NYSE Dow Jones finished today at:

[bigdog]

ASX futures pointing lower.

The ASX 200’s winning streak looks set to be tested on Monday despite a positive finish to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 5 points at the open on Monday. On Friday night the Dow Jones rose 0.6%, the S&P 500 climbed 0.9%, and the Nasdaq index stormed 1.4% higher. The latter could be good news for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO).

 

[bigdog]

The S&P 500 rose 1.6%, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.

The market's latest upward push came as Wall Street appeared to largely shrug off the latest signs that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president's fellow Republicans called it too expensive.

Investors may be betting that Congress will deliver a more generous aid bill after the election, should Democrats regain the majority in Congress, as some polls suggest.

“The market is expressing some comfort with Democrats taking the White House and the Senate, if it means that there will be more stimulus,” said Willie Delwiche, investment strategist at Baird. “But the reality is it’s several months away before anything could get passed. It does raise a question in my mind whether or not some of this is too much, too soon in terms of the market anticipating stimulus at this point.”

The S&P 500 rose 57.09 points to 3,534.22. The benchmark index is on a four-day winning streak and is now within 1.4% of its all-time high set Sept. 2. The Dow Jones Industrial Average climbed 250.62 points, or 0.9%, to 28,837.52. The Nasdaq composite, which is heavily weighted with technology stocks, gained 296.32 points, or 2.6%, to 11,876.26.

Apple climbed 6.4% and alone accounted for a quarter of the S&P 500’s rise. The iPhone maker also was the index's biggest gainer. Amazon rose 4.8%. Both companies have events coming up this week, with Apple expected to unveil its latest batch of iPhones on Tuesday and Amazon holding its Prime Day on Tuesday and Wednesday.

Microsoft also closed higher, rising 2.6%, Facebook added 4.3% and Google’s parent company gained 3.6%.

The Russell 2000 index of small-cap stocks, which tends to move more with expectations for the economy’s strength than Big Tech companies, notched more modest gains than the rest of the market. The index picked up 11.51 points, or 0.7%, to 1,649.05.

Mondays gains add to last week’s 3.8% rally for the S&P 500, which came amid a dizzying 360-degree spin on expectations for Congress and the White House to be able to deliver more aid for the economy.

President Donald Trump said early in the week he’d put a halt to negotiations on stimulus, even though economists and the chair of the Federal Reserve say the economic recovery likely needs it. He then backed a set of more limited programs before admonishing negotiators at the end of the week to “Go Big!” His administration unveiled its latest, increased proposal to House Democrats, valued at about $1.8 trillion, but it was rejected by Democrats over the weekend.

Investors have been agitating for more stimulus since the expiration of extra unemployment benefits for laid-off workers and other support for the economy approved by Congress earlier this year. Even if Washington can’t deliver the aid soon, some investors have been building up their expectations that it may arrive in 2021.

ASX 200 expected to storm higher.

It looks set to be another very positive day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 44 points or 0.7% higher this morning. This follows a strong start to the week on Wall Street, which in late trade sees the Dow Jones up 0.9%, the S&P 500 1.6% higher, and the Nasdaq index a sizeable 2.5% higher.

https://www.usnews.com/news/busines...ostly-higher-after-us-rally-aid-package-hopes

Strong Gains for Technology Stocks Send Wall Street Higher

Solid gains for technology stocks pushed Wall Street higher Monday, tacking more gains onto last week’s rally.

By Associated Press, Wire Service Content Oct. 12, 2020, at 4:35 p.m.

The S&P 500 rose 1.6%, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.

The market's latest upward push came as Wall Street appeared to largely shrug off the latest signs that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president's fellow Republicans called it too expensive.

Investors may be betting that Congress will deliver a more generous aid bill after the election, should Democrats regain the majority in Congress, as some polls suggest.

“The market is expressing some comfort with Democrats taking the White House and the Senate, if it means that there will be more stimulus,” said Willie Delwiche, investment strategist at Baird. “But the reality is it’s several months away before anything could get passed. It does raise a question in my mind whether or not some of this is too much, too soon in terms of the market anticipating stimulus at this point.”

The S&P 500 rose 57.09 points to 3,534.22. The benchmark index is on a four-day winning streak and is now within 1.4% of its all-time high set Sept. 2. The Dow Jones Industrial Average climbed 250.62 points, or 0.9%, to 28,837.52. The Nasdaq composite, which is heavily weighted with technology stocks, gained 296.32 points, or 2.6%, to 11,876.26.

Apple climbed 6.4% and alone accounted for a quarter of the S&P 500’s rise. The iPhone maker also was the index's biggest gainer. Amazon rose 4.8%. Both companies have events coming up this week, with Apple expected to unveil its latest batch of iPhones on Tuesday and Amazon holding its Prime Day on Tuesday and Wednesday.

Microsoft also closed higher, rising 2.6%, Facebook added 4.3% and Google’s parent company gained 3.6%.

The Russell 2000 index of small-cap stocks, which tends to move more with expectations for the economy’s strength than Big Tech companies, notched more modest gains than the rest of the market. The index picked up 11.51 points, or 0.7%, to 1,649.05.

Mondays gains add to last week’s 3.8% rally for the S&P 500, which came amid a dizzying 360-degree spin on expectations for Congress and the White House to be able to deliver more aid for the economy.

President Donald Trump said early in the week he’d put a halt to negotiations on stimulus, even though economists and the chair of the Federal Reserve say the economic recovery likely needs it. He then backed a set of more limited programs before admonishing negotiators at the end of the week to “Go Big!” His administration unveiled its latest, increased proposal to House Democrats, valued at about $1.8 trillion, but it was rejected by Democrats over the weekend.

Investors have been agitating for more stimulus since the expiration of extra unemployment benefits for laid-off workers and other support for the economy approved by Congress earlier this year. Even if Washington can’t deliver the aid soon, some investors have been building up their expectations that it may arrive in 2021.

Rising poll numbers for Democrats are raising the odds for a sweep of the White House, Senate and House of Representatives. If that were to happen, investors say it would also increase the likelihood for a big stimulus package after the election. That could offset the drag on corporate profits that investors expect a Democratic-controlled Washington would create through higher taxes and tighter regulations.

This week also marks the start of earnings reporting season for big U.S. companies, where CEOs will tell investors how they fared from July through September. Analysts are forecasting another quarter of weaker profits, with S&P 500 earnings expected to be down 20.5% from a year earlier, according to FactSet.

But that’s not as bad as analysts were forecasting a few months ago, and it’s not as bad as the 31.6% drop that S&P 500 companies reported for the spring quarter. As widespread lockdowns eased across the country, companies have been able to feel a bit of increasing momentum.

This week will feature earnings reports from many of the nation’s biggest banks, and how they fare “could give a clearer picture into just how far we’ve come in terms of economic recovery,” said Chris Larkin, managing director at E-Trade Financial.

In European markets, indexes rose in France and Germany but slipped in Britain. Asian markets closed broadly higher, except in Japan, where they fell slightly.

U.S. bond trading was closed for a holiday.

 

[bigdog]

Banks and technology companies led a broad slide for stocks on Wall Street Tuesday, snapping the market's four-day winning streak.

The S&P 500 lost 0.6%, giving back some of its gains from a day earlier. The pullback came as many forces are pushing and pulling on markets simultaneously. Coronavirus counts are rising at a worrying rate in many countries around the world, a trend that's increasing the urgency behind efforts to develop treatments.

On Tuesday, independent monitors paused enrollment in a study testing the COVID-19 antiviral drug remdesivir plus an experimental antibody therapy being developed by Eli Lilly. The company said the study was paused “out of an abundance of caution.” The news followed a disclosure late Monday by Johnson & Johnson, which said it had to temporarily pause a late-stage study of a potential COVID-19 vaccine “due to an unexplained illness in a study participant.”

Meanwhile, uncertainty about the prospects for more stimulus for the economy from Washington continues to hang over markets.

“Absent of getting any kind of fiscal stimulus, we've already seeing a leveling off in economic growth and some weakening under the surface, ” Liz Ann Sonders, chief investment strategist at Charles Schwab. “There's concern that without that additional fiscal stimulus the economy could run into a little bit of trouble here.”

The S&P 500 fell 22.29 points to 3,511.93. The Dow Jones Industrial Average dropped 157.71 points, or 0.6%, to 28,679.81. The Nasdaq composite gave up an early gain, slipping 12.36 points, or 0.1%, to 11,863.90.

Stocks have been mostly pushing higher this month. Already the major stock indexes have recouped their losses from September's market swoon.

Tuesday's market slide came as the third-quarter earnings reporting season got underway. Investors will be looking for some measure of clarity over the next several weeks as CEOs line up to report how their companies fared during the summer. Wall Street is expecting another sharp drop in profits for the third quarter, nearly 21% for S&P 500 earnings per share from a year earlier. But if that proves correct, it would not be as bad as the nearly 32% plunge for the spring, according to FactSet.

Several companies kicked the season off on Tuesday with better-than-expected reports. JPMorgan Chase, Johnson & Johnson, Citigroup and BlackRock all reported stronger results for the summer than analysts had forecast.

Their stocks, though, closed mixed. BlackRock rose 3.9%, while JPMorgan Chase and Citigroup gave up initial gains and fell 1.6% and 4.8%, respectively. Johnson & Johnson dropped 2.3% and Eli Lilly fell 2.9%.

ASX 200 expected to drop lower.

The ASX 200 looks set to finally end its winning streak on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 55 points or 0.9% lower this morning. This follows a mixed night on Wall Street. In late trade the Dow Jones is down 0.5%, the S&P 500 is 0.6% lower, and the Nasdaq is edging slightly higher

https://www.usnews.com/news/busines...mixed-as-china-reports-faster-growth-in-trade

Stocks End Lower as Wall Street Pauses After a 4-Day Rally

Stocks ended lower as Wall Street took a pause after a four-day winning streak.

By Associated Press, Wire Service Content Oct. 13, 2020, at 5:10 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Banks and technology companies led a broad slide for stocks on Wall Street Tuesday, snapping the market's four-day winning streak.

The S&P 500 lost 0.6%, giving back some of its gains from a day earlier. The pullback came as many forces are pushing and pulling on markets simultaneously. Coronavirus counts are rising at a worrying rate in many countries around the world, a trend that's increasing the urgency behind efforts to develop treatments.

On Tuesday, independent monitors paused enrollment in a study testing the COVID-19 antiviral drug remdesivir plus an experimental antibody therapy being developed by Eli Lilly. The company said the study was paused “out of an abundance of caution.” The news followed a disclosure late Monday by Johnson & Johnson, which said it had to temporarily pause a late-stage study of a potential COVID-19 vaccine “due to an unexplained illness in a study participant.”

Meanwhile, uncertainty about the prospects for more stimulus for the economy from Washington continues to hang over markets.

“Absent of getting any kind of fiscal stimulus, we've already seeing a leveling off in economic growth and some weakening under the surface, ” Liz Ann Sonders, chief investment strategist at Charles Schwab. “There's concern that without that additional fiscal stimulus the economy could run into a little bit of trouble here.”

The S&P 500 fell 22.29 points to 3,511.93. The Dow Jones Industrial Average dropped 157.71 points, or 0.6%, to 28,679.81. The Nasdaq composite gave up an early gain, slipping 12.36 points, or 0.1%, to 11,863.90.

Stocks have been mostly pushing higher this month. Already the major stock indexes have recouped their losses from September's market swoon.

Tuesday's market slide came as the third-quarter earnings reporting season got underway. Investors will be looking for some measure of clarity over the next several weeks as CEOs line up to report how their companies fared during the summer. Wall Street is expecting another sharp drop in profits for the third quarter, nearly 21% for S&P 500 earnings per share from a year earlier. But if that proves correct, it would not be as bad as the nearly 32% plunge for the spring, according to FactSet.

Several companies kicked the season off on Tuesday with better-than-expected reports. JPMorgan Chase, Johnson & Johnson, Citigroup and BlackRock all reported stronger results for the summer than analysts had forecast.

Their stocks, though, closed mixed. BlackRock rose 3.9%, while JPMorgan Chase and Citigroup gave up initial gains and fell 1.6% and 4.8%, respectively. Johnson & Johnson dropped 2.3% and Eli Lilly fell 2.9%.

Delta Air Lines reported a worse loss than Wall Street had forecast, as the pandemic keeps many fliers grounded, and its shares slid 2.7%.

Other airlines and travel-related companies were also weak, and Royal Caribbean dropped 13.2% for the biggest loss in the S&P 500. The cruise operator said it will sell up to $575 million of stock to raise cash.

On the winning side was The Walt Disney Co., which climbed 3.2% for one of the bigger gains in the S&P 500 after it announced a major reorganization of its company to focus on Disney Plus and its other streaming services.

The yield on the 10-year Treasury fell to 0.72% from 0.79% late Friday. Treasury markets were closed Monday for a holiday.

A government report showed that prices for consumers were 0.2% higher in September than August. That matched economists’ expectations, and it also showed that month-over-month inflation has slowed since strengthening in the summer.

Lower inflation gives the Federal Reserve more leeway to keep interest rates low, though it has said it may keep its benchmark rate at nearly zero even if inflation tops its 2% target.

While the Federal Reserve keeps the accelerator floored on its support for the economy and markets, a deep partisan divide has Congress and the White House struggling to deliver more aid of their own. Extra unemployment benefits for laid-off workers and other stimulus that Congress approved earlier this year has already expired.

Senate Majority Leader Mitch McConnell said Tuesday that he’s scheduling a vote on a scaled-back GOP coronavirus relief bill for Oct. 19. Democrats filibustered a GOP-drafted aid bill last month and recent talks on a larger deal with House Speaker Nancy Pelosi, D-Calif., fell apart this past weekend. In a letter to colleagues Tuesday, Pelosi called the White House’s latest proposal insufficient and said significant changes are needed.

President Donald Trump has said that Capitol Hill Republicans should “go big” rather than the limited approach they’ve been advocating. If stimulus can’t arrive before the election, some investors have gotten more optimistic about the chances of a big support package next year if Democrats sweep the upcoming election.

“There’s a greater likelihood for a stimulus package, and an even bigger one, should we get a Blue Wave," said Sam Stovall, chief investment strategist at CFRA. “And investors are probably responding to the poll numbers that are implying that we won't have a contested election.”

Smaller stocks, which tend to move more with investors' expectations for the economy than the biggest stocks, were weakening more than the rest of the market. The Russell 2000 index of small-cap stocks fell 12.21 points, or 0.7%, to 1,636.85.

European markets ended lower, while Asian markets were mixed.

 

[bigdog]

Stocks gave up early gains and closed lower Wednesday, adding to Wall Street's losses from a day earlier.

The S&P 500 fell 0.7% after spending the morning swaying between small gains and losses. Companies that rely on consumer spending, banks and technology and communication stocks bore the brunt of the selling. Trading in stock markets overseas was subdued as coronavirus counts climb around the world, raising the risk of more government restrictions on businesses. Treasury yields fell, while prices for crude oil and gold rose.

The decline came as talks between Democrats and Republicans in Washington over another economic stimulus package continued to drag on, dimming investors' hopes for a deal that can deliver more aid for the U.S. economy in the near term.

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi spoke by phone again Wednesday morning but didn’t reach an agreement, Pelosi aide Drew Hammill tweeted, adding that the two plan to speak again Thursday. Mnuchin said at a conference sponsored by the Milken Institute that it would be “difficult” to get a deal done before the presidential election next month.

“The time for being able to pull this off is now coming to a close,” said Rod von Lipsey, managing director at UBS Private Wealth Management. “The market has been listless because it understands that it’s probably not going to happen.”

Investors are still anticipating some kind of an aid package eventually passing, he said, but it will now likely wait until after the election.

The S&P 500 fell 23.26 points to 3,488.67. The benchmark index broke a strong four-day winning streak on Monday. The Dow Jones Industrial Average lost 165.81 points, or 0.6%, to 28,514. The pullback knocked the Dow back into the red for the year. The Nasdaq composite slid 95.17 points, or 0.8%, to 11,768.73. At one point it had been up 0.6%.

Small company stocks, the biggest gainers so far this month, also fell. The Russell 2000 small-caps index gave up 15.20 points, or 0.9%, to 1,621.65.

Despite the market's two-day slide, stocks have been mostly pushing higher this month. About halfway through October, the major stock indexes have recouped most of their losses from last month's market swoon.

Even so, this week’s kick-off to earnings reporting season is painting a mixed picture for investors.

Big banks are traditionally the first companies to tell investors how much profit they made in the prior quarter, and Bank of America and Wells Fargo fell following the release of their reports, posting the biggest losses in the S&P 500. Bank of America sank 5.3% after its revenue fell short of analysts’ forecast, while Wells Fargo dropped 6% after its earnings were lower than Wall Street expected.

Goldman Sachs rose 0.2% after reporting stronger profit than analysts expected. U.S. Bancorp was fell 0.4% after giving up an early gain following its earnings report, which was also stronger than analysts expected.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

ASX 200 futures pointing slightly lower.

The Australian share market is expected to edge lower on Thursday after a weak night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 1 point lower this morning. In late trade on Wall Street the Dow Jones is down 0.3%, the S&P 500 has fallen 0.4% lower, and the Nasdaq is down 0.5%.

https://www.usnews.com/news/busines...track-wall-street-decline-on-pandemic-jitters

Stocks Fall on Wall Street as Hopes Fade for Stimulus Deal

Stocks are closing lower on Wall Street Wednesday, extending the market's losses from a day earlier, as talks drag on in Washington over another economic stimulus package.

By Associated Press, Wire Service Content Oct. 14, 2020, at 4:48 p.m.

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

Stocks gave up early gains and closed lower Wednesday, adding to Wall Street's losses from a day earlier.

The S&P 500 fell 0.7% after spending the morning swaying between small gains and losses. Companies that rely on consumer spending, banks and technology and communication stocks bore the brunt of the selling. Trading in stock markets overseas was subdued as coronavirus counts climb around the world, raising the risk of more government restrictions on businesses. Treasury yields fell, while prices for crude oil and gold rose.

The decline came as talks between Democrats and Republicans in Washington over another economic stimulus package continued to drag on, dimming investors' hopes for a deal that can deliver more aid for the U.S. economy in the near term.

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi spoke by phone again Wednesday morning but didn’t reach an agreement, Pelosi aide Drew Hammill tweeted, adding that the two plan to speak again Thursday. Mnuchin said at a conference sponsored by the Milken Institute that it would be “difficult” to get a deal done before the presidential election next month.

“The time for being able to pull this off is now coming to a close,” said Rod von Lipsey, managing director at UBS Private Wealth Management. “The market has been listless because it understands that it’s probably not going to happen.”

Investors are still anticipating some kind of an aid package eventually passing, he said, but it will now likely wait until after the election.

The S&P 500 fell 23.26 points to 3,488.67. The benchmark index broke a strong four-day winning streak on Monday. The Dow Jones Industrial Average lost 165.81 points, or 0.6%, to 28,514. The pullback knocked the Dow back into the red for the year. The Nasdaq composite slid 95.17 points, or 0.8%, to 11,768.73. At one point it had been up 0.6%.

Small company stocks, the biggest gainers so far this month, also fell. The Russell 2000 small-caps index gave up 15.20 points, or 0.9%, to 1,621.65.

Despite the market's two-day slide, stocks have been mostly pushing higher this month. About halfway through October, the major stock indexes have recouped most of their losses from last month's market swoon.

Even so, this week’s kick-off to earnings reporting season is painting a mixed picture for investors.

Big banks are traditionally the first companies to tell investors how much profit they made in the prior quarter, and Bank of America and Wells Fargo fell following the release of their reports, posting the biggest losses in the S&P 500. Bank of America sank 5.3% after its revenue fell short of analysts’ forecast, while Wells Fargo dropped 6% after its earnings were lower than Wall Street expected.

Goldman Sachs rose 0.2% after reporting stronger profit than analysts expected. U.S. Bancorp was fell 0.4% after giving up an early gain following its earnings report, which was also stronger than analysts expected.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

The sharpest profit drops for the quarter are expected to come from energy stocks, but the sector rose Wednesday to some of the biggest gains among the 11 that make up the S&P 500 index. A 2.1% rise for crude oil prices helped. So did a report that ConocoPhillips is in talks to buy Concho Resources. Concho jumped 10.2%, the biggest gainer in the S&P 500, following the report from Bloomberg News.

Tech stocks fell, weighing down the broader S&P 500. Amazon fell 2.3% and Microsoft slid 0.9%. Apple bounced back from an early slide and eked out a 0.1% gain.

Because of their massive size, the movements of Big Tech stocks have an outsized effect on the S&P 500 and other indexes.

The yield on the 10-year Treasury note fell to 0.72% from 0.74% late Tuesday despite a report showing that inflation at the wholesale level strengthened more than economists expected last month.

Prices for producers rose 0.4% last month from August, double economists’ expectations. But even though inflation firmed, economists say it’s still subdued amid a weakened economy.

The Federal Reserve has also indicated that it will keep interest rates at nearly zero for a while to support the economy, even if inflation hits its target level.

Aid for the economy from elsewhere in Washington, though, has been harder to come by. Hopes are fading that Congress and the White House can agree on another round of support any time soon.

“The cold reality that markets have refused to countenance is that even if an agreement was reached, its chances of being enacted before the November election are about zero,” said Jeffrey Halley of Oanda. “Still, this is 2020, the year where markets never let reality get in the way of a good story.”

Economists and the head of the Federal Reserve have said the economy will likely need such stimulus. Earlier benefits for laid-off workers and other support that Congress approved earlier this year have expired.

The rate at which Americans save money spiked earlier this year as the pandemic-related business shutdowns limited where people could shop. Thus far, that extra savings cushion has helped people who lost their job weather the loss of extra unemployment benefits, said Elyse Ausenbaugh, global market strategist at J.P. Morgan Private Bank.

“It’s not going to last forever, especially with the unemployment rate so high,” she said. "That really underscores the need for the government to gas the economy.”

European and Aisian markets ended mixed.

 

[bigdog]

U.S. stock indexes erased much of their early losses and closed modestly lower Thursday, extending the S&P 500's losing streak to a third day.

The S&P 500 fell 0.2% after having been down 1.4%. Technology, health care and communications stocks accounted for most of the selling, outweighing slight gains in banks and elsewhere in the market.

Wall Street has turned cautious this week amid a confluence of worrisome trends for the economy, which is still hampered by the pandemic. Coronavirus infections are rising in Europe, prompting governments in France and Britain to impose new measures to contain the outbreak. European stock indexes fell broadly Thursday as traders pulled money out of riskier investments.

In the U.S., investor optimism that the Trump administration and Congress will soon reach a deal on another round of stimulus for the economy has waned. And the government said Thursday that the number of Americans seeking unemployment aid increased more than expected last week.

“The stimulus talk continues to be a little negative, and the virus outbreak in Europe that’s going to probably cause more shutdowns in various cities and countries, that’s a little bit of a negative, too,” said Scott Wren, senior global market strategist, Wells Fargo Investment Institute.

Still, Wren added, the market is expecting Washington will deliver another round of stimulus at some point, and continues to expect that various efforts to develop COVID-19 treatments and vaccines will pan out, eventually. If that wasn’t the case, the recent pullback in stocks would be much more severe, he said.

“The market is still pretty convinced we’re going to see good news on both fronts, it’s just not sure when,” Wren said.

The S&P 500 fell 5.33 points to 3,483.34. The Dow Jones Industrial Average dropped 19.80 points, or 0.1%, to 28,494.20. It had been down 332 points in the early going. The Nasdaq composite gave up 54.86 points, or 0.5%, to 11,713.87.

Smaller company stocks fared better than the broader market. The Russell 2000 index of small-cap stocks bounced back from an early slide and rose 17.23 points, or 1.1%, to 1,638.88.

Stocks have been mostly climbing this month, but have pulled back this week as ongoing talks between Democrats and Republicans on an economic stimulus package have failed to deliver results. Investors have been hoping that Washington would provide more financial support for the economy since July, when a $600-a-week extra benefit for the unemployed expired.

The government's latest weekly tally of unemployment claims underscores how the economy continues to be hobbled by the pandemic and recession that erupted seven months ago. The Labor Department said Thursday that the number of Americans seeking unemployment benefits rose last week to 898,000, a historically high number that exceeds analysts forecasts.

The report follows recent data that have signaled a slowdown in hiring. The economy is still roughly 10.7 million jobs short of recovering all the 22 million jobs that were lost when the pandemic struck in early spring.

The 10-year Treasury yield held steady at 0.73%.

Investors continued to weigh the latest batch of earnings reports from major U.S. companies. Several reports so far have been better than expected, but the health crisis continues to cloud the outlook.

United Airlines slumped 3.8% Thursday after reporting that its revenue plummeted over the summer. Morgan Stanley rose 1.3% after the investment bank said its third-quarter profit jumped 25%, thanks to a surge in trading revenue and higher fees. Walgreens Boots Alliance gained 4.8% after the drugstore chain's latest quarterly results topped Wall Street's forecasts.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

ASX 200 futures pointing lower.

The ASX 200 is expected to edge lower on Friday after a soft night of trade on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 2 points lower this morning. In late trade in the United States the Dow Jones is down 0.05%, the S&P 500 is 0.15% lower, and the Nasdaq is down 0.4%.

https://www.usnews.com/news/busines...s-follow-wall-st-lower-as-stimulus-hopes-fade

Stocks Fall on Wall Street as Coronavirus Spreads in Europe
Stocks are ending mostly lower on Wall Street, giving the S&P 500 its third straight loss this week.
By Associated Press, Wire Service Content Oct. 15, 2020, at 4:48 p.m.

By ALEX VEIGA, AP Business Writer

U.S. stock indexes erased much of their early losses and closed modestly lower Thursday, extending the S&P 500's losing streak to a third day.

The S&P 500 fell 0.2% after having been down 1.4%. Technology, health care and communications stocks accounted for most of the selling, outweighing slight gains in banks and elsewhere in the market.

Wall Street has turned cautious this week amid a confluence of worrisome trends for the economy, which is still hampered by the pandemic. Coronavirus infections are rising in Europe, prompting governments in France and Britain to impose new measures to contain the outbreak. European stock indexes fell broadly Thursday as traders pulled money out of riskier investments.

In the U.S., investor optimism that the Trump administration and Congress will soon reach a deal on another round of stimulus for the economy has waned. And the government said Thursday that the number of Americans seeking unemployment aid increased more than expected last week.

“The stimulus talk continues to be a little negative, and the virus outbreak in Europe that’s going to probably cause more shutdowns in various cities and countries, that’s a little bit of a negative, too,” said Scott Wren, senior global market strategist, Wells Fargo Investment Institute.

Still, Wren added, the market is expecting Washington will deliver another round of stimulus at some point, and continues to expect that various efforts to develop COVID-19 treatments and vaccines will pan out, eventually. If that wasn’t the case, the recent pullback in stocks would be much more severe, he said.

“The market is still pretty convinced we’re going to see good news on both fronts, it’s just not sure when,” Wren said.

The S&P 500 fell 5.33 points to 3,483.34. The Dow Jones Industrial Average dropped 19.80 points, or 0.1%, to 28,494.20. It had been down 332 points in the early going. The Nasdaq composite gave up 54.86 points, or 0.5%, to 11,713.87.

Smaller company stocks fared better than the broader market. The Russell 2000 index of small-cap stocks bounced back from an early slide and rose 17.23 points, or 1.1%, to 1,638.88.

Stocks have been mostly climbing this month, but have pulled back this week as ongoing talks between Democrats and Republicans on an economic stimulus package have failed to deliver results. Investors have been hoping that Washington would provide more financial support for the economy since July, when a $600-a-week extra benefit for the unemployed expired.

The government's latest weekly tally of unemployment claims underscores how the economy continues to be hobbled by the pandemic and recession that erupted seven months ago. The Labor Department said Thursday that the number of Americans seeking unemployment benefits rose last week to 898,000, a historically high number that exceeds analysts forecasts.

The report follows recent data that have signaled a slowdown in hiring. The economy is still roughly 10.7 million jobs short of recovering all the 22 million jobs that were lost when the pandemic struck in early spring.

The 10-year Treasury yield held steady at 0.73%.

Investors continued to weigh the latest batch of earnings reports from major U.S. companies. Several reports so far have been better than expected, but the health crisis continues to cloud the outlook.

United Airlines slumped 3.8% Thursday after reporting that its revenue plummeted over the summer. Morgan Stanley rose 1.3% after the investment bank said its third-quarter profit jumped 25%, thanks to a surge in trading revenue and higher fees. Walgreens Boots Alliance gained 4.8% after the drugstore chain's latest quarterly results topped Wall Street's forecasts.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

A resurgence in coronavirus infections in Europe has also given investors cause to turn cautious. Fears are rising that Europe is running out of chances to control the new outbreak, as infections hit record daily highs in Germany, the Czech Republic, Italy and Poland. France slapped a 9 p.m. curfew on many of its biggest cities and Londoners face new travel restrictions as governments take increasingly tough actions.

The limits on public life are not as strict as the full lockdowns imposed during the spring, but will stunt or even reverse the economy’s recovery from recession, experts say.

European markets fell broadly after France imposed a curfew on many of its biggest cities and Londoners faced new travel restrictions. Germany’s DAX lost 2.5%. The CAC 40 in France slid 2.1%. The FTSE 100 in London fell 1.7%.

In Asia, the Shanghai Composite Index lost 0.3% and the Nikkei 225 in Tokyo sank 0.7%. The Hang Seng in Hong Kong lost 2.1%.

The Kospi in Seoul shed 0.8% despite a strong market debut by the company that manages popular South Korean boy band BTS. The group faces criticism by Chinese internet users after its leader thanked Korean War veterans for their sacrifices.

Big Hit Entertainment Ltd.’s share price doubled by midday but ended the day close to its opening. Its market value after an initial public offering that raised more than $800 million was about $7.5 billion.

 

[bigdog]

Wall Street closed out a choppy week of trading with more of the same Friday, as a late-afternoon stumble led U.S. stock indexes to a mixed finish.

The S&P 500 ended the day just a fraction of a point higher after a burst of selling erased a 0.9% gain. Despite a three-day stretch of losses, the benchmark index still managed to finish higher for the week, its third straight weekly gain.

Big Tech and energy companies fell while health care and industrial stocks rose. The Dow Jones Industrial Average also eked out a gain, while the Nasdaq composite posted its fourth straight loss. Treasury yields were flat.

The market had been up for much of the day after the government reported that retail sales rose in September for the fifth straight month. That report appeared to overshadow new data showed U.S. industrial production had its weakest showing last month since the spring.

The market's late-day fade capped a week of volatility for stocks as companies began reporting their third-quarter results and traders' hopes for a new round of economic stimulus from Washington dimmed.

“The market is sort of bouncing around here,” said Tom Martin, senior portfolio manager with Globalt Investments. “We’ve had a lot of noise lately and that’s probably what we’re going to have over the next couple of weeks.”

The S&P 500 rose 0.47 points to 3,483.81. The Dow gained 112.11 points, or 0.4%, to 28,606.31. At one point, it had been up by 348 points. The Nasdaq fell 42.32 points, or 0.4%, to 11,671.56. The Russell 2000 index of small-cap stocks dropped 5.08 points, or 0.3%, to 1,633.81.

Despite the market’s downbeat finish, the major stock indexes have already recouped most of their losses from September's market swoon.

Stocks have been mostly climbing this month, but trading became choppy this week as ongoing talks between Democrats and Republicans on an economic stimulus package failed to deliver results. Investors have been hoping that Washington would provide more financial support for the economy since July, when a $600-a-week extra benefit for the unemployed expired.

Traders have been watching economic data closely to see whether the loss of that beefed-up unemployment aid would lead to an overall pullback in spending. On Thursday, the government’s said the number of Americans seeking unemployment aid increased last week to 898,000, a historically high level that underscores how the economy continues to be hobbled by the pandemic and recession that erupted seven months ago.

Friday’s retail sales report provides some encouragement, suggesting Americans’ appetite for spending remained solid last month. The Commerce Department said retail sales rose 1.9% in September, the fifth straight monthly increase.

https://www.usnews.com/news/busines...ixed-amid-2nd-wave-coronavirus-election-fears

A Late Slide Erases Gains for US Indexes, Leaving Them Mixed
Stocks took a late stumble on Wall Street, erasing an early gain and leaving major indexes mixed on Friday.
By Associated Press, Wire Service Content Oct. 16, 2020, at 4:57 p.m.

By ALEX VEIGA, AP Business Writer

Wall Street closed out a choppy week of trading with more of the same Friday, as a late-afternoon stumble led U.S. stock indexes to a mixed finish.

The S&P 500 ended the day just a fraction of a point higher after a burst of selling erased a 0.9% gain. Despite a three-day stretch of losses, the benchmark index still managed to finish higher for the week, its third straight weekly gain.

Big Tech and energy companies fell while health care and industrial stocks rose. The Dow Jones Industrial Average also eked out a gain, while the Nasdaq composite posted its fourth straight loss. Treasury yields were flat.

The market had been up for much of the day after the government reported that retail sales rose in September for the fifth straight month. That report appeared to overshadow new data showed U.S. industrial production had its weakest showing last month since the spring.

The market's late-day fade capped a week of volatility for stocks as companies began reporting their third-quarter results and traders' hopes for a new round of economic stimulus from Washington dimmed.

“The market is sort of bouncing around here,” said Tom Martin, senior portfolio manager with Globalt Investments. “We’ve had a lot of noise lately and that’s probably what we’re going to have over the next couple of weeks.”

The S&P 500 rose 0.47 points to 3,483.81. The Dow gained 112.11 points, or 0.4%, to 28,606.31. At one point, it had been up by 348 points. The Nasdaq fell 42.32 points, or 0.4%, to 11,671.56. The Russell 2000 index of small-cap stocks dropped 5.08 points, or 0.3%, to 1,633.81.

Despite the market’s downbeat finish, the major stock indexes have already recouped most of their losses from September's market swoon.

Stocks have been mostly climbing this month, but trading became choppy this week as ongoing talks between Democrats and Republicans on an economic stimulus package failed to deliver results. Investors have been hoping that Washington would provide more financial support for the economy since July, when a $600-a-week extra benefit for the unemployed expired.

Traders have been watching economic data closely to see whether the loss of that beefed-up unemployment aid would lead to an overall pullback in spending. On Thursday, the government’s said the number of Americans seeking unemployment aid increased last week to 898,000, a historically high level that underscores how the economy continues to be hobbled by the pandemic and recession that erupted seven months ago.

Friday’s retail sales report provides some encouragement, suggesting Americans’ appetite for spending remained solid last month. The Commerce Department said retail sales rose 1.9% in September, the fifth straight monthly increase.

“There’s a need for stimulus, even though this data is heartening in a way,” said Ross Mayfield, an investment strategist at Baird.

Still, given that the Nov. 3 election is fast approaching, the market is not expecting leadership in Washington to deliver an economic stimulus package before voters go to the polls, Mayfield said.

“Now, it’s essentially baked in that we probably won’t see anything until after the election,” he said.

The retail sales report initially juiced shares in retailers and other companies that rely on consumer spending, but most of those gains evaporated by the end of the day.

Other data point to persistent weakness in the economy. The Federal Reserve said Friday that U.S. industrial production fell 0.6% last month, the weakest showing since April’s 12.7% skid amid widespread business shutdowns due to the pandemic. Economists had been expecting an increase.

A surge in new coronavirus infections in Europe, the Americas and parts of Asia, is also giving traders reason to turn cautious. The new caseloads prompted governments in France and Britain to impose new restrictions aimed on containing the outbreak contributed to some of the selling in the market earlier this week.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring, reflecting some signs of improvement in the economy since then.

Analysts have been raising their earnings forecasts for how companies fared in the third quarter after lowering them sharply ahead of the second quarter. That means it will be tougher for companies reporting results the next couple of weeks to beat expectations.

“Those expectations have been rising all quarter,” Mayfield said. “There’s just going to be a higher hurdle to clear to impress investors.”

Credit card issuer Ally Financial rose 2.7% after it reported better-than-expected results. Logistics company J.B. Hunt Transportation Services sank 9.7%, the biggest decliner in the S&P 500, after its third-quarter results fell short of analysts’ expectations.

Several big companies report quarterly results next week, including Netflix, Coca-Cola, Tesla, Southwest Airlines and American Express.

The 10-year Treasury yield held steady at 0.74%.

Friday’s early gains on Wall Street followed a broad rally in European stock indexes, which clawed back some of their heavy losses from a day earlier. Asian markets ended mixed.

 

[bigdog]

ASX 200 expected to rise.

The Australian share market looks set to start the week in a positive fashion on Monday. According to the latest SPI futures, the ASX 200 is expected to open the week 39 points or 0.6% higher. This follows a reasonably positive end to the week on Wall Street. On Friday night the Dow Jones rose 0.4%, the S&P 500 edged higher, and the Nasdaq dropped 0.35% lower. Wall Street was given a boost by stronger than expected U.S. retail sales data.

Gold price edges lower.

 

[bigdog]

Stocks gave up some of their recent gains Monday as Wall Street's hopes that Washington will come through with badly needed aid for the economy before Election Day faded.

The S&P 500 dropped 1.6%, its worst day in more than three weeks. The benchmark index had been up 0.5% in the early going following a report that China's economy grew at a 5% annual rate in the last quarter. The market’s slide was broad, though technology, health care and communication stocks bore the brunt of the selling. Treasury yields were mixed.

The early gains evaporated by mid afternoon ahead of another round of talks between Democratic and Republican leadership over a long-sought economic stimulus bill. Wall Street is expecting that lawmakers will agree on new stimulus measures for the economy, but the odds of that happening before the Nov. 3 election have dimmed. Over the weekend, House Speaker Nancy Pelosi said a deal would have to come within 48 hours — or by Tuesday — for a stimulus package to be enacted by Election Day.

Uncertainty over when more aid for the economy may arrive, signs new coronavirus infections are surging and the upcoming election will likely make for a volatile few weeks, analysts say.

“We’re in a period here in the the next couple of weeks where the market goes sideways through the election,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 56.89 points to 3,426.92. The Dow Jones Industrial Average of big blue chips dropped 410.89 points, or 1.4%, to 28,195.42. The Nasdaq composite extended its losing streak to a fifth day, losing 192.67 points, or 1.7%, to 11,478.88.

Small company stocks also fell. The Russell 2000 gave up 20.18 points, or 1.2%, to 1,613.63. The index has gained 7% so far this month, outpacing the 1.9% gain for the broader S&P 500.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. The benchmark S&P 500 has notched a gain in each of the past three weeks. Even so, trading often has been choppy from one day to the next, reflecting uncertainty over the timing of more stimulus for the economy, something investors have been hoping for since July, when a supplemental $600-a-week unemployment benefit package ran out.


ASX 200 expected to fall.

The Australian share market is set to give back some of yesterday’s gain after a poor start to the week on global markets. According to the latest SPI futures, the ASX 200 is poised to fall 40 points or 0.65% at the open. In late trade on Wall Street the Dow Jones is down 1.4%, the S&P 500 has dropped 1.6%, and the Nasdaq is 1.6% lower. Concerns that a stimulus deal in the U.S. won’t be signed is weighing on markets.

https://www.necn.com/news/national-...reet-as-hopes-for-new-virus-aid-fade/2337106/

Stocks Fall on Wall Street as Hopes for New Virus Aid Fade
Stocks had been up in the early going following a report that China’s economy grew at a 5% annual rate in the last quarter
By Ken Sweet, Damian J. Troise and Alex Veiga

Stocks gave up some of their recent gains Monday as Wall Street's hopes that Washington will come through with badly needed aid for the economy before Election Day faded.

The S&P 500 dropped 1.6%, its worst day in more than three weeks. The benchmark index had been up 0.5% in the early going following a report that China's economy grew at a 5% annual rate in the last quarter. The market’s slide was broad, though technology, health care and communication stocks bore the brunt of the selling. Treasury yields were mixed.

The early gains evaporated by mid afternoon ahead of another round of talks between Democratic and Republican leadership over a long-sought economic stimulus bill. Wall Street is expecting that lawmakers will agree on new stimulus measures for the economy, but the odds of that happening before the Nov. 3 election have dimmed. Over the weekend, House Speaker Nancy Pelosi said a deal would have to come within 48 hours — or by Tuesday — for a stimulus package to be enacted by Election Day.

Uncertainty over when more aid for the economy may arrive, signs new coronavirus infections are surging and the upcoming election will likely make for a volatile few weeks, analysts say.

“We’re in a period here in the the next couple of weeks where the market goes sideways through the election,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 56.89 points to 3,426.92. The Dow Jones Industrial Average of big blue chips dropped 410.89 points, or 1.4%, to 28,195.42. The Nasdaq composite extended its losing streak to a fifth day, losing 192.67 points, or 1.7%, to 11,478.88.

Small company stocks also fell. The Russell 2000 gave up 20.18 points, or 1.2%, to 1,613.63. The index has gained 7% so far this month, outpacing the 1.9% gain for the broader S&P 500.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. The benchmark S&P 500 has notched a gain in each of the past three weeks. Even so, trading often has been choppy from one day to the next, reflecting uncertainty over the timing of more stimulus for the economy, something investors have been hoping for since July, when a supplemental $600-a-week unemployment benefit package ran out.

Senate Majority Leader Mitch McConnell is expected to bring a his version of a stimulus bill to the floor of the Senate for a vote on Wednesday. However that bill is likely to get zero traction with the Democrat-controlled House of Representatives. So far, McConnell, Pelosi and President Donald Trump have not been on the same page.

Pelosi and Treasury Secretary Steven Mnuchin spoke Monday and are due to resume talks Tuesday, Pelosi spokesman Drew Hammill tweeted after the end of regular trading.

Investors were also looking ahead to another busy week of corporate earnings reports. Procter & Gamble, Netflix and American Express are a few of the companies that will reveal the extent of the virus pandemic’s impact during the most recent quarter.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

AMC Entertainment was among the few gainers Monday. Its shares jumped 16.4% after the movie theater chain said it plans to resume operations in theaters in New York State later this week.

Several airlines also rose after the Transport Security Administration said the number of passengers screened in a single day for flights in the U.S. topped one million on Sunday for the first time since the coronavirus cases began to spike in March. That compares with 2.6 million passengers screened by TSA on the same day last year, or roughly 60% fewer. United Airlines rose 3.9% and Southwest Airlines edged up 0.4%.

ConocoPhillips fell 3.2% after the oil giant announced it would buy Concho Resources for $9.7 billion. The deal is the largest in the oil industry since crude prices plummeted this year due to the COVID pandemic. Concho lost 2.8%.

European stocks closed broadly lower, and Asian markets ended mixed.

 

[bigdog]

Stocks closed broadly higher Tuesday as Wall Street welcomed a batch of solid earnings reports from U.S. companies.

The S&P 500 gained 0.5%, recouping some of its loss from a day earlier. Technology, communication and financial stocks powered most of the gains, while household goods makers fell. Overseas markets closed mixed. Treasury yields held steady.

Traders bid up shares in several companies that reported quarterly results that were better than analysts expected, including Procter & Gamble, Regions Financial, Albertsons and Travelers. Others didn't fare as well. Netflix shares fell in after-hours trading after the streaming service reported third-quarter earnings and a tally of new subscribers that fell short of analysts' expectations.

Investors also had their eye on Washington in hopes that Democrats and Republicans will reach a deal to deliver more aid for the economy. Fading optimism that an agreement on a new relief package will be reached before the election next month led to a late-afternoon sell-off on Monday.

“We have had a decently strong recovery out of the gate, but there are signs that it is maybe starting to slow,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “Additional stimulus aid is something that will benefit the economy.”

Shares in Google's parent company rose following news that the Justice Department sued the internet giant Tuesday, claiming Google has abused its dominance in online search and advertising to stifle competition and harm consumers.

The market had been on track for a stronger finish, before losing some of its gains by the final hour of trading. The S&P 500 rose 16.20 points to 3,443.12. The Dow Jones Industrial Average of big blue chips gained 113.37 points, or 0.4%, to 28,308.79. It had been up 379 points.

The Nasdaq composite snapped a five-day losing streak, rising 37.61 points, or 0.3%, to 11,516.49.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. The benchmark S&P 500 has notched a gain in each of the past three weeks. Even so, trading often has been choppy from one day to the next, reflecting uncertainty over the timing of more stimulus for the economy, something investors have been hoping for since July, when a supplemental $600-a-week unemployment benefit package ran out.

“If we can't get stimulus within the next three or four months, that's going to be damaging to the U.S. economy," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

Senate Majority Leader Mitch McConnell said Tuesday that he’ll schedule a vote if House Speaker Nancy Pelosi and the Trump administration are able to seal an agreement on a huge COVID-19 relief bill. Pelosi and Treasury Secretary Steven Mnuchin held talks for the second day in a row Tuesday.

On Sunday, Pelosi said that Tuesday would be the deadline for reaching a pre-election deal with the Trump administration on a new coronavirus relief package. But she clarified in an interview with Bloomberg News Tuesday that the aim is to spur the two sides to exchange their best proposals on a host of unresolved issues, not to close out all of their disagreements or have final legislative language at hand.

ASX 200 expected to edge higher.

It looks set to be a better day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points higher. This follows a strong night on Wall Street which in late trade sees the Dow Jones up 0.55%, the S&P 500 0.65% higher, and the Nasdaq climbing 0.5%. This follows comments by Nancy Pelosi that she is optimistic that a stimulus deal will be reached.

https://www.usnews.com/news/busines...asian-shares-mixed-as-us-virus-aid-hopes-fade

Stocks Close Higher as Companies Report Solid Earnings
Stocks are closing higher on Wall Street following several solid earnings reports from U.S. companies.

By Associated Press, Wire Service Content Oct. 20, 2020, at 4:48 p.m.

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

Stocks closed broadly higher Tuesday as Wall Street welcomed a batch of solid earnings reports from U.S. companies.

The S&P 500 gained 0.5%, recouping some of its loss from a day earlier. Technology, communication and financial stocks powered most of the gains, while household goods makers fell. Overseas markets closed mixed. Treasury yields held steady.

Traders bid up shares in several companies that reported quarterly results that were better than analysts expected, including Procter & Gamble, Regions Financial, Albertsons and Travelers. Others didn't fare as well. Netflix shares fell in after-hours trading after the streaming service reported third-quarter earnings and a tally of new subscribers that fell short of analysts' expectations.

Investors also had their eye on Washington in hopes that Democrats and Republicans will reach a deal to deliver more aid for the economy. Fading optimism that an agreement on a new relief package will be reached before the election next month led to a late-afternoon sell-off on Monday.

“We have had a decently strong recovery out of the gate, but there are signs that it is maybe starting to slow,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “Additional stimulus aid is something that will benefit the economy.”

Shares in Google's parent company rose following news that the Justice Department sued the internet giant Tuesday, claiming Google has abused its dominance in online search and advertising to stifle competition and harm consumers.

The market had been on track for a stronger finish, before losing some of its gains by the final hour of trading. The S&P 500 rose 16.20 points to 3,443.12. The Dow Jones Industrial Average of big blue chips gained 113.37 points, or 0.4%, to 28,308.79. It had been up 379 points.

The Nasdaq composite snapped a five-day losing streak, rising 37.61 points, or 0.3%, to 11,516.49.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. The benchmark S&P 500 has notched a gain in each of the past three weeks. Even so, trading often has been choppy from one day to the next, reflecting uncertainty over the timing of more stimulus for the economy, something investors have been hoping for since July, when a supplemental $600-a-week unemployment benefit package ran out.

“If we can't get stimulus within the next three or four months, that's going to be damaging to the U.S. economy," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

Senate Majority Leader Mitch McConnell said Tuesday that he’ll schedule a vote if House Speaker Nancy Pelosi and the Trump administration are able to seal an agreement on a huge COVID-19 relief bill. Pelosi and Treasury Secretary Steven Mnuchin held talks for the second day in a row Tuesday.

On Sunday, Pelosi said that Tuesday would be the deadline for reaching a pre-election deal with the Trump administration on a new coronavirus relief package. But she clarified in an interview with Bloomberg News Tuesday that the aim is to spur the two sides to exchange their best proposals on a host of unresolved issues, not to close out all of their disagreements or have final legislative language at hand.

Google parent Alphabet rose 1.4% after the Justice Department sued the company for antitrust violations. The lawsuit could be an opening salvo ahead of other major government antitrust actions, given ongoing federal probes of other major tech companies, including Apple, Amazon and Facebook. Shares in Apple gained 1.5%, while Amazon added 0.3%. Facebook rose 2.4%.

The Big Tech stocks have been investor favorites this year, because the companies are expected to do well during and after the pandemic. That these companies could one day face the risk of an antitrust case is a risk investors have, or should have, long considered.

“It doesn't look like the market is too worried about it right now,” Horneman said, adding that the stocks' market-leading gains this year suggest traders are not pricing in a major regulatory risk.

Homebuilders rose broadly after the Commerce Department said U.S. home construction rose a solid 1.9% last month after having fallen in August. Applications for building permits, a good sign of future activity, also rose in September. NVR was the biggest gainer, climbing 3.5%.

Procter & Gamble rose 0.4% after the consumer products company reported solid fiscal first-quarter results and raised its earnings outlook. Insurer the Travelers Cos. gained 5.6% after its latest earnings topped Wall Street's estimates, thanks partly to lower-than-expected losses on claims.

Albertsons climbed 5.8% following its latest quarterly results. The supermarket chain benefited from a sharp increase in online and in-store sales as customers continue to stock up on groceries due to the coronavirus. Regions Financial gained 4.9% as traders cheered the bank's latest quarterly results, which included solid fee income from mortgages.

Across the S&P 500, analysts are expecting companies to report another drop in profits for the summer from year-ago levels. But they’re forecasting the decline to moderate from the nearly 32% plunge from the spring as the economy has shown signs of improvement.

The yield on the 10-year Treasury note rose to 0.79 from 0.78% late Monday.

 

[bigdog]

U.S. stocks capped another wobbly day of trading with modest losses Wednesday as Wall Street waited for any signs of progress as lawmakers in Washington negotiate over how to deliver more aid for the economy.

The S&P 500 slipped 0.2% after shifting between small gains and losses for much of the day. The benchmark index is on track for its first weekly loss after notching gains in each of the past three weeks. Losses in industrial stocks, health care companies and elsewhere in the market outweighed solid gains by communication services stocks. Treasury yields were mixed.

Much of Wall Street’s focus has been on Washington, where White House officials and Democrats are negotiating on another round of support to prop up the still-struggling economy, though the prospects for a deal that delivers aid soon remain cloudy.

“As long as the parties involved give the market a headline suggesting they’re still negotiating, there’s a kernel of optimism in the market,” said Quincy Krosby, chief market strategist at Prudential Financial. “But then there’s also concern that this is extreme political posturing and that a deal will not be forthcoming.”

The S&P 500 fell 7.56 points to 3,435.56. The Dow Jones Industrial Average lost 97.97 points, or 0.4%, to 28,210.82. The index had briefly been up 141 points. The Nasdaq composite gave up 31.80 points, or 0.3%, to 11,484.69.

Stocks of social media companies were among the biggest gainers after Snap reported even bigger jumps in revenue and in the number of Snapchatters using its service each day than analysts expected.

Snap surged 28.3% following its quarterly profit report. In its wake, Twitter jumped 8.4%, the biggest gainer in the S&P 500, and Facebook rose 4.2%.

Google’s parent company rose 2.3%, adding to its gains from a day before when the Justice Department sued it for antitrust violations. Investors had already been expecting such action, and analysts said Google’s counterarguments mean it will likely take years to reach a resolution.

On the losing end was Netflix, which fell 6.9% for one of the largest losses in the S&P 500 after it said growth in its subscriber rolls slumped by more during the summer than it had forecast. It also reported a weaker quarterly profit than analysts expected, following a surge earlier this year when people were yearning for things to watch amid coronavirus-caused lockdowns.

It’s a rare disappointing report in what’s so far been a much better earnings season than Wall Street girded for. Roughly one in six of the companies in the S&P 500 index has reported its results for the July-through-September quarter, and most have topped the low expectations analysts had set.

S&P 500 companies are on track to report a decline of a little less than 18% in earnings per share for the quarter from a year ago, which is not as bad as the 21% drop that analysts were forecasting at the end of the quarter, according to FactSet.

ASX 200 expected to sink lower.

News that the U.S. Senate has blocked a US$500 billion COVID-19 stimulus package looks set to weigh on the Australian share market this morning. According to the latest SPI futures, the ASX 200 is poised to open the day 57 points or 0.9% lower. The S&P 500 fell 7.56 points to 3,435.56. The Dow Jones Industrial Average lost 97.97 points, or 0.4%, to 28,210.82. The index had briefly been up 141 points. The Nasdaq composite gave up 31.80 points, or 0.3%, to 11,484.69

https://www.usnews.com/news/busines...ise-after-wall-street-gains-on-solid-earnings

Stocks Slip on Wall Street as Virus Aid Deal Remains Elusive

Stocks closed lower on Wall Street as negotiations continue to drag on in Washington over delivering more aid for the economy.
By Associated Press, Wire Service Content Oct. 21, 2020, at 4:43 p.m.

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

U.S. stocks capped another wobbly day of trading with modest losses Wednesday as Wall Street waited for any signs of progress as lawmakers in Washington negotiate over how to deliver more aid for the economy.

The S&P 500 slipped 0.2% after shifting between small gains and losses for much of the day. The benchmark index is on track for its first weekly loss after notching gains in each of the past three weeks. Losses in industrial stocks, health care companies and elsewhere in the market outweighed solid gains by communication services stocks. Treasury yields were mixed.

Much of Wall Street’s focus has been on Washington, where White House officials and Democrats are negotiating on another round of support to prop up the still-struggling economy, though the prospects for a deal that delivers aid soon remain cloudy.

“As long as the parties involved give the market a headline suggesting they’re still negotiating, there’s a kernel of optimism in the market,” said Quincy Krosby, chief market strategist at Prudential Financial. “But then there’s also concern that this is extreme political posturing and that a deal will not be forthcoming.”

The S&P 500 fell 7.56 points to 3,435.56. The Dow Jones Industrial Average lost 97.97 points, or 0.4%, to 28,210.82. The index had briefly been up 141 points. The Nasdaq composite gave up 31.80 points, or 0.3%, to 11,484.69.

Stocks of social media companies were among the biggest gainers after Snap reported even bigger jumps in revenue and in the number of Snapchatters using its service each day than analysts expected.

Snap surged 28.3% following its quarterly profit report. In its wake, Twitter jumped 8.4%, the biggest gainer in the S&P 500, and Facebook rose 4.2%.

Google’s parent company rose 2.3%, adding to its gains from a day before when the Justice Department sued it for antitrust violations. Investors had already been expecting such action, and analysts said Google’s counterarguments mean it will likely take years to reach a resolution.

On the losing end was Netflix, which fell 6.9% for one of the largest losses in the S&P 500 after it said growth in its subscriber rolls slumped by more during the summer than it had forecast. It also reported a weaker quarterly profit than analysts expected, following a surge earlier this year when people were yearning for things to watch amid coronavirus-caused lockdowns.

It’s a rare disappointing report in what’s so far been a much better earnings season than Wall Street girded for. Roughly one in six of the companies in the S&P 500 index has reported its results for the July-through-September quarter, and most have topped the low expectations analysts had set.

S&P 500 companies are on track to report a decline of a little less than 18% in earnings per share for the quarter from a year ago, which is not as bad as the 21% drop that analysts were forecasting at the end of the quarter, according to FactSet.

Traders have been keeping one eye on corporate earnings, and another on the prospects for more economic stimulus out of Washington.

The two sides have been making progress, House Speaker Nancy Pelosi told her Democratic colleagues in a letter late Tuesday. She said she hopes discussions will continue, past a self-imposed deadline of Tuesday.

Markets have been swinging recently with the perceived prospects of such stimulus. Investors have been clamoring for it since the summer, when extra benefits for laid-off workers and other support provided by the last round of aid approved by Congress expired.

But even if leaders from the White House and House of Representatives can reach a compromise soon, its fate looks unclear on Capitol Hill due to its growing price tag. Senate Majority Leader Mitch McConnell told fellow Republicans that he has warned the White House not to divide the party by sealing a relief deal before the election that could cost $2 trillion.

Regardless of the opposition, Jeffrey Halley of Oanda said, “the one lesson we can take is that the U.S. fiscal stimulus package remains the only thing financial markets are concentrating on, to the exclusion of everything else.”

While investors focus on government aid prospects, the market is still showing signals that the economy is expected to continue its recovery, said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management. He said smaller company stocks have been gaining ground in a sign of confidence, while bond yields continue rising. The broader market is also seeing more even gains from previously downtrodden sectors, such as industrial companies and businesses that rely on consumer spending.

“There is a lot of focus on Washington, but the market is telling you the economy is coming back very much in a ‘V’ pattern."

The yield on the 10-year Treasury rose to 0.82% from 0.81% late Tuesday. It’s been generally climbing since dropping close to 0.60% early last month.

European markets closed broadly lower, while Asian markets closed higher.

 

[bigdog]

U.S. stocks overcame a wobbly start to finish higher Thursday, as traders welcomed more corporate quarterly results for the summer that weren't as bad as Wall Street feared.

The S&P 500 rose 0.5% after shifting between small gains and losses throughout the morning. The index recouped all of its losses from a day earlier, but remains on track for its first weekly loss after notching a gain in each of the previous three weeks.

Health care companies, banks, and communication services stocks accounted for most of the gains. Energy stocks also rose as the price of U.S. crude oil pushed 1.6% higher. Those gains outweighed losses by technology companies and elsewhere in the market. Treasury yields rose, a sign that investors are feeling better about the economy.

After a downbeat start, stocks wobbled for a bit as traders weighed encouraging economic new data on weekly U.S. unemployment aid claims and September home sales. The indexes flipped into the green by midafternoon after House Speaker Nancy Pelosi said that negotiations for another round of economic stimulus were progressing.

The day's gyrations echo the market’s meandering trading in recent weeks as investors gauge the chances of Washington reaching a deal on more support for the economy. Time is running out to get something done before the election, which has dimmed some of the optimism that Democrats and Republicans will soon strike a bargain on an aid package.

“I have very low expectations for a stimulus deal, but the economic news and corporate earnings news is pretty good, and that’s encouraging,” said Phil Orlando, chief equity strategist at Federated Hermes.

The S&P 500 rose 17.93 points to 3,453.49. The Dow Jones Industrial Average gained 152.84 points, or 0.5%, to 28,363.66. The Nasdaq composite added 21.31 points, or 0.2%, to 11,506.01.

Smaller company stocks fared better than the rest of the market. The Russell 2000 small-cap index climbed 26.48 points, or 1.7%, to 1,630.25.

Investors have been hoping Washington will provide more aid for the economy, which continues to struggle due to the pandemic. The last round of beefed-up aid for unemployed Americans expired at the end of July. Any compromise will likely face stiff resistance from Republicans in the Senate.

Pelosi and Treasury Secretary Steven Mnuchin have been negotiating daily this week on a possible aid package. On Thursday, Pelosi said that progress is still being made.

“Help is on the way. It will be bigger, it will be better, it will be safer and it will be retroactive,” she said.

A piece of such a deal could include extra benefits for workers who lost their jobs due to the coronavirus pandemic. A report on Thursday morning showed that 787,000 workers applied for unemployment benefits last week.

While that’s still an incredibly high number relative to history, it’s down from 842,000 the prior week. It also was not nearly as bad as economists were expecting.

The number of workers continuing to get jobless benefits is likewise easing from its pandemic-era peak. That’s a sign that some people have been able to find new jobs, but it also shows that others are simply using up the last of their state unemployment benefits.

The economy continues to show signs of overall improvement, said Jeff Buchbinder, equity strategist at LPL Financial, including solid gains in retail sales in September. That has dampened some of the immediate need for more stimulus, but high unemployment is still a problem.

ASX 200 expected to edge higher.

The Australian share market looks set to end the week in a positive fashion. According to the latest SPI futures, the ASX 200 is poised to open the day 4 points higher this morning. At close on Wall Street, the S&P 500 rose 17.93 points to 3,453.49. The Dow Jones Industrial Average gained 152.84 points, or 0.5%, to 28,363.66. The Nasdaq composite added 21.31 points, or 0.2%, to 11,506.01

https://www.usnews.com/news/busines...llow-wall-street-lower-on-lack-of-us-aid-plan

Stocks Shake off a Wobbly Start to End Higher on Wall Street

Stocks shook off a wobbly start and ended higher on Wall Street.
By Associated Press, Wire Service Content Oct. 22, 2020, at 4:55 p.m.

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

U.S. stocks overcame a wobbly start to finish higher Thursday, as traders welcomed more corporate quarterly results for the summer that weren't as bad as Wall Street feared.

The S&P 500 rose 0.5% after shifting between small gains and losses throughout the morning. The index recouped all of its losses from a day earlier, but remains on track for its first weekly loss after notching a gain in each of the previous three weeks.

Health care companies, banks, and communication services stocks accounted for most of the gains. Energy stocks also rose as the price of U.S. crude oil pushed 1.6% higher. Those gains outweighed losses by technology companies and elsewhere in the market. Treasury yields rose, a sign that investors are feeling better about the economy.

After a downbeat start, stocks wobbled for a bit as traders weighed encouraging economic new data on weekly U.S. unemployment aid claims and September home sales. The indexes flipped into the green by midafternoon after House Speaker Nancy Pelosi said that negotiations for another round of economic stimulus were progressing.

The day's gyrations echo the market’s meandering trading in recent weeks as investors gauge the chances of Washington reaching a deal on more support for the economy. Time is running out to get something done before the election, which has dimmed some of the optimism that Democrats and Republicans will soon strike a bargain on an aid package.

“I have very low expectations for a stimulus deal, but the economic news and corporate earnings news is pretty good, and that’s encouraging,” said Phil Orlando, chief equity strategist at Federated Hermes.

The S&P 500 rose 17.93 points to 3,453.49. The Dow Jones Industrial Average gained 152.84 points, or 0.5%, to 28,363.66. The Nasdaq composite added 21.31 points, or 0.2%, to 11,506.01.

Smaller company stocks fared better than the rest of the market. The Russell 2000 small-cap index climbed 26.48 points, or 1.7%, to 1,630.25.

Investors have been hoping Washington will provide more aid for the economy, which continues to struggle due to the pandemic. The last round of beefed-up aid for unemployed Americans expired at the end of July. Any compromise will likely face stiff resistance from Republicans in the Senate.

Pelosi and Treasury Secretary Steven Mnuchin have been negotiating daily this week on a possible aid package. On Thursday, Pelosi said that progress is still being made.

“Help is on the way. It will be bigger, it will be better, it will be safer and it will be retroactive,” she said.

A piece of such a deal could include extra benefits for workers who lost their jobs due to the coronavirus pandemic. A report on Thursday morning showed that 787,000 workers applied for unemployment benefits last week.

While that’s still an incredibly high number relative to history, it’s down from 842,000 the prior week. It also was not nearly as bad as economists were expecting.

The number of workers continuing to get jobless benefits is likewise easing from its pandemic-era peak. That’s a sign that some people have been able to find new jobs, but it also shows that others are simply using up the last of their state unemployment benefits.

The economy continues to show signs of overall improvement, said Jeff Buchbinder, equity strategist at LPL Financial, including solid gains in retail sales in September. That has dampened some of the immediate need for more stimulus, but high unemployment is still a problem.

“There’s a ways to go, but the outperformance of the U.S. economy over the last several months clearly reduced the need for stimulus,” he said. “There's widespread agreement that more stimulus is needed, but it may be more targeted.”

Another report showed that sales of previously occupied homes accelerated even more last month than economists expected. Low mortgage rates are driving the action, as is a surge in interest in homes in Lake Tahoe and other resort areas as people look to work from home in more attractive locales, according to the National Association of Realtors.

Big companies, meanwhile, continue to report profits for the summer that took a hit from the coronavirus-caused recession. But they’re mostly not as bad as feared.

Align Technology, which makes Invisalign teeth straighteners, surged 35% for the biggest gain in the S&P 500 after its earnings report blew past Wall Street’s expectations. Stronger sales to teenagers helped the company more than triple analysts’ expectations for earnings per share.

The stock’s surge helped drive health care to the biggest gain among the 11 sectors that make up the S&P 500.

AT&T strengthened by 5.8% after it reported revenue for the latest quarter that beat analysts’ expectations. Coca-Cola gained 1.4%, and Tesla rose 0.7% after both reported earnings that topped Wall Street’s forecasts.

On the losing end were several Big Tech companies. Amazon fell 0.3% and Apple dropped 1%.

Those declines are slight, particularly when compared with the gargantuan gains the stocks made earlier this year. Big Tech companies have grown so massive in size that their stock movements have outsized sway on the S&P 500 and other indexes that are based on the market value of companies.

Overall, earnings have so far been stronger than expected, Buchbinder said, which is a good sign for the economy moving forward.

“The most important thing for the market is to know that the economic recovery is continuing,” he said. “Investors are hoping to hear from companies that economic conditions are improving.”

The yield on the 10-year Treasury rose to 0.86% from 0.83% late Wednesday. It’s still close to its highest level since June.

European markets ended mostly lower, and Asian markets were mixed.

 

[bigdog]

U.S. stock indexes closed mostly higher Friday, though the S&P 500 posted its first weekly loss in four weeks.

The benchmark index eked out a 0.3% gain after another day of wobbly trading. The Dow Jones Industrial average finished with a small loss. Gains in communication services, health care and other sectors outweighed a decline in technology and energy companies. Treasury yields remained near their highest levels since June.

The indexes bounced between small gains and losses after a sluggish start as investors weighed another batch of corporate results from the summer earnings period. The up-and-down moves have been a familiar pattern recently as traders keep an eye on the ongoing negotiations between Republican and Democractic leaders in Washington over more economic aid for the pandemic-stricken economy.

“It’s generally been a little more of a selling market, and a lot of that has to do with waiting to see whether or not we get a fiscal stimulus package before the election,” said Sal Bruno, chief investment officer at IndexIQ. “The odds of that are getting lower and lower the closer we get to the election.”

The S&P 500 rose 11.90 points to 3,465.39, it's second straight gain. The Dow Jones Industrial Average dropped 28.09 points, or 0.1%, to 28,335.57. The Nasdaq composite, which is heavily weighted with technology stocks, gained 42.28 points, or 0.4%, to 11,548.28. The index had been down 0.6%.

Small company stocks continued to best the rest of the market. The Russell 2000 index rose 10.25 points, or 0.6%, to 1,640.50. The index ended the week with a 0.4% gain, while the major U.S. indexes fell.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. Before this week, the S&P 500 had notched a weekly gain three weeks in a row. It's now up 3% for the month heading into the final week of October.

Investors are hoping for another round of government aid for businesses and millions of people who have lost their jobs during the coronavirus pandemic. The last round of supplemental aid for unemployed Americans expired at the end of July.

While House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have been negotiating daily this week on a possible aid package. On Thursday, Pelosi said that progress is still being made, but any compromise will likely face stiff resistance from Republicans in the Senate.

Wall Street is worried that if an agreement on more economic aid isn’t reached before the Nov. 3 election, it could leave the matter in limbo should there be a protracted delay in sorting out the outcome of the voting.

“You have political incentives going on right now to try and get something done,” Bruno said. “Once the election has passed, depending on the outcome, maybe some of those political incentives shift. It scrambles the deck quite a bit.”

In their debate late Thursday, President Donald Trump and his Democratic challenger Joe Biden managed a more substantive exchange than during their first raucous clash several weeks ago. There were no major market-moving surprises.

“The final U.S. presidential debate was less chaotic than the first but offered little new information to inform the result for markets,” Stephen Innes of Axi said in a commentary. “Meanwhile, discussion relevant to the post-election economic outlook was limited, particularly from President Trump.”

Uncertainty over whether Uncle Sam will provide more support for the economy was overshadowing solid earnings reports from big companies. While many have reported profits for the summer that took a hit from the coronavirus-caused recession, their results have been mostly not as bad as feared.

https://www.usnews.com/news/busines...us-futures-gain-after-last-trump-biden-debate

US Stocks Shake off a Wobbly Start and End Mostly Higher

Stocks shrugged off a sluggish start and ended mostly higher on Wall Street Friday.

By Associated Press, Wire Service Content Oct. 23, 2020, at 4:46 p.m.

By ALEX VEIGA, AP Business Writer

U.S. stock indexes closed mostly higher Friday, though the S&P 500 posted its first weekly loss in four weeks.

The benchmark index eked out a 0.3% gain after another day of wobbly trading. The Dow Jones Industrial average finished with a small loss. Gains in communication services, health care and other sectors outweighed a decline in technology and energy companies. Treasury yields remained near their highest levels since June.

The indexes bounced between small gains and losses after a sluggish start as investors weighed another batch of corporate results from the summer earnings period. The up-and-down moves have been a familiar pattern recently as traders keep an eye on the ongoing negotiations between Republican and Democractic leaders in Washington over more economic aid for the pandemic-stricken economy.

“It’s generally been a little more of a selling market, and a lot of that has to do with waiting to see whether or not we get a fiscal stimulus package before the election,” said Sal Bruno, chief investment officer at IndexIQ. “The odds of that are getting lower and lower the closer we get to the election.”

The S&P 500 rose 11.90 points to 3,465.39, it's second straight gain. The Dow Jones Industrial Average dropped 28.09 points, or 0.1%, to 28,335.57. The Nasdaq composite, which is heavily weighted with technology stocks, gained 42.28 points, or 0.4%, to 11,548.28. The index had been down 0.6%.

Small company stocks continued to best the rest of the market. The Russell 2000 index rose 10.25 points, or 0.6%, to 1,640.50. The index ended the week with a 0.4% gain, while the major U.S. indexes fell.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. Before this week, the S&P 500 had notched a weekly gain three weeks in a row. It's now up 3% for the month heading into the final week of October.

Investors are hoping for another round of government aid for businesses and millions of people who have lost their jobs during the coronavirus pandemic. The last round of supplemental aid for unemployed Americans expired at the end of July.

While House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have been negotiating daily this week on a possible aid package. On Thursday, Pelosi said that progress is still being made, but any compromise will likely face stiff resistance from Republicans in the Senate.

Wall Street is worried that if an agreement on more economic aid isn’t reached before the Nov. 3 election, it could leave the matter in limbo should there be a protracted delay in sorting out the outcome of the voting.

“You have political incentives going on right now to try and get something done,” Bruno said. “Once the election has passed, depending on the outcome, maybe some of those political incentives shift. It scrambles the deck quite a bit.”

In their debate late Thursday, President Donald Trump and his Democratic challenger Joe Biden managed a more substantive exchange than during their first raucous clash several weeks ago. There were no major market-moving surprises.

“The final U.S. presidential debate was less chaotic than the first but offered little new information to inform the result for markets,” Stephen Innes of Axi said in a commentary. “Meanwhile, discussion relevant to the post-election economic outlook was limited, particularly from President Trump.”

Uncertainty over whether Uncle Sam will provide more support for the economy was overshadowing solid earnings reports from big companies. While many have reported profits for the summer that took a hit from the coronavirus-caused recession, their results have been mostly not as bad as feared.

Barbie maker Mattel jumped 9.6% after its latest earnings blew past analysts’ forecasts. Capital One Financial gained 1.6% after turning in robust results.

Some companies' results didn't live up to Wall Street's expectations. American Express fell 3.6% and chipmaker Intel sank 10.6%, the biggest decline in the S&P 500, after reporting weakness in its data center business. Intel’s drop helped pull the Dow into the red.

Drugmaker Gilead rose 0.2% after U.S. regulators gave formal approval to its antiviral drug remdesivir to treat patients hospitalized with COVID-19.

Treasury yields dipped but remain near their highest levels since June. The 10-year Treasury yield slipped to 0.84% from 0.87% late Thursday.

The recent pickup in bond yields follows recent encouraging data on residential construction, homebuying and retail sales. It also suggests bond investors are more optimistic that the economy will receive more aid from Washington.

“The fact that (bond yields) have been moving up is not just in support of actual data, but that the data will continue getting better moving forward, which depends to a large extent on getting a stimulus package," Bruno said.

Markets in Europe closed higher, and Asian markets mostly rose.

 

[bigdog]

ASX 200 expected to rise.

It looks set to be a positive start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is expected to open 0.3% or 18 points higher this morning. This follows a reasonably positive end to the week on Wall Street, which saw the Dow Jones fall 0.1%, but the S&P 500 rise 0.35% and the Nasdaq push 0.4% higher.

 

[bigdog]

U.S. stocks fell sharply Monday, deepening last week's losses, as a troubling increase in coronavirus counts put investors in a selling mood. The skid came as doubts mount on Wall Street that Washington will come through with more stimulus for the economy before Election Day.

The S&P 500 slid 1.9%, its biggest single-day decline in more than a month. The Dow Jones Industrial Average dropped 650 points after having been down more than 960 during the heaviest selling. Technology companies drove much of the broad sell-off, though losses in communications services, financial and industrial stocks helped weigh down the market. Energy stocks also dropped in tandem with crude oil prices.

Stocks also fell across much of Europe and Asia. In another sign of caution, Treasury yields pulled back after touching their highest level since June last week.

“It’s kind of a perfect storm,” said Ross Mayfield, investment strategy analyst at Baird. “The record case numbers and the kind of rolling lockdowns across Europe are getting the headlines. Oil is down on some supply and demand issues. Stimulus seems more and more unlikely by the day, at least pre-election.”

The S&P 500 fell 64.42 points to 3,400.97. The Dow slumped 650.19 points, or 2.3%, to 27,685.38. The Nasdaq composite lost 189.34 points, or 1.6%, to 11,358.94. Smaller company stocks also took heavy losses, knocking the Russell 2000 index down 35.29 points, or 2.2%, to 1,605.21.

Coronavirus counts are spiking in much of the United States and Europe, raising concerns about more damage to the still-weakened economy. The U.S. came very close to setting back-to-back record daily infection rates on Friday and Saturday. In Europe, Spain's government declared a national state of emergency on Sunday that includes an overnight curfew, while Italy ordered restaurants and bars to close each day by 6 p.m. and shut down gyms, pools and movie theaters.

Hopes are fading, meanwhile, that Washington will be able to provide more support for the economy anytime soon. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin weren't able to reach an agreement in a phone call Monday, according to a Pelosi aide. The two have been discussing a potential deal to send cash to most Americans, restart supplemental benefits for laid-off workers and provide aid to schools, among other things.

Deep partisan difference remains on Capitol Hill, and time is running out for anything to happen before Election Day on Nov. 3. Any compromise reached between House Democrats and the White House would also likely face stiff resistance from Republicans in control of the Senate. Another concern is that possible delays in sorting out the results of next week’s elections could end up pushing a stimulus deal back indefinitely.

Worries about the diminishing prospect for more stimulus in the short term helped drive the S&P 500 to a 0.5% drop last week, its first weekly loss in the last four.

“While we are seeing nations attempt to stifle the spread of the virus through more localised and tentative restrictions, it seems highly likely that we will eventually see a swathe of nationwide lockdowns if the trajectory cannot be reversed,” said Joshua Mahony, senior market analyst at IG in London.

The U.S. economy has recovered a bit since the stay-at-home restrictions that swept the country early this year eased, and economists expect a report on Thursday to show it grew at an annual rate of 30.2% during the summer quarter after shrinking 31.4% during the second quarter.

But momentum has slowed recently after a prior round of supplemental unemployment benefits and other stimulus that Congress approved earlier this year expired.

Stocks of companies that need the virus to abate and the economy to return to normal logging some of the sharpest losses Monday.

Norwegian Cruise Line Holdings fell 8.4%, Marathon Oil dropped 7% and United Airlines lost 7%.

Energy stocks dropped to the largest loss among the 11 sectors that make up the S&P 500, falling in concert with oil prices. All the stocks in the index closed lower.

Among the market’s few gainers were companies that can succeed even in a stay-at-home economy. Zoom Video Communications gained 1.2%.

Amazon fared much better than the broader market, recovering from an early loss to close 0.1% higher, while Apple lost an early gain and ended flat. Expectations are high for them, and analysts say they'll report strong results for their latest quarter this week. They and other Big Tech stocks have soared through the pandemic on hopes their growth will only continue as work-from-home and other trends that benefit them accelerate.

This upcoming week is the busiest of this quarter's earnings season, with more than a third of the companies in the S&P 500 index scheduled to report. Besides Amazon and Apple, Ford Motor, General Electric and Google's parent company, Alphabet, are also on the docket.

Across the S&P 500, profit reports for the summer have been mostly better than Wall Street had feared, though they’re still on pace to be more than 16% lower than year-ago levels. Through Friday, 84% of S&P 500 companies reported better results than analysts had forecast, according to FactSet. If that level holds, it would be the best since at least 2008, when FactSet’s records begin.

Meanwhile, the upcoming U.S. elections could mean more short-term uncertainty in the markets and the results could determine the size and timing of any aid from Congress, said Esty Dwek, head of global market strategy at Natixis Investment Managers.

ASX 200 expected to sink lower.

The Australian share market looks set to sink notably lower on Tuesday after rising COVID-19 levels led to global markets being sold off overnight. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.9% lower this morning.

The S&P 500 fell 64.42 points to 3,400.97. The Dow slumped 650.19 points, or 2.3%, to 27,685.38. The Nasdaq composite lost 189.34 points, or 1.6%, to 11,358.94. Smaller company stocks also took heavy losses, knocking the Russell 2000 index down 35.29 points, or 2.2%, to 1,605.21.

https://www.usnews.com/news/busines...s-mostly-fall-on-uncertainty-over-us-election

Stocks Have Their Worst Day in a Month as Virus Cases Surge
The stock market had its worst day in a month as virus cases surge and help for the economy from Washington remains nowhere in sight.

By Associated Press, Wire Service Content Oct. 26, 2020, at 4:44 p.m.

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

U.S. stocks fell sharply Monday, deepening last week's losses, as a troubling increase in coronavirus counts put investors in a selling mood. The skid came as doubts mount on Wall Street that Washington will come through with more stimulus for the economy before Election Day.

The S&P 500 slid 1.9%, its biggest single-day decline in more than a month. The Dow Jones Industrial Average dropped 650 points after having been down more than 960 during the heaviest selling. Technology companies drove much of the broad sell-off, though losses in communications services, financial and industrial stocks helped weigh down the market. Energy stocks also dropped in tandem with crude oil prices.

Stocks also fell across much of Europe and Asia. In another sign of caution, Treasury yields pulled back after touching their highest level since June last week.

“It’s kind of a perfect storm,” said Ross Mayfield, investment strategy analyst at Baird. “The record case numbers and the kind of rolling lockdowns across Europe are getting the headlines. Oil is down on some supply and demand issues. Stimulus seems more and more unlikely by the day, at least pre-election.”

The S&P 500 fell 64.42 points to 3,400.97. The Dow slumped 650.19 points, or 2.3%, to 27,685.38. The Nasdaq composite lost 189.34 points, or 1.6%, to 11,358.94. Smaller company stocks also took heavy losses, knocking the Russell 2000 index down 35.29 points, or 2.2%, to 1,605.21.

Coronavirus counts are spiking in much of the United States and Europe, raising concerns about more damage to the still-weakened economy. The U.S. came very close to setting back-to-back record daily infection rates on Friday and Saturday. In Europe, Spain's government declared a national state of emergency on Sunday that includes an overnight curfew, while Italy ordered restaurants and bars to close each day by 6 p.m. and shut down gyms, pools and movie theaters.

Hopes are fading, meanwhile, that Washington will be able to provide more support for the economy anytime soon. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin weren't able to reach an agreement in a phone call Monday, according to a Pelosi aide. The two have been discussing a potential deal to send cash to most Americans, restart supplemental benefits for laid-off workers and provide aid to schools, among other things.

Deep partisan difference remains on Capitol Hill, and time is running out for anything to happen before Election Day on Nov. 3. Any compromise reached between House Democrats and the White House would also likely face stiff resistance from Republicans in control of the Senate. Another concern is that possible delays in sorting out the results of next week’s elections could end up pushing a stimulus deal back indefinitely.

Worries about the diminishing prospect for more stimulus in the short term helped drive the S&P 500 to a 0.5% drop last week, its first weekly loss in the last four.

“While we are seeing nations attempt to stifle the spread of the virus through more localised and tentative restrictions, it seems highly likely that we will eventually see a swathe of nationwide lockdowns if the trajectory cannot be reversed,” said Joshua Mahony, senior market analyst at IG in London.

The U.S. economy has recovered a bit since the stay-at-home restrictions that swept the country early this year eased, and economists expect a report on Thursday to show it grew at an annual rate of 30.2% during the summer quarter after shrinking 31.4% during the second quarter.

But momentum has slowed recently after a prior round of supplemental unemployment benefits and other stimulus that Congress approved earlier this year expired.

Stocks of companies that need the virus to abate and the economy to return to normal logging some of the sharpest losses Monday.

Norwegian Cruise Line Holdings fell 8.4%, Marathon Oil dropped 7% and United Airlines lost 7%.

Energy stocks dropped to the largest loss among the 11 sectors that make up the S&P 500, falling in concert with oil prices. All the stocks in the index closed lower.

Among the market’s few gainers were companies that can succeed even in a stay-at-home economy. Zoom Video Communications gained 1.2%.

Amazon fared much better than the broader market, recovering from an early loss to close 0.1% higher, while Apple lost an early gain and ended flat. Expectations are high for them, and analysts say they'll report strong results for their latest quarter this week. They and other Big Tech stocks have soared through the pandemic on hopes their growth will only continue as work-from-home and other trends that benefit them accelerate.

This upcoming week is the busiest of this quarter's earnings season, with more than a third of the companies in the S&P 500 index scheduled to report. Besides Amazon and Apple, Ford Motor, General Electric and Google's parent company, Alphabet, are also on the docket.

Across the S&P 500, profit reports for the summer have been mostly better than Wall Street had feared, though they’re still on pace to be more than 16% lower than year-ago levels. Through Friday, 84% of S&P 500 companies reported better results than analysts had forecast, according to FactSet. If that level holds, it would be the best since at least 2008, when FactSet’s records begin.

Meanwhile, the upcoming U.S. elections could mean more short-term uncertainty in the markets and the results could determine the size and timing of any aid from Congress, said Esty Dwek, head of global market strategy at Natixis Investment Managers.

“It’s going to be a little bit volatile in the next week depending on the results, but we’re not expecting weeks of uncertainty,” she said.

European and Asian markets closed lower. The yield on the 10-year Treasury fell to 0.80% from 0.85% late Friday.

 

[bigdog]

Wall Street's losses mounted for the second straight day Tuesday as momentum slows on worries about rising virus counts and Washington's inability to deliver more aid to the economy.

The S&P 500 fell 0.3% after spending much of the day swinging between small gains and losses. Most of the stocks in the index fell, particularly banks, oil producers and other companies whose profits tend to track the strength of the economy. Those losses outweighed gains in technology stocks and companies that rely on consumer spending. Traders also welcomed news that AMD has agreed to buy fellow chipmaker Xilinx for $35 billion.

The market’s latest pullback, which follows the S&P 500's worst day in a month, cuts further into what had been a solid rebound this month after heavy selling in September snapped a five-month winning streak. Just two weeks ago, the S&P 500 was holding on to 4.4% gain for the month. It’s now on track for a gain of just 0.8%.

“Even though we had a really nice runup for a few months, we had been concerned there would be some volatility coming in pre-election, and it’s just a function of the huge uncertainty level,” said Lisa Erickson, head of the Traditional Investment Group at U.S Bank Wealth Management.

The S&P 500 fell 10.29 points to 3,390.68. The Dow Jones Industrial Average lost 222.19 points, or 0.8%, to 27,463.19. The Nasdaq composite rose 72.41 points, or 0.6%, to 11,431.35.

Caution continues to hang over markets. Coronavirus counts keep climbing at a troubling rate across much of the United States and Europe. The worry is that could lead to the return of lockdowns aimed at slowing the pandemic’s spread, which could further choke off the improvements the economy showed during the summer.

The U.S. economy’s momentum has already slowed following the expiration of supplemental benefits for laid-off workers and other support that Congress approved for the economy earlier this year.

Reports on the economy released Tuesday were mixed. Orders for big-ticket manufactured goods rose 1.9% in September, an acceleration from August’s 0.4% growth and better than economists expected but well below July’s 11.8%. Consumer confidence also weakened a bit in October, when economists were expecting it to hold steady.

“The market was really set up for any sort of a negative surprise that could potentially impact it,” said Scott Knapp, chief market strategist at CUNA Mutual Group.

Investors have been clamoring for Congress to deliver another round of stimulus for the economy, but they’re increasingly acknowledging it won’t happen anytime soon.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their negotiations on a deal Monday afternoon, and a Pelosi spokesman said she’s optimistic an agreement can happen before Election Day next week. But even if a deal is reached, it could wither in the face of resistance from Republicans controlling the Senate. After confirming the latest Supreme Court justice, the Senate is unlikely to return to session until Nov. 9.

“The market has accepted the odds of a stimulus package before the election and even before the end of the year have gone down dramatically,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

Wall Street's caution is also apparent in how it's reacting to corporate profit reports. Through the first two weeks of earnings season, companies that reported better results than expected have not been getting the typical pop in their stock price the day after.

“Companies that are beating expectations are not being rewarded to the degree that companies that miss expectations are being punished,” Knapp said. “That’s going to be the case when you have valuations this high."

ASX 200 expected to drop lower again.

It looks set to be another tough day of trade for the Australian share market after COVID-19 cases continue to rise globally. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.4% lower. The S&P 500 fell 10.29 points to 3,390.68. The Dow Jones Industrial Average lost 222.19 points, or 0.8%, to 27,463.19. The Nasdaq composite rose 72.41 points, or 0.6%, to 11,431.35.

https://www.usnews.com/news/busines...ares-slip-after-wall-sts-worst-day-in-a-month

Stocks End Another Wobbly Day Lower as Virus Cases Rise
Stock indexes closed mostly lower on Wall Street Tuesday as the market's momentum slows further on worries about rising virus counts and Washington’s inability to deliver more aid to the economy.
By Associated Press, Wire Service Content Oct. 27, 2020, at 4:48 p.m.

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

Wall Street's losses mounted for the second straight day Tuesday as momentum slows on worries about rising virus counts and Washington's inability to deliver more aid to the economy.

The S&P 500 fell 0.3% after spending much of the day swinging between small gains and losses. Most of the stocks in the index fell, particularly banks, oil producers and other companies whose profits tend to track the strength of the economy. Those losses outweighed gains in technology stocks and companies that rely on consumer spending. Traders also welcomed news that AMD has agreed to buy fellow chipmaker Xilinx for $35 billion.

The market’s latest pullback, which follows the S&P 500's worst day in a month, cuts further into what had been a solid rebound this month after heavy selling in September snapped a five-month winning streak. Just two weeks ago, the S&P 500 was holding on to 4.4% gain for the month. It’s now on track for a gain of just 0.8%.

“Even though we had a really nice runup for a few months, we had been concerned there would be some volatility coming in pre-election, and it’s just a function of the huge uncertainty level,” said Lisa Erickson, head of the Traditional Investment Group at U.S Bank Wealth Management.

The S&P 500 fell 10.29 points to 3,390.68. The Dow Jones Industrial Average lost 222.19 points, or 0.8%, to 27,463.19. The Nasdaq composite rose 72.41 points, or 0.6%, to 11,431.35.

Caution continues to hang over markets. Coronavirus counts keep climbing at a troubling rate across much of the United States and Europe. The worry is that could lead to the return of lockdowns aimed at slowing the pandemic’s spread, which could further choke off the improvements the economy showed during the summer.

The U.S. economy’s momentum has already slowed following the expiration of supplemental benefits for laid-off workers and other support that Congress approved for the economy earlier this year.

Reports on the economy released Tuesday were mixed. Orders for big-ticket manufactured goods rose 1.9% in September, an acceleration from August’s 0.4% growth and better than economists expected but well below July’s 11.8%. Consumer confidence also weakened a bit in October, when economists were expecting it to hold steady.

“The market was really set up for any sort of a negative surprise that could potentially impact it,” said Scott Knapp, chief market strategist at CUNA Mutual Group.

Investors have been clamoring for Congress to deliver another round of stimulus for the economy, but they’re increasingly acknowledging it won’t happen anytime soon.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their negotiations on a deal Monday afternoon, and a Pelosi spokesman said she’s optimistic an agreement can happen before Election Day next week. But even if a deal is reached, it could wither in the face of resistance from Republicans controlling the Senate. After confirming the latest Supreme Court justice, the Senate is unlikely to return to session until Nov. 9.

“The market has accepted the odds of a stimulus package before the election and even before the end of the year have gone down dramatically,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

Wall Street's caution is also apparent in how it's reacting to corporate profit reports. Through the first two weeks of earnings season, companies that reported better results than expected have not been getting the typical pop in their stock price the day after.

“Companies that are beating expectations are not being rewarded to the degree that companies that miss expectations are being punished,” Knapp said. “That’s going to be the case when you have valuations this high."

The parade of companies reporting better profits than expected for the last quarter continued to grow Tuesday, helping to steady the market somewhat. Merck, Invesco and Laboratory Corp. of America were among the roughly two dozen companies in the S&P 500 reporting earnings for the summer that topped analysts’ expectations.

F5 Networks climbed 8.5% for one of the biggest gains in the S&P 500 after it reported better earnings than expected. But 3M fell 3.1% despite likewise reporting stronger results than forecast.

Caterpillar slid 3.2% after reporting stronger earnings than expected, while Eli Lilly slumped 6.9% after its profit report fell short of Wall Street's forecast.

This is the busiest week of earnings reporting season, and Microsoft is the next big company on the schedule after trading ends Tuesday.

Xilinx jumped 8.6% for the biggest gain in the S&P 500 following the announcement of its all-stock acquisition by AMD.

In another sign of increased caution, Treasury yields retrenched again. The yield on the 10-year Treasury dipped to 0.77% from 0.81% late Monday.

European stock markets fell, and Asian markets ended mixed.

 

[bigdog]

The Dow Jones Industrial Average sank 943 points Wednesday as surging coronavirus cases forced more shutdown measures in Europe and raised fears of more restrictions in the U.S.

The S&P 500 slid 3.5%, its third straight loss and its biggest drop since June. The benchmark index is already down 5.6% this week, on track for its biggest weekly decline since March. That's when the market was in the midst of selling off as strict lockdowns around the world choked the economy into recession.

Investors are growing increasingly anxious that the economy will lose momentum should more shutdowns be imposed just as prospects for more economic support from Washington have dwindled as Election Day nears.

“Many people had come to believe we were at least stable, and now we’re having a second uptick, which throws potential GDP and everything else up in the air,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. ”I did not expect this level of volatility or this degree of a sell-off.”

The S&P 500 lost 119.65 points to 3,271.03. The Dow lost 943.24 points, or 3.4%, to 26,519.95. The Nasdaq composite slumped 426.48 points, or 3.7%, to 11,004.87. The selling was widespread, and 96% of stocks in the S&P 500 fell.

The selling in U.S. markets followed broad declines in Europe, where the French president announced tough measures to slow the virus’ spread and German officials agreed to impose a four-week partial lockdown. The measures may not be as stringent as the shutdown orders that swept the world early this year, but the worry is they could still hit the already weakened global economy.

Coronavirus counts are also climbing at a troubling rate in much of the United States, and the number of deaths and hospitalizations due to COVID-19 are on the rise. Even if the most restrictive lockdowns don’t return, investors worry that the worsening pandemic could scare away customers of businesses regardless and sap away their profits.

Crude oil tumbled on worries that an economy already weakened by the virus would consume even less energy and allow excess supplies to build higher. Benchmark U.S. crude dropped 5.7% to $37.39 per barrel. Brent crude, the international standard, fell 5.4% to $39.12 per barrel.

Instead, investors headed into the safety of U.S. government bonds. The yield on the 10-year Treasury note fell to 0.77% from 0.79% late Tuesday. It was as high as 0.87% last week.

A measure of fear in the stock market touched its highest level since June, when the market suddenly tumbled amid concerns that a “second wave” of coronavirus infections had arrived. The VIX measures how much volatility investors expect from the S&P 500, and it climbed 20.8% Wednesday.

Even the continued parade of better-than-expected reports on corporate profits for the summer failed to shift the momentum.

Microsoft, the second-biggest company in the S&P 500, reported stronger profit and revenue for its latest quarter than expected. That’s typically good for a stock, but Microsoft nevertheless slumped 5%. It gave a forecast for the current quarter that was relatively in line with Wall Street forecasts, but analysts noted some caveats in it.

UPS fell 8.8% after also reporting better-than-expected earnings, though it said the outlook for its business is too cloudy due to the pandemic to offer any forecasts for its revenue or profits in the current quarter.

Companies broadly have not been getting as big a pop in their stock prices as they typically do after reporting healthier-than-expected profits. Analysts say that suggests good news on profits has already been built into stock prices and that the market’s focus is elsewhere.

Investors' hopes that Congress and the White House could soon offer more big support for the economy as it struggles through the pandemic have largely faded. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have continued their talks, but investors see little chance of a deal happening before Election Day next week.

Economists say the economy likely needs such aid after the expiration of the last round of supplemental unemployment benefits and other stimulus approved by Washington earlier this year.

Uncertainty about the upcoming presidential election has also been pushing markets around.

“The market never likes uncertainty," said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. "People are just taking profits ahead of the election, to some extent.”

The race seems be getting tighter than it was just a few weeks ago, said Jamie Cox, managing partner for Harris Financial Group. “It has markets somewhat unnerved that the prospects of a contested election are back in the mix,” he said.

Cox said he expects more calm in the markets in November after the election passes and some of the uncertainty over a new aid package fades.

ASX 200 expected to crash lower.

The Australian share market looks set to crash notably lower this morning following a terrible night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 82 points or 1.35% lower. The S&P 500 lost 119.65 points to 3,271.03. The Dow lost 943.24 points, or 3.4%, to 26,519.95. The Nasdaq composite slumped 426.48 points, or 3.7%, to 11,004.87. The selling was widespread, and 96% of stocks in the S&P 500 fell.

https://www.usnews.com/news/busines...ostly-higher-despite-worries-over-virus-cases

S&P 500 Sinks 3.5% as Surging Virus Cases Lead to Shutdowns
The Dow Jones Industrial Average dropped 943 points Wednesday as surging coronavirus cases in the Europe resulted in more lockdowns there, threatening more pain for the economy.
By Associated Press, Wire Service Content Oct. 28, 2020, at 4:48 p.m.

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

The Dow Jones Industrial Average sank 943 points Wednesday as surging coronavirus cases forced more shutdown measures in Europe and raised fears of more restrictions in the U.S.

The S&P 500 slid 3.5%, its third straight loss and its biggest drop since June. The benchmark index is already down 5.6% this week, on track for its biggest weekly decline since March. That's when the market was in the midst of selling off as strict lockdowns around the world choked the economy into recession.

Investors are growing increasingly anxious that the economy will lose momentum should more shutdowns be imposed just as prospects for more economic support from Washington have dwindled as Election Day nears.

“Many people had come to believe we were at least stable, and now we’re having a second uptick, which throws potential GDP and everything else up in the air,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. ”I did not expect this level of volatility or this degree of a sell-off.”

The S&P 500 lost 119.65 points to 3,271.03. The Dow lost 943.24 points, or 3.4%, to 26,519.95. The Nasdaq composite slumped 426.48 points, or 3.7%, to 11,004.87. The selling was widespread, and 96% of stocks in the S&P 500 fell.

The selling in U.S. markets followed broad declines in Europe, where the French president announced tough measures to slow the virus’ spread and German officials agreed to impose a four-week partial lockdown. The measures may not be as stringent as the shutdown orders that swept the world early this year, but the worry is they could still hit the already weakened global economy.

Coronavirus counts are also climbing at a troubling rate in much of the United States, and the number of deaths and hospitalizations due to COVID-19 are on the rise. Even if the most restrictive lockdowns don’t return, investors worry that the worsening pandemic could scare away customers of businesses regardless and sap away their profits.

Crude oil tumbled on worries that an economy already weakened by the virus would consume even less energy and allow excess supplies to build higher. Benchmark U.S. crude dropped 5.7% to $37.39 per barrel. Brent crude, the international standard, fell 5.4% to $39.12 per barrel.

Instead, investors headed into the safety of U.S. government bonds. The yield on the 10-year Treasury note fell to 0.77% from 0.79% late Tuesday. It was as high as 0.87% last week.

A measure of fear in the stock market touched its highest level since June, when the market suddenly tumbled amid concerns that a “second wave” of coronavirus infections had arrived. The VIX measures how much volatility investors expect from the S&P 500, and it climbed 20.8% Wednesday.

Even the continued parade of better-than-expected reports on corporate profits for the summer failed to shift the momentum.

Microsoft, the second-biggest company in the S&P 500, reported stronger profit and revenue for its latest quarter than expected. That’s typically good for a stock, but Microsoft nevertheless slumped 5%. It gave a forecast for the current quarter that was relatively in line with Wall Street forecasts, but analysts noted some caveats in it.

UPS fell 8.8% after also reporting better-than-expected earnings, though it said the outlook for its business is too cloudy due to the pandemic to offer any forecasts for its revenue or profits in the current quarter.

Companies broadly have not been getting as big a pop in their stock prices as they typically do after reporting healthier-than-expected profits. Analysts say that suggests good news on profits has already been built into stock prices and that the market’s focus is elsewhere.

Investors' hopes that Congress and the White House could soon offer more big support for the economy as it struggles through the pandemic have largely faded. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have continued their talks, but investors see little chance of a deal happening before Election Day next week.

Economists say the economy likely needs such aid after the expiration of the last round of supplemental unemployment benefits and other stimulus approved by Washington earlier this year.

Uncertainty about the upcoming presidential election has also been pushing markets around.

“The market never likes uncertainty," said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. "People are just taking profits ahead of the election, to some extent.”

The race seems be getting tighter than it was just a few weeks ago, said Jamie Cox, managing partner for Harris Financial Group. “It has markets somewhat unnerved that the prospects of a contested election are back in the mix,” he said.

Cox said he expects more calm in the markets in November after the election passes and some of the uncertainty over a new aid package fades.

“Aid is coming regardless. There’ll be no political motivation to hold it back after the election,” he said. “There’s plenty of desire to get money out to people so I think it will happen one way or another in November.”

 

[bigdog]

U.S. stocks shook off an early slide and closed broadly higher Thursday as the market steadied after its worst drop in more than four months.

The S&P 500 rose 1.2%, bouncing back from a drop of 0.3% in the early going. Traders welcomed encouraging data on the pace of layoffs and how powerfully the economy rebounded during the summer from its coronavirus-induced coma. Economists warn big challenges still lie ahead, though. The S&P 500 was coming off a 3.5% tumble Wednesday on worries the worsening pandemic will drag down the economy and corporate profits again.

A strong rebound in technology sector stocks helped power the rally ahead of widely anticipated quarterly report cards from Facebook, Amazon and Google’s parent company. The three Big Tech companies each reported results after the close of regular trading that topped Wall Street's expectations.

“If you look at the leadership today, it’s back to the mega-cap names,” said Willie Delwiche, an investment strategist at Baird. “It’s in anticipation of good earnings this evening when you have a whole swath of companies reporting.”

The S&P 500 rose 39.08 points to 3,310.11. The gain was less than half of what the benchmark index lost a day earlier. The Dow Jones Industrial Average gained 139.16 points, or 0.5%, to 26,659.11. The index had been down 229 points and as high as 371 points.

The tech-heavy Nasdaq composite fared better than the rest of the market. It climbed 180.72 points, or 1.6%, to 11,185.59.

The major stock indexes are still on track to post weekly losses, including the second straight weekly decline for the S&P 500.

Across the Atlantic, European stocks initially rose but leveled off after the head of the European Central Bank said there's “little doubt” it will deliver more stimulus in December. They were also recovering from a sharp slide on Wednesday, when France and Germany announced new restrictions on businesses in hopes of slowing the accelerating spread of the virus.

Despite the relatively calm moves, caution continues to hang over the market. A measure of investors’ fear in the U.S. stock market touched its highest level since June before receding Thursday, and oil prices continued their sharp descent on worries about demand from a virus-weakened economy.

Beyond Europe, coronavirus cases are also on the rise in the United States, raising worries about restrictions on businesses returning. Even if the sweeping lockdowns that suffocated the economy earlier this year don’t come back, the fear is that the worsening pandemic could nevertheless keep customers away from businesses and undercut their profits.

“The future still looks cloudy," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “What happens with the virus will definitely determine consumers' behavior.”

The economy had been making strides in the summer, and it grew at a record annual rate of 33.1% from July through September, according to a government estimate released Thursday. That followed up on its crash from April through June, when it shrank at an annualized rate of 31.4%.

More recently, the number of U.S. workers applying for unemployment benefits eased last week to 751,000. While that’s still incredibly high compared with before COVID-19, it’s not as bad as the 791,000 from the prior week. It was also better than economists had forecast.

But the budding recovery is under threat now with coronavirus cases surging and with Congress and the White House unable to deliver additional support for the economy. Economists and investors have been asking for such assistance since the summer, when the last round of supplemental benefits for laid-off workers and other stimulus approved by Congress earlier this year expired.

Hopes are fading that Washington can get anything done soon, and House Speaker Nancy Pelosi sent a letter to Treasury Secretary Steven Mnuchin on Thursday listing all the topics she's waiting to hear back on in their negotiations. They include benefits for laid-off workers and measures on coronavirus testing.

Investors had their eye on another batch of corporate earnings reports Thursday. Heading into the earnings season, expectations have been high for Facebook, Amazon and other Big Tech companies, which have been largely cruising through the pandemic. Investors have bid up their stock prices on the belief that their profits will continue to soar as work-from-home and other trends accelerated by the pandemic hold.


Australian shares are poised to bounce, following Wall Street, as investors opted to 'buy the dip' in the wake of the previous day's sell-off. The US economy expanded 7.4 per cent in the third quarter.

ASX futures were up 40 points or 0.7% to 5976 near 6.40am AEDT.

https://www.usnews.com/news/busines...es-lower-us-futures-up-after-s-p-500-sinks-35

Wall Street Ends Higher After Shaking off a Wobbly Start
Stocks are closing broadly higher on Wall Street after shaking off a wobbly start.
By Associated Press, Wire Service Content Oct. 29, 2020, at 4:33 p.m.

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

U.S. stocks shook off an early slide and closed broadly higher Thursday as the market steadied after its worst drop in more than four months.

The S&P 500 rose 1.2%, bouncing back from a drop of 0.3% in the early going. Traders welcomed encouraging data on the pace of layoffs and how powerfully the economy rebounded during the summer from its coronavirus-induced coma. Economists warn big challenges still lie ahead, though. The S&P 500 was coming off a 3.5% tumble Wednesday on worries the worsening pandemic will drag down the economy and corporate profits again.

A strong rebound in technology sector stocks helped power the rally ahead of widely anticipated quarterly report cards from Facebook, Amazon and Google’s parent company. The three Big Tech companies each reported results after the close of regular trading that topped Wall Street's expectations.

“If you look at the leadership today, it’s back to the mega-cap names,” said Willie Delwiche, an investment strategist at Baird. “It’s in anticipation of good earnings this evening when you have a whole swath of companies reporting.”

The S&P 500 rose 39.08 points to 3,310.11. The gain was less than half of what the benchmark index lost a day earlier. The Dow Jones Industrial Average gained 139.16 points, or 0.5%, to 26,659.11. The index had been down 229 points and as high as 371 points.

The tech-heavy Nasdaq composite fared better than the rest of the market. It climbed 180.72 points, or 1.6%, to 11,185.59.

The major stock indexes are still on track to post weekly losses, including the second straight weekly decline for the S&P 500.

Across the Atlantic, European stocks initially rose but leveled off after the head of the European Central Bank said there's “little doubt” it will deliver more stimulus in December. They were also recovering from a sharp slide on Wednesday, when France and Germany announced new restrictions on businesses in hopes of slowing the accelerating spread of the virus.

Despite the relatively calm moves, caution continues to hang over the market. A measure of investors’ fear in the U.S. stock market touched its highest level since June before receding Thursday, and oil prices continued their sharp descent on worries about demand from a virus-weakened economy.

Beyond Europe, coronavirus cases are also on the rise in the United States, raising worries about restrictions on businesses returning. Even if the sweeping lockdowns that suffocated the economy earlier this year don’t come back, the fear is that the worsening pandemic could nevertheless keep customers away from businesses and undercut their profits.

“The future still looks cloudy," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “What happens with the virus will definitely determine consumers' behavior.”

The economy had been making strides in the summer, and it grew at a record annual rate of 33.1% from July through September, according to a government estimate released Thursday. That followed up on its crash from April through June, when it shrank at an annualized rate of 31.4%.

More recently, the number of U.S. workers applying for unemployment benefits eased last week to 751,000. While that’s still incredibly high compared with before COVID-19, it’s not as bad as the 791,000 from the prior week. It was also better than economists had forecast.

But the budding recovery is under threat now with coronavirus cases surging and with Congress and the White House unable to deliver additional support for the economy. Economists and investors have been asking for such assistance since the summer, when the last round of supplemental benefits for laid-off workers and other stimulus approved by Congress earlier this year expired.

Hopes are fading that Washington can get anything done soon, and House Speaker Nancy Pelosi sent a letter to Treasury Secretary Steven Mnuchin on Thursday listing all the topics she's waiting to hear back on in their negotiations. They include benefits for laid-off workers and measures on coronavirus testing.

Investors had their eye on another batch of corporate earnings reports Thursday. Heading into the earnings season, expectations have been high for Facebook, Amazon and other Big Tech companies, which have been largely cruising through the pandemic. Investors have bid up their stock prices on the belief that their profits will continue to soar as work-from-home and other trends accelerated by the pandemic hold.

But another tech giant, Microsoft, saw the potential downside of such huge expectations on Wednesday. That’s when its stock slumped 5% even though it reported stronger profit and revenue for the latest quarter than Wall Street expected.

Across Wall Street, analysts have noted that stocks have not been getting as big a boost as they usually do after reporting stronger profits than forecast.

That's dampened the enthusiasm following what's been a better reporting season than Wall Street had feared. Earnings per share for S&P 500 companies are on track to be down about 13% from a year earlier. That's a much milder drop than the nearly 21% decline that Wall Street was forecasting at the start of October, according to FactSet.

The yield on the 10-year Treasury rose to 0.83% from 0.79% late Wednesday.

 

[bigdog]

Wall Street closed out another punishing week Friday with the S&P 500 posting its first back-to-back monthly loss since the pandemic first gripped the economy in March.

The S&P 500 dropped 1.2% and ended the week with a 5.6% loss, its worst in seven months. Sharp drops in big technology stocks drove much of the selling, reflecting worries that expectations built too high for some of the market's biggest stars, including Apple and Amazon. Investors have bid up shares in those and other Big Tech companies this year, anticipating they would deliver strong profits, but their latest results and uncertain outlooks left traders wanting.

Wall Street was already wracked by fears about the potential economic damage from surging coronavirus counts around the world, Washington’s inability to provide more support for the economy and uncertainty surrounding the presidential election. President Donald Trump often cites the stock market as a barometer of his administration’s performance on the economy.

“Today, you have investors who are taking profits in the tech stocks that they expected to do well in the third quarter,” said Sam Stovall, chief investment strategist at CFRA. “And now the focus once again is on Covid-19, and investors are just selling ahead of a weekend.”

The S&P 500 lost 40.15 points to 3,269.96. It ended October with a 2.8% loss. The Dow Jones Industrial Average fell 157.71 points, or 0.6%, to 26,501.60. Earlier, it had been being down 515 points.

The Nasdaq composite gave up 274 points, or 2.5%, to 10,911.59. The tech-heavy index is within 0.6% of a “correction,” Wall Street-speak for a decline of 10% or more from an all-time high.

Much of the market's focus Friday was on Apple, Amazon, Facebook and Google’s parent company. They are four of the five biggest stocks in the S&P 500 by market value, which gives their movements outsized sway on the index, and they were principal forces behind Wall Street’s huge rally since March.

All four reported profit for the summer that was even better than analysts were expecting, just like the other stock in the Big Five did earlier this week. But also like Microsoft, most nevertheless fell as investors found reasons for concern within their reports.

Apple dropped 5.6% after investors focused on weaker revenue than expected for its iPhones and sales in China. Amazon fell 5.4%, and Facebook lost 6.3%.

Twitter, another high-profile tech stock, slumped 21.1% for the largest loss by far among stocks in the S&P 500. It also reported better-than-expected earnings for the latest quarter. Investors focused instead on its growth in daily users, which fell short of analysts’ expectations.

Google’s parent company, Alphabet, was an outlier and rose 3.8% after reporting growth in digital ad spending.

A similar trend has been occurring across the market: Stocks are not getting the bounce they usually do after reporting results that beat analysts' expectations. And they’ve been giving investors plenty of opportunities to do so: With nearly three quarters of the S&P 500 by market value having reported, 84% of companies have beat expectations, according to Credit Suisse.

Analysts say that's an indication that expectations may have built too high through the market's big rally and that investors' attention may simply be elsewhere given all the uncertainties sweeping the market.

Much of the market’s focus has been on what’s to come for the economy when coronavirus counts are rising at troubling rates across Europe and the United States.

Several European governments have already brought back restrictions on businesses to slow the spread of the virus. Even if the strictest lockdowns don’t return in the United States, the worry is the pandemic's rising death toll will drive customers away from businesses by itself and undercut profits.

“Because of the spike in Covid-19 overseas, with Germany and France in lockdown mode once again, the implication is that we could be heading into a double-dip recession in Europe, and that would have negative future implications for our economic growth.” Stovall said.

Meanwhile, Washington has been unable to deliver more aid to the economy. That's despite investors and economists saying it's sorely needed following the expiration of supplemental benefits for laid-off workers and other stimulus approved by Congress earlier this year.

https://www.usnews.com/news/business/articles/2020-10-30/asian-shares-fall-back-after-wall-street-rebound

Tech Losses Drive Wall Street Down Again, Ending Grim Week

Sharp drops in Apple, Facebook and other big technology companies ended a miserable week on Wall Street on another sour note.

By Associated Press, Wire Service Content Oct. 30, 2020, at 4:51 p.m.



By STAN CHOE and ALEX VEIGA, AP Business Writers

Wall Street closed out another punishing week Friday with the S&P 500 posting its first back-to-back monthly loss since the pandemic first gripped the economy in March.

The S&P 500 dropped 1.2% and ended the week with a 5.6% loss, its worst in seven months. Sharp drops in big technology stocks drove much of the selling, reflecting worries that expectations built too high for some of the market's biggest stars, including Apple and Amazon. Investors have bid up shares in those and other Big Tech companies this year, anticipating they would deliver strong profits, but their latest results and uncertain outlooks left traders wanting.

Wall Street was already wracked by fears about the potential economic damage from surging coronavirus counts around the world, Washington’s inability to provide more support for the economy and uncertainty surrounding the presidential election. President Donald Trump often cites the stock market as a barometer of his administration’s performance on the economy.

“Today, you have investors who are taking profits in the tech stocks that they expected to do well in the third quarter,” said Sam Stovall, chief investment strategist at CFRA. “And now the focus once again is on Covid-19, and investors are just selling ahead of a weekend.”

The S&P 500 lost 40.15 points to 3,269.96. It ended October with a 2.8% loss. The Dow Jones Industrial Average fell 157.71 points, or 0.6%, to 26,501.60. Earlier, it had been being down 515 points.

The Nasdaq composite gave up 274 points, or 2.5%, to 10,911.59. The tech-heavy index is within 0.6% of a “correction,” Wall Street-speak for a decline of 10% or more from an all-time high.

Much of the market's focus Friday was on Apple, Amazon, Facebook and Google’s parent company. They are four of the five biggest stocks in the S&P 500 by market value, which gives their movements outsized sway on the index, and they were principal forces behind Wall Street’s huge rally since March.

All four reported profit for the summer that was even better than analysts were expecting, just like the other stock in the Big Five did earlier this week. But also like Microsoft, most nevertheless fell as investors found reasons for concern within their reports.

Apple dropped 5.6% after investors focused on weaker revenue than expected for its iPhones and sales in China. Amazon fell 5.4%, and Facebook lost 6.3%.

Twitter, another high-profile tech stock, slumped 21.1% for the largest loss by far among stocks in the S&P 500. It also reported better-than-expected earnings for the latest quarter. Investors focused instead on its growth in daily users, which fell short of analysts’ expectations.

Google’s parent company, Alphabet, was an outlier and rose 3.8% after reporting growth in digital ad spending.

A similar trend has been occurring across the market: Stocks are not getting the bounce they usually do after reporting results that beat analysts' expectations. And they’ve been giving investors plenty of opportunities to do so: With nearly three quarters of the S&P 500 by market value having reported, 84% of companies have beat expectations, according to Credit Suisse.

Analysts say that's an indication that expectations may have built too high through the market's big rally and that investors' attention may simply be elsewhere given all the uncertainties sweeping the market.

Much of the market’s focus has been on what’s to come for the economy when coronavirus counts are rising at troubling rates across Europe and the United States.

Several European governments have already brought back restrictions on businesses to slow the spread of the virus. Even if the strictest lockdowns don’t return in the United States, the worry is the pandemic's rising death toll will drive customers away from businesses by itself and undercut profits.

“Because of the spike in Covid-19 overseas, with Germany and France in lockdown mode once again, the implication is that we could be heading into a double-dip recession in Europe, and that would have negative future implications for our economic growth.” Stovall said.

Meanwhile, Washington has been unable to deliver more aid to the economy. That's despite investors and economists saying it's sorely needed following the expiration of supplemental benefits for laid-off workers and other stimulus approved by Congress earlier this year.

“The Fed is saying this, the market is saying this, and most economists are beginning to adjust their fourth quarter forecasts with the expectation that growth without stimulus is going to be hard to achieve, especially as COVID-19 cases seem to set new daily records each day,” said Kevin Giddis, chief fixed income strategist at Raymond James.

In markets around the world on Friday, caution was still continuing to dominate. But the moves were not as violent as earlier in the week.

A measure of fear in the U.S. stock market, the VIX index, flipped between small gains and losses before rising 1.1%. The yield on the 10-year Treasury ticked up to 0.87% from 0.83% late Thursday.

European markets ended mixed and Asian markets closed broadly lower.

 

[bigdog]

ASX 200 expected to jump higher.

The Australian share market looks set to start the week on a strong note. According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.9% higher this morning. This is despite a disappointing end to the week on Wall Street, which saw the Dow Jones fall 0.6%, the S&P 500 drop 1.2% and the Nasdaq sink 2.45% lower.

 

[bigdog]

Stocks notched broad gains on Wall Street Monday as investors looked ahead to Election Day and the potential for a turbulent stretch for markets.

The S&P 500 climbed 1.2%, recouping some of its losses from a sharp sell-off last week, as more companies reported stronger profits for the summer than Wall Street feared and reports on manufacturing came in better than expected. Health care, industrial and financial companies drove much of the broad rally, which followed gains for European and Asian stocks following their own better-than-expected economic data.

Caution, though, was continuing to hang over markets as the pandemic raises worries that customers will stay away from businesses and pushes more European governments to bring back restrictions. Uncertainty about Tuesday’s U.S. elections is also weighing on markets, and Treasury yields were mixed.

“People are probably more than willing to hold off to see what happens tomorrow night,” said David Trainer, CEO of investment research firm New Constructs.

The S&P 500 rose 40.28 to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6%, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4%, to 10,957.61. The index had been down 0.7%.

Small company stocks fared better than the broader market. The Russell 2000 small-caps index rose 30.11 points, or 2%, to 1,568.59.

It’s an incredibly busy week for markets, with the Federal Reserve announcing its latest decision on interest rates Thursday, the U.S. Labor Department releasing its market-moving monthly jobs report on Friday and roughly 130 companies in the S&P 500 scheduled to report their results for the summer through the week.

Blaring above them all is Election Day. Markets have veered sharply in recent weeks as investors deal with uncertainty about who will control Washington, and what that means for the chances of the U.S. government delivering more aid for the economy.

Many professional investors say they plan to hold steady through whatever volatility the election creates. That’s because history shows politics don’t have a very strong correlation with market returns over the longer term. But Wall Street is nevertheless girding for potentially big swings in the interim.

The feared scenario for investors is a contested election, where it could take weeks for a winner of the White House to emerge. Markets famously hate uncertainty, and many along Wall Street expect stocks to drop in such a scenario.

Which party gets control of the Senate may be just as important as the presidency. If Democrats can gain complete control of Washington, many investors expect them to deliver a big dose of support for the economy. That plus “more predictable trade policy” could offset the higher tax rates and tighter regulations likely to come out of a Democratic-controlled Washington, says the BlackRock Investment Institute.

The Russell 2000′s solid gains Monday may signal that traders are betting Joe Biden will be elected president and that he’ll push for a big-ticket economic stimulus package, which would help smaller companies, said Quincy Krosby, chief market strategist at Prudential Financial.

“The biggest question for the market, if Biden does win, is does he bring the Senate with him?” she said. “Because for many of his proposals he’s going to need cooperation from the Senate.”

Democrats and Republicans have been haggling about a stimulus renewal for months, since the last round of supplemental benefits for laid-off workers and other stimulus expired. But a deep partisan divide has so far stymied them.


ASX 200 expected to rise.

The Australian share market looks set push higher again on Tuesday following a rebound on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.3% higher this morning. The S&P 500 rose 40.28 to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6%, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4%, to 10,957.61. The index had been down 0.7%.

https://apnews.com/article/virus-ou...cial-markets-5e9b5c26f61133db75a4784dbd4f8d96

Wall Street rallies ahead of a potentially turbulent week

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA 25 minutes ago

Stocks notched broad gains on Wall Street Monday as investors looked ahead to Election Day and the potential for a turbulent stretch for markets.

The S&P 500 climbed 1.2%, recouping some of its losses from a sharp sell-off last week, as more companies reported stronger profits for the summer than Wall Street feared and reports on manufacturing came in better than expected. Health care, industrial and financial companies drove much of the broad rally, which followed gains for European and Asian stocks following their own better-than-expected economic data.

Caution, though, was continuing to hang over markets as the pandemic raises worries that customers will stay away from businesses and pushes more European governments to bring back restrictions. Uncertainty about Tuesday’s U.S. elections is also weighing on markets, and Treasury yields were mixed.

“People are probably more than willing to hold off to see what happens tomorrow night,” said David Trainer, CEO of investment research firm New Constructs.

The S&P 500 rose 40.28 to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6%, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4%, to 10,957.61. The index had been down 0.7%.

Small company stocks fared better than the broader market. The Russell 2000 small-caps index rose 30.11 points, or 2%, to 1,568.59.

It’s an incredibly busy week for markets, with the Federal Reserve announcing its latest decision on interest rates Thursday, the U.S. Labor Department releasing its market-moving monthly jobs report on Friday and roughly 130 companies in the S&P 500 scheduled to report their results for the summer through the week.

Blaring above them all is Election Day. Markets have veered sharply in recent weeks as investors deal with uncertainty about who will control Washington, and what that means for the chances of the U.S. government delivering more aid for the economy.

Many professional investors say they plan to hold steady through whatever volatility the election creates. That’s because history shows politics don’t have a very strong correlation with market returns over the longer term. But Wall Street is nevertheless girding for potentially big swings in the interim.

The feared scenario for investors is a contested election, where it could take weeks for a winner of the White House to emerge. Markets famously hate uncertainty, and many along Wall Street expect stocks to drop in such a scenario.

Which party gets control of the Senate may be just as important as the presidency. If Democrats can gain complete control of Washington, many investors expect them to deliver a big dose of support for the economy. That plus “more predictable trade policy” could offset the higher tax rates and tighter regulations likely to come out of a Democratic-controlled Washington, says the BlackRock Investment Institute.

The Russell 2000′s solid gains Monday may signal that traders are betting Joe Biden will be elected president and that he’ll push for a big-ticket economic stimulus package, which would help smaller companies, said Quincy Krosby, chief market strategist at Prudential Financial.

“The biggest question for the market, if Biden does win, is does he bring the Senate with him?” she said. “Because for many of his proposals he’s going to need cooperation from the Senate.”

Democrats and Republicans have been haggling about a stimulus renewal for months, since the last round of supplemental benefits for laid-off workers and other stimulus expired. But a deep partisan divide has so far stymied them.

The U.S. economy has been showing a mixed performance recently. A Monday report on manufacturing from the Institute for Supply Management gave a reading of 59.3, where anything above 50 indicates growth. That topped economists’ expectations for 56. But Friday’s upcoming jobs report may show a fourth straight month of weakening job growth, according to economists’ projections.

Investors and economists alike say the economy needs another shot of stimulus, particularly when coronavirus counts are accelerating at troubling rates across Europe and much of the United States. So far, the toughest restrictions on daily life and businesses have not returned. But even if they don’t, the worry is that fear about the virus will keep customers away from businesses by itself.

Such worries helped drive the S&P 500 to a 5.6% loss last week. That was its worst since March, when worries about the first wave of the pandemic were sending stocks around the world into a free fall.

Corporate profits, meanwhile, are weaker than year-ago levels but continue to be better than Wall Street had feared.

Nielsen Holdings rose 3.8% and Clorox gained 4.2% after each of the companies reported better results than analysts expected. Companies in the S&P 500 are now on track to a decline of slightly less than 10% for the summer from a year earlier. That’s not as bad as the nearly 21% drop analysts were expecting at the start of October, according to FactSet.

European markets closed broadly higher after a survey showed industrial output in the region was strong in October. Asian markets also rose after a major indicator for China’s manufacturing sector rose.

The yield on the 10-year Treasury fell to 0.85% from 0.88% late Friday.