04, or 1.2%, to 27,781.70, and the Nasdaq composite added 82.26, or 0.7%, to 11,167.51.

It was the last day of a strong quarter for the market, where the S&P 500 rallied 8.5% to follow up on its 20% surge in the spring. Continued support from the Federal Reserve helped drive the gains, as the central bank leaned further into the whatever-it-takes approach taken to support markets and the economy. After already cutting interest rates to nearly zero, the Fed said during the quarter that it may keep interest rates low even after inflation runs above its target level.

But momentum slowed sharply at the end of the quarter, and the S&P 500 lost 3.9% in September for its first monthly loss since the market was selling off in March. A long list of worries dogged Wall Street, headlined by concerns that the Big Tech stocks dominating the market simply got too expensive following their tremendous run to records.

Other worries include rising tensions between the United States and China, as well as the uncertainties swirling around the upcoming U.S. elections.

Trading has also been notably erratic recently, with momentum veering sharply in several different directions during a single day.

On Wednesday, the S&P 500 careened between a gain of 0.1% and 1.7% for a total spread of 1.6 percentage points. That was typical for the month, marking the median for September. It’s also twice as wide as the median over the last 10 years, 0.8 percentage points.

ASX 200 expected to rebound.

The ASX 200 is expected to rebound on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 11 points or 0.2% higher this morning. Overnight the Dow Jones rose 1.2%, the S&P 500 climbed 0.8%, and the Nasdaq pushed 0.75% higher.

https://www.usnews.com/news/busines...xed-after-trump-biden-debate-data-lifts-china

Wall Street Rallies to Close Out Strong, but Wild Quarter
Stocks rallied on Wall Street Wednesday, but only after zooming up, down and back up again in a fitting end to a wild month and quarter.
By Associated Press, Wire Service Content Sept. 30, 2020, at 5:11 p.m.

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

NEW YORK (AP) — U.S. stocks rallied on Wednesday, but only after zooming up, down and back up again in a fitting end to what was a wild month and quarter for Wall Street.

Prospects for additional support from Congress for the economy helped drive the day’s trading, as they have for weeks. The S&P 500 shot to a gain of as much as 1.7% after Treasury Secretary Steven Mnuchin told CNBC that he would talk with House Speaker Nancy Pelosi about a potential deal in the afternoon, “and I hope we can get something done.”

But the gains nearly vanished as pessimism rose about Washington’s ability to get past its partisanship and send economic aid that investors say is crucial. The S&P 500 hit its low for the day just after Pelosi said she and Mnuchin “found areas where we are seeking further clarification,” though she said talks will continue.

By the end of trading, momentum had returned, and the S&P 500 rose 27.53 points, or 0.8%, to 3,363.00. The Dow Jones Industrial Average gained 329.04, or 1.2%, to 27,781.70, and the Nasdaq composite added 82.26, or 0.7%, to 11,167.51.

It was the last day of a strong quarter for the market, where the S&P 500 rallied 8.5% to follow up on its 20% surge in the spring. Continued support from the Federal Reserve helped drive the gains, as the central bank leaned further into the whatever-it-takes approach taken to support markets and the economy. After already cutting interest rates to nearly zero, the Fed said during the quarter that it may keep interest rates low even after inflation runs above its target level.

But momentum slowed sharply at the end of the quarter, and the S&P 500 lost 3.9% in September for its first monthly loss since the market was selling off in March. A long list of worries dogged Wall Street, headlined by concerns that the Big Tech stocks dominating the market simply got too expensive following their tremendous run to records.

Other worries include rising tensions between the United States and China, as well as the uncertainties swirling around the upcoming U.S. elections.

Trading has also been notably erratic recently, with momentum veering sharply in several different directions during a single day.

On Wednesday, the S&P 500 careened between a gain of 0.1% and 1.7% for a total spread of 1.6 percentage points. That was typical for the month, marking the median for September. It’s also twice as wide as the median over the last 10 years, 0.8 percentage points.

The tumult has come as the economy’s strong rebound earlier this year following the easing-up of lockdowns has slowed. The number of layoffs has remained stubbornly high, for example, and The Walt Disney Co. said late Tuesday that it plans to lay off 28,000 workers because of government restrictions due to the pandemic that are hurting its theme parks.

Other areas of the economy have also seen growth slow since the expiration of extra unemployment benefits and other economic aid that Congress approved earlier. .

“We all knew that the small businessman or restaurant owner was getting hurt, but this takes it to a different level of just how serious it is,” said J.J. Kinahan, chief strategist with TD Ameritrade. “It maybe changes the narrative a bit.”

A report from payroll processor ADP on Wednesday gave some encouragement, though. It said hiring by private employers accelerated this month, with 749,000 jobs added versus economists’ expectations for 605,000. Other economic reports on Wednesday also came in stronger than expected, including one on business activity in the Chicago area.

That raises hopes for the federal government’s more comprehensive jobs report, which arrives on Friday. For that, economists had been expecting to see hiring slowed to 850,000 from 1.4 million in August.

This month's jobs report will take on even more importance than usual because it will be the final one released before Election Day in November.

Tuesday night’s debate between President Donald Trump and the Democratic nominee, Joe Biden, was the first of this election season, and it amplified some of the market’s concerns. Trump said it may take months to learn the election’s results, and such a long period of uncertainty could make an already shaky market even more volatile.

But several analysts said they didn’t see the debate having a big effect on the stock market, whose path depends much more on what happens with corporate profits, interest rates and the coronavirus pandemic than who sits in the White House.

“Last night was pretty much a nothing burger from a market perspective, other than perhaps suggesting more uncertainty in the weeks ahead, which could continue to drive volatility,” said Mike Loewengart, managing director of investment strategy at E-Trade Financial.

Shares of data-mining company Palantir jumped 31% to $9.50 on their first day of trading. The company was born 17 ago with the help of CIA seed money. Palantir isn’t selling new shares to raise money. Instead, it’s listing existing shares for public trading.

European markets closed lower, and Asian markets ended mixed.

The yield on the 10-year Treasury rose to 0.68% from 0.66% late Tuesday.

 

[bigdog]

U.S. stocks climbed on Thursday, but only after pinballing through another shaky day of trading, as Wall Street waits to see if Washington can get past its partisanship to deliver another economic rescue package.

The S&P 500 ended the day 17.80 points higher, or 0.5%, at 3,380.80, but it careened from an early 1% gain to a slight loss before arriving there.

The Dow Jones Industrial Average rose 35.20 points, or 0.1%, to 27,816.90 after earlier bouncing between a gain of 259 points and a loss of 112. The Nasdaq composite rose a healthier 159.00 points or 1.4%, to 11,326.51 as big tech-oriented stocks propped up the market, much as they have through the pandemic.

Such big swings have become typical recently, as investors handicap the chances of a deal on Capitol Hill to send more cash to Americans, restore jobless benefits for laid-off workers and deliver assistance to airlines and other industries hit particularly hard by the pandemic.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their talks on Thursday, but no breakthrough arrived before stock trading ended on Wall Street. Instead, there were only hopes that were periodically raised and dashed as government officials took turns criticizing each other.

“The market, for lack of really anything else to trade off of, has responded to these headlines on the potential for stimulus,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Data reports released in the morning also painted a mixed picture on the economy, which added to the market’s sloshing around.

One indicated the pace of layoffs across the country may have slowed last week, with the number of workers filing for unemployment benefits falling to 837,000 from 873,000. It’s a larger decline than economists expected, though the number remains incredibly high compared with before the pandemic.

“We’re certainly expecting the employment situation to slowly improve,” Wren said. “Things seem to be moving in the right direction.”

Consumer spending also strengthened by more than expected in August, which is key because it’s the main driver of the U.S. economy. But other reports were more discouraging. Personal incomes weakened by more than expected last month, and growth in the country’s manufacturing sector also fell short of forecasts.

Other warning signs are looming for the economy, which has seen some slowdowns recently after the last round of stimulus approved by Congress expired. The Walt Disney Co. and other major companies have announced even more layoffs this week, and the clock is ticking on Washington to offer more support.

The CEO of American Airlines said that it would reverse the furloughs of 19,000 workers if Washington can reach a deal with $25 billion for airlines “over the next few days.” United Airlines told government leaders that it could also undo the furloughs of 13,000 workers.

United Airline’s stock gained 1.2%, and American Airlines shares rose 2.4%, but only after a turbulent day of ups and downs.

Continued strength for Big Tech stocks helped to lift the market. Amazon, Microsoft, Apple, Netflix, Facebook and Google’s parent company alone accounted for the bulk of the S&P 500′s gain.

The market’s turbulent moves were reminiscent of Wednesday’s, as well as of the last several weeks’, as rising and falling hopes for a deal on Capitol Hill have kept markets shaky.

ASX 200 expected to fall.

It looks set to be a disappointing end to the week for the ASX 200 despite a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.45% lower this morning. Overnight the Dow Jones rose 0.1%, the S&P 500 climbed 0.5%, and the Nasdaq stormed 1.4% higher.

https://apnews.com/article/financia...arkets-china-a030a1dff2b43dea9cc95868f35cf387

Stocks tick up as Wall Street waits for aid from Washington

By STAN CHOE and DAMIAN J. TROISE



NEW YORK (AP) — U.S. stocks climbed on Thursday, but only after pinballing through another shaky day of trading, as Wall Street waits to see if Washington can get past its partisanship to deliver another economic rescue package.

The S&P 500 ended the day 17.80 points higher, or 0.5%, at 3,380.80, but it careened from an early 1% gain to a slight loss before arriving there.

The Dow Jones Industrial Average rose 35.20 points, or 0.1%, to 27,816.90 after earlier bouncing between a gain of 259 points and a loss of 112. The Nasdaq composite rose a healthier 159.00 points or 1.4%, to 11,326.51 as big tech-oriented stocks propped up the market, much as they have through the pandemic.

Such big swings have become typical recently, as investors handicap the chances of a deal on Capitol Hill to send more cash to Americans, restore jobless benefits for laid-off workers and deliver assistance to airlines and other industries hit particularly hard by the pandemic.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their talks on Thursday, but no breakthrough arrived before stock trading ended on Wall Street. Instead, there were only hopes that were periodically raised and dashed as government officials took turns criticizing each other.

“The market, for lack of really anything else to trade off of, has responded to these headlines on the potential for stimulus,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Data reports released in the morning also painted a mixed picture on the economy, which added to the market’s sloshing around.

One indicated the pace of layoffs across the country may have slowed last week, with the number of workers filing for unemployment benefits falling to 837,000 from 873,000. It’s a larger decline than economists expected, though the number remains incredibly high compared with before the pandemic.

“We’re certainly expecting the employment situation to slowly improve,” Wren said. “Things seem to be moving in the right direction.”

Consumer spending also strengthened by more than expected in August, which is key because it’s the main driver of the U.S. economy. But other reports were more discouraging. Personal incomes weakened by more than expected last month, and growth in the country’s manufacturing sector also fell short of forecasts.

Other warning signs are looming for the economy, which has seen some slowdowns recently after the last round of stimulus approved by Congress expired. The Walt Disney Co. and other major companies have announced even more layoffs this week, and the clock is ticking on Washington to offer more support.

The CEO of American Airlines said that it would reverse the furloughs of 19,000 workers if Washington can reach a deal with $25 billion for airlines “over the next few days.” United Airlines told government leaders that it could also undo the furloughs of 13,000 workers.

United Airline’s stock gained 1.2%, and American Airlines shares rose 2.4%, but only after a turbulent day of ups and downs.

Continued strength for Big Tech stocks helped to lift the market. Amazon, Microsoft, Apple, Netflix, Facebook and Google’s parent company alone accounted for the bulk of the S&P 500′s gain.

The market’s turbulent moves were reminiscent of Wednesday’s, as well as of the last several weeks’, as rising and falling hopes for a deal on Capitol Hill have kept markets shaky.

Investors say another round of economic aid from Congress is crucial given the slowdowns already seen. Mnuchin and Pelosi have worked effectively together in the past, and they helped drive through the previous economic rescue approved by Congress in March. But the country’s partisan divide has only deepened since then, which has stymied progress. The next election is only about a month away.

The yield on the 10-year Treasury fell to 0.67% from 0.69% from late Wednesday after giving up earlier gains.

In Asian markets, trading on the Tokyo Stock Exchange was suspended due to a technical failure in its computer systems.

The Tokyo Stock Exchange said it plans for normal trading to resume on Friday. Officials said trading was halted early Thursday because rebooting the huge system after the malfunction would have caused confusion.

TSE President Koichiro Miyahara repeatedly apologized for the disruption to trading on the world’s third largest exchange, where about 70% of brokerage trading both by value and volume is by foreigners.

The outage on the exchange eclipsed Japan’s main economic news of the day, the first improvement in manufacturing sentiment in three years, despite the pandemic.

Trading in stock markets for South Korea, Hong Kong and mainland China was closed for national holidays.

In Europe, Germany’s DAX fell 0.2%, and France’s CAC 40 rose 0.4%. The FTSE 100 in London rose 0.2%.

 

[bigdog]

Wall Street’s major stock indexes fell on Friday after President Donald Trump tested positive for the coronavirus, but the losses ended up milder than investors braced for early in the morning.

The S&P 500 slumped 1.7% as soon as trading began, only to churn through another turbulent session. By the end of the day, it had trimmed its loss to 1%, down 32.38 points at 3,348.42. Despite the drop, most of the stocks in the index were higher, and the S&P 500 still managed to close out its first winning week in the last five.

The paring of losses came as optimism rose that Washington may be able to get past its partisanship to deliver more support for the economy. House Speaker Nancy Pelosi told airlines in the afternoon to stop furloughing workers because aid for them is imminent. She said a wider rescue package for the economy, one that investors have long been agitating for, could also perhaps be on the way.

The Dow Jones Industrial Average swung from a loss of 433 points to a gain of 44 points through the day. It ended at 27,682.81, down 134.09 points, or 0.5%.

Big technology stocks remained weak, and the Nasdaq composite fell 251.49, or 2.2%, at 11,075.02. It’s a sharp departure from much of the summer, when Big Tech stocks carried the market higher. The tech slump was also the main reason for the S&P 500’s drop.

Treasury yields ticked higher, though, and smaller stocks were also stronger than the rest of the market in a sign of optimism. The Russell 2000 index of small-cap stocks gained 8.09, or 0.5%, to 1,539.30.

Earlier Friday, markets appeared set for a much uglier day. Stock futures and Treasury yields tumbled after Trump tweeted overnight that he and First Lady Melania Trump had tested positive for COVID-19.

Analysts said some of the market’s movements could be explained by investors building up expectations for a Joe Biden victory of the White House, with Election Day a little more than a month away. That could mean higher tax rates and tighter regulations on companies, which would limit profits and hurt stock prices, though it could also raise the odds of more stimulus for the economy.

“To say this potentially could be a big deal is an understatement,” Rabobank said in a commentary. “Anyway, everything now takes a backseat to the latest incredible twist in this US election campaign.”

After the market closed, the White House announced that Trump was “fatigued” and will spend a “few days” at a military hospital on the advice of his physicians. The announcement said that the visit is precautionary and that Trump will work from the hospital’s presidential suite.

https://www.usnews.com/news/busines...ces-sink-after-trump-tests-positive-for-virus

Stocks End Bumpy Day Lower After Trump's Positive Virus Test

Wall Street’s major stock indexes fell on Friday after President Donald Trump tested positive for the coronavirus, but the losses ended up milder than investors braced for early in the morning.

By Associated Press, Wire Service Content Oct. 2, 2020, at 5:40 p.m.

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

NEW YORK (AP) — Wall Street’s major stock indexes fell on Friday after President Donald Trump tested positive for the coronavirus, but the losses ended up milder than investors braced for early in the morning.

The S&P 500 slumped 1.7% as soon as trading began, only to churn through another turbulent session. By the end of the day, it had trimmed its loss to 1%, down 32.38 points at 3,348.42. Despite the drop, most of the stocks in the index were higher, and the S&P 500 still managed to close out its first winning week in the last five.

The paring of losses came as optimism rose that Washington may be able to get past its partisanship to deliver more support for the economy. House Speaker Nancy Pelosi told airlines in the afternoon to stop furloughing workers because aid for them is imminent. She said a wider rescue package for the economy, one that investors have long been agitating for, could also perhaps be on the way.

The Dow Jones Industrial Average swung from a loss of 433 points to a gain of 44 points through the day. It ended at 27,682.81, down 134.09 points, or 0.5%.

Big technology stocks remained weak, and the Nasdaq composite fell 251.49, or 2.2%, at 11,075.02. It’s a sharp departure from much of the summer, when Big Tech stocks carried the market higher. The tech slump was also the main reason for the S&P 500’s drop.

Treasury yields ticked higher, though, and smaller stocks were also stronger than the rest of the market in a sign of optimism. The Russell 2000 index of small-cap stocks gained 8.09, or 0.5%, to 1,539.30.

Earlier Friday, markets appeared set for a much uglier day. Stock futures and Treasury yields tumbled after Trump tweeted overnight that he and First Lady Melania Trump had tested positive for COVID-19.

Analysts said some of the market’s movements could be explained by investors building up expectations for a Joe Biden victory of the White House, with Election Day a little more than a month away. That could mean higher tax rates and tighter regulations on companies, which would limit profits and hurt stock prices, though it could also raise the odds of more stimulus for the economy.

“To say this potentially could be a big deal is an understatement,” Rabobank said in a commentary. “Anyway, everything now takes a backseat to the latest incredible twist in this US election campaign.”

After the market closed, the White House announced that Trump was “fatigued” and will spend a “few days” at a military hospital on the advice of his physicians. The announcement said that the visit is precautionary and that Trump will work from the hospital’s presidential suite.

The White House also said Trump had been injected with an experimental antibody drug combination for the virus made by Regeneron. The company's shares rose 3% in after-hours trading.

Trump’s positive COVID-19 test also highlights the continued spread of the pandemic. The potential for a further ramp up in virus infections as the weather turns colder is raising worries that governments may put some more restrictions on businesses.

Also stirring up the market’s movements Friday was the latest report on U.S. jobs growth, which is usually the headline economic data of each month but almost became an afterthought. Employers added fewer jobs last month than economists expected, the third straight month of slower hiring.

The slowdown is yet another sign that the recovery is trailing off, said Mike Zigmont, director of trading and research at Harvest Volatility Management. The numbers don't inspire bullishness, but they could be a brighter signal for more help from Congress.

“If the conclusion is that the economic data disappoints, Wall Street may say that’s added incentive for the next stimulus deal to eventually go through and more quickly,” he said.

All the uncertainty is making an already shaky market even more so. Stocks have been swinging recently amid a raft of open questions for investors: Who will win the election, and what will it mean for the economy? Will the relationship between the world’s two largest economies, the United States and China, keep worsening? Did stocks get too expensive after their 60% surge to record heights through the summer, Big Tech in particular?

In recent days, the dominant question has been whether Washington will be able to get past its partisanship to deliver more aid to the economy.

Extra benefits for laid-off workers and other support for the economy that Congress approved in March has expired, and investors have been clamoring for more assistance. Layoffs have remained stubbornly high across the country, and parts of the economy have slowed with the support from Congress gone.

The House of Representatives passed a Democratic $2.2 trillion package Thursday night, but it has little chance of getting through the Republican Senate. Talks between Democrats and Republicans on a compromise are continuing, but skepticism is high.

Airlines have announced the furloughs of tens of thousands of workers, saying they need more support from Washington as demand for travel has vanished. After Pelosi said in the afternoon that some kind of aid was imminent, their shares shook off earlier losses to climb. American Airlines rose 3.3% and United Airlines climbed 2.4%.

The yield on the 10-year Treasury rose to 0.69% from 0.68% late Thursday, after pulling back from an earlier loss.

In Europe, stocks also trimmed their losses as the day progressed. Trading in Asia was thin, with markets in Shanghai and Hong Kong closed. The Nikkei 225 fell 0.7% after the Tokyo Stock Exchange resumed trading following an all-day outage due to a technical failure.

 

[bigdog]

ASX 200 expected to rise.

It looks set to be a very positive start to the week for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is expected to rise 67 points or 1.15% at the open. This follows a better than feared night of trade on Wall Street on Friday. The Dow Jones fell 0.5%, the S&P 500 dropped 0.95%, and the Nasdaq fell 2.2%. Futures contracts were pointing to more severe declines during afternoon trade on Friday after President Trump announced that he has COVID-19.

 

[Dona Ferentes]

Thanks big dog. A reminder that Markets are open today... Holiday in NSW and nice weather, so out n about, for many.

 

[bigdog]

Wall Street rallied Monday as hopes for economic aid from Washington helped it recover all its knee-jerk losses after learning President Donald Trump tested positive for the coronavirus.

The S&P 500 jumped 60.16 points, or 1.8%, to 3,408.60 amid widespread gains, with nine out of 10 stocks in the index rising. Energy producers and tech companies led the way.

Treasury yields, stocks overseas and oil all climbed after Trump and House Speaker Nancy Pelosi both noted the importance over the weekend of additional support for the economy. The market’s rally accelerated after Trump tweeted in the afternoon that he'll leave the hospital, though his medical team said he “may not entirely be out of the woods yet.”

The Dow Jones Industrial Average rose 465.83 points, or 1.7%, to 28,148.64, and the Nasdaq composite climbed 257.47, or 2.3%, to 11,332.49. Smaller stocks rose even more in an indication of improved market optimism, and the Russell 2000 index jumped 42.67, or 2.8%, to 1,581.96.

The lift follows through on a comeback that helped markets cut their losses on Friday, after Trump’s condition became publicized. Stocks initially tumbled as the jolt of uncertainty raised concerns that a White House victory for Democrat Joe Biden would mean higher taxes and tighter regulations for companies, which could drag down their profits. But analysts said a Democratic sweep of the election could also raise the probability of a big government support plan for the economy, something that investors have been clamoring for since jobless benefits and other stimulus Congress approved in March expired.

The market’s moves on Monday and late Friday suggest investors are anticipating either a large stimulus effort or the increased likelihood of a "blue wave,” said Yousef Abbasi, global market strategist at StoneX.

Stocks got an immediate lift Friday afternoon after Pelosi told airline executives to stop the furloughs of tens of thousands of workers because aid for the industry was “imminent,” either as a stand-alone effort or as part of a wider rescue package. A stand-alone bill for airlines failed to advance in the House on Friday, but hopes remain for a larger effort.

Over the weekend, Trump tweeted from the hospital that the country wants and needs more economic stimulus. “Work together and get it done,” he said on Saturday.

A day later, Pelosi said that the two sides are making progress, but they still haven’t reached a breakthrough. “It just depends on if they understand what we have to do to crush the virus,” she said in an interview on CBS.

A report on Monday said growth for the nation's services industries last month was stronger than economists expected. It's an encouraging piece of data, but it follows a string of mixed reports that have shown some areas of the economy slowing since Congress' last round of aid expired.

“Our dark expectations in the aftermath of the COVID-19 crisis are not coming through,” said Scott Knapp, chief market strategist at CUNA Mutual Group. “The pace of the improvement is slowing, but it's still upward.”

He expects the upcoming election to throw some more volatility into the markets, but not much as investors seem somewhat indifferent to the potential outcome. He said a key signal to that indifference was the market's muted response to the news that Trump had contracted COVID-19.

“It’s pretty difficult to overstate how understated the market’s reaction was,” Knapp said.

Shares of Regeneron rose 7.1% after Trump received an experimental drug from the company that supplies antibodies to help the immune system fight the virus.

Trump on Friday also began a five-day course of remdesivir, a Gilead Sciences drug currently used for moderately and severely ill patients. The drugs work in different ways — the antibodies help the immune system rid the body of virus, and remdesivir curbs the virus’ ability to multiply.

Gilead rose 2.3%.

MyoKardia, a biopharmaceutical company, surged 57.8% after Bristol Myers Squibb said it would buy the 8-year-old company for $13.1 billion, or $225 per share in cash.

ASX 200 expected to rise again.

The Australian share market looks set to continue its positive run on Tuesday. According to the latest SPI futures, the ASX 200 is expected to rise 29 points or 0.5% at the open. This follows a strong start to the week on Wall Street, which saw the Dow Jones rise 1.7%, the S&P 500 climb 1.8%, and the Nasdaq storm 2.25% higher. News that President Trump is being discharged from hospital helped drive markets higher.

Reserve Bank meeting.

This afternoon the Reserve Bank will hold its October meeting and make a decision on the cash rate. According to the latest cash rate futures, the market is currently pricing in a 67% probability of a rate cut at the meeting. A number of economists are tipping the Reserve Bank to make a partial cut from 0.25% down to 0.1%.

https://www.usnews.com/news/busines...shares-rise-on-optimism-about-trumps-recovery

Stocks Jump on Stimulus Hopes, Trump's Hospital Departure

Stocks closed broadly higher Monday as hopes for economic aid from Washington helped Wall Street recover its losses from its initial, fearful reaction after learning that President Donald Trump tested positive for the coronavirus.

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

NEW YORK (AP) — Wall Street rallied Monday as hopes for economic aid from Washington helped it recover all its knee-jerk losses after learning President Donald Trump tested positive for the coronavirus.

The S&P 500 jumped 60.16 points, or 1.8%, to 3,408.60 amid widespread gains, with nine out of 10 stocks in the index rising. Energy producers and tech companies led the way.

Treasury yields, stocks overseas and oil all climbed after Trump and House Speaker Nancy Pelosi both noted the importance over the weekend of additional support for the economy. The market’s rally accelerated after Trump tweeted in the afternoon that he'll leave the hospital, though his medical team said he “may not entirely be out of the woods yet.”

The Dow Jones Industrial Average rose 465.83 points, or 1.7%, to 28,148.64, and the Nasdaq composite climbed 257.47, or 2.3%, to 11,332.49. Smaller stocks rose even more in an indication of improved market optimism, and the Russell 2000 index jumped 42.67, or 2.8%, to 1,581.96.

The lift follows through on a comeback that helped markets cut their losses on Friday, after Trump’s condition became publicized. Stocks initially tumbled as the jolt of uncertainty raised concerns that a White House victory for Democrat Joe Biden would mean higher taxes and tighter regulations for companies, which could drag down their profits. But analysts said a Democratic sweep of the election could also raise the probability of a big government support plan for the economy, something that investors have been clamoring for since jobless benefits and other stimulus Congress approved in March expired.

The market’s moves on Monday and late Friday suggest investors are anticipating either a large stimulus effort or the increased likelihood of a "blue wave,” said Yousef Abbasi, global market strategist at StoneX.

Stocks got an immediate lift Friday afternoon after Pelosi told airline executives to stop the furloughs of tens of thousands of workers because aid for the industry was “imminent,” either as a stand-alone effort or as part of a wider rescue package. A stand-alone bill for airlines failed to advance in the House on Friday, but hopes remain for a larger effort.

Over the weekend, Trump tweeted from the hospital that the country wants and needs more economic stimulus. “Work together and get it done,” he said on Saturday.

A day later, Pelosi said that the two sides are making progress, but they still haven’t reached a breakthrough. “It just depends on if they understand what we have to do to crush the virus,” she said in an interview on CBS.

A report on Monday said growth for the nation's services industries last month was stronger than economists expected. It's an encouraging piece of data, but it follows a string of mixed reports that have shown some areas of the economy slowing since Congress' last round of aid expired.

“Our dark expectations in the aftermath of the COVID-19 crisis are not coming through,” said Scott Knapp, chief market strategist at CUNA Mutual Group. “The pace of the improvement is slowing, but it's still upward.”

He expects the upcoming election to throw some more volatility into the markets, but not much as investors seem somewhat indifferent to the potential outcome. He said a key signal to that indifference was the market's muted response to the news that Trump had contracted COVID-19.

“It’s pretty difficult to overstate how understated the market’s reaction was,” Knapp said.

Shares of Regeneron rose 7.1% after Trump received an experimental drug from the company that supplies antibodies to help the immune system fight the virus.

Trump on Friday also began a five-day course of remdesivir, a Gilead Sciences drug currently used for moderately and severely ill patients. The drugs work in different ways — the antibodies help the immune system rid the body of virus, and remdesivir curbs the virus’ ability to multiply.

Gilead rose 2.3%.

MyoKardia, a biopharmaceutical company, surged 57.8% after Bristol Myers Squibb said it would buy the 8-year-old company for $13.1 billion, or $225 per share in cash.

On the losing side was DraftKings, which fell 5.1%. It and some of its existing investors are selling 32 million shares of the company's stock after it nearly sextupled in 2020.

In Asian trading, Japan’s Nikkei 225 gained 1.2%, South Korea’s Kospi jumped 1.3% and Hong Kong’s Hang Seng rose 1.3%.

Fujitsu President Takahito Tokita apologized Monday for the breakdown last week in the Tokyo Stock Exchange’s trading system, which the Japanese company had developed. Speaking during an online webinar, he promised to work with the exchange to prevent a recurrence of the malfunction in Fujitsu’s Arrowhead system, which caused all trading to be halted in Tokyo on Oct. 1.

By Friday, trading resumed after the problem was fixed.

In Europe, Germany’s DAX returned 1.1%, and France’s CAC 40 rose 1%. The FTSE 100 in London added 0.7%.

The yield on the 10-year Treasury rose to 0.76% from 0.70% late Friday.

 

[bigdog]

Stocks dropped on Wall Street Tuesday after President Donald Trump ordered a stop to negotiations with Democrats on a coronavirus economic stimulus bill until after the election.

The S&P 500 index slid 1.4% after having been up 0.7% prior to the president’s announcement, which he made on twitter about an hour before the close of trading. The late-afternoon pullback erased most of the benchmark index's gains from a market rally a day earlier.

In a series of tweets, Trump said: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business.” He also accused Speaker Nancy Pelosi of not negotiating in good faith.

The comments from the president came just hours after Federal Reserve Chair Jerome Powell urged Congress to come through with more aid, saying that too little support “would lead to a weak recovery, creating unnecessary hardship for households and businesses.”

Optimism that Democrats and Republicans would reach a deal on more stimulus ahead of the Nov. 3 elections had helped lift the stock market recently. Now, investors face the prospect that more aid may not come until next year, after the new Congress is seated, said Willie Delwiche, investment strategist at Baird.

“This isn’t just pushing it off until after the election, this realistically is pushing it off until spring,” Delwiche said. "I don't think this is just a one-day financial markets reaction. This really goes to the health of the recovery.”

The S&P 500 fell 47.66 points to 3,360.97. The Dow Jones Industrial Average dropped 375.88 points, or 1.3%, to 27,772.76. It had been up by more than 200 points. The Nasdaq composite lost 177.88 points, or 1.6%, to 11,154.60. The tech-heavy index had been on pace for a 0.5% gain before Trump cut off the stimulus talks.

Small stocks also fell, but less than the rest of the market. The Russell 2000 index of small-cap stocks gave up 4.67 points, or 0.3%, to 1,577.29.

Stocks had been drifting between small gains and losses for much of the day before gaining momentum into the late afternoon, then Trump’s tweets knocked the market into reverse gear.

The move to nix the negotiations with Democrats dashes Wall Street’s hopes that another round of stimulus would soon be on the way. Bitter partisanship on Capitol Hill has been preventing a compromise on more aid for the economy, which has been punched into a recession by shutdowns related to the coronavirus pandemic. Reports on the economy have been mixed recently, as some areas show a slowdown after extra unemployment benefits and other stimulus earlier approved by Congress expired.

Powell has repeatedly urged Congress to provide additional aid, saying the Fed can’t prop up the economy by itself, even with interest rates at record lows. “The expansion is still far from complete,” Powell said in a speech to the National Association for Business Economics, group of corporate and academic economists.

Without more stimulus, economists expect that growth will slow significantly in the final three months of the year. Last month, Goldman Sachs slashed its forecast for growth in the fourth quarter to just 3% at an annual rate, down from a previous forecast of 6%, because they no longer expected an aid package to be approved. That would leave the U.S. economy 2.5% smaller at the end of 2020 than a year earlier, even after a large rebound in the July-September quarter.

ASX 200 expected to drop lower.

The ASX 200 looks set to end its winning streak on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 8 points or 0.1% lower. This follows a poor night of trade on Wall Street. Late in the session the Dow Jones is down 1.1%, the S&P 500 is 1.1% lower, and the Nasdaq is tumbling 1.2% lower. News that President Trump is calling off COVID-19 stimulus talks until after the election led to the selloff.

Federal Budget reaction.

A number of ASX 200 shares will be on watch today after the release of the Federal Budget last night. Retail shares may be among the biggest winners after the government cut personal tax rates to put more funds in consumers’ pockets. Elsewhere, R&D tax incentives have been left untouched, manufacturers have been allocated $1.5 billion in grants, and states have been given $10 billion to boost infrastructure projects. All in all, Australia’s debt is expected to reach almost $1 trillion in the coming years.

https://www.usnews.com/news/busines...gain-on-stimulus-hopes-trump-leaving-hospital

Stocks Drop After Trump Calls off Talks on Economic Stimulus
Stocks dropped on Wall Street Tuesday after President Donald Trump ordered aides to stop negotiating with Democrats over another round of aid for the economy until after the election.
By Associated Press, Wire Service Content Oct. 6, 2020, at 5:03 p.m.

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

Stocks dropped on Wall Street Tuesday after President Donald Trump ordered a stop to negotiations with Democrats on a coronavirus economic stimulus bill until after the election.

The S&P 500 index slid 1.4% after having been up 0.7% prior to the president’s announcement, which he made on twitter about an hour before the close of trading. The late-afternoon pullback erased most of the benchmark index's gains from a market rally a day earlier.

In a series of tweets, Trump said: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business.” He also accused Speaker Nancy Pelosi of not negotiating in good faith.

The comments from the president came just hours after Federal Reserve Chair Jerome Powell urged Congress to come through with more aid, saying that too little support “would lead to a weak recovery, creating unnecessary hardship for households and businesses.”

Optimism that Democrats and Republicans would reach a deal on more stimulus ahead of the Nov. 3 elections had helped lift the stock market recently. Now, investors face the prospect that more aid may not come until next year, after the new Congress is seated, said Willie Delwiche, investment strategist at Baird.

“This isn’t just pushing it off until after the election, this realistically is pushing it off until spring,” Delwiche said. "I don't think this is just a one-day financial markets reaction. This really goes to the health of the recovery.”

The S&P 500 fell 47.66 points to 3,360.97. The Dow Jones Industrial Average dropped 375.88 points, or 1.3%, to 27,772.76. It had been up by more than 200 points. The Nasdaq composite lost 177.88 points, or 1.6%, to 11,154.60. The tech-heavy index had been on pace for a 0.5% gain before Trump cut off the stimulus talks.

Small stocks also fell, but less than the rest of the market. The Russell 2000 index of small-cap stocks gave up 4.67 points, or 0.3%, to 1,577.29.

Stocks had been drifting between small gains and losses for much of the day before gaining momentum into the late afternoon, then Trump’s tweets knocked the market into reverse gear.

The move to nix the negotiations with Democrats dashes Wall Street’s hopes that another round of stimulus would soon be on the way. Bitter partisanship on Capitol Hill has been preventing a compromise on more aid for the economy, which has been punched into a recession by shutdowns related to the coronavirus pandemic. Reports on the economy have been mixed recently, as some areas show a slowdown after extra unemployment benefits and other stimulus earlier approved by Congress expired.

Powell has repeatedly urged Congress to provide additional aid, saying the Fed can’t prop up the economy by itself, even with interest rates at record lows. “The expansion is still far from complete,” Powell said in a speech to the National Association for Business Economics, group of corporate and academic economists.

Without more stimulus, economists expect that growth will slow significantly in the final three months of the year. Last month, Goldman Sachs slashed its forecast for growth in the fourth quarter to just 3% at an annual rate, down from a previous forecast of 6%, because they no longer expected an aid package to be approved. That would leave the U.S. economy 2.5% smaller at the end of 2020 than a year earlier, even after a large rebound in the July-September quarter.

“You’re going to see quite a significant drag on growth,” said Gregory Daco, chief U.S. economist at Oxford Economics, a consulting firm. It “would really risk a double-dip recession.”

The stimulus cutoff coincides with a slowdown in hiring, as employers added 661,000 jobs in September, the government said Friday. That was down from 1.5 million in August and 1.8 million in July.

The market’s slide comes a day after the S&P 500 posted its best day in more than three weeks. Other stock markets around the world made mostly modest gains. Longer-term Treasury yields veered lower after Trump's remarks. They had earlier been hanging close to their highest levels in months.

Tuesday's selling was widespread, led by technology stocks and companies that rely on consumer spending. Utilities were the only gainers among the 11 sectors in the S&P 500.

A report on Tuesday showed that U.S. employers advertised slightly fewer job openings in August than the prior month. But the number was nevertheless better than economists expected.

Trading on Wall Street has gotten shakier recently as investors contend with a long list of uncertainties, from Trump’s COVID-19 diagnosis to waxing and waning expectations about Congress’ ability to deliver another round of stimulus for the economy.

The S&P 500 jumped 1.8% on Monday after Trump said he’s returning to the White House to complete his recovery from the coronavirus, though his medical team said he’s not yet fully “out of the woods.”

Several big challenges lie ahead of markets. Chief among them is the still-raging pandemic, as so clearly illustrated by Trump’s stay in the hospital. The worry is that a ramp-up in infections could cause governments to bring back some of the restrictions they put on businesses early this year, which sent the economy hurtling into a recession.

“We’re on the eve of earnings season and people are reasonably undecided as to whether the correction that started in September has further to run,” said Julian Emanuel, BTIG chief equity and derivatives strategist.

The upcoming election also still means a host of uncertainty about tax rates and regulations on businesses, while tensions between the United States and China continue to simmer.

The yield on the 10-year Treasury note fell to 0.75% from 0.78% late Monday. While that’s still very low, the yield has been generally climbing since dropping close to 0.50% in early August.

European and Asian markets closed higher.

 

[bigdog]

Stocks closed broadly higher on Wall Street Wednesday after President Donald Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.

The S&P 500 climbed 1.7% after Trump sent a series of tweets late Tuesday saying he’s open to sending out $1,200 payments to Americans, as well as limited programs to prop up the airline industry and small businesses.

The tweets came just hours after Trump sent the market into a sudden tailspin with his declaration that his representatives should halt talks with Democrats on a broad stimulus effort for the economy until after the election, saying House Speaker Nancy Pelosi had been negotiating in bad faith. The stakes are high, as economists, investors and the chair of the Federal Reserve all say the economy needs another dose of support following the expiration of weekly jobless benefits and other stimulus Congress approved earlier this year.

“What we’ve seen over the last 24 hours is just confirmation that the market is really addicted to stimulus from the government," said Sal Bruno, chief investment officer at IndexIQ. "When it thinks it’s not getting it, it sells off, and when it looks like there’s a possibility for that it rises, as we’ve seen today.”

The S&P 500 index rose 58.49 points to 3,419.44, while the Dow Jones Industrial Average gained 530.70 points, or 1.9%, to 28,303.46.

The Nasdaq composite climbed 210 points, or 1.9%, to 11,364.60, despite a call by Democratic lawmakers for Congress to rein in the Big Tech companies that dominate it and other indexes. The proposal, which follows a 15-month investigation by a House Judiciary Committee panel, could make it harder for Amazon, Apple, Facebook and Google's parent company to acquire others and impose new rules to safeguard competition.

Amazon rose 3.1%, and Apple climbed 1.7%. Google's parent company added 0.6%, and Facebook slipped 0.2%.

Still, much of the market’s attention remains fixed on the prospects for more stimulus for the economy from Washington. Wednesday's gains helped the S&P 500 recoup all of its loss from the day before, when Trump’s tweets suddenly sent it from a 0.7% gain to a 1.4% loss.

Just a few hours before Trump made his announcement on Tuesday to halt negotiations, Federal Reserve Chair Jerome Powell had asked Congress to come through with more aid. He said that too little support “would lead to a weak recovery, creating unnecessary hardship.”

Some analysts characterized Trump’s move as likely a negotiating ploy.

“I do not believe hopes of a stimulus deal are now gone forever,” said Jeffrey Halley of trading and research firm Oanda. “One of Mr. Trump’s favorite negotiating tactics, judging by past actions, is to walk away from the negotiating table abruptly. The intention being to frighten the other side into concessions.”

In the longer term, many investors say a big stimulus package may still be possible regardless of what Trump says. A Democratic sweep of the upcoming elections would likely clear the way for a big government program after the transfer of power, and Wall Street has begun to see a blue wave as more likely than before.

ASX 200 expected to rise again.

It looks set to be another positive day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to rise 25 points or 0.4% at the open. This follows a particularly positive night of trade on Wall Street after President Trump brought COVID stimulus talks back to the table. In late trade the Dow Jones is up 2%, the S&P 500 is 1.8% higher, and the Nasdaq is climbing 1.9%.

https://www.usnews.com/news/busines...her-after-trump-signals-openness-to-virus-aid

Stocks Rise as Trump Tweets on Stimulus Keep Market Spinning
Stocks closed higher Wednesday after President Donald Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.
By Associated Press, Wire Service Content Oct. 7, 2020, at 4:38 p.m.

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

Stocks closed broadly higher on Wall Street Wednesday after President Donald Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.

The S&P 500 climbed 1.7% after Trump sent a series of tweets late Tuesday saying he’s open to sending out $1,200 payments to Americans, as well as limited programs to prop up the airline industry and small businesses.

The tweets came just hours after Trump sent the market into a sudden tailspin with his declaration that his representatives should halt talks with Democrats on a broad stimulus effort for the economy until after the election, saying House Speaker Nancy Pelosi had been negotiating in bad faith. The stakes are high, as economists, investors and the chair of the Federal Reserve all say the economy needs another dose of support following the expiration of weekly jobless benefits and other stimulus Congress approved earlier this year.

“What we’ve seen over the last 24 hours is just confirmation that the market is really addicted to stimulus from the government," said Sal Bruno, chief investment officer at IndexIQ. "When it thinks it’s not getting it, it sells off, and when it looks like there’s a possibility for that it rises, as we’ve seen today.”

The S&P 500 index rose 58.49 points to 3,419.44, while the Dow Jones Industrial Average gained 530.70 points, or 1.9%, to 28,303.46.

The Nasdaq composite climbed 210 points, or 1.9%, to 11,364.60, despite a call by Democratic lawmakers for Congress to rein in the Big Tech companies that dominate it and other indexes. The proposal, which follows a 15-month investigation by a House Judiciary Committee panel, could make it harder for Amazon, Apple, Facebook and Google's parent company to acquire others and impose new rules to safeguard competition.

Amazon rose 3.1%, and Apple climbed 1.7%. Google's parent company added 0.6%, and Facebook slipped 0.2%.

Still, much of the market’s attention remains fixed on the prospects for more stimulus for the economy from Washington. Wednesday's gains helped the S&P 500 recoup all of its loss from the day before, when Trump’s tweets suddenly sent it from a 0.7% gain to a 1.4% loss.

Just a few hours before Trump made his announcement on Tuesday to halt negotiations, Federal Reserve Chair Jerome Powell had asked Congress to come through with more aid. He said that too little support “would lead to a weak recovery, creating unnecessary hardship.”

Some analysts characterized Trump’s move as likely a negotiating ploy.

“I do not believe hopes of a stimulus deal are now gone forever,” said Jeffrey Halley of trading and research firm Oanda. “One of Mr. Trump’s favorite negotiating tactics, judging by past actions, is to walk away from the negotiating table abruptly. The intention being to frighten the other side into concessions.”

In the longer term, many investors say a big stimulus package may still be possible regardless of what Trump says. A Democratic sweep of the upcoming elections would likely clear the way for a big government program after the transfer of power, and Wall Street has begun to see a blue wave as more likely than before.

Airlines jumped to some of the day’s bigger gains after Trump singled out the industry, asking Congress to “IMMEDIATELY” approve $25 billion for them. Last week, Pelosi had told airline executives to halt the furloughs of tens of thousands of workers with the promise that aid for them was imminent, though a proposal by House Democrats to give the airline industry $28.8 billion failed to advance.

United Airlines Holdings and American Airlines Group climbed 4.3%. Delta Air Lines pulled 3.5% higher.

The S&P 500 rose broadly, with technology stocks making the biggest gains. Other areas that would benefit most from a strengthening economy were also climbing, including retailers and travel-related companies.

“The market’s just been relentlessly led by long-duration growth stocks,” said Barry Bannister, head of institutional equity strategy at Stifel. “The big question is are we going to see some signs of a shift to economic growth beneficiaries.”

Smaller stocks also rose more than the rest of the market, an indication of rising optimism about the economy’s prospects. The Russell 2000 index of small-cap stocks climbed 33.75 points, or 2.1%, to 1,611.04.

The 360-degree spin for Wall Street in less than 24 hours is just the latest bump in its shaky run since early last month. After plunging nearly 34% early this year on worries about the coronavirus pandemic and the recession it would cause, the S&P 500 rallied back to record heights thanks to tremendous aid from the Federal Reserve and Congress, along with signs of strengthening in the economy.

It's been struggling since setting an all-time high in early September on a range of worries. Besides the clouded prospects for more stimulus from a bitterly divided Congress when parts of the economy have begun to slow, investors are also worried about whether the continuing pandemic will lead governments to put more restrictions on businesses. Tensions between the United States and China are still simmering, and stocks still look too expensive in the eyes of some critics despite their recent pullback.

The yield on the 10-year Treasury rose to 0.78% from 0.76% late Tuesday. European and Asian markets ended mixed.

 

[bigdog]

Stocks rose for the second day in a row Thursday, reflecting hope on Wall Street that Washington can approve more aid for the economy and encouragement from a report that suggests the pace of layoffs is slowing a bit, even though it remains incredibly high.

The S&P 500 climbed 0.8%, adding to its solid gains from a day earlier, when President Donald Trump apparently backtracked on his decision to halt talks on more aid for the economy. He said in a televised interview Thursday morning that “very productive” talks have begun on stimulus.

Stocks have been particularly rocky since early September, swerving on worries about everything from too-expensive prices to the still-raging pandemic, but the S&P 500 has been generally climbing the last two weeks and is on pace for its best week since August.

Resurgent optimism about the possibility that the Democrats and Republicans will deliver another economic aid package has kept investors in a buying mood the past couple of days.

“The markets hope that both sides have sort of given their opening bids and now they can meet somewhere in the middle and do so fairly quickly,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 index rose 27.38 points to 3,446.83. The Dow Jones Industrial Average gained 122.05 points, or 0.4%, to 28,425.51. The Nasdaq composite picked up 56.38 points, or 0.5%, to 11,420.98.

Small company stocks fared better than the rest of the market. The Russell 2000 index of small-cap stocks climbed 17.51 points, or 1.1%, to 1,628.55. Global stock indexes also closed higher.

Banks, technology and communication companies accounted for much of the broad gains. Energy stocks notched the biggest gain as the price of U.S. crude oil climbed more than 3%. Occidental Petroleum climbed 8.8%, the biggest gainer in the S&P 500.

A government report showed that 840,000 workers applied for unemployment benefits last week. That’s down slightly from 849,000 the prior week, though it’s still remarkably high compared with history. It also was slightly worse than economists were expecting, 837,000.

“The important thing was we continue to see less people filing,” Kinahan said.

Still, several areas of the economy have been slowing recently after supplemental weekly unemployment benefits and other stimulus for the economy approved by Congress earlier this year expired. That has investors focused on whether Congress can deliver more aid. So far, bitter partisanship on Capitol Hill has been preventing a deal.

“The market is vulnerable to the gyrations of the political back-and-forth over a relief package,” said Quincy Krosby, chief market strategist at Prudential Financial.

ASX 200 expected to rise again.

The ASX 200 index could end a spectacular week with another gain on Friday. According to the latest SPI futures, the benchmark index is expected to rise 14 points or 0.25% at the open. This follows another positive night of trade on Wall Street. In late trade the Dow Jones is up 0.4%, the S&P 500 is 0.8% higher, and the Nasdaq has risen 0.5%. The Dow Jones is now trading at its highest level in over a month

https://apnews.com/article/election...cial-markets-2356b191af80d870431d72cac892d62a

Stocks climb again on Wall Street with hopes for stimulus

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA45 minutes ago

Stocks rose for the second day in a row Thursday, reflecting hope on Wall Street that Washington can approve more aid for the economy and encouragement from a report that suggests the pace of layoffs is slowing a bit, even though it remains incredibly high.

The S&P 500 climbed 0.8%, adding to its solid gains from a day earlier, when President Donald Trump apparently backtracked on his decision to halt talks on more aid for the economy. He said in a televised interview Thursday morning that “very productive” talks have begun on stimulus.

Stocks have been particularly rocky since early September, swerving on worries about everything from too-expensive prices to the still-raging pandemic, but the S&P 500 has been generally climbing the last two weeks and is on pace for its best week since August.

Resurgent optimism about the possibility that the Democrats and Republicans will deliver another economic aid package has kept investors in a buying mood the past couple of days.

“The markets hope that both sides have sort of given their opening bids and now they can meet somewhere in the middle and do so fairly quickly,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 index rose 27.38 points to 3,446.83. The Dow Jones Industrial Average gained 122.05 points, or 0.4%, to 28,425.51. The Nasdaq composite picked up 56.38 points, or 0.5%, to 11,420.98.

Small company stocks fared better than the rest of the market. The Russell 2000 index of small-cap stocks climbed 17.51 points, or 1.1%, to 1,628.55. Global stock indexes also closed higher.

Banks, technology and communication companies accounted for much of the broad gains. Energy stocks notched the biggest gain as the price of U.S. crude oil climbed more than 3%. Occidental Petroleum climbed 8.8%, the biggest gainer in the S&P 500.

A government report showed that 840,000 workers applied for unemployment benefits last week. That’s down slightly from 849,000 the prior week, though it’s still remarkably high compared with history. It also was slightly worse than economists were expecting, 837,000.

“The important thing was we continue to see less people filing,” Kinahan said.

Still, several areas of the economy have been slowing recently after supplemental weekly unemployment benefits and other stimulus for the economy approved by Congress earlier this year expired. That has investors focused on whether Congress can deliver more aid. So far, bitter partisanship on Capitol Hill has been preventing a deal.

“The market is vulnerable to the gyrations of the political back-and-forth over a relief package,” said Quincy Krosby, chief market strategist at Prudential Financial.

The market has been swooping up and down this week in particular. On Tuesday, Trump said that he told his representatives to halt negotiations until after the election because he said House Speaker Nancy Pelosi was negotiating in bad faith. That caused stocks to suddenly swing from a 0.7% gain to a 1.4% drop.

But just a few hours later, Trump said that he would be open to several targeted programs, including aid for the airline industry specifically and $1,200 in payments to Americans. That caused Wednesday’s rise, where the S&P 500 more than recovered all its losses from the prior day.

Pelosi spoke with Mnuchin on Wednesday evening about a standalone effort to help the airline industry, and they agreed to talk again Thursday.

On Thursday morning, Trump said in an interview with Fox Business that he shut down talks “because they weren’t working out. Now, they are starting to work out.”

But, Pelosi on Thursday said there wouldn’t be standalone bill for the airline industry unless it was part of a more expansive bill.

“The backdrop for the labor market, while solid, is slowing and the prospect of thousands of layoffs within the airline industry just adds pressure on consumer spending,” Krosby said.

Despite the uncertainty about the prospects for another bailout, airline stocks notched gains Thursday. United Airlines rose 1.7%, Delta Air Lines picked up 1.6% and American Airlines added 0.7%.

“The on-and-off nature of the fiscal stimulus discussion in the U.S. hardly inspires lasting confidence,” Riki Ogawa of Mizuho Bank said in a report, noting such uncertainty will continue through the presidential election campaign, and perhaps even after the vote.

Some investors also see rising poll numbers for Joe Biden in the upcoming presidential election as an indication that more stimulus may be on the way, regardless of what Trump says. If Democrats sweep the White House, Senate and House of Representatives, they say a big rescue package becomes more likely. And that could offset higher taxes and tighter regulations that a Democratic-controlled government could also create.

Merger-and-acquisition activity also helped to boost markets. Eaton Vance jumped 48.1% after Morgan Stanley agreed to buy the investment company. Morgan Stanley rose 0.6%.

IBM rallied 6% after it said it’s spinning off a business unit that provides infrastructure services, as it focuses on its cloud and artificial-intelligence businesses.

Of course, many risks remain for the market. Stocks still look expensive relative to corporate profits to critics. Tensions between the world’s two largest economies, the United States and China, are still simmering. And on top of it all, the pandemic is still raging, with Trump’s own COVID-19 diagnosis showing how far it is reaching.

Germany is seeing a sharp jump in new coronavirus infections, raising fears the pandemic is gaining in a country that so far has coped better than many of its European neighbors. The British government is mulling fresh restrictions on everyday life amid mounting evidence that the measures so far have done little to keep a lid on new coronavirus infections. France set a record number of infections on Wednesday.

European markets rose broadly, and Asian markets closed mostly higher. The yield on the 10-year Treasury note fell to 0.76% from 0.81% late Wednesday.

 

[bigdog]

Wall Street closed out its best week in three months Friday as investors drew encouragement from ongoing negotiations on Capitol Hill aimed at delivering more aid to the ailing U.S. economy.

The S&P 500 rose 0.9%, its third straight gain. The benchmark index ended the week with a 3.8% gain, its strongest rally since early July.

Much of this week’s focus has been on Washington, where President Donald Trump sent markets on a sudden skid Tuesday after he halted negotiations on a support package for the economy until after the election. He appeared to change his mind a few hours later, however. On Friday, Trump was cheerleading the prospect of a deal, declaring on Twitter that talks on a new aid package are “moving along. Go Big!”

“The fact that Trump reversed course, I think, has given people optimism again,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The market's solid finish follows a weekslong run of mostly shaky trading over worries that Congress and the White House won’t deliver more support for the economy as it reels from the impact of the pandemic and concerns that stock prices simply got too high during the summer.

The S&P 500 rose 30.31 points to 3,477.14. The Dow Jones Industrial Average gained 161.39 points, or 0.6%, to 28,586.90. The gain nudged the Dow into positive territory for the year. The Nasdaq composite climbed 158.96 points, or 1.4%, to 11,579.94.

Small-company stocks added to their solid gains this week. The Russell 2000 index picked up 9 points, or 0.6%, to 1,637.55. The index jumped 6.4% this week.

Investors have been clamoring for more federal aid since the expiration of extra benefits for laid-off workers and other stimulus for the economy that Congress approved earlier this year. Economists say the outlook is grim without such support, and the chair of the Federal Reserve has said repeatedly it will likely be necessary.

Still, the prospects for a new deal on more aid have been shaky, especially this week.

Trump said that House Speaker Nancy Pelosi was negotiating in bad faith when he called off the talks Tuesday. But within a couple hours, he appeared to backtrack. He said that he would back more limited programs that would send $1,200 payments to Americans and support the airline industry and small businesses specifically.

On Friday the White House increased its offer to $1.8 trillion, up from $1.6 trillion, according to a Republican aide familiar with the plan. Pelosi’s most recent public proposal was about $2.2 trillion, though that included a business tax increase that Republicans won’t go for.

Pelosi and Treasury Secretary Steven Mnuchin spoke on the phone for 30 minutes Friday, but nothing concrete appeared to immediately emerge from the discussion. Senate Majority Leader Mitch McConnell said he doubts a deal will get done before the election.

Frederick said the uncertainty over another stimulus package remains a “substantial risk” to the market.

This week’s rollercoaster — where the S&P 500 swung at least 1.4% for three straight days— is just the latest bout of volatility for a market that has been notably rocky for weeks.

https://www.usnews.com/news/busines...s-follow-wall-street-higher-on-stimulus-hopes

Stocks Climb, Closing Out Biggest Weekly Gain in 3 Months
Wall Street closed out its best week in three months Friday as investors drew encouragement from ongoing negotiations on Capitol Hill aimed at delivering more aid to the ailing U.S. economy.
By Associated Press, Wire Service Content Oct. 9, 2020, at 5:41 p.m.

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

Wall Street closed out its best week in three months Friday as investors drew encouragement from ongoing negotiations on Capitol Hill aimed at delivering more aid to the ailing U.S. economy.

The S&P 500 rose 0.9%, its third straight gain. The benchmark index ended the week with a 3.8% gain, its strongest rally since early July.

Much of this week’s focus has been on Washington, where President Donald Trump sent markets on a sudden skid Tuesday after he halted negotiations on a support package for the economy until after the election. He appeared to change his mind a few hours later, however. On Friday, Trump was cheerleading the prospect of a deal, declaring on Twitter that talks on a new aid package are “moving along. Go Big!”

“The fact that Trump reversed course, I think, has given people optimism again,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The market's solid finish follows a weekslong run of mostly shaky trading over worries that Congress and the White House won’t deliver more support for the economy as it reels from the impact of the pandemic and concerns that stock prices simply got too high during the summer.

The S&P 500 rose 30.31 points to 3,477.14. The Dow Jones Industrial Average gained 161.39 points, or 0.6%, to 28,586.90. The gain nudged the Dow into positive territory for the year. The Nasdaq composite climbed 158.96 points, or 1.4%, to 11,579.94.

Small-company stocks added to their solid gains this week. The Russell 2000 index picked up 9 points, or 0.6%, to 1,637.55. The index jumped 6.4% this week.

Investors have been clamoring for more federal aid since the expiration of extra benefits for laid-off workers and other stimulus for the economy that Congress approved earlier this year. Economists say the outlook is grim without such support, and the chair of the Federal Reserve has said repeatedly it will likely be necessary.

Still, the prospects for a new deal on more aid have been shaky, especially this week.

Trump said that House Speaker Nancy Pelosi was negotiating in bad faith when he called off the talks Tuesday. But within a couple hours, he appeared to backtrack. He said that he would back more limited programs that would send $1,200 payments to Americans and support the airline industry and small businesses specifically.

On Friday the White House increased its offer to $1.8 trillion, up from $1.6 trillion, according to a Republican aide familiar with the plan. Pelosi’s most recent public proposal was about $2.2 trillion, though that included a business tax increase that Republicans won’t go for.

Pelosi and Treasury Secretary Steven Mnuchin spoke on the phone for 30 minutes Friday, but nothing concrete appeared to immediately emerge from the discussion. Senate Majority Leader Mitch McConnell said he doubts a deal will get done before the election.

Frederick said the uncertainty over another stimulus package remains a “substantial risk” to the market.

This week’s rollercoaster — where the S&P 500 swung at least 1.4% for three straight days— is just the latest bout of volatility for a market that has been notably rocky for weeks.

“When the world’s financial markets are at the mercy of the randomness emanating from the White House, it is hardly surprising that investors elsewhere would prefer to wait on the side-lines,” said Jeffrey Halley of Oanda in a report. “Unfortunately, things are unlikely to settle down over the next few weeks.”

Regardless of whether Washington can strike a deal before the election, some investors are getting more optimistic about the chances for a big support package in 2021. If the Democrats sweep the White House, Senate and House of Representatives, the thinking is that they’ll likely approve stimulus for the economy. That could help offset the higher tax rates and tighter regulations on businesses that investors also expect from a Democratic-controlled Washington. Wall Street is seeing a Democratic sweep as more likely than before.

Still, other challenges remain for the market. Chief among them is the still-spreading coronavirus pandemic, highlighted by Trump’s own COVID-19 diagnosis.

Some areas of the economy are slowing following the expiration of Congress’ last round of aid, stocks still look too expensive in the eyes of some critics and tensions continue to simmer between the United States and China.

Technology stocks and companies that rely on consumer spending drove much of Friday's rally. Utilities, real estate and energy stocks fell.

Despite the market's gains, trading underneath the surface continued to be unsettled. Airline stocks climbed at the start of trading, only to drop quickly and then rise again. United Airlines rose 0.3%, American Airlines gained 0.3% and Delta Air Lines rose 0.4%.

The yield on the 10-year Treasury held steady at 0.78%.

European markets rose, while Asian indexes ended mixed.