NYSE Dow Jones finished today at:

[bigdog]

Stocks rally worldwide on Election Day; S&P 500 climbs 1.8%

Stocks powered higher Tuesday as investors hope the end of a bruising U.S. presidential campaign may soon lift the heavy uncertainty that’s sent markets spinning recently.

The S&P 500 rose 58.92 points, or 1.8%, to 3,369.16 for its second straight healthy gain. The rally was widespread and global, with Treasury yields, oil prices and stocks around the world all strengthening.

The Dow Jones Industrial Average climbed 554.98, or 2.1%, to 27,480.03, and the Nasdaq composite added 202.96, or 1.9%, to 11,160.57.

More than anything, what investors hope for from the election is a clear winner to emerge, even if it takes some time for all the votes to be tallied. Whether that’s President Donald Trump or former Vice President Joe Biden is less important, because history shows stocks tend to rise regardless of which party controls the White House.

“The markets are neither red nor blue, and today they’re decidedly green,” said Rod von Lipsey, managing director at UBS Private Wealth Management.

What investors fear is the prospect of a contested election, one that drags on and injects even more uncertainty into markets. Under such a scenario, much of Wall Street expects a sharp drop in stocks. The future political makeup of the Senate is another unknown throwing uncertainty into the markets, along with the timing of a possible COVID-19 vaccine.

“There’s a sense that we might get some clarity on the outcome of the direction of one or two wild cards that have been moving the market,” von Lipsey said.

If Biden ends up winning, as polls suggest, the thought is that could open the door to a big support package for the economy, particularly if the Democrats also take control of the Senate. Some areas of the market that would benefit from a large stimulus effort and spending on infrastructure rose more than the rest of the market Tuesday, including stocks of smaller companies and industrial businesses.

If Trump were to win and the Senate stays under Republican control, it would likely lead to less stimulus than under a Democratic sweep, according to Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. A Biden win and Republican Senate would be least beneficial to stocks, meanwhile, because it would mean the lowest chance for stimulus.

Investors and economists have been clamoring for a renewal of stimulus since the expiration of the last round of supplemental benefits for laid-off workers and other support approved earlier by Congress.

But investors see cases for optimism in other electoral scenarios, too. If Trump were to win, that would likely mean a continuation of lower tax rates and lighter regulation on businesses, which would prop up the corporate profits that are the lifeblood of the stock market.

Ultimately, many professional investors say which party controls Washington matters much less to the economy and markets than what happens with the pandemic and whether a vaccine can arrive soon to help the economy heal.

The last two days of gains for Wall Street have helped the S&P 500 recover roughly half its 5.6% loss from last week, which was its worst since the market was plunging in March.

While the election is dominating investors’ attention, plenty of other market-moving events are looming this week. The Federal Reserve is meeting on interest-rate policy and will announce its decision on Thursday. Its earlier moves to slash interest rates to record lows and to step forcefully into bond markets to push prices higher have helped Wall Street soar since March.

ASX 200 flat ahead of US election result.

It looks set to be a potentially volatile day of trade for the Australian share market due to the U.S. election. The result of which should start to filter through during our trading day. For now, according to the latest SPI futures, the ASX 200 is expected to open the day flat. The Dow Jones Industrial Average climbed 554.98, or 2.1%, to 27,480.03, and the Nasdaq composite added 202.96, or 1.9%, to 11,160.57.

https://apnews.com/article/stocks-rally-worldwide-election-day-2cc8445c88a7d2c9135507a8722bcf9e

Stocks rally worldwide on Election Day; S&P 500 climbs 1.8%

By STAN CHOE and DAMIAN J. TROISE 18 minutes ago

NEW YORK (AP) — Stocks powered higher Tuesday as investors hope the end of a bruising U.S. presidential campaign may soon lift the heavy uncertainty that’s sent markets spinning recently.

The S&P 500 rose 58.92 points, or 1.8%, to 3,369.16 for its second straight healthy gain. The rally was widespread and global, with Treasury yields, oil prices and stocks around the world all strengthening.

The Dow Jones Industrial Average climbed 554.98, or 2.1%, to 27,480.03, and the Nasdaq composite added 202.96, or 1.9%, to 11,160.57.

More than anything, what investors hope for from the election is a clear winner to emerge, even if it takes some time for all the votes to be tallied. Whether that’s President Donald Trump or former Vice President Joe Biden is less important, because history shows stocks tend to rise regardless of which party controls the White House.

“The markets are neither red nor blue, and today they’re decidedly green,” said Rod von Lipsey, managing director at UBS Private Wealth Management.

What investors fear is the prospect of a contested election, one that drags on and injects even more uncertainty into markets. Under such a scenario, much of Wall Street expects a sharp drop in stocks. The future political makeup of the Senate is another unknown throwing uncertainty into the markets, along with the timing of a possible COVID-19 vaccine.

“There’s a sense that we might get some clarity on the outcome of the direction of one or two wild cards that have been moving the market,” von Lipsey said.

If Biden ends up winning, as polls suggest, the thought is that could open the door to a big support package for the economy, particularly if the Democrats also take control of the Senate. Some areas of the market that would benefit from a large stimulus effort and spending on infrastructure rose more than the rest of the market Tuesday, including stocks of smaller companies and industrial businesses.

If Trump were to win and the Senate stays under Republican control, it would likely lead to less stimulus than under a Democratic sweep, according to Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. A Biden win and Republican Senate would be least beneficial to stocks, meanwhile, because it would mean the lowest chance for stimulus.

Investors and economists have been clamoring for a renewal of stimulus since the expiration of the last round of supplemental benefits for laid-off workers and other support approved earlier by Congress.

But investors see cases for optimism in other electoral scenarios, too. If Trump were to win, that would likely mean a continuation of lower tax rates and lighter regulation on businesses, which would prop up the corporate profits that are the lifeblood of the stock market.

Ultimately, many professional investors say which party controls Washington matters much less to the economy and markets than what happens with the pandemic and whether a vaccine can arrive soon to help the economy heal.

The last two days of gains for Wall Street have helped the S&P 500 recover roughly half its 5.6% loss from last week, which was its worst since the market was plunging in March.

While the election is dominating investors’ attention, plenty of other market-moving events are looming this week. The Federal Reserve is meeting on interest-rate policy and will announce its decision on Thursday. Its earlier moves to slash interest rates to record lows and to step forcefully into bond markets to push prices higher have helped Wall Street soar since March.

The Labor Department is also releasing its jobs report for October on Friday, where economists expect to see another slowdown in growth. Meanwhile, it’s another heavy week for corporate earnings reports as companies continue to report drops in profit for the summer that weren’t as bad as Wall Street feared.

Hanging above it all is the continuing coronavirus pandemic. Several European governments are bringing back restrictions on businesses in hopes of stemming worsening virus counts. In the United States, where infections are also rising at a troubling rate, the worry is that fear alone of the virus could depress sales for companies.

So far this earnings reporting season, companies are saying their profits fell during the summer, but not by as much as Wall Street feared.

Arista Networks jumped 15.4% for the biggest gain in the S&P 500 after the cloud-networking company reported a 19% drop in net income that nevertheless topped analysts’ forecasts.

Stock indexes across Europe and Asia rose 2% or more, while the yield on the 10-year Treasury climbed to 0.88% from 0.84% late Monday.

A gauge of fear in the U.S. stock market, which measures expected volatility for the S&P 500, fell 6.4% and continued its decline following last week’s jump to its highest level since June.

 

[bigdog]

Stocks rallied on Wall Street Wednesday, sending the S&P 500 index up 2.2%, as investors embraced the upside of more gridlock in Washington. Technology stocks, which have proved impervious to the damage inflicted on other industries by the coronavirus pandemic, led the way higher. The tech-heavy Nasdaq index rose 3.9%. With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep. However, a big stimulus effort for the economy that some on Wall Street say is needed now also seems unlikely.

THIS IS A BREAKING NEWS UPDATE: AP’s earlier story appears below

Technology and health care companies drove stocks sharply higher Wednesday as Wall Street embraced the upside of more gridlock in Washington.

The S&P 500 was up 2.2% and on pace for its best day in more than five months, as of 3:26 p.m. Eastern time. The Dow Jones Industrial Average was up 457 points, or 1.7%, at 27,935, and the Nasdaq composite jumped 3.8%.

The fate of the U.S. presidency remains undecided as neither President Donald Trump or Democratic challenger Joe Biden has secured the 270 Electoral College votes needed to win. But after a tumultuous overnight session in global markets where Trump prematurely declared victory, Wall Street acted as if the occupant of the White House might be secondary.

Analysts said the gains came as markets focused on the benefits of the country’s political control remaining split between Democrats and Republicans. With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep, although a big stimulus effort for the economy that some on Wall Street say is needed now seems unlikely as well.

“The first information that people are digesting is that a split government is OK, and we can deal with this,” said Melda Mergen, deputy global head of equities at Columbia Thread needle. “No big changes are expected anytime soon on the policy side.”

She cautioned, though, that the initial moves for the market may not last. “It’s a very quick reaction without knowing the final results," she said. “It’s emotional rather than rational.”

Much of Wednesday's strength for Wall Street was due to big gains for technology stocks. Investors have increasingly seen these stocks as some of the safer bets in the market, able to grow their profits even in a pandemic as more of daily life shifts online.

They don’t need a big stimulus effort for the economy as much as other companies, and the likelihood of Washington approving such a package dropped with the chances of a Democratic sweep. That led to the much better performance for the tech-heavy Nasdaq over other indexes. Microsoft, Amazon, Facebook and Google's parent company all rose at least 5%

Other areas of the stock market, where profits are more dependent on the strength of the economy, lagged behind. Financial stocks in the S&P 500 fell 0.7%. Companies that make construction materials and could have benefited from a big infrastructure plan under a Democratic sweep were falling.

Some of the market’s sharpest moves overnight were in yields for U.S. government bonds, which had earlier risen on growing expectations for big economic stimulus.


ASX 200 expected to rise.

The Australian share market looks set to push higher after investors responded positively to the U.S. election vote counting. Although the actual winner still remains unclear, the Republicans appear likely to win the Senate. According to the latest SPI futures, the ASX 200 is poised to open the day 55 points or 0.9% higher. Stocks rallied on Wall Street Wednesday, sending the S&P 500 index up 2.2%
and the Dow Jones Industrial Average was up 367 points, or 1.3%,

https://www.timesunion.com/news/article/US-futures-world-markets-rise-as-investors-eye-15699855.php

Tech leads Wall Street rally, shrugging off election limbo

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

Nov. 4, 2020Updated: Nov. 4, 2020 4:48 p.m.

Stocks rallied on Wall Street Wednesday, sending the S&P 500 index up 2.2%, as investors embraced the upside of more gridlock in Washington. Technology stocks, which have proved impervious to the damage inflicted on other industries by the coronavirus pandemic, led the way higher. The tech-heavy Nasdaq index rose 3.9%. With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep. However, a big stimulus effort for the economy that some on Wall Street say is needed now also seems unlikely.

THIS IS A BREAKING NEWS UPDATE: AP’s earlier story appears below.

Technology and health care companies drove stocks sharply higher Wednesday as Wall Street embraced the upside of more gridlock in Washington.

The S&P 500 was up 2.4% and on pace for its best day in more than five months, as of 3:26 p.m. Eastern time. The Dow Jones Industrial Average was up 457 points, or 1.7%, at 27,935, and the Nasdaq composite jumped 3.8%.

The fate of the U.S. presidency remains undecided as neither President Donald Trump or Democratic challenger Joe Biden has secured the 270 Electoral College votes needed to win. But after a tumultuous overnight session in global markets where Trump prematurely declared victory, Wall Street acted as if the occupant of the White House might be secondary.

Analysts said the gains came as markets focused on the benefits of the country’s political control remaining split between Democrats and Republicans. With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep, although a big stimulus effort for the economy that some on Wall Street say is needed now seems unlikely as well.

“The first information that people are digesting is that a split government is OK, and we can deal with this,” said Melda Mergen, deputy global head of equities at Columbia Thread needle. “No big changes are expected anytime soon on the policy side.”

She cautioned, though, that the initial moves for the market may not last. “It’s a very quick reaction without knowing the final results," she said. “It’s emotional rather than rational.”

Much of Wednesday's strength for Wall Street was due to big gains for technology stocks. Investors have increasingly seen these stocks as some of the safer bets in the market, able to grow their profits even in a pandemic as more of daily life shifts online.

They don’t need a big stimulus effort for the economy as much as other companies, and the likelihood of Washington approving such a package dropped with the chances of a Democratic sweep. That led to the much better performance for the tech-heavy Nasdaq over other indexes. Microsoft, Amazon, Facebook and Google's parent company all rose at least 5%

Other areas of the stock market, where profits are more dependent on the strength of the economy, lagged behind. Financial stocks in the S&P 500 fell 0.7%. Companies that make construction materials and could have benefited from a big infrastructure plan under a Democratic sweep were falling.

Some of the market’s sharpest moves overnight were in yields for U.S. government bonds, which had earlier risen on growing expectations for big economic stimulus.

The 10-year Treasury yield swung from 0.88% late Tuesday up to 0.94% as polls were closing. It then sank as low as 0.75% after Trump made premature claims of victories in several key states, Republicans held onto Senate seats and a couple economic reports came in weaker than expected. It sat at 0.77% in afternoon trading.

All the swings are a bit reminiscent of four years earlier, when Trump surprised the market by winning the White House. Markets initially tumbled after polls and the market’s expectations proved to be so wrong in 2016, but they quickly turned around on expectations that Trump’s pro-business stance would be good for corporate profits.

The difference this time is that the uncertainty seems set to linger. It may take days for a winner of the White House to emerge, and professional investors say they’re bracing for sharp market swings in the meantime. Trump said early Wednesday that he’d take the election to the Supreme Court, though it’s unclear exactly what he means by that as states continue to tally all their votes.

A drawn-out court battle “just adds more and more uncertainty, and the last thing the market needs is that,” said Quincy Krosby, chief market strategist at Prudential Financial.

In the end, though, many fund managers suggest investors hold steady through the tumult in large part because one person can’t single handedly move the economy and stocks tend to rise regardless of which party controls the White House. What happens with the coronavirus pandemic will have a much greater effect on markets than this election’s results, many fund managers say.

“It’s really about the solution to the health crisis and how do we bridge between now and that eventual period of time,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

Uber and Lyft both soared more than 11% after the ride-hailing companies won a vote in California allowing them to continue classifying their drivers as contractors instead of employees and preserve their business models.

In Europe, Germany’s DAX recovered from early losses to gain 1.9%. The CAC 40 in Paris rose 2.4%, and the FTSE 100 in London climbed 1.7%.

Besides the election's impact on Trump's enthusiasm for tariffs, European investors are also watching what it will do to the U.S. dollar's value. By making additional stimulus less likely, a divided U.S. government could force the Federal Reserve to do even more on its own to support the economy, which could send the dollar lower against the euro and other currencies.

The Fed will announce its latest decision on interest-rate policy on Thursday. Its moves earlier this year to slash interest rates to record lows and prop up bond markets have helped Wall Street soar since March.

In Asia, Tokyo's Nikkei 225 rose 1.7%, South Korea's Kospi rose 0.6%, Hong Kong's Hang Seng declined 0.2% and stocks in Shanghai added 0.2%.

 

[bigdog]

Wall Street's post-election wave swept stocks solidly higher again Thursday, pushing the S&P 500 toward its biggest weekly gain since April.

Markets are banking on Tuesday's election leading to split control of Congress, which could mean low tax rates, lighter regulation on businesses and other policies that investors like remain the status quo. The election still hasn’t made clear who will run the White House next year, though Joe Biden is pushing closer toward the needed mark.

The S&P 500 rose 1.9%, its fourth straight gain of more than 1%, and is now up 7.4% for the week. That would be its best week since the market was exploding out of the crater created in February and March by panic about the coronavirus pandemic.

“The presidential election is not settled, the Senate is not settled, but we’re getting a post-election rally,” said Ross Mayfield, investment strategist at Baird. “The odds at this point seem fairly set in stone, so investors are feeling pretty comfortable making the bets that they’re making.”

The S&P 500 rose 67.01 points to 3,510.45. The Dow Jones Industrial Average gained 542.52 points, or 1.9%, to 28,390.18. The Nasdaq composite climbed 300.15 points, or 2.6%, to 11,890.93. Small company stocks also had a strong showing. The Russell 2000 small-cap index picked up 44.96 points, or 2.8%, to 1,660.05.

The indexes and U.S. bond yields held steady after the Federal Reserve issued its latest monetary policy update. The central bank said that it will leave its key interest rate at a record low near zero. It also reaffirmed its readiness to do more if needed to support the economy under threat from a worsening coronavirus pandemic.

Technology stocks helped power the rally, as they have through the pandemic and for years before that. Rising expectations that Republicans can hold onto the Senate are easing investors’ worries that a Democratic-controlled Washington would beef up antitrust laws and go after Big Tech more aggressively.

Apple climbed 3.5%, Microsoft rose 3.2%, and Amazon added 2.5%. Facebook gained 2.5% and Google’s parent company rose 1%. They’re also the five biggest stocks in the S&P 500 by market value.

Shares in cannabis companies marched higher after voters in several states cleared the way for sales of legal marijuana for adult or medical use. Tilray jumped 30.3%, though the stock is still down 54.4% so far this year.

Broadly, markets are seeing split control of Congress as a case of what Mizuho Bank calls “Goldilocks Gridlock.”

Investors see cause for optimism if either Biden or President Donald Trump ultimately wins the presidency, and what they want most of all is just for a clear winner to emerge. Stocks “fear uncertainty rather than the actual outcome,” strategists at Barclays wrote in a report.

But the expectation that Biden has a chance of winning has also raised hopes that U.S. foreign policies might be “more clear,” said Jackson Wong, asset management director of Amber Hill Capital. He added, “investors are cheering for that. That’s why the markets are performing well.”

Stocks also climbed across European and Asian markets Thursday.

Wall Street's rally was widespread, with about 82% of stocks in the S&P 500 closing higher. Qualcomm jumped 12.7% for one of the biggest gains in the index after it reported stronger revenue and profit for the latest quarter than analysts expected.

That's been the strongest trend through this earnings season, which is close to wrapping up. S&P 500 companies are on pace to report a drop in profits of roughly 8% from year-ago levels. That's much milder than the nearly 21% decline Wall Street was forecasting at the start of last month.

Still, many analysts warn volatility may lie ahead. Big swings could return as the threat of a contested, drawn-out election still looms.

Trump’s campaign has filed legal challenges in some key swing states, though it’s unclear whether they can shift the race in his favor. A long court battle without a clear winner of the presidency could raise uncertainty and drag down stocks, analysts say.

But concerns about any big changes in tax policy during the next administration have mostly abated now that control of Congress looks as if it will remain split, said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

ASX 200 expected to rise.

It looks set to be another positive day for the Australian share market. According to the latest SPI futures, the ASX 200 is poised to open the day 38 points or 0.6% higher this morning. The S&P 500 rose 67.01 points to 3,510.45. The Dow Jones Industrial Average gained 542.52 points, or 1.9%, to 28,390.18. The Nasdaq composite climbed 300.15 points, or 2.6%, to 11,890.93.

https://www.usnews.com/news/busines...l-st-rally-as-markets-shrug-at-election-limbo

Wall Street Rallies Again as Election-Week Gains Continue
Stocks rallied again on Wall Street as a post-election wave of buying continues, keeping the S&P 500 on track for its biggest weekly gain since April.
By Associated Press, Wire Service Content Nov. 5, 2020, at 4:39 p.m.

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

Wall Street's post-election wave swept stocks solidly higher again Thursday, pushing the S&P 500 toward its biggest weekly gain since April.

Markets are banking on Tuesday's election leading to split control of Congress, which could mean low tax rates, lighter regulation on businesses and other policies that investors like remain the status quo. The election still hasn’t made clear who will run the White House next year, though Joe Biden is pushing closer toward the needed mark.

The S&P 500 rose 1.9%, its fourth straight gain of more than 1%, and is now up 7.4% for the week. That would be its best week since the market was exploding out of the crater created in February and March by panic about the coronavirus pandemic.

“The presidential election is not settled, the Senate is not settled, but we’re getting a post-election rally,” said Ross Mayfield, investment strategist at Baird. “The odds at this point seem fairly set in stone, so investors are feeling pretty comfortable making the bets that they’re making.”

The S&P 500 rose 67.01 points to 3,510.45. The Dow Jones Industrial Average gained 542.52 points, or 1.9%, to 28,390.18. The Nasdaq composite climbed 300.15 points, or 2.6%, to 11,890.93. Small company stocks also had a strong showing. The Russell 2000 small-cap index picked up 44.96 points, or 2.8%, to 1,660.05.

The indexes and U.S. bond yields held steady after the Federal Reserve issued its latest monetary policy update. The central bank said that it will leave its key interest rate at a record low near zero. It also reaffirmed its readiness to do more if needed to support the economy under threat from a worsening coronavirus pandemic.

Technology stocks helped power the rally, as they have through the pandemic and for years before that. Rising expectations that Republicans can hold onto the Senate are easing investors’ worries that a Democratic-controlled Washington would beef up antitrust laws and go after Big Tech more aggressively.

Apple climbed 3.5%, Microsoft rose 3.2%, and Amazon added 2.5%. Facebook gained 2.5% and Google’s parent company rose 1%. They’re also the five biggest stocks in the S&P 500 by market value.

Shares in cannabis companies marched higher after voters in several states cleared the way for sales of legal marijuana for adult or medical use. Tilray jumped 30.3%, though the stock is still down 54.4% so far this year.

Broadly, markets are seeing split control of Congress as a case of what Mizuho Bank calls “Goldilocks Gridlock.”

Investors see cause for optimism if either Biden or President Donald Trump ultimately wins the presidency, and what they want most of all is just for a clear winner to emerge. Stocks “fear uncertainty rather than the actual outcome,” strategists at Barclays wrote in a report.

But the expectation that Biden has a chance of winning has also raised hopes that U.S. foreign policies might be “more clear,” said Jackson Wong, asset management director of Amber Hill Capital. He added, “investors are cheering for that. That’s why the markets are performing well.”

Stocks also climbed across European and Asian markets Thursday.

Wall Street's rally was widespread, with about 82% of stocks in the S&P 500 closing higher. Qualcomm jumped 12.7% for one of the biggest gains in the index after it reported stronger revenue and profit for the latest quarter than analysts expected.

That's been the strongest trend through this earnings season, which is close to wrapping up. S&P 500 companies are on pace to report a drop in profits of roughly 8% from year-ago levels. That's much milder than the nearly 21% decline Wall Street was forecasting at the start of last month.

Still, many analysts warn volatility may lie ahead. Big swings could return as the threat of a contested, drawn-out election still looms.

Trump’s campaign has filed legal challenges in some key swing states, though it’s unclear whether they can shift the race in his favor. A long court battle without a clear winner of the presidency could raise uncertainty and drag down stocks, analysts say.

But concerns about any big changes in tax policy during the next administration have mostly abated now that control of Congress looks as if it will remain split, said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

“History tends to tells us that investors like gridlock because there’s really not a big chance of legislative surprises,” she said

Split control of Washington also carries potential downsides. Gridlock may lessen the chances of the U.S. government coming together on a deal to deliver a big shot of stimulus for the economy, for example.

The yield on the 10-year Treasury held steady at 0.77%. It had been above 0.90% earlier this week, when markets were still thinking a Democratic sweep was possible that could lead to a big stimulus package for the economy.

The pandemic continues to weigh on economies around the world, with counts rising at troubling rates across much of Europe and the United States. Several European governments have brought back restrictions on businesses in hopes of slowing the spread.

 

[bigdog]

Wall Street took a breather Friday after a blistering rally that gave the market its biggest weekly gain since April and indicated investors see plenty of benefits from more gridlock in Washington.

The S&P 500 inched down 1.01 point, or less than 0.1%, to 3,509.44, leaving its blockbuster gain for the week at 7.3%. The wild week was dominated by an election that, as of Friday afternoon, had yet to definitively show who the U.S. president would be next year or which party would control the next Congress.

While stocks cooled, the bond market got a shot of optimism about the economy from a report showing U.S. employers hired more workers last month than economists expected. Treasury yields climbed, a sign of improved confidence.

This week’s gains for stocks more than made up the sharp losses from the prior week, when all the uncertainty around the election helped send markets tumbling.

Even though plenty of uncertainties remain, stocks surged after early election results indicated control of Congress may remain split between Democrats and Republicans. That raised investors’ expectations that business-friendly policies may stick around in Washington, regardless of who wins the presidency. The gains were so forceful, though, that analysts cautioned more volatility may be ahead given all the risks that remain for the market.

The Dow Jones Industrial Average slipped 66.78 points, or 0.2%, to 28,323.40. The Nasdaq composite edged up by 4.30 points, or less than 0.1%, to 11,895.23. For both the Dow and S&P 500, Friday’s tiptoe lower was their first loss of the week.

The yield on the 10-year Treasury climbed to 0.81% from 0.78% late Thursday after the U.S. government said employers added 638,000 jobs last month. The stronger-than-expected tally suggests the economic recovery may still be intact, though it also marked another slowdown in monthly job growth.

The rally helped the 10-year Treasury yield claw back some of its recent slide. It had been above 0.90% earlier this week when expectations were rising that a Democratic sweep of Tuesday’s elections could open the door for a big stimulus effort for the economy.

Electoral results so far, though, have sharply cut the prospects for such a “blue wave.” Democrat Joe Biden looks to be closing in on the presidency, with votes still being counted in several key states, but Republicans held onto several seats in the Senate that were considered vulnerable.

The upside of gridlock for stock investors is that it may prevent Democrats from approving some of the measures they feared, such as higher tax rates and tougher antitrust policies for big technology companies. Stocks around the world have surged on what analysts are calling a “Goldilocks” scenario.

But split control of Washington has downsides too, and analysts said those and other risks for the market could upend what's been a jubilant week.

“Investors are seemingly turning a blind eye to these risks, which could keep market volatility elevated near-term,” said Lindsey Bell, chief investment strategist at Ally Invest.

One downside of a divided Washington is that any support package for the economy from Congress would likely be less generous than if Democrats had swept the election.

Investors and economists say the economy needs such stimulus, particularly when the country’s new coronavirus cases are setting records once again. Europe is also facing a troubling rise in infections, and governments there have already brought back restrictions on businesses in hopes of slowing the spread.

Even if the strictest lockdowns don’t return in the United States, the worry is that the worsening pandemic will scare consumers by itself and erase profits for businesses.

“We're still kind of beholden to the pandemic,” said Ross Mayfield, investment strategist at Baird. “The pace of a vaccine and the path of the virus, that’s still what controls our fate.”

Another risk for the market is that of a drawn-out, disputed election for the presidency. Markets see cause for optimism if either Biden or President Donald Trump wins, and what investors want more than anything is for a clear winner to emerge.

https://www.usnews.com/news/busines...stocks-mixed-after-wall-street-election-gains

Stocks Close a Blistering Week, Even as Uncertainty Lingers
Wall Street took a breather Friday after a blistering rally that gave the market its biggest weekly gain since April and indicated investors see plenty of benefits from more gridlock in Washington.
By Associated Press, Wire Service Content Nov. 6, 2020, at 4:34 p.m.

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

NEW YORK (AP) — Wall Street took a breather Friday after a blistering rally that gave the market its biggest weekly gain since April and indicated investors see plenty of benefits from more gridlock in Washington.

The S&P 500 inched down 1.01 point, or less than 0.1%, to 3,509.44, leaving its blockbuster gain for the week at 7.3%. The wild week was dominated by an election that, as of Friday afternoon, had yet to definitively show who the U.S. president would be next year or which party would control the next Congress.

While stocks cooled, the bond market got a shot of optimism about the economy from a report showing U.S. employers hired more workers last month than economists expected. Treasury yields climbed, a sign of improved confidence.

This week’s gains for stocks more than made up the sharp losses from the prior week, when all the uncertainty around the election helped send markets tumbling.

Even though plenty of uncertainties remain, stocks surged after early election results indicated control of Congress may remain split between Democrats and Republicans. That raised investors’ expectations that business-friendly policies may stick around in Washington, regardless of who wins the presidency. The gains were so forceful, though, that analysts cautioned more volatility may be ahead given all the risks that remain for the market.

The Dow Jones Industrial Average slipped 66.78 points, or 0.2%, to 28,323.40. The Nasdaq composite edged up by 4.30 points, or less than 0.1%, to 11,895.23. For both the Dow and S&P 500, Friday’s tiptoe lower was their first loss of the week.

The yield on the 10-year Treasury climbed to 0.81% from 0.78% late Thursday after the U.S. government said employers added 638,000 jobs last month. The stronger-than-expected tally suggests the economic recovery may still be intact, though it also marked another slowdown in monthly job growth.

The rally helped the 10-year Treasury yield claw back some of its recent slide. It had been above 0.90% earlier this week when expectations were rising that a Democratic sweep of Tuesday’s elections could open the door for a big stimulus effort for the economy.

Electoral results so far, though, have sharply cut the prospects for such a “blue wave.” Democrat Joe Biden looks to be closing in on the presidency, with votes still being counted in several key states, but Republicans held onto several seats in the Senate that were considered vulnerable.

The upside of gridlock for stock investors is that it may prevent Democrats from approving some of the measures they feared, such as higher tax rates and tougher antitrust policies for big technology companies. Stocks around the world have surged on what analysts are calling a “Goldilocks” scenario.

But split control of Washington has downsides too, and analysts said those and other risks for the market could upend what's been a jubilant week.

“Investors are seemingly turning a blind eye to these risks, which could keep market volatility elevated near-term,” said Lindsey Bell, chief investment strategist at Ally Invest.

One downside of a divided Washington is that any support package for the economy from Congress would likely be less generous than if Democrats had swept the election.

Investors and economists say the economy needs such stimulus, particularly when the country’s new coronavirus cases are setting records once again. Europe is also facing a troubling rise in infections, and governments there have already brought back restrictions on businesses in hopes of slowing the spread.

Even if the strictest lockdowns don’t return in the United States, the worry is that the worsening pandemic will scare consumers by itself and erase profits for businesses.

“We're still kind of beholden to the pandemic,” said Ross Mayfield, investment strategist at Baird. “The pace of a vaccine and the path of the virus, that’s still what controls our fate.”

Another risk for the market is that of a drawn-out, disputed election for the presidency. Markets see cause for optimism if either Biden or President Donald Trump wins, and what investors want more than anything is for a clear winner to emerge.

Biden appears to be closing in on the needed electoral votes to win, but Trump has launched a litany of claims, without proof, about how Democrats were trying to unfairly deprive him of a second term.

His campaign has already filed legal challenges in several states. If the election drags on through court challenges, the resulting rise in uncertainty could send stocks spinning, analysts say.

“Financial markets probably will look past the lawsuits, if Biden can win without Pennsylvania or Georgia,” said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute.

Control of the Senate by Republicans is also still not a certainty, even if indications lean that way. It could depend on results from a January runoff election in Georgia, and a surprise there could upset markets.

Among Wall Street's biggest losers Friday was Electronic Arts, whose shares slumped 7.1%. It reported stronger results for the latest quarter than analysts expected, but it fell short of forecasts for revenue.

On the winning side was CVS Health, which rose 5.8% after it named veteran insurance executive Karen Lynch its next CEO and reported better results for the latest quarter than expected.

European markets closed mostly lower, and Asian markets ended mostly higher.

 

[bigdog]

ASX 200 expected to rise.

The Australian share market looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.25% higher this morning. This is despite a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.25%, the S&P 500 trade flat, and the Nasdaq edge ever so slightly higher. Despite the soft finish, the S&P 500 had its best week since April.

 

[bigdog]

Brimming hopes that people will again return to office buildings, shopping centers and normal life sent markets rallying worldwide on Monday, following encouraging data about a potential coronavirus vaccine.

The S&P 500 rose 41.06, or 1.2%, to 3,550.50 after Pfizer said an early peek at its vaccine data suggests the shots may be 90% effective at preventing COVID-19, though that doesn’t mean its release is imminent. The index at the heart of many 401(k) accounts had been up as much as 3.9% earlier in the day, though it pared its gain in the last hour of trading amid drops for the Big Tech stocks that dominate the market.

Markets worldwide also got a boost from a resolution to the long, market-bruising battle for the White House. Democrat Joe Biden over the weekend clinched the last of the electoral votes needed to become the next president. Investors say they just wanted a clear winner to emerge, instead of rooting for one of the two, but a Biden administration constrained by a Congress under split control will likely offer a balance of more predictable policies.

Treasury yields and oil prices burst higher as the vaccine news allowed investors to feel confident about a stronger economic recovery on the way. The yield on the 10-year Treasury shot up from 0.81% before the announcement to 0.93%, a big move for the bond market. The key rate touched its highest level since March earlier in the morning, according to Tradeweb. U.S. oil jumped 8.5%.

Stocks of companies that most need the economy and the world to return to normal for their profits to heal led the way. An 11.6% surge for Chevron and 11.9% jump for The Walt Disney Co. amid hopes that people will start driving and flying to theme parks again helped the Dow Jones Industrial Average climb 834.57 points, or 2.9%, to 29,157.97.

Cruise operators and owners of office buildings and shopping centers were among the market’s biggest winners on expectations people will feel comfortable again riding elevators to a desk or shopping in enclosed stores.

Carnival surged 39.3%, though it’s still down by more than half for 2020 so far. It led a resurgence for what are called “value stocks,” ones whose prices look cheap and had gotten left behind by the rest of the market through the pandemic.

“People are buying those because they see a light at the end of the tunnel,” said Todd Morgan, chairman at Bel Air Investment Advisors.

The Big Tech companies that earlier drove the market higher in the pandemic, in large part because they didn’t need a “normal” economy to succeed, lagged behind. Apple fell 2%, for example, and Microsoft lost 2.4%.

Their losses accelerated at the end of trading, which helped drag down the S&P 500’s gains. They also sent the Nasdaq composite to a loss of 181.45 points, or 1.5%, to 11,713.78.

Companies whose fortunes soared directly because the pandemic kept everyone hunkered at home fell sharply.

Zoom Video Communications, whose online meetings allow millions of remote students and workers to communicate, sank 17.4%. Grubhub, which benefited from people ordering in for dinner, dropped 10.9%. Etsy, whose online marketplace rode a wave of popularity for homemade masks, lost 17.1%.

If a vaccine for COVID-19 does indeed pan out, analysts say it’s a “game changer” and just what the market had been waiting for. It underscores again how the coronavirus and its effect on the economy are the dominant concerns for investors, much more than who wins what in Washington.

The 90% effectiveness rate for Pfizer’s potential vaccine is what struck Ajay Rajadhyaksha, head of macro research at Barclays.

“If that proves to be correct, it is a significant positive surprise and increases the odds of a quicker return to normalcy,” he said.

Building on last week’s gains, the S&P 500 is up 8.6% in November. Still, analysts caution that several risks remain that could trip up the market’s big recent gains.

In Washington, markets are banking on control of Congress remaining split between Democrats and Republicans, which can keep low tax rates and other pro-business policies the status quo in Washington, but that hinges on the result of run-off elections in Georgia in January.

Potential gridlock also makes any potential rescue package for the economy from Congress likely to be smaller than if Democrats had swept control of all of Washington. President Donald Trump, meanwhile, has refused to concede the election.

ASX 200 poised to surge higher.

It looks set to be a great day of trade for the Australian share market amid positive vaccine news in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 179 points or 2.8% higher this morning. Wall Street the Dow Jones is up 2.95%, the S&P 500 has climbed 1.17%, and the Nasdaq is down 1.53%.

https://www.usnews.com/news/busines...s-futures-surge-on-relief-us-election-decided

Stocks Rally Worldwide With Hopes for a Return to “Normal”
Brimming hopes that people will again return to office buildings, shopping centers and normal life sent markets rallying worldwide on Monday, following encouraging data about a potential coronavirus vaccine.
By Associated Press, Wire Service Content Nov. 9, 2020, at 4:45 p.m.

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

NEW YORK (AP) — Brimming hopes that people will again return to office buildings, shopping centers and normal life sent markets rallying worldwide on Monday, following encouraging data about a potential coronavirus vaccine.

The S&P 500 rose 41.06, or 1.2%, to 3,550.50 after Pfizer said an early peek at its vaccine data suggests the shots may be 90% effective at preventing COVID-19, though that doesn’t mean its release is imminent. The index at the heart of many 401(k) accounts had been up as much as 3.9% earlier in the day, though it pared its gain in the last hour of trading amid drops for the Big Tech stocks that dominate the market.

Markets worldwide also got a boost from a resolution to the long, market-bruising battle for the White House. Democrat Joe Biden over the weekend clinched the last of the electoral votes needed to become the next president. Investors say they just wanted a clear winner to emerge, instead of rooting for one of the two, but a Biden administration constrained by a Congress under split control will likely offer a balance of more predictable policies.

Treasury yields and oil prices burst higher as the vaccine news allowed investors to feel confident about a stronger economic recovery on the way. The yield on the 10-year Treasury shot up from 0.81% before the announcement to 0.93%, a big move for the bond market. The key rate touched its highest level since March earlier in the morning, according to Tradeweb. U.S. oil jumped 8.5%.

Stocks of companies that most need the economy and the world to return to normal for their profits to heal led the way. An 11.6% surge for Chevron and 11.9% jump for The Walt Disney Co. amid hopes that people will start driving and flying to theme parks again helped the Dow Jones Industrial Average climb 834.57 points, or 2.9%, to 29,157.97.

Cruise operators and owners of office buildings and shopping centers were among the market’s biggest winners on expectations people will feel comfortable again riding elevators to a desk or shopping in enclosed stores.

Carnival surged 39.3%, though it’s still down by more than half for 2020 so far. It led a resurgence for what are called “value stocks,” ones whose prices look cheap and had gotten left behind by the rest of the market through the pandemic.

“People are buying those because they see a light at the end of the tunnel,” said Todd Morgan, chairman at Bel Air Investment Advisors.

The Big Tech companies that earlier drove the market higher in the pandemic, in large part because they didn’t need a “normal” economy to succeed, lagged behind. Apple fell 2%, for example, and Microsoft lost 2.4%.

Their losses accelerated at the end of trading, which helped drag down the S&P 500’s gains. They also sent the Nasdaq composite to a loss of 181.45 points, or 1.5%, to 11,713.78.

Companies whose fortunes soared directly because the pandemic kept everyone hunkered at home fell sharply.

Zoom Video Communications, whose online meetings allow millions of remote students and workers to communicate, sank 17.4%. Grubhub, which benefited from people ordering in for dinner, dropped 10.9%. Etsy, whose online marketplace rode a wave of popularity for homemade masks, lost 17.1%.

If a vaccine for COVID-19 does indeed pan out, analysts say it’s a “game changer” and just what the market had been waiting for. It underscores again how the coronavirus and its effect on the economy are the dominant concerns for investors, much more than who wins what in Washington.

The 90% effectiveness rate for Pfizer’s potential vaccine is what struck Ajay Rajadhyaksha, head of macro research at Barclays.

“If that proves to be correct, it is a significant positive surprise and increases the odds of a quicker return to normalcy,” he said.

Building on last week’s gains, the S&P 500 is up 8.6% in November. Still, analysts caution that several risks remain that could trip up the market’s big recent gains.

Coronavirus counts continue to rise at troubling rates across much of Europe and the United States, so much that several European governments have brought back restrictions on businesses. In the U.S., confirmed coronavirus cases topped 10 million on Monday, the highest in the world.

In Washington, markets are banking on control of Congress remaining split between Democrats and Republicans, which can keep low tax rates and other pro-business policies the status quo in Washington, but that hinges on the result of run-off elections in Georgia in January.

Potential gridlock also makes any potential rescue package for the economy from Congress likely to be smaller than if Democrats had swept control of all of Washington. President Donald Trump, meanwhile, has refused to concede the election.

Late in the trading day, Senate Majority Leader Mitch McConnell said Trump is “100% within his rights” to question election results and consider legal options.

For now, though, euphoria about a possible return to normal is the dominant force across markets, particularly as it layers on top of the tremendous aid the Federal Reserve has already put in place for the economy.

Pfizer jumped 7.7% as its announcement indicates the company and its German partner, BioNTech, are on track to file an emergency use application for their COVID-19 vaccine with U.S. regulators later this month.

In markets around the world, stocks strengthened amid expectations that a Biden-led White House could tamp down trade tensions that had built under Trump’s administration. Stock markets across Europe jumped more than 4%. In Asia, many markets rose more than 1%.

 

[MovingAverage]

Don't often see the DJI gap up like this...

 

[bigdog]

Stocks downshifted on Tuesday, a day after their powerful worldwide rally, but optimism remained high that the global economy may still be headed for a return to normal.

It was the second straight day that rising hopes for a COVID-19 vaccine pushed investors to reorder which stocks they see winning and losing, and the continuing revamp left the majority of U.S. stocks higher but indexes mixed. Treasury yields and oil, meanwhile, held onto their big gains from a day earlier or added some more amid strengthened confidence in the economy.

The S&P 500 dipped 4.97 points, or 0.1%, to 3,545.53, after erasing most of an early loss. The relatively small movement, though, belied a lot of churning underneath. Nearly two out of three stocks in the index climbed, while losses for some of the largest and most influential technology stocks offset them.

The Dow Jones Industrial Average gained 262.95 points, or 0.9%, to 29,420.92, and the Nasdaq composite dropped 159.93, or 1.4%, to 11,553.86.

The flashpoint for all the moves was Monday’s announcement from Pfizer that a potential COVID-19 vaccine it’s developing with German partner BioNTech may be 90% effective, based on early but incomplete test results.

“This was such an environment of exuberance, which makes sense given some pretty compelling statistics” about immunity response for the vaccine candidate, said Kristina Hooper, chief global market strategist for Invesco. “But there are still a number of steps between now and distribution.”

Stocks of smaller U.S. companies, which tend to move more with expectations for the economy than their bigger counterparts, rallied again. The Russell 2000 index of small-cap stocks gained 31.97, or 1.9%, to 1,737.01 and finally climbed back above where it was in January. It's just 0.2% below its record high, which was set in 2018.

Several areas of the market that got beaten down through the pandemic and whose low prices make them look like potentially better values led the way. Energy stocks in the S&P 500 rose 2.5% for the best gain among the 11 sectors that make up the index, for example, though they're still down nearly 44% for 2020.

“We're seeing a continuation of this value trade that really took off in earnest yesterday,” said Brian Price, head of investment management for Commonwealth Financial Network. “We’re seeing follow through today, which is good news for those who have maintained a diversified portfolio.”

But he said there needs to be more economic growth for a sustained recovery by many of the companies and sectors beaten down by the virus pandemic.

The Big Tech stocks that carried the stock market through the pandemic, meanwhile, are suddenly facing more scrutiny for their high prices. Their stocks soared through 2020 on expectations they’ll continue to thrive if the economy is in lockdown mode. But that’s left their prices looking too expensive to critics, even after accounting for their huge profits.

Amazon, which is one of those Big Tech stay-at-home winners, fell 3.5%. It also is facing antitrust charges filed by European Union regulators on Tuesday that accuse it of using its access to data to gain an unfair advantage over merchants using its platform.

Microsoft fell 3.4%, and Facebook lost 2.3%. Those drops have outsized effects on the S&P 500 because they're some of the largest companies in the index by market value.

The S&P 500 is already up 8.4% in November so far. Not only are hopes for a coronavirus vaccine helping to lift markets, so is clearing uncertainty about who will control the government next year.

Democrat Joe Biden over the weekend clinched the last of the electoral votes needed to become the next president. Republicans, meanwhile, appear likely to keep control of the Senate.

That’s a “Goldilocks” scenario for many investors because it could mean low tax rates and other pro-business policies remain, while a more stable and predictable set of policies comes out of the White House. More than anything, though, a Biden win would wipe out the uncertainty that dogged the market through the long, vicious fight for the White House.

But analysts warn many risks still hang over the market, which could easily upend all the gains made in the last couple weeks.

The biggest may be whether investors have become too convinced about a potential COVID-19 vaccine. While early results are encouraging, no vaccine is about to go on the market, and there’s no guarantee that one will or the timing of it.

ASX 200 expected to rise.

The Australian share market is expected to continue its positive run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 1% higher. On closing, Wall Street sees the Dow Jones up 0.9%, the S&P 500 down 0.1%, and the Nasdaq 1.37% lower.

https://www.usnews.com/news/busines...rise-for-2nd-day-on-coronavirus-vaccine-hopes

Global Rally Fades, but Investors’ Hopes Remain for Economy
Stocks downshifted on Tuesday, a day after their powerful worldwide rally, but optimism remained high that the global economy may still be headed for a return to normal.
By Associated Press, Wire Service Content Nov. 10, 2020, at 4:40 p.m.

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

NEW YORK (AP) — Stocks downshifted on Tuesday, a day after their powerful worldwide rally, but optimism remained high that the global economy may still be headed for a return to normal.

It was the second straight day that rising hopes for a COVID-19 vaccine pushed investors to reorder which stocks they see winning and losing, and the continuing revamp left the majority of U.S. stocks higher but indexes mixed. Treasury yields and oil, meanwhile, held onto their big gains from a day earlier or added some more amid strengthened confidence in the economy.

The S&P 500 dipped 4.97 points, or 0.1%, to 3,545.53, after erasing most of an early loss. The relatively small movement, though, belied a lot of churning underneath. Nearly two out of three stocks in the index climbed, while losses for some of the largest and most influential technology stocks offset them.

The Dow Jones Industrial Average gained 262.95 points, or 0.9%, to 29,420.92, and the Nasdaq composite dropped 159.93, or 1.4%, to 11,553.86.

The flashpoint for all the moves was Monday’s announcement from Pfizer that a potential COVID-19 vaccine it’s developing with German partner BioNTech may be 90% effective, based on early but incomplete test results.

“This was such an environment of exuberance, which makes sense given some pretty compelling statistics” about immunity response for the vaccine candidate, said Kristina Hooper, chief global market strategist for Invesco. “But there are still a number of steps between now and distribution.”

Stocks of smaller U.S. companies, which tend to move more with expectations for the economy than their bigger counterparts, rallied again. The Russell 2000 index of small-cap stocks gained 31.97, or 1.9%, to 1,737.01 and finally climbed back above where it was in January. It's just 0.2% below its record high, which was set in 2018.

Several areas of the market that got beaten down through the pandemic and whose low prices make them look like potentially better values led the way. Energy stocks in the S&P 500 rose 2.5% for the best gain among the 11 sectors that make up the index, for example, though they're still down nearly 44% for 2020.

“We're seeing a continuation of this value trade that really took off in earnest yesterday,” said Brian Price, head of investment management for Commonwealth Financial Network. “We’re seeing follow through today, which is good news for those who have maintained a diversified portfolio.”

But he said there needs to be more economic growth for a sustained recovery by many of the companies and sectors beaten down by the virus pandemic.

The Big Tech stocks that carried the stock market through the pandemic, meanwhile, are suddenly facing more scrutiny for their high prices. Their stocks soared through 2020 on expectations they’ll continue to thrive if the economy is in lockdown mode. But that’s left their prices looking too expensive to critics, even after accounting for their huge profits.

Amazon, which is one of those Big Tech stay-at-home winners, fell 3.5%. It also is facing antitrust charges filed by European Union regulators on Tuesday that accuse it of using its access to data to gain an unfair advantage over merchants using its platform.

Microsoft fell 3.4%, and Facebook lost 2.3%. Those drops have outsized effects on the S&P 500 because they're some of the largest companies in the index by market value.

The S&P 500 is already up 8.4% in November so far. Not only are hopes for a coronavirus vaccine helping to lift markets, so is clearing uncertainty about who will control the government next year.

Democrat Joe Biden over the weekend clinched the last of the electoral votes needed to become the next president. Republicans, meanwhile, appear likely to keep control of the Senate.

That’s a “Goldilocks” scenario for many investors because it could mean low tax rates and other pro-business policies remain, while a more stable and predictable set of policies comes out of the White House. More than anything, though, a Biden win would wipe out the uncertainty that dogged the market through the long, vicious fight for the White House.

But analysts warn many risks still hang over the market, which could easily upend all the gains made in the last couple weeks.

The biggest may be whether investors have become too convinced about a potential COVID-19 vaccine. While early results are encouraging, no vaccine is about to go on the market, and there’s no guarantee that one will or the timing of it.

Coronavirus counts, meanwhile, continue to surge at worrying rates across Europe and the United States. It’s troubling enough in Europe that several governments have brought back restrictions on businesses.

And uncertainty could easily swamp Washington again. President Donald Trump has refused to concede and is blocking government officials from cooperating with Biden's team. Some Republicans, including Senate Majority Leader Mitch McConnell, are rallying behind Trump’s efforts to fight the election results.

The Republican control of the Senate that markets seem to be so heavily banking on also depends on the outcome of a pair of runoff elections in Georgia in January.

Still, optimism remains across markets.

The yield on the 10-year Treasury held steady at 0.95% and remains close to its highest level since March. Benchmark U.S. crude oil rose 2.7% to settle at $41.36 per barrel.

European markets rose, while Asian markets ended modestly higher.

 

[bigdog]

Stocks closed mostly higher on Wednesday, helped by big technology stocks, but news of tighter restrictions in New York State helped dent an earlier rally.

The S&P 500 closed up 27.13 points, or 0.8%, to 3,572.66. The benchmark index is now just 8 points below the record high it set in September. The technology-heavy Nasdaq composite rose 232.57 points, or 2%, to 11,786.43.

The Dow Jones Industrial Average fell 23.29 points, or 0.1%, to 29,397.63. The index was dragged lower in part by American Express and Walt Disney, two stocks that shot up this week after news of a potentially successful vaccine sent travel, entertainment and tourism companies surging. The Dow declined shortly after news crossed that New York would put restrictions on bars, restaurants and gyms as COVID-19 infections rose in the state.

Enthusiasm about the economy’s possible return to normal has vaulted stocks higher this week following encouraging, but incomplete data on a potential vaccine for COVID-19. That pushed investors to shift dollars out of the old winners of the stay-at-home, virus-wracked economy and into beaten-down stocks that have a brighter future if people feel comfortable again going outside their homes.

Big Tech stocks had borne the brunt of this week’s dramatic reordering, but they clawed back some of those earlier losses. Microsoft rose 2.6%, erasing much of its loss for the week, for example. Amazon gained 3.4% to pare its weekly loss.

Elsewhere in the market, some of the massive rotation that swept through early this week also eased off the accelerator. The S&P 500 was nearly evenly split between stocks rising and falling, while energy and bank stocks gave back a bit of their huge gains from Monday and Tuesday.

Tourism and entertainment stocks fell sharply, following the drops in American Express and Walt Disney. Delta Air Lines fell 5.5% and Wynn Resorts dropped 5.1%.

While several significant risks remain for Wall Street broadly, the optimistic case that investors are embracing is that one or more coronavirus vaccines could help corral the virus by the second half of next year, encouraging people to return to life as it was before the pandemic.

All that economic activity would come on top of the tremendous aid that the Federal Reserve and other central banks around the world are pumping into the economy through very low interest rates and massive purchases of bonds. Hope also remains that the U.S. government may eventually deliver some form of support for the economy, though its total size would likely be smaller than if Democrats had swept this month’s elections.

Strategists along Wall Street are raising their forecasts for stock prices on expectations that political control of Washington will remain split between the parties. Republicans look set to keep the Senate, as long as runoff elections go their way in Georgia in January, while Democrats will hold the House of Representatives.

ASX 200 poised to rise again.

The Australian share market looks set to extend its positive run on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% higher.

https://apnews.com/article/virus-ou...dia-shanghai-a135a548df0c6e8b5aaec8fe5c032c0f

Rally fades on Wall Street, pulling indexes below records

By STAN CHOE and KEN SWEET28 minutes ago

NEW YORK (AP) — Stocks closed mostly higher on Wednesday, helped by big technology stocks, but news of tighter restrictions in New York State helped dent an earlier rally.

The S&P 500 closed up 27.13 points, or 0.8%, to 3,572.66. The benchmark index is now just 8 points below the record high it set in September. The technology-heavy Nasdaq composite rose 232.57 points, or 2%, to 11,786.43.

The Dow Jones Industrial Average fell 23.29 points, or 0.1%, to 29,397.63. The index was dragged lower in part by American Express and Walt Disney, two stocks that shot up this week after news of a potentially successful vaccine sent travel, entertainment and tourism companies surging. The Dow declined shortly after news crossed that New York would put restrictions on bars, restaurants and gyms as COVID-19 infections rose in the state.

Enthusiasm about the economy’s possible return to normal has vaulted stocks higher this week following encouraging, but incomplete data on a potential vaccine for COVID-19. That pushed investors to shift dollars out of the old winners of the stay-at-home, virus-wracked economy and into beaten-down stocks that have a brighter future if people feel comfortable again going outside their homes.

Big Tech stocks had borne the brunt of this week’s dramatic reordering, but they clawed back some of those earlier losses. Microsoft rose 2.6%, erasing much of its loss for the week, for example. Amazon gained 3.4% to pare its weekly loss.

Elsewhere in the market, some of the massive rotation that swept through early this week also eased off the accelerator. The S&P 500 was nearly evenly split between stocks rising and falling, while energy and bank stocks gave back a bit of their huge gains from Monday and Tuesday.

Tourism and entertainment stocks fell sharply, following the drops in American Express and Walt Disney. Delta Air Lines fell 5.5% and Wynn Resorts dropped 5.1%.

While several significant risks remain for Wall Street broadly, the optimistic case that investors are embracing is that one or more coronavirus vaccines could help corral the virus by the second half of next year, encouraging people to return to life as it was before the pandemic.

All that economic activity would come on top of the tremendous aid that the Federal Reserve and other central banks around the world are pumping into the economy through very low interest rates and massive purchases of bonds. Hope also remains that the U.S. government may eventually deliver some form of support for the economy, though its total size would likely be smaller than if Democrats had swept this month’s elections.

Strategists along Wall Street are raising their forecasts for stock prices on expectations that political control of Washington will remain split between the parties. Republicans look set to keep the Senate, as long as runoff elections go their way in Georgia in January, while Democrats will hold the House of Representatives.

Democrat Joe Biden has clinched enough electoral votes to win the White House, clearing some of the uncertainty that weighed on the market through the vicious campaign. Even though President Donald Trump has refused to concede, investors are ignoring his complaints so far. They’re instead working on the assumption that a split Washington under Biden could keep tax rates low while offering more steady and predictable policies.

Those expected results helped push strategists at Goldman Sachs to raise their forecast for the S&P 500 at the end of this year to 3,700 from 3,600. That would imply another 4.4% climb from Tuesday’s closing level. They expect it to rally another 16% through 2021. But the biggest driver for that is the hope for a return to normal life, rather than what happens in Washington.

 

[bigdog]

U.S. stocks pulled back on Thursday, amid increasing worries about worsening coronavirus counts across the country.

Markets around the world have taken a pause after galloping higher this month, at first on expectations that Washington will continue several pro-business policies following last week’s U.S. elections. More recently, encouraging early results for a potential COVID-19 vaccine have investors envisioning a global economy returning to normal.

The S&P 500 index lost 35.65 points, or 1%, to 3,537.01. The Dow Jones Industrial Average dropped 317.46 points, or 1.1%, to 29,080.17 and the Nasdaq composite lost 76.84 points, or 0.7%, to 11,709.59.

Analysts are still largely optimistic the market can climb even higher, largely because they see a potential vaccine as a game changer. Despite the declines, the S&P 500 and Dow are both close to their record highs. But several risks remain that could trip up markets in the near term. Rising above them all is the continuing pandemic, with daily counts climbing in nearly every state.

The trends are worsening enough in New York, for example, that the state is ordering restaurants, bars and gyms to close at 10 p.m. each night, beginning Friday. New York had been a hotbed for the virus early in the year but had seemed to have gotten it largely under control. In Europe, several governments have brought back even tougher restrictions that will likely restrain the economy.

“From a health standpoint and economic standpoint, the very near term looks relatively bleak,” said Mike Dowdall, investment strategist with BMO Global Asset Management.

But while he says more volatility may hit the market in the near term as governments bring back restrictions, he’s still optimistic about its prospects into next year.

“If you think back to the dark days of March, you didn’t know how far we were from normalization,” he said. “People were saying it may be years. But the backdrop from a markets standpoint is just a lot different than it was in March.”

Beyond the vaccines in development, which could get everyday life closer to normal, he cited the Federal Reserve, which has already shown it can roll out bond-buying programs swiftly to support markets.

Thursday’s slip for the S&P 500 pares its gain for November down to 8.2%. If it holds there, it would still be the best month for the benchmark index since April, when the market was first exploding out of the crater created by the market’s sell-off amid pandemic panic.

Declines in Big Tech stocks, which have held out well throughout much of the pandemic, helped pull the market lower. Microsoft and Facebook each slipped 0.5%.

Several of the stocks that would benefit most from an economy returning to normal, meanwhile, were lagging.

Financial stocks in the S&P 500, whose profits are more closely tied to the strength of the economy than Big Tech, fell 1.7% for one of the largest losses among the 11 sectors that make up the index. Only energy, raw materials and utility companies fell more.

While the market is showing signs of worry over the uptick in virus cases, the longer view for an economic recovery is still solid, said Brent Schutte, chief investment strategist of Northwestern Mutual Wealth Management. That scenario is bolstered by the advances in vaccine development.

“At some point the vaccine means the virus ends and we get back to something normal,” he said. “I feel fairly confident going into next year.”

ASX 200 looks set to fall again.
It looks set to be a tough end to the week for the ASX 200 after global markets dropped lower. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.40% lower.

The S&P 500 index lost 35.65 points, or 1%, to 3,537.01. The Dow Jones Industrial Average dropped 317.46 points, or 1.1%, to 29,080.17 and the Nasdaq composite lost 76.84 points, or 0.7%, to 11,709.59. There are concerns that rising COVID-19 cases could weigh on the global economy.

https://apnews.com/article/technolo...andemic-asia-fab4cc5197f0b4f317fd74977aafaddf

Stocks pull further below record highs as infections spread

By STAN CHOE and DAMIAN J. TROISE

NEW YORK (AP) — U.S. stocks pulled back on Thursday, amid increasing worries about worsening coronavirus counts across the country.

Markets around the world have taken a pause after galloping higher this month, at first on expectations that Washington will continue several pro-business policies following last week’s U.S. elections. More recently, encouraging early results for a potential COVID-19 vaccine have investors envisioning a global economy returning to normal.

The S&P 500 index lost 35.65 points, or 1%, to 3,537.01. The Dow Jones Industrial Average dropped 317.46 points, or 1.1%, to 29,080.17 and the Nasdaq composite lost 76.84 points, or 0.7%, to 11,709.59.

Analysts are still largely optimistic the market can climb even higher, largely because they see a potential vaccine as a game changer. Despite the declines, the S&P 500 and Dow are both close to their record highs. But several risks remain that could trip up markets in the near term. Rising above them all is the continuing pandemic, with daily counts climbing in nearly every state.

The trends are worsening enough in New York, for example, that the state is ordering restaurants, bars and gyms to close at 10 p.m. each night, beginning Friday. New York had been a hotbed for the virus early in the year but had seemed to have gotten it largely under control. In Europe, several governments have brought back even tougher restrictions that will likely restrain the economy.

“From a health standpoint and economic standpoint, the very near term looks relatively bleak,” said Mike Dowdall, investment strategist with BMO Global Asset Management.

But while he says more volatility may hit the market in the near term as governments bring back restrictions, he’s still optimistic about its prospects into next year.

“If you think back to the dark days of March, you didn’t know how far we were from normalization,” he said. “People were saying it may be years. But the backdrop from a markets standpoint is just a lot different than it was in March.”

Beyond the vaccines in development, which could get everyday life closer to normal, he cited the Federal Reserve, which has already shown it can roll out bond-buying programs swiftly to support markets.

Thursday’s slip for the S&P 500 pares its gain for November down to 8.2%. If it holds there, it would still be the best month for the benchmark index since April, when the market was first exploding out of the crater created by the market’s sell-off amid pandemic panic.

Declines in Big Tech stocks, which have held out well throughout much of the pandemic, helped pull the market lower. Microsoft and Facebook each slipped 0.5%.

Several of the stocks that would benefit most from an economy returning to normal, meanwhile, were lagging.

Financial stocks in the S&P 500, whose profits are more closely tied to the strength of the economy than Big Tech, fell 1.7% for one of the largest losses among the 11 sectors that make up the index. Only energy, raw materials and utility companies fell more.

While the market is showing signs of worry over the uptick in virus cases, the longer view for an economic recovery is still solid, said Brent Schutte, chief investment strategist of Northwestern Mutual Wealth Management. That scenario is bolstered by the advances in vaccine development.

“At some point the vaccine means the virus ends and we get back to something normal,” he said. “I feel fairly confident going into next year.”

A report on Thursday showed that the number of layoffs across the country remains incredibly high, though it again eased by a bit. Last week, 709,000 workers filed for unemployment benefits, down from 757,000 a week earlier. It was also a better reading than economists were expecting.

But economists caution that the numbers could climb again if coronavirus counts keep rising across the country and trigger more business closures.

A separate report showed that inflation at the consumer level was weaker last month than economists expected.

In European stock markets, the French CAC 40 fell 1.5%, and Germany’s DAX lost 1.2%. The FTSE 100 in London dropped 0.7% after data showed the economy slowed in September following strong growth in the summer. That bodes ill for the autumn, when new restrictions on businesses were imposed.

In Asia, Japan’s Nikkei 225 rose 0.7% but other indexes were weaker. South Korea’s Kospi lost 0.4%, Hong Kong’s Hang Seng dipped 0.2% and stocks in Shanghai slipped 0.1%.

Chinese technology shares have taken a beating this week, losing about $290 billion in market capitalization after the government issued new proposed anti-trust regulations for digital industries, said Jeffrey Halley of Oanda.

 

[bigdog]

The S&P 500 closed at a record high on Friday as optimism built among investors that a coming vaccine for coronavirus will help end the shutdowns that have devastated the economy.

Markets also welcomed the election of Joe Biden as president and the likelihood of Republican control of the Senate, setting up a divided government that will probably mean a continuation of business-friendly policies. Small-company stocks outpaced the rest of the market this week, reflecting greater confidence in the economy.

The S&P 500 added 48.14 points, or 1.4%, to 3,585.15, rising above the index's previous closing record of 3,580.84 set back in early September. Both the Dow Jones Industrial Average and the Nasdaq composite closed higher as well, but did not close at records. The S&P 500 ended the week up 2.2%.

The Dow rose 399.64 points, or 1.4%, to 29,479.81 and the Nasdaq rose 119.70 points, or 1%, to 11,829.29.

The market index that had the best week was the Russell 2000, which is made up of smaller companies that tend to benefit the most when investors are positive on the economy. The Russell climbed 2.1% to close at 1,744.04, besting the closing high it reached in August 2018. The index jumped 6.1% this week.

The market was lifted by energy, real estate and companies that rely on consumer spending, while big technology companies floated between gains and losses. One exception in technology was Cisco, which jumped 7.1% on the back of better-than-expected earnings.

Reports of surging COVID-19 cases had a sobering effect on markets earlier in the week, which had advanced on hopes for a vaccine and expectations that pro-business policies will continue after last week’s U.S. elections. The concern was that even if a vaccine is finalized soon, it will take months for it to be distributed throughout the U.S. and around the globe.

https://www.usnews.com/news/busines...stly-drop-on-worries-over-surging-virus-cases

S&P 500 Closes at Record as Possible Vaccine Lifts Markets
The S&P 500 closed at a record high on Friday as optimism built among investors that a coming vaccine for coronavirus will help end the shutdowns that have devastated the economy.
By Associated Press, Wire Service Content Nov. 13, 2020, at 4:46 p.m.

By KEN SWEET and DAMIAN TROISE, AP Business Writers

The S&P 500 closed at a record high on Friday as optimism built among investors that a coming vaccine for coronavirus will help end the shutdowns that have devastated the economy.

Markets also welcomed the election of Joe Biden as president and the likelihood of Republican control of the Senate, setting up a divided government that will probably mean a continuation of business-friendly policies. Small-company stocks outpaced the rest of the market this week, reflecting greater confidence in the economy.

The S&P 500 added 48.14 points, or 1.4%, to 3,585.15, rising above the index's previous closing record of 3,580.84 set back in early September. Both the Dow Jones Industrial Average and the Nasdaq composite closed higher as well, but did not close at records. The S&P 500 ended the week up 2.2%.

The Dow rose 399.64 points, or 1.4%, to 29,479.81 and the Nasdaq rose 119.70 points, or 1%, to 11,829.29.

The market index that had the best week was the Russell 2000, which is made up of smaller companies that tend to benefit the most when investors are positive on the economy. The Russell climbed 2.1% to close at 1,744.04, besting the closing high it reached in August 2018. The index jumped 6.1% this week.

The market was lifted by energy, real estate and companies that rely on consumer spending, while big technology companies floated between gains and losses. One exception in technology was Cisco, which jumped 7.1% on the back of better-than-expected earnings.

Reports of surging COVID-19 cases had a sobering effect on markets earlier in the week, which had advanced on hopes for a vaccine and expectations that pro-business policies will continue after last week’s U.S. elections. The concern was that even if a vaccine is finalized soon, it will take months for it to be distributed throughout the U.S. and around the globe.

Coronavirus caseloads are rising at a faster pace in the U.S. in almost every state. In New York, the state is ordering restaurants, bars and gyms to close at 10 p.m., beginning Friday. New York was devastated by the virus earlier this year but seemed to have gotten it largely under control. In Europe, several governments have brought back even tougher restrictions that will likely restrain the economy.

One sign of consumer worry regarding the rising coronavirus infections was reflected in the University of Michigan's consumer sentiment survey, which fell to a reading of 77 from October's reading of 81.8. That figure was below economist expectations.

David Lefkowitz, head of Americas equities at UBS Global Wealth Management, said there is a “tug of war” in the markets between the good news from vaccine development and the worrying news that coronavirus cases are surging.

“I still think the dust is kind of settling from that vaccine news as investors think about how to be positioned,” he said.

In Japan, where the pandemic had seemed relatively under control at fewer than 2,000 cumulative deaths, the number of reported daily cases nationwide reached a record for the country on Thursday, at more than 1,660 people. Especially affected were Tokyo and the northern island of Hokkaido, raising worries that a recent government campaign to discount domestic travel might have helped spread infections

 

[bigdog]

ASX 200 expected to rise.

It looks set to be a positive start to the week for the Australian share market after a strong finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 16 points or 0.25% at the open. On Friday night in the United States, the Dow Jones rose 1.4%, the S&P 500 climbed 1.4%, and the Nasdaq pushed 1% higher. The S&P 500 hit a record high on Friday.

 

[bigdog]

The Dow Jones Industrial Average returned to a record Monday for the first time since plunging nine months ago in despair about the pandemic, riding a swell of optimism that a vaccine may soon control the coronavirus and the economic destruction it’s caused.

Moderna said early in the morning that its COVID-19 vaccine appears to be 94.5% effective, according to preliminary data. It’s the second time this month that a company unveiled such encouraging numbers about a vaccine, boosting hopes that the global economy can return to some semblance of normal next year.

Leading the way again were stocks of companies that would benefit most from an economy busting out of its forced hibernation, such as airlines, movie theaters and banks. At the same time, pandemic-winning stocks that benefited from lockdown orders like Amazon and Zoom Video Communications lagged as they no longer looked like the only safe bets to play.

The Dow jumped 470.63 points, or 1.6%, to 29,950.44. It surpassed its prior closing record of 29,551.42, set in February before pandemic panic hit the market.

The S&P 500, which matters more to the performance of most 401(k) accounts, added to its own record set on Friday. It rose 41.76, or 1.2%, to 3,626.91. The Nasdaq composite gained 94.84, or 0.8%, to 11,924.13. It lagged the rest of the market amid lessened interest for tech stocks.

Treasury yields, oil prices and stocks around the world also rallied on the shot of increased optimism. A vaccine is precisely what markets have been waiting for to pull the global economy out of its cavern, and analysts say it’s a game changer.

Of course, for all its euphoria, many risks remain for the market. It’s still not guaranteed when a vaccine could be widely available, let alone whether one ultimately will. The pandemic is continuing to worsen, meanwhile, with rising coronavirus counts across the United States and Europe pushing governments to bring back varying degrees of restrictions on businesses. Some areas of the economy have been slowing, particularly after big financial-support programs from Congress expired.

“The vaccine could help people breathe a sigh of relief, but the devil is in the details,” said Gene Goldman, chief investment officer at Cetera Financial Group, referring to the need for more complete data and eventual distribution plans.

But investors for now are focusing on the possibility of a world next year where customers are again going outside to work at offices, buying things at enclosed stores and heading on vacations.

It was just a week ago that Pfizer and BioNTech sent optimism soaring with their encouraging vaccine data results. Movie-theater chain Cinemark has surged 58.3% since just before the announcement. Stocks of smaller companies, whose prices tend to sway more with the strength of the economy, are up more than double their larger rivals over the same time: an 8.6% jump for the Russell 2000 index of small-cap stocks versus 3.3% for the S&P 500.

Stocks of companies that had thrived amid lockdowns and vigilance about the virus, meanwhile, have lagged. Amazon, Netflix and Etsy are all down more than 5% since just before Pfizer’s announcement. Zoom has sunk 20.2%.

The shift in market sentiment is perhaps most clear in the stock prices of Peloton, with its at-home exercise bikes, and the Planet Fitness chain of gyms. Peloton is down 18.8% since Nov. 6, versus a gain of 5.7% for Planet Fitness.

Investors aren’t abandoning Big Tech amid the vaccine hopes. But the ability of Apple, Microsoft and other behemoths to stand so clearly apart from the rest of the market has diminished a bit. That has many money managers pulling some of the big profits made on Big Tech and steering them into beaten-down areas of the market.

Of course, such movements could limit the gains for broad index funds. Stocks with bigger market values hold bigger sway on the S&P 500 and other indexes, which means any slowdown for Big Tech could diminish movements for the funds at the center of many 401(k) accounts, even if the rest of the market is rising.

“That’s sometimes what happens when you get a rotation, especially into the smaller stocks,” said Barry James, portfolio manager with James Investment Research. “You don’t see it. It’s almost invisible.”

Even before Moderna’s vaccine news, markets had been trading higher as investors welcomed the signing on Sunday of an agreement establishing the world’s biggest trade bloc, a group of 15 countries that includes China, Japan, South Korea, 10 countries in Southeast Asia, New Zealand and Australia. The United States, the No. 1 economy, is not a part of it.


ASX 200 expected to edge lower.

The Australian share market looks set to edge lower this morning if it opens as planned. According to the latest SPI futures, the ASX 200 is expected to fall 3 points this morning.
The Dow jumped 470.63 points, or 1.6%, to 29,950.44. The S&P 500, rose 41.76, or 1.2%, to 3,626.91. The Nasdaq composite gained 94.84, or 0.8%, to 11,924.13.

https://apnews.com/article/financia...andemic-asia-41272a6a6ccbf06af32e17789a8a4bb2

Dow returns to record, S&P 500 adds to its on vaccine hopes

By STAN CHOE and DAMIAN J. TROISE

NEW YORK (AP) — The Dow Jones Industrial Average returned to a record Monday for the first time since plunging nine months ago in despair about the pandemic, riding a swell of optimism that a vaccine may soon control the coronavirus and the economic destruction it’s caused.

Moderna said early in the morning that its COVID-19 vaccine appears to be 94.5% effective, according to preliminary data. It’s the second time this month that a company unveiled such encouraging numbers about a vaccine, boosting hopes that the global economy can return to some semblance of normal next year.

Leading the way again were stocks of companies that would benefit most from an economy busting out of its forced hibernation, such as airlines, movie theaters and banks. At the same time, pandemic-winning stocks that benefited from lockdown orders like Amazon and Zoom Video Communications lagged as they no longer looked like the only safe bets to play.

The Dow jumped 470.63 points, or 1.6%, to 29,950.44. It surpassed its prior closing record of 29,551.42, set in February before pandemic panic hit the market.

The S&P 500, which matters more to the performance of most 401(k) accounts, added to its own record set on Friday. It rose 41.76, or 1.2%, to 3,626.91. The Nasdaq composite gained 94.84, or 0.8%, to 11,924.13. It lagged the rest of the market amid lessened interest for tech stocks.

Treasury yields, oil prices and stocks around the world also rallied on the shot of increased optimism. A vaccine is precisely what markets have been waiting for to pull the global economy out of its cavern, and analysts say it’s a game changer.

Of course, for all its euphoria, many risks remain for the market. It’s still not guaranteed when a vaccine could be widely available, let alone whether one ultimately will. The pandemic is continuing to worsen, meanwhile, with rising coronavirus counts across the United States and Europe pushing governments to bring back varying degrees of restrictions on businesses. Some areas of the economy have been slowing, particularly after big financial-support programs from Congress expired.

“The vaccine could help people breathe a sigh of relief, but the devil is in the details,” said Gene Goldman, chief investment officer at Cetera Financial Group, referring to the need for more complete data and eventual distribution plans.

But investors for now are focusing on the possibility of a world next year where customers are again going outside to work at offices, buying things at enclosed stores and heading on vacations.

It was just a week ago that Pfizer and BioNTech sent optimism soaring with their encouraging vaccine data results. Movie-theater chain Cinemark has surged 58.3% since just before the announcement. Stocks of smaller companies, whose prices tend to sway more with the strength of the economy, are up more than double their larger rivals over the same time: an 8.6% jump for the Russell 2000 index of small-cap stocks versus 3.3% for the S&P 500.

Stocks of companies that had thrived amid lockdowns and vigilance about the virus, meanwhile, have lagged. Amazon, Netflix and Etsy are all down more than 5% since just before Pfizer’s announcement. Zoom has sunk 20.2%.

The shift in market sentiment is perhaps most clear in the stock prices of Peloton, with its at-home exercise bikes, and the Planet Fitness chain of gyms. Peloton is down 18.8% since Nov. 6, versus a gain of 5.7% for Planet Fitness.

Investors aren’t abandoning Big Tech amid the vaccine hopes. But the ability of Apple, Microsoft and other behemoths to stand so clearly apart from the rest of the market has diminished a bit. That has many money managers pulling some of the big profits made on Big Tech and steering them into beaten-down areas of the market.

Of course, such movements could limit the gains for broad index funds. Stocks with bigger market values hold bigger sway on the S&P 500 and other indexes, which means any slowdown for Big Tech could diminish movements for the funds at the center of many 401(k) accounts, even if the rest of the market is rising.

“That’s sometimes what happens when you get a rotation, especially into the smaller stocks,” said Barry James, portfolio manager with James Investment Research. “You don’t see it. It’s almost invisible.”

Even before Moderna’s vaccine news, markets had been trading higher as investors welcomed the signing on Sunday of an agreement establishing the world’s biggest trade bloc, a group of 15 countries that includes China, Japan, South Korea, 10 countries in Southeast Asia, New Zealand and Australia. The United States, the No. 1 economy, is not a part of it.

Called the Regional Comprehensive Economic Partnership, the pact mostly will bring already low tariffs lower over a 20-year period. It is expected to have a positive but incremental impact on trade in the region.

Japan’s Nikkei 225 rose 2.1%, South Korea’s Kospi gained 2% and Hong Kong’s Hang Seng added 0.9%. France’s CAC 40 jumped 1.7%, and Germany’s DAX returned 0.5%. The FTSE 100 in London gained 1.7%.

Benchmark U.S. crude oil climbed 3% to settle at $41.34 per barrel amid hopes that a healthier economy would burn more fuel. Brent crude, the international standard, rose 2.4% to settle at $43.82 per barrel.

The yield on the 10-year Treasury rose to 0.90% from 0.87% late Friday.

 

[bigdog]

Stocks took a pause from their big rally this month that has vaulted them back to record heights.

Worries about the worsening pandemic pushed Wall Street to tap the brakes Tuesday on its big November rally, which had vaulted stocks back to record heights.

Treasury yields also dipped after a report showed U.S. shoppers spent less at retailers last month than economists expected. The numbers underscore how the coronavirus pandemic is worsening and threatens to drag the economy lower, at least in the near term.

Stocks that stormed higher this month on hopes that a vaccine or two may get the global economy back to normal next year receded amid the worries.

The S&P 500 fell 17.38 points, or 0.5%, from its record to close at 3,609.53. It was the first loss for the index in three days.

The Dow Jones Industrial Average also fell from a record, down 167.09, or 0.6%, to 29,783.35. The Nasdaq composite slipped 24.79, or 0.2%, to 11,899.34.

“Today is a good example of how the markets have been pricing in a lot of the good news,” said David Trainer, CEO of investment research firm New Constructs.

Stocks in the pharmacy business were among the biggest drags on the market after Amazon targeted them as the latest industry it’s trying to upend. The retailing behemoth opened an online pharmacy Tuesday that allows customers to have prescriptions delivered to their door in a couple days.

CVS Health fell 8.6%, Walgreens Boots Alliance dropped 9.6% and Rite-Aid lost 16.3%. Amazon, meanwhile, ticked up 0.1%.

On the winning side was Tesla, which rose 8.2% following an announcement that it will join the S&P 500 index next month. The index is hugely influential, and nearly $4.6 trillion at the end of last year was in funds that mimic the S&P 500.

The electric-vehicle company had already soared 388.8% in 2020 before Monday evening’s index announcement. With a total market value rivaling Johnson & Johnson's and Visa's, it's set to become one of the biggest stocks in the S&P 500.

The broader stock market slowed Tuesday, though, and the majority of stocks in the S&P 500 were lower.

ASX 200 expected to rise.

The Australian share market looks set to extend its positive run on Wednesday despite a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 14 points or 0.2% at the open. The S&P 500 fell 17.38 points, or 0.5%, from its rcord to close at 3,609.53. The Dow Jones Industrial Average also fell from a record, down 167.09, or 0.6%, to 29,783.35. The Nasdaq composite slipped 24.79, or 0.2%, to 11,899.34.

https://www.usnews.com/news/busines...-shares-buoyed-by-news-on-coronavirus-vaccine

Stocks Fall as Virus Worries Force Big Rally to Take a Pause
Stocks took a pause from their big rally this month that has vaulted them back to record heights.
By Associated Press, Wire Service Content Nov. 17, 2020, at 4:29 p.m.

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

NEW YORK (AP) — Worries about the worsening pandemic pushed Wall Street to tap the brakes Tuesday on its big November rally, which had vaulted stocks back to record heights.

Treasury yields also dipped after a report showed U.S. shoppers spent less at retailers last month than economists expected. The numbers underscore how the coronavirus pandemic is worsening and threatens to drag the economy lower, at least in the near term.

Stocks that stormed higher this month on hopes that a vaccine or two may get the global economy back to normal next year receded amid the worries.

The S&P 500 fell 17.38 points, or 0.5%, from its record to close at 3,609.53. It was the first loss for the index in three days.

The Dow Jones Industrial Average also fell from a record, down 167.09, or 0.6%, to 29,783.35. The Nasdaq composite slipped 24.79, or 0.2%, to 11,899.34.

“Today is a good example of how the markets have been pricing in a lot of the good news,” said David Trainer, CEO of investment research firm New Constructs.

Stocks in the pharmacy business were among the biggest drags on the market after Amazon targeted them as the latest industry it’s trying to upend. The retailing behemoth opened an online pharmacy Tuesday that allows customers to have prescriptions delivered to their door in a couple days.

CVS Health fell 8.6%, Walgreens Boots Alliance dropped 9.6% and Rite-Aid lost 16.3%. Amazon, meanwhile, ticked up 0.1%.

On the winning side was Tesla, which rose 8.2% following an announcement that it will join the S&P 500 index next month. The index is hugely influential, and nearly $4.6 trillion at the end of last year was in funds that mimic the S&P 500.

The electric-vehicle company had already soared 388.8% in 2020 before Monday evening’s index announcement. With a total market value rivaling Johnson & Johnson's and Visa's, it's set to become one of the biggest stocks in the S&P 500.

The broader stock market slowed Tuesday, though, and the majority of stocks in the S&P 500 were lower.

Boston Scientific dropped 7.9% for one of the largest losses in the index after it issued a voluntary recall for its LOTUS Edge aortic valve system. Analysts said problems with its delivery system essentially mean an end to what was once a promising business.

Sales at U.S. retailers rose 0.3% last month from September, a sharp slowdown from September’s 1.6% growth. The figure also fell short of economists’ expectations for 0.5% growth.

Part of the shortfall is likely because laid-off workers are no longer getting extra unemployment benefits from the U.S. government following the expiration of several financial-support programs from Congress. Democrats and Republicans in Washington have talked about renewing some of the programs, but progress has been painfully slow amid deep partisanship in Washington.

That’s layering on top of the accelerating pandemic, which is pushing governments across the United States and Europe to bring back varying degrees of restrictions on daily life in hopes of slowing the spread of the virus. Health experts are warning of a bleak winter on the way.

Federal Reserve Chair Jerome Powell said Tuesday the surge could raise fear enough to discourage consumers from spending and hurt the economy.

“The concern is that people will lose confidence in efforts to control the pandemic, and ... we’re seeing signs of that already,” Powell said in an online discussion with the Bay Area Council, a San Francisco-based business group.

That’s all helped dilute some of the optimism that’s rushed through markets since early last week. Companies have released encouraging early results for a couple potential COVID-19 vaccines, which is raising hopes that the economy can get back to normal and stocks beaten down during the pandemic can roar back to life.

Even with Tuesday’s decline, the S&P 500 is still up 10.4% for November so far. That’s better than any monthly performance for the index since April, when stocks were exploding higher following their pandemic-induced plunge.

“So, this theme of rotation away from some of these hyper-valued tech names to some more reasonably valued and profitable companies is going to be a big part of the theme going into the end of the year,” Trainer said.

The yield on the 10-year Treasury fell to 0.87% from 0.89% late Monday.

In Europe, Germany’s DAX was close to flat, and France’s CAC 40 reversed an earlier loss to rise 0.2%. The FTSE 100 in London fell 0.9%.

In Asia, stocks were mixed. Japan’s Nikkei 225 rose 0.4%, and Hong Kong’s Hang Seng inched up 0.1%. South Korea’s Kospi slipped 0.2%, and stocks in Shanghai lost 0.2%.

 

[bigdog]

A late-afternoon slide on Wall Street dragged stocks broadly lower Wednesday, wiping out early gains and adding to losses from a day earlier as investors worry about the economic fallout from surging coronavirus cases in the U.S.

The S&P 500 fell 1.2%. It had been up 0.3% in the early going after Pfizer and BioNTech reported updated data suggesting their potential COVID-19 vaccine may be 95% effective. The companies said they plan to ask U.S. regulators within days to allow emergency use of the vaccine.

The news, which followed encouraging data on Monday about a vaccine being developed by Moderna, initially gave investors cause for optimism that the virus-ravaged economy could begin to heal next year. But such optimism is being tempered by a spike in coronavirus cases and worries that it will lead to widespread restrictions on businesses once more.

Coronavirus counts and hospitalizations are up across the country, and health experts are warning about the possibility of a brutal winter.

“This is a market that is fluctuating as it makes a determination about the effect that the COVID-19 restrictions and lockdowns have on the reopening of the U.S. economy, versus the positive news that stems from potential vaccinations beginning in 2021,” said Quincy Krosby, chief market strategist at Prudential Financial. “It’s sort of a tug-of-war.”

The S&P 500 fell 41.74 points to 3,567.79. The Dow Jones Industrial Average dropped 344.93 points, or 1.2%, to 29,438.42. The Nasdaq composite lost 97.74 points, or 0.8%, to 11,801.60.

Small-company stocks, which have notched the biggest gains this month, gave up 22.60 points, or 1.3%, to 1,769.32.

Newly confirmed coronavirus infections per day in the U.S. have exploded more than 80% over the past two weeks to the highest levels on record, with the daily count running at close to 160,000 on average. Cases are on the rise in all 50 states. Deaths are averaging more than 1,155 per day, the highest in months.

The surge is leading governors and mayors across the U.S. to grudgingly issue mask mandates, limit the size of private and public gatherings, ban indoor restaurant dining, close gyms or restrict the hours and capacity of various businesses. Wednesday’s afternoon sell-off on Wall Street accelerated after New York City said it would close its public schools to in-person learning again as infections continue to rise there.

Despite shedding modest gains from earlier in the day, stocks remain close to their record highs. Hopes for a coronavirus vaccine coming in the future have helped push stocks higher this month as some investors look past the worsening pandemic in the present.

“That story seems to be moderating a little bit here as the coronavirus news has now mostly been digested by the marketplace,” said Tom Martin, senior portfolio manager with Globalt Investments. “The vaccine news immediately captures the imagination because you see an endpoint.”

Companies that would benefit most from a healing, reopening economy, such as airlines and banks, helped push the market higher in the early going Wednesday, though the stocks gave up much of their gains by the end of the day. United Airlines gained 1.1% and American Airlines added 0.3%.

All told, technology, health care and communication services stocks accounted for much of the decline.

Many risks remain for the market. Chief among them is the pandemic, which is accelerating so quickly that governments across the United States and Europe are bringing back varying degrees of restrictions on businesses.


ASX 200 poised to rise gain.

The Australian share market looks set to continue its positive run despite a weak night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 27 points or 0.4% at the open. The S&P 500 fell 41.74 points to 3,567.79. The Dow Jones Industrial Average dropped 344.93 points, or 1.2%, to 29,438.42. The Nasdaq composite lost 97.74 points, or 0.8%, to 11,801.60.

https://apnews.com/article/financia...ong-shanghai-cf4116f76a618a4f3e2fd12aaf871870

Stocks give up early gains and end lower on Wall Street

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA23 minutes ago

A late-afternoon slide on Wall Street dragged stocks broadly lower Wednesday, wiping out early gains and adding to losses from a day earlier as investors worry about the economic fallout from surging coronavirus cases in the U.S.

The S&P 500 fell 1.2%. It had been up 0.3% in the early going after Pfizer and BioNTech reported updated data suggesting their potential COVID-19 vaccine may be 95% effective. The companies said they plan to ask U.S. regulators within days to allow emergency use of the vaccine.

The news, which followed encouraging data on Monday about a vaccine being developed by Moderna, initially gave investors cause for optimism that the virus-ravaged economy could begin to heal next year. But such optimism is being tempered by a spike in coronavirus cases and worries that it will lead to widespread restrictions on businesses once more.

Coronavirus counts and hospitalizations are up across the country, and health experts are warning about the possibility of a brutal winter.

“This is a market that is fluctuating as it makes a determination about the effect that the COVID-19 restrictions and lockdowns have on the reopening of the U.S. economy, versus the positive news that stems from potential vaccinations beginning in 2021,” said Quincy Krosby, chief market strategist at Prudential Financial. “It’s sort of a tug-of-war.”

The S&P 500 fell 41.74 points to 3,567.79. The Dow Jones Industrial Average dropped 344.93 points, or 1.2%, to 29,438.42. The Nasdaq composite lost 97.74 points, or 0.8%, to 11,801.60.

Small-company stocks, which have notched the biggest gains this month, gave up 22.60 points, or 1.3%, to 1,769.32.

Newly confirmed coronavirus infections per day in the U.S. have exploded more than 80% over the past two weeks to the highest levels on record, with the daily count running at close to 160,000 on average. Cases are on the rise in all 50 states. Deaths are averaging more than 1,155 per day, the highest in months.

The surge is leading governors and mayors across the U.S. to grudgingly issue mask mandates, limit the size of private and public gatherings, ban indoor restaurant dining, close gyms or restrict the hours and capacity of various businesses. Wednesday’s afternoon sell-off on Wall Street accelerated after New York City said it would close its public schools to in-person learning again as infections continue to rise there.

Despite shedding modest gains from earlier in the day, stocks remain close to their record highs. Hopes for a coronavirus vaccine coming in the future have helped push stocks higher this month as some investors look past the worsening pandemic in the present.

“That story seems to be moderating a little bit here as the coronavirus news has now mostly been digested by the marketplace,” said Tom Martin, senior portfolio manager with Globalt Investments. “The vaccine news immediately captures the imagination because you see an endpoint.”

Companies that would benefit most from a healing, reopening economy, such as airlines and banks, helped push the market higher in the early going Wednesday, though the stocks gave up much of their gains by the end of the day. United Airlines gained 1.1% and American Airlines added 0.3%.

All told, technology, health care and communication services stocks accounted for much of the decline.

Many risks remain for the market. Chief among them is the pandemic, which is accelerating so quickly that governments across the United States and Europe are bringing back varying degrees of restrictions on businesses.

Even with the encouraging figures from pharmaceutical companies about their potential vaccines, there’s also still no guarantee one will be approved or how long it will take for it to be widely distributed.

Federal Reserve Chair Jerome Powell on Tuesday warned of the potential economic damage in the next few months because of the pandemic. Additional lockdown orders would keep customers away from businesses. But even if the strictest stay-at-home orders don’t return, fear alone of the virus could keep consumers hunkered at home.

Powell and other economists have said another big financial-support program from Congress could help tide the economy over. But bitter partisanship in Washington has prevented any deal to renew extra unemployment benefits for laid-off workers and other stimulus efforts that expired earlier this year.

In Europe, a coronavirus relief package is being held up by a diplomatic dispute between Hungary and Poland and several other major EU countries.

The yield on the 10-year Treasury ticked up to 0.87% from 0.85% late Tuesday. A report showed that homebuilders broke ground on more new houses last month than economists expected.

European stock markets rose. In Asia, Japan’s Nikkei 225 fell but other markets were stronger.

 

[bigdog]

Stocks ended higher, shaking off a weak start and nearly erasing the S&P 500's losses for the week.

Wall Street capped a day of choppy trading with modest gains for stocks Thursday, as the market's tug of war continues between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future.

The S&P 500 rose 0.4% after spending much of the day flipping between small losses and gains. The benchmark index was coming off a 1.2% slide from the day before that pulled it away from its record of 3,626.91 set on Monday. The late-afternoon burst of buying erased nearly all of the S&P 500's losses for the week.

Technology companies accounted for much of the rebound. Companies that rely on consumer spending and communications stocks also helped lift the market, outweighing losses in the utilities and health care sectors. Treasury yields fell, a sign of caution in the market.

The S&P 500 gained 14.08 points to 3,581.87. The Dow Jones Industrial Average added 44.81 points, or 0.2%, to 29,483.23. The index had been down 210 points. The tech-heavy Nasdaq composite climbed 103.11 points, or 0.9%, to 11,904.71.

Small-company stocks had a good showing. The Russell 2000 index picked up 14.82 points, or 0.8%, 1,784.13.

Wall Street’s huge November rally has slowed this week as fears about the economy buckling in the near term collide with hopes that stronger growth will arrive next year once effective coronavirus vaccines become available. A discouraging report on Thursday underscored the fears, showing that more U.S. workers filed for unemployment benefits last week than the week before. It was a worse number than economists expected and the first increase in five weeks.

With infections and hospitalizations on the rise across much of the country, governors and mayors are grudgingly issuing mask mandates, limiting the size of gatherings, banning indoor restaurant dining, closing gyms and restricting the hours and capacity of other businesses.

“Good vaccine news is battling worsening coronavirus trends,” said Ross Mayfield, investment strategist at Baird. “We’re at this point where you have the endgame in sight, but the path to get there looks really murky.”

Investors worry the moves and the worsening pandemic that caused them will hurt corporate profits and shake confidence among consumers, keeping them hunkered at home. New York City’s announcement that it’s halting in-person learning at public schools helped send stocks on their late-day slide Wednesday.

Democrats and Republicans in Washington, meanwhile, are still stymied in their attempts to deliver another dose of financial support to workers and businesses. That has the specter of a bleak winter looming for both the health care system and economy.

Counterbalancing all those fears is hope that coming vaccines can control the pandemic and get the global economy back toward normal next year.

ASX 200 expected to push higher.

The Australian share market could end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to push 17 points or 0.25% higher at the open. The S&P 500 gained 14.08 points to 3,581.87. The Dow Jones Industrial Average added 44.81 points, or 0.2%, to 29,483.23. The index had been down 210 points. The tech-heavy Nasdaq composite climbed 103.11 points, or 0.9%, to 11,904.71.

https://www.usnews.com/news/busines...ets-follow-wall-street-lower-on-virus-anxiety

Stocks Rise Amid Investors’ Tug of War Between Hope, Fear
Stocks ended higher, shaking off a weak start and nearly erasing the S&P 500's losses for the week.
By Associated Press, Wire Service Content Nov. 19, 2020, at 4:51 p.m.

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

Wall Street capped a day of choppy trading with modest gains for stocks Thursday, as the market's tug of war continues between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future.

The S&P 500 rose 0.4% after spending much of the day flipping between small losses and gains. The benchmark index was coming off a 1.2% slide from the day before that pulled it away from its record of 3,626.91 set on Monday. The late-afternoon burst of buying erased nearly all of the S&P 500's losses for the week.

Technology companies accounted for much of the rebound. Companies that rely on consumer spending and communications stocks also helped lift the market, outweighing losses in the utilities and health care sectors. Treasury yields fell, a sign of caution in the market.

The S&P 500 gained 14.08 points to 3,581.87. The Dow Jones Industrial Average added 44.81 points, or 0.2%, to 29,483.23. The index had been down 210 points. The tech-heavy Nasdaq composite climbed 103.11 points, or 0.9%, to 11,904.71.

Small-company stocks had a good showing. The Russell 2000 index picked up 14.82 points, or 0.8%, 1,784.13.

Wall Street’s huge November rally has slowed this week as fears about the economy buckling in the near term collide with hopes that stronger growth will arrive next year once effective coronavirus vaccines become available. A discouraging report on Thursday underscored the fears, showing that more U.S. workers filed for unemployment benefits last week than the week before. It was a worse number than economists expected and the first increase in five weeks.

With infections and hospitalizations on the rise across much of the country, governors and mayors are grudgingly issuing mask mandates, limiting the size of gatherings, banning indoor restaurant dining, closing gyms and restricting the hours and capacity of other businesses.

“Good vaccine news is battling worsening coronavirus trends,” said Ross Mayfield, investment strategist at Baird. “We’re at this point where you have the endgame in sight, but the path to get there looks really murky.”

Investors worry the moves and the worsening pandemic that caused them will hurt corporate profits and shake confidence among consumers, keeping them hunkered at home. New York City’s announcement that it’s halting in-person learning at public schools helped send stocks on their late-day slide Wednesday.

Democrats and Republicans in Washington, meanwhile, are still stymied in their attempts to deliver another dose of financial support to workers and businesses. That has the specter of a bleak winter looming for both the health care system and economy.

Counterbalancing all those fears is hope that coming vaccines can control the pandemic and get the global economy back toward normal next year.

“The market is grappling with the push and pull of the progress with the vaccine track, which allows a window to when our economy can reopen, with the current reality of rising cases,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

University of Oxford scientists expect to report results from the late-stage trials of the COVID-19 vaccine they're developing with AstraZeneca by Christmas, a key researcher said Thursday.

Already this month, pharmaceutical companies have offered data suggesting other vaccines under development could be highly effective. Pfizer and BioNTech said Wednesday they plan to ask U.S. regulators within days to allow emergency use of their vaccine.

That had led to a resurgence of interest for stocks that stand to gain the most from a healthy, reopening economy. These were also among the stocks most beaten down by the stay-at-home economy created by the pandemic, such as travel-related businesses, banks and smaller companies.

Investors will likely need more clarity on the timing and impact of a vaccine in order to gain more confidence in the economic recovery, Northey said.

“We saw a sharp recovery to date, but now its beginning to plateau,” he said. “We're doing that as we head into a very important holiday shopping season.”

L Brands, the company behind Bath & Body Works and Victoria’s Secret, notched the biggest gain in the S&P 500 Thursday. It vaulted 17.7% after it reported a profit for the latest quarter that blew past Wall Street's expectations.

The yield on the 10-year Treasury dipped to 0.84% from 0.86% late Wednesday.

European stock markets fell, and Asian markets ended mixed.

 

[bigdog]

Wall Street Slips Amid Worries About Worsening Pandemic
Stocks ended an up-and-down week on a down note on Wall Street Friday, taking 0.7% off the S&P 500.

Stocks closed broadly lower on Wall Street Friday following another choppy day of trading as worries about the worsening pandemic undercut growing optimism about a coming coronavirus vaccine.

The S&P 500 fell 0.7%, erasing its gains from a day earlier. The benchmark index, which climbed to an all-time high on Monday, posted its first weekly decline after two weeks of gains. The index is still up 8.8% so far this month.

Technology, financial and industrial companies drove much of the selling, which turned volatile in the final hour of regular trading. Treasury yields were mostly lower, a sign of caution in the market. Stock indexes around the world made modest moves.

Traders are balancing cautious optimism that a working coronavirus vaccine will be widely distributed next year against jitters over surging virus cases and the economic impact of new restrictions being put in place across the U.S. on people and businesses to limit the spread.

“It’s a market concerned about growth,” said Quincy Krosby, chief market strategist at Prudential Financial. “That’s the big uncertainty.”

The S&P 500 fell 24.33 points to 3,557.54. The Dow Jones Industrial Average slid 219.75 points, or 0.7%, to 29,263.48. The Nasdaq composite gave up an early gain and dropped 49.74 points, or 0.4%, to 11,854.97.

Small company stocks held up better than the rest of the market. The Russell 2000 small-cap index rose 1.21 points, or 0.1%, to 1,785.34.

Wall Street suddenly began to teeter-totter this week after a big November rally swept both the S&P 500 and Dow to record highs. Evidence is piling up for investors both for hope about the economy’s prospects next year and for fear about the damage accruing in the shorter term.

Adding to the optimistic side of the ledger Friday was Pfizer and BioNTech saying they’ll submit an application with U.S. regulators for emergency use of their vaccine candidate. Data suggests it may be 95% effective at preventing mild to severe COVID-19 disease.

If approved, a limited number of doses could begin being administered as early as next month, though widescale vaccinations likely wouldn’t happen until after a potentially brutal winter. Other vaccines are also under development, and the hope is that one or more could get the economy running closer to normal next year.

On the pessimistic side, more governments around the world are bringing back restrictions on daily life to slow the spread of the virus. Surging coronavirus counts and hospitalizations also threaten to frighten consumers enough to keep them hunkered at home and drag on the economy.

“The market is supposed to be forward-looking, but the reality is it’s hard to look past what’s been going on the past couple of weeks,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The other thing that’s a major concern is people going into lockdowns in major parts of the country. What is that going to be for businesses?”

https://www.usnews.com/news/busines...hares-mixed-amid-tug-of-war-between-hope-fear

Wall Street Slips Amid Worries About Worsening Pandemic
Stocks ended an up-and-down week on a down note on Wall Street Friday, taking 0.7% off the S&P 500.
By Associated Press, Wire Service Content Nov. 20, 2020, at 4:56 p.m.

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

Stocks closed broadly lower on Wall Street Friday following another choppy day of trading as worries about the worsening pandemic undercut growing optimism about a coming coronavirus vaccine.

The S&P 500 fell 0.7%, erasing its gains from a day earlier. The benchmark index, which climbed to an all-time high on Monday, posted its first weekly decline after two weeks of gains. The index is still up 8.8% so far this month.

Technology, financial and industrial companies drove much of the selling, which turned volatile in the final hour of regular trading. Treasury yields were mostly lower, a sign of caution in the market. Stock indexes around the world made modest moves.

Traders are balancing cautious optimism that a working coronavirus vaccine will be widely distributed next year against jitters over surging virus cases and the economic impact of new restrictions being put in place across the U.S. on people and businesses to limit the spread.

“It’s a market concerned about growth,” said Quincy Krosby, chief market strategist at Prudential Financial. “That’s the big uncertainty.”

The S&P 500 fell 24.33 points to 3,557.54. The Dow Jones Industrial Average slid 219.75 points, or 0.7%, to 29,263.48. The Nasdaq composite gave up an early gain and dropped 49.74 points, or 0.4%, to 11,854.97.

Small company stocks held up better than the rest of the market. The Russell 2000 small-cap index rose 1.21 points, or 0.1%, to 1,785.34.

Wall Street suddenly began to teeter-totter this week after a big November rally swept both the S&P 500 and Dow to record highs. Evidence is piling up for investors both for hope about the economy’s prospects next year and for fear about the damage accruing in the shorter term.

Adding to the optimistic side of the ledger Friday was Pfizer and BioNTech saying they’ll submit an application with U.S. regulators for emergency use of their vaccine candidate. Data suggests it may be 95% effective at preventing mild to severe COVID-19 disease.

If approved, a limited number of doses could begin being administered as early as next month, though widescale vaccinations likely wouldn’t happen until after a potentially brutal winter. Other vaccines are also under development, and the hope is that one or more could get the economy running closer to normal next year.

On the pessimistic side, more governments around the world are bringing back restrictions on daily life to slow the spread of the virus. Surging coronavirus counts and hospitalizations also threaten to frighten consumers enough to keep them hunkered at home and drag on the economy.

“The market is supposed to be forward-looking, but the reality is it’s hard to look past what’s been going on the past couple of weeks,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The other thing that’s a major concern is people going into lockdowns in major parts of the country. What is that going to be for businesses?”

California’s governor announced late Thursday an overnight curfew on most residents in the state, the Centers for Disease Control and Prevention is asking Americans not to travel for Thanksgiving and authorities from Lisbon to Sri Lanka announced varying degrees of restrictions.

“On the road to the other side of the pandemic are detours and we're in one of those detours,” Krosby said.

The U.S. Treasury Department also said late Thursday that it will not extend several emergency loan programs set up with the Federal Reserve during the worst of the spring’s turmoil to help prop up markets and the economy.

The announcement got some immediate pushback from the Fed, which has been keeping the accelerator floored on its support for the economy while asking politicians in the White House and Congress to do the same. The central bank said it “would prefer that the full suite of emergency facilities” created during the pandemic remain.

But Treasury Secretary Steven Mnuchin said closing the emergency loan programs could allow Congress to re-appropriate $455 billion to other relief programs. Democrats and Republicans in Washington have been deadlocked in efforts to deliver another round of financial support for the economy following the expiration of supplemental benefits for laid-off workers and other stimulus approved during the spring.

The majority of stocks in the S&P 500 fell, with technology companies taking the heaviest losses. Apple dropped 1.1%, while Intuit dropped 3.8%.

Travel-related stocks also fell. Cruise lines were among the biggest decliners. Norwegian Cruise Line slid 4.9% and Carnival fell 4.5%.

On the winning side was Williams-Sonoma, which rose 6.6% after reporting stronger profit and revenue for the latest quarter than analysts expected.

The yield on the 10-year Treasury slipped to 0.83% from 0.84% late Thursday.

European markets closed moderately higher and Asian markets ended mixed.

 

[bigdog]

ASX 200 poised to rise.

The Australian share market looks set to start the week on a positive note despite declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% higher this morning. On Friday the Dow Jones fell 0.75%, the S&P 500 dropped 0.7%, and the Nasdaq fell 0.4% lower. Rising COVID-19 cases in the United States weighed on investor sentiment.

 

[bigdog]

Stocks Rise on Wall Street on Latest Hopes for Virus Vaccine

Stocks closed higher on Wall Street Monday after investors received several pieces of encouraging news on COVID-19 vaccines and treatments, tempering concerns over rising virus cases and business restrictions.

More encouraging news on the development of coronavirus vaccines and treatments helped power stocks higher on Wall Street Monday, as the market clawed back most of its losses from last week.

The S&P 500 index rose 0.6%, led by banks, energy and industrial companies, sectors that have been beaten down during the pandemic. Health care and technology stocks, which traders have bid up sharply this year, closed lower. Treasury yields mostly rose, another sign of optimism among investors.

The latest vaccine developments are helping to raise hopes that some normalcy will eventually be restored to everyday life and the economy. It is also tempering lingering concerns over rising virus cases in the U.S. and new government restrictions on businesses aimed at limiting the spread.

“Investors continue to embrace and see the optimism in the development of vaccines, providing light at the end of the tunnel and multiple choices on how to get there,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

The S&P 500 rose 20.05 points to 3,577.59. The benchmark index, which climbed to an all-time high a week ago, recouped nearly three-fourths of its decline from last week. The Dow Jones Industrial Average gained 327.79 points, or 1.1%, to 29,591.27. The technology-heavy Nasdaq composite added 25.66 points, or 0.2%, to 11,880.63.

Roughly 73% of the stocks in the S&P 500 rose. In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 32.96 points, or 1.8%, to 1,818.30. The yield on the 10-year Treasury rose to 0.86% from 0.81% late Friday.

Many of the companies making gains would greatly benefit from a vaccine allowing people to travel, shop and dine out. Cruise line operator Carnival rose 4.7% and hotel company Marriott International gained 3.2%. JPMorgan Chase rose 2.9%.

“You continue to see some rotation into sectors and securities that have been undervalued and still have some upside potential,” Taback said.

AstraZeneca is the latest drug developer to report surprisingly good results from ongoing vaccine studies. It said the potential vaccine, which is being developed with partner Oxford University, was up to 90% effective. Unlike rival candidates, however, AstraZeneca’s doesn’t have to be stored at ultra-cold temperatures, making it easier to distribute.

Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment. The drug, which President Donald Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.

The string of upbeat news about vaccine development has been butting up against increased caution as the virus continues to threaten the economy. That push and pull ultimately sent the S&P 500 to a loss last week. But, in the longer term, any positive updates on the vaccine front should be more dominant for the markets, said David Kelly, chief global strategist at JPMorgan Funds.

“It’s not a question of the vaccine versus the winter wave,” he said. “A reasonable forecast is uncertainty will go down.”

He added that any hesitancy in the market at this point should be centered around the issue of company valuations and how fundamentally sound companies are when more normal economic conditions return.

Energy companies notched among the biggest gains in the S&P 500 as the positive vaccine news stoked optimism about more demand for oil, sending the price of U.S. crude 2.2% higher. Occidental Petroleum led all stocks in the S&P 500, climbing 16.8%.

Even with its weekly decline last week, the S&P 500 is on track for a 9.4% gain this month. Trading is expected to be light this week ahead of the Thanksgiving holiday on Thursday, when U.S. stock markets will be closed. They will reopen on Friday for a half-day session.

European markets ended slightly lower, and Asian markets mostly rose.

ASX 200 poised to rise.

It looks set to be another positive day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.5% higher this morning.

This follows a good start to the week on Wall Street. The S&P 500 rose 20.05 points to 3,577.59. The benchmark index, which climbed to an all-time high a week ago, recouped nearly three-fourths of its decline from last week. The Dow Jones Industrial Average gained 327.79 points, or 1.1%, to 29,591.27. The technology-heavy Nasdaq composite added 25.66 points, or 0.2%, to 11,880.63.

https://www.usnews.com/news/busines...se-ahead-of-us-economic-data-amid-virus-fears

Stocks Rise on Wall Street on Latest Hopes for Virus Vaccine
Stocks closed higher on Wall Street Monday after investors received several pieces of encouraging news on COVID-19 vaccines and treatments, tempering concerns over rising virus cases and business restrictions.
By Associated Press, Wire Service Content Nov. 23, 2020, at 4:44 p.m.

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

More encouraging news on the development of coronavirus vaccines and treatments helped power stocks higher on Wall Street Monday, as the market clawed back most of its losses from last week.

The S&P 500 index rose 0.6%, led by banks, energy and industrial companies, sectors that have been beaten down during the pandemic. Health care and technology stocks, which traders have bid up sharply this year, closed lower. Treasury yields mostly rose, another sign of optimism among investors.

The latest vaccine developments are helping to raise hopes that some normalcy will eventually be restored to everyday life and the economy. It is also tempering lingering concerns over rising virus cases in the U.S. and new government restrictions on businesses aimed at limiting the spread.

“Investors continue to embrace and see the optimism in the development of vaccines, providing light at the end of the tunnel and multiple choices on how to get there,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

The S&P 500 rose 20.05 points to 3,577.59. The benchmark index, which climbed to an all-time high a week ago, recouped nearly three-fourths of its decline from last week. The Dow Jones Industrial Average gained 327.79 points, or 1.1%, to 29,591.27. The technology-heavy Nasdaq composite added 25.66 points, or 0.2%, to 11,880.63.

Roughly 73% of the stocks in the S&P 500 rose. In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 32.96 points, or 1.8%, to 1,818.30. The yield on the 10-year Treasury rose to 0.86% from 0.81% late Friday.

Many of the companies making gains would greatly benefit from a vaccine allowing people to travel, shop and dine out. Cruise line operator Carnival rose 4.7% and hotel company Marriott International gained 3.2%. JPMorgan Chase rose 2.9%.

“You continue to see some rotation into sectors and securities that have been undervalued and still have some upside potential,” Taback said.

AstraZeneca is the latest drug developer to report surprisingly good results from ongoing vaccine studies. It said the potential vaccine, which is being developed with partner Oxford University, was up to 90% effective. Unlike rival candidates, however, AstraZeneca’s doesn’t have to be stored at ultra-cold temperatures, making it easier to distribute.

Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment. The drug, which President Donald Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.

The string of upbeat news about vaccine development has been butting up against increased caution as the virus continues to threaten the economy. That push and pull ultimately sent the S&P 500 to a loss last week. But, in the longer term, any positive updates on the vaccine front should be more dominant for the markets, said David Kelly, chief global strategist at JPMorgan Funds.

“It’s not a question of the vaccine versus the winter wave,” he said. “A reasonable forecast is uncertainty will go down.”

He added that any hesitancy in the market at this point should be centered around the issue of company valuations and how fundamentally sound companies are when more normal economic conditions return.

Energy companies notched among the biggest gains in the S&P 500 as the positive vaccine news stoked optimism about more demand for oil, sending the price of U.S. crude 2.2% higher. Occidental Petroleum led all stocks in the S&P 500, climbing 16.8%.

Even with its weekly decline last week, the S&P 500 is on track for a 9.4% gain this month. Trading is expected to be light this week ahead of the Thanksgiving holiday on Thursday, when U.S. stock markets will be closed. They will reopen on Friday for a half-day session.

European markets ended slightly lower, and Asian markets mostly rose.

 

[bigdog]

Dow Crests 30,000 Points on Vaccine Hopes, Biden Transition

The Dow Jones Industrial Average broke through 30,000 points Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power to President-elect Joe Biden will finally begin.

The Dow Jones Industrial Average closed above 30,000 points for the first time Tuesday as progress in the development of coronavirus vaccines and news that the transition of power in the U.S. to President-elect Joe Biden will finally begin kept investors in a buying mood.

Traders were also encouraged to see that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary. The Dow rose more than 450 points, or 1.5%, to cross the milestone. The S&P 500 index, which has a far greater impact on 401(k) accounts than the Dow, rose 1.6%, climbing to its own all-time high.

The gains extend a month long market rally driven by growing optimism that development of coronavirus vaccines and treatments will loosen the pandemic's stranglehold on the economy. They also mark a rapid climb for the Dow from its March 23 low of just under 18,600 during the worst of its early pandemic nosedive.

“We are one step closer to moving past the election uncertainty,” said Lindsey Bell, chief investment strategist at Ally Invest. “People are still optimistic about what 2021 has to bring, from an economic perspective and an earnings perspective.”

The S&P 500 rose 57.82 points to 3,635.41. The Dow gained 454.97 points to 30,046.24. Both indexes eclipsed record highs set early last week. The technology-heavy Nasdaq composite picked up 156.15 points, or 1.3%, to 12,036.79.

Traders continued to favor stocks that stand to gain the most from a gradual reopening of the economy, such as banks and industrial companies. Technology and communication stocks, which have been investor favorites through the pandemic, also helped lift the market.

In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 35.23 points, or 1.9%, to 1,853.53, also a record high.

“There’s some relief that Biden is choosing moderates to fill out the cabinet,” said Barry Bannister, head of institutional equity strategy at Stifel. Bannister also said the encouraging vaccine news continues to give hope that there is an end in sight to the pandemic.

On Monday, the head of the federal General Services Administration acknowledged that Biden is the apparent winner of this month’s presidential election. That allows the incoming president to coordinate with federal agencies on plans for taking over on Jan. 20, despite ongoing efforts by President Donald Trump to overturn the election.

Word that Biden has chosen Yellen as treasury secretary also added to investors' confidence. Widely admired in the financial world, Yellen would be the first woman to lead the department in a line stretching back to Alexander Hamilton in 1789, taking on a pivotal role to help shape policies at a perilous time.

“She's also pretty pro-fiscal stimulus and she's able to effectively work with people across the aisle,” Bell said. “She showed that in her time at the Fed.”

Stocks have been pushing higher this month, driving the S&P 500 up by more than 11%, as investors have grown more hopeful that the development of coronavirus vaccines and treatments will help pave the way for the economy to recover next year.

On Monday, drugmaker AstraZeneca reported surprisingly good results from ongoing vaccine studies. It said its potential vaccine, which is being developed with Oxford University, was up to 90% effective. Unlike rival candidates, AstraZeneca’s doesn’t have to be stored at ultra-cold temperatures, making it easier to distribute.

Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment. The drug, which Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.

ASX 200 expected to rise again.

The Australian share market is expected to continue its rise on Wednesday. According to the latest SPI futures, the ASX 200 is expected to rise 37 points or 0.55% at the open. This follows a very positive night of trade on Wall Street which in late trades sees the Dow Jones up 1.54%, the S&P 500 jump 1.62%, and the Nasdaq rise 1.31%. The Dow Jones broke through the 30,000 points mark for the first time.

https://www.usnews.com/news/busines...res-mostly-rise-on-virus-vaccine-yellen-hopes

Dow Crests 30,000 Points on Vaccine Hopes, Biden Transition

The Dow Jones Industrial Average broke through 30,000 points Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power to President-elect Joe Biden will finally begin.
By Associated Press, Wire Service Content Nov. 24, 2020, at 4:40 p.m.

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

The Dow Jones Industrial Average closed above 30,000 points for the first time Tuesday as progress in the development of coronavirus vaccines and news that the transition of power in the U.S. to President-elect Joe Biden will finally begin kept investors in a buying mood.

Traders were also encouraged to see that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary. The Dow rose more than 450 points, or 1.5%, to cross the milestone. The S&P 500 index, which has a far greater impact on 401(k) accounts than the Dow, rose 1.6%, climbing to its own all-time high.

The gains extend a month long market rally driven by growing optimism that development of coronavirus vaccines and treatments will loosen the pandemic's stranglehold on the economy. They also mark a rapid climb for the Dow from its March 23 low of just under 18,600 during the worst of its early pandemic nosedive.

“We are one step closer to moving past the election uncertainty,” said Lindsey Bell, chief investment strategist at Ally Invest. “People are still optimistic about what 2021 has to bring, from an economic perspective and an earnings perspective.”

The S&P 500 rose 57.82 points to 3,635.41. The Dow gained 454.97 points to 30,046.24. Both indexes eclipsed record highs set early last week. The technology-heavy Nasdaq composite picked up 156.15 points, or 1.3%, to 12,036.79.

Traders continued to favor stocks that stand to gain the most from a gradual reopening of the economy, such as banks and industrial companies. Technology and communication stocks, which have been investor favorites through the pandemic, also helped lift the market.

In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 35.23 points, or 1.9%, to 1,853.53, also a record high.

“There’s some relief that Biden is choosing moderates to fill out the cabinet,” said Barry Bannister, head of institutional equity strategy at Stifel. Bannister also said the encouraging vaccine news continues to give hope that there is an end in sight to the pandemic.

On Monday, the head of the federal General Services Administration acknowledged that Biden is the apparent winner of this month’s presidential election. That allows the incoming president to coordinate with federal agencies on plans for taking over on Jan. 20, despite ongoing efforts by President Donald Trump to overturn the election.

Word that Biden has chosen Yellen as treasury secretary also added to investors' confidence. Widely admired in the financial world, Yellen would be the first woman to lead the department in a line stretching back to Alexander Hamilton in 1789, taking on a pivotal role to help shape policies at a perilous time.

“She's also pretty pro-fiscal stimulus and she's able to effectively work with people across the aisle,” Bell said. “She showed that in her time at the Fed.”

Stocks have been pushing higher this month, driving the S&P 500 up by more than 11%, as investors have grown more hopeful that the development of coronavirus vaccines and treatments will help pave the way for the economy to recover next year.

On Monday, drugmaker AstraZeneca reported surprisingly good results from ongoing vaccine studies. It said its potential vaccine, which is being developed with Oxford University, was up to 90% effective. Unlike rival candidates, AstraZeneca’s doesn’t have to be stored at ultra-cold temperatures, making it easier to distribute.

Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment. The drug, which Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.

The vaccine developments are tempering lingering concerns over rising virus cases in the U.S., as well as in Asia and other parts of the world, and new government restrictions on businesses aimed at limiting the spread.

Treasury yields rose as investors became more optimistic about the prospects for economic growth. The yield on the benchmark 10-year Treasury note rose to 0.88% from 0.84% late Monday.

U.S. markets will be closed Thursday for the Thanksgiving holiday. They will be open for half the day on Friday, closing at 1 p.m. Eastern.

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