NYSE Dow Jones finished today at:

[bigdog]

Stocks mostly fall, even as tech gains push Nasdaq to record

Stocks gave back some of their recent gains Wednesday as a batch of discouraging economic data prompted investors to take a pause a day after the market’s record-setting climb.

The S&P 500 dropped 0.2% a day after setting an all-time high. The Dow Jones Industrial Average slipped below 30,000, a day after crossing that milestone for the first time. Industrial, energy and health care companies accounted for much of the decline. Technology companies rose, driving the Nasdaq composite to a record high.

The selling followed reports showing the number of Americans seeking unemployment aid jumped last week to the highest level in more than a month. A separate report showed consumer spending posted the weakest gain since April.

Despite the pullback, Wall Street closed up shop for the Thanksgiving holiday with the benchmark S&P 500 is still up 11% this month.

“The market overall has reached by most standards what we call overbought conditions, and that typically suggests that the market would need to digest the gains, perhaps pause a bit, and consolidate,” said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 fell 5.76 points to 3,629.65. The Dow gave up 173.77 points, or 0.6%, to 29,872.47. The tech-heavy Nasdaq gained 57.62 points, or 0.5%, to 12,094.40. The index, which is on a three-day winning streak, last hit an all-time high on Sept. 2. The Russell 2000 index of smaller companies fell 8.51 points, or 0.5%, to 1,845.02.

Stocks have been pushing higher this month 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.

This week, traders have also been encouraged by signs that the transition of power in the U.S. to President-elect Joe Biden has begun. Wall Street is also welcoming Biden’s selection of former Fed chair Janet Yellen as treasury secretary.

Encouraging study results this month from drugmakers working on coronavirus vaccines and treatments have tempered 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.

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.

ASX 200 expected to edge higher.

The Australian share market is expected to edge higher this morning. According to the latest SPI futures, the ASX 200 is poised to rise 10 points or 0.15% at the open. This is despite it being a mixed night of trade on Wall Street. Dow Jones is down 0.58%, the S&P 500 is down 0.16%, and the Nasdaq is up 0.48%.

https://apnews.com/article/joe-bide...markets-asia-0581fae0c57195d91a27edab5d19a82e

Stocks mostly fall, even as tech gains push Nasdaq to record
By ALEX VEIGA and DAMIAN J. TROISE

Stocks gave back some of their recent gains Wednesday as a batch of discouraging economic data prompted investors to take a pause a day after the market’s record-setting climb.

The S&P 500 dropped 0.2% a day after setting an all-time high. The Dow Jones Industrial Average slipped below 30,000, a day after crossing that milestone for the first time. Industrial, energy and health care companies accounted for much of the decline. Technology companies rose, driving the Nasdaq composite to a record high.

The selling followed reports showing the number of Americans seeking unemployment aid jumped last week to the highest level in more than a month. A separate report showed consumer spending posted the weakest gain since April.

Despite the pullback, Wall Street closed up shop for the Thanksgiving holiday with the benchmark S&P 500 is still up 11% this month.

“The market overall has reached by most standards what we call overbought conditions, and that typically suggests that the market would need to digest the gains, perhaps pause a bit, and consolidate,” said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 fell 5.76 points to 3,629.65. The Dow gave up 173.77 points, or 0.6%, to 29,872.47. The tech-heavy Nasdaq gained 57.62 points, or 0.5%, to 12,094.40. The index, which is on a three-day winning streak, last hit an all-time high on Sept. 2. The Russell 2000 index of smaller companies fell 8.51 points, or 0.5%, to 1,845.02.

Stocks have been pushing higher this month 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.

This week, traders have also been encouraged by signs that the transition of power in the U.S. to President-elect Joe Biden has begun. Wall Street is also welcoming Biden’s selection of former Fed chair Janet Yellen as treasury secretary.

Encouraging study results this month from drugmakers working on coronavirus vaccines and treatments have tempered 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.

“The general themes are still intact, the hope for a vaccine that will herald a return to normalcy at some point in 2021,” said Greg McBride, chief financial analyst at Bankrate.com.

Still, signs that the pandemic continues to weigh on the economy remain in the forefront. On Wednesday, the government said the number of Americans applying for unemployment benefits rose last week to 778,000, the highest level in five weeks.

Other data painted a similarly discouraging economic picture. The Commerce Department said U.S. consumer spending, the primary driver of the economy, rose by a sluggish 0.5% in October, the weakest gain since April when the pandemic first erupted. At the same time, the government said that income, which provides the fuel for consumer spending, fell 0.7% in October.

Though financial markets continue making gains, hardship from the economic slump is still growing, McBride said, and both small businesses and consumers are “sorely in need” of additional financial stimulus.

The downbeat economic reports spurred the rally in technology stocks, which traders have consistently bet on this year. Big Tech names like Apple, Microsoft and Amazon have been favored because the companies tend to have strong balance sheets and are expected to continue doing well once the pandemic subsides.

“This is a recurring theme in the market whenever there’s a concern about growth expectations,” Krosby said.

Treasury yields were mixed after mostly moving lower in the early going, a sign of caution in the market. The yield on the benchmark 10-year Treasury rose to 0.88% from 0.87% late Tuesday.

Gap led the way lower in the S&P 500, falling 19.6%, after the clothing retailer’s third-quarter results fell short of Wall Street’s forecasts.

Nordstrom jumped 11.6% after the department store chain’s earnings improved in the third quarter, even as sales missed analysts’ forecasts.

Traders bid HP shares 2.3% higher after the company delivered a solid quarterly report card.

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.

 

[bigdog]

Global shares were subdued as trading activity was reduced as U.S. markets remained closed for the Thanksgiving holiday.

Global stock markets were subdued on Thursday after significant gains in recent days and as U.S. trading remained closed for the Thanksgiving holiday.

Investors have been in an upbeat mood this week, pushing the Dow above 30,000 for the first time, on news of the development of coronavirus vaccines and treatments.

They then became more cautious as coronavirus infection rates remain high in many major economies and after the release of a batch of discouraging U.S. economic data, including jobless numbers.

Germany’s DAX ended the day flat at 13,286 while France’s CAC 40 dipped about 0.1% to 5,566. Britain’s FTSE 100 slipped 0.6% to 6,362.

U.S. markets will be closed Thursday and open for half the day on Friday.

In Asia, Japan's benchmark Nikkei 225 gained 0.9% to finish at 26,537.31, the highest level for the index since the collapse of the Japanese “bubble economy” nearly three decades ago.

Australia's S&P/ASX 200 slipped 0.7% to 6,636.40, but South Korea's Kospi edged up 0.9% to 2,625.91. Hong Kong's Hang Seng rose 0.6% to 26,819.45, while the Shanghai Composite was up 0.2% at 3,369.73.

Cases of COVID-19 continue to soar around the world, and deaths related to the sickness are growing, hitting more than 1.4 million people cumulatively worldwide. Worries are growing about it spreading during the Thanksgiving holiday in the U.S.

In Japan, authorities asked restaurants and bars to close early, and people to refrain from travel. European governments are looking to ease existing restrictions ahead of Christmas, though many limits on business are expected to continue.


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

REST OF WORLD TRADING

https://www.usnews.com/news/busines...xed-after-wall-street-takes-pause-on-optimism

World Markets Subdued as US Trading Shut for Thanksgiving
Global shares were subdued as trading activity was reduced as U.S. markets remained closed for the Thanksgiving holiday.
By Associated Press, Wire Service Content Nov. 26, 2020,

By YURI KAGEYAMA, AP Business Writer

TOKYO (AP) — Global stock markets were subdued on Thursday after significant gains in recent days and as U.S. trading remained closed for the Thanksgiving holiday.

Investors have been in an upbeat mood this week, pushing the Dow above 30,000 for the first time, on news of the development of coronavirus vaccines and treatments.

They then became more cautious as coronavirus infection rates remain high in many major economies and after the release of a batch of discouraging U.S. economic data, including jobless numbers.

Germany’s DAX ended the day flat at 13,286 while France’s CAC 40 dipped about 0.1% to 5,566. Britain’s FTSE 100 slipped 0.6% to 6,362.

U.S. markets will be closed Thursday and open for half the day on Friday.

In Asia, Japan's benchmark Nikkei 225 gained 0.9% to finish at 26,537.31, the highest level for the index since the collapse of the Japanese “bubble economy” nearly three decades ago.

Australia's S&P/ASX 200 slipped 0.7% to 6,636.40, but South Korea's Kospi edged up 0.9% to 2,625.91. Hong Kong's Hang Seng rose 0.6% to 26,819.45, while the Shanghai Composite was up 0.2% at 3,369.73.

Cases of COVID-19 continue to soar around the world, and deaths related to the sickness are growing, hitting more than 1.4 million people cumulatively worldwide. Worries are growing about it spreading during the Thanksgiving holiday in the U.S.

In Japan, authorities asked restaurants and bars to close early, and people to refrain from travel. European governments are looking to ease existing restrictions ahead of Christmas, though many limits on business are expected to continue.

Economic data has been mixed this week, with reports showing the number of Americans seeking unemployment aid jumped last week to the highest level in more than a month. A separate report showed consumer spending posted the weakest gain since April.

“The market overall has reached by most standards what we call overbought conditions, and that typically suggests that the market would need to digest the gains, perhaps pause a bit, and consolidate," said Quincy Krosby, chief market strategist at Prudential Financial.

The Commerce Department said U.S. consumer spending, the primary driver of the economy, rose by a sluggish 0.5% in October, the weakest gain since April when the pandemic first erupted. At the same time, the government said that income, which provides the fuel for consumer spending, fell 0.7% in October.

In energy trading, benchmark U.S. crude shed 56 cents to $45.15 a barrel. Brent crude, the international standard, fell 61 cents to $47.92 a barrel.

The dollar inched down to 104.25 yen from 104.50 yen. The euro cost $1.1906, up from $1.1885.

 

[bigdog]

The S&P 500 rose to a record high Friday as investors continue to look forward to the distribution of a COVID-19 vaccine and relief for the global economy.

The benchmark index rose 8.70 points, or 0.2%, led by gains in technology companies, and closed at an all-time high of 3,638.35. The Nasdaq also closed at a record helped by gains in Apple, Tesla, Zoom and other tech companies.

Positive developments on the vaccine front have driven double-digit gains in the major indexes this month as investors look forward to progress in gaining control over the pandemic that plunged the global economy into its deepest slump since the 1930s. That optimism persisted this week even as one vaccine candidate suffered a setback and cases of coronavirus remain at elevated levels.

Meanwhile, retailers were hoping that their slumping sales get a boost from shoppers on Black Friday but early indications are that store traffic was light.

The Dow Jones Industrial Average, which earlier this week crossed 30,000 for the first time, rose 37.90 points, or 0.1%, to 29,910.37. The Nasdaq gained 111.44, or 0.9%, to 12,205.85.

U.S. markets closed at 1 p.m. Eastern after being shut for the Thanksgiving holiday.

Health care companies also posted solid gains. Moderna jumped 16.4% and Pfizer rose 1.9%. The two companies earlier this month released results showing their COVID-19 vaccine candidates were highly effective in tests. The shares got a boost Friday after a competing vaccine suffered a setback.

The University of Oxford and AstraZeneca also this week released positive test results about their vaccine. But researchers have questioned how Oxford and AstraZeneca calculated the effectiveness of their vaccine. The AstraZeneca CEO said the company might conduct another trial. AstraZeneca shares were flat.

Still, hopes for a vaccine have offset concerns about spiking coronavirus cases in the U.S. and other parts of the world. U.S. states and European governments are re-imposing controls on business and travel as infection rates surge.

The disease has killed more than 1.4 million people worldwide and there are 61 million confirmed cases, according to data gathered by Johns Hopkins University.

The pandemic has brought significant changes to the traditional Black Friday shopping holiday. Many retailers are beefing up their safety protocols, moving their doorbuster deals online and curbside pickup options as a last grasp at sales before the year ends.

Retailers need a boost from Black Friday and holiday shopping altogether to try and recoup sales lost to the pandemic. Early indications are that people are staying home and choosing to do any shopping online.

Macy's shares fell 1.4% while shares of Walmart showed a slight decline. Shares of the online marketplace Etsy, meanwhile, rose 10.7%.

Tech shares have led the market's climb back from its plunge in March as investors bet giants such as Apple and Microsoft will keep raking in the profits whether Americans are forced to stay home or the economy begins to return to something resembling normalcy. Apple rose 0.5%.

Tesla rose 2.1% and Zoom Video Communications gained 6.3%. The two stocks have been market darlings so far this year with gains of 600% or more.

European markets rose. Germany's DAX gained 0.4% and the CAC 40 in France rose 0.6%. Asia markets also rose Friday. The Hang Seng index in Hong Kong gained 0.8%.

https://www.usnews.com/news/busines...s-mixed-amid-unease-about-vaccine-development

Stocks Rise on Wall Street as S&P 500 Hits Record High
The S&P 500 is closing a shortened session at a record high Friday as investors continue to look forward to the distribution of a COVID-19 vaccine and relief for the economy.
By Associated Press, Wire Service Content Nov. 27, 2020, at 2:09 p.m.

By The Associated Press

NEW YORK (AP) — The S&P 500 rose to a record high Friday as investors continue to look forward to the distribution of a COVID-19 vaccine and relief for the global economy.

The benchmark index rose 8.70 points, or 0.2%, led by gains in technology companies, and closed at an all-time high of 3,638.35. The Nasdaq also closed at a record helped by gains in Apple, Tesla, Zoom and other tech companies.

Positive developments on the vaccine front have driven double-digit gains in the major indexes this month as investors look forward to progress in gaining control over the pandemic that plunged the global economy into its deepest slump since the 1930s. That optimism persisted this week even as one vaccine candidate suffered a setback and cases of coronavirus remain at elevated levels.

Meanwhile, retailers were hoping that their slumping sales get a boost from shoppers on Black Friday but early indications are that store traffic was light.

The Dow Jones Industrial Average, which earlier this week crossed 30,000 for the first time, rose 37.90 points, or 0.1%, to 29,910.37. The Nasdaq gained 111.44, or 0.9%, to 12,205.85.

U.S. markets closed at 1 p.m. Eastern after being shut for the Thanksgiving holiday.

Health care companies also posted solid gains. Moderna jumped 16.4% and Pfizer rose 1.9%. The two companies earlier this month released results showing their COVID-19 vaccine candidates were highly effective in tests. The shares got a boost Friday after a competing vaccine suffered a setback.

The University of Oxford and AstraZeneca also this week released positive test results about their vaccine. But researchers have questioned how Oxford and AstraZeneca calculated the effectiveness of their vaccine. The AstraZeneca CEO said the company might conduct another trial. AstraZeneca shares were flat.

Still, hopes for a vaccine have offset concerns about spiking coronavirus cases in the U.S. and other parts of the world. U.S. states and European governments are re-imposing controls on business and travel as infection rates surge.

The disease has killed more than 1.4 million people worldwide and there are 61 million confirmed cases, according to data gathered by Johns Hopkins University.

The pandemic has brought significant changes to the traditional Black Friday shopping holiday. Many retailers are beefing up their safety protocols, moving their doorbuster deals online and curbside pickup options as a last grasp at sales before the year ends.

Retailers need a boost from Black Friday and holiday shopping altogether to try and recoup sales lost to the pandemic. Early indications are that people are staying home and choosing to do any shopping online.

Macy's shares fell 1.4% while shares of Walmart showed a slight decline. Shares of the online marketplace Etsy, meanwhile, rose 10.7%.

Tech shares have led the market's climb back from its plunge in March as investors bet giants such as Apple and Microsoft will keep raking in the profits whether Americans are forced to stay home or the economy begins to return to something resembling normalcy. Apple rose 0.5%.

Tesla rose 2.1% and Zoom Video Communications gained 6.3%. The two stocks have been market darlings so far this year with gains of 600% or more.

European markets rose. Germany's DAX gained 0.4% and the CAC 40 in France rose 0.6%. Asia markets also rose Friday. The Hang Seng index in Hong Kong gained 0.8%.

The yield on the 10-year Treasury slipped to 0.84% from 0.87% Wednesday.

 

[bigdog]

ASX 200 futures pointing higher.

The Australian share market looks set to start the week on a very positive note. According to the latest SPI futures, the ASX 200 is expected to rise 39 points at the open tomorrow. This follows a solid end to the week on Wall Street on Friday, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.25%, and the Nasdaq jump 0.9%.

 

[bigdog]

Stocks Slip, but S&P 500 Still Logs Best Month Since April

Stocks pulled back slightly from their record levels Monday as Wall Street put a quiet coda on one of its most rocking months in decades.

Stocks pulled back slightly from their record levels Monday as Wall Street put a quiet coda on one of its most rocking months in decades.

The S&P 500 fell 0.5%, but the benchmark index still clocked a surge of 10.8% for the month, it's biggest monthly gain since April. The Dow Jones Industrial Average, which has far less impact on 401(k) accounts than the S&P 500 does, had its best month since 1987.

The market's slide followed reports showing how the worsening pandemic is dragging down the economy in the near term. But most investors are looking beyond that. The market's strong November gains reflect Wall Street latching on to hopes that the economy will get closer to normal next year and strengthen in the long term. That scenario hinges largely on promising coronavirus vaccines being rolled out in coming weeks and, eventually, leading to fewer new virus cases, which have been increasing.

“Today’s pullback in equities is a sidestep in a market that seems poised to trend higher,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We still think the market trends higher into the new year.”

The S&P 500 lost 16.72 points to 3,621.63. The Dow fell 271.73 points, or 0.9%, to 29,638.64. The Nasdaq composite slipped 7.11 points, or 0.1%, to 12,198.74. The S&P 500 and Dow are close to their record levels, and the Dow crested the 30,000 level last week for the first time.

Several big forces are behind this month's surge, beginning with the clearing of some of the uncertainty that had dogged markets leading into the U.S. elections. Now, Democrat Joe Biden is firmly in place as the president-elect in Wall Street’s eyes, and investors have avoided their worst-case scenario of weeks or months of limbo with an unknown winner.

Investors also found encouragement in prospects that Washington will remain under divided political control. Republicans are on track to hold onto control of the Senate if they can win one of two upcoming runoff elections in Georgia. A split government would mean low tax rates and other pro-business policies could remain the status quo.

But the turbocharger for the market’s move higher has been a huge dose of hope as pharmaceutical companies come closer to delivering vaccines to a world beaten down by the COVID-19 pandemic. Several have reported encouraging data recently suggesting their vaccine candidates are highly effective.

Moderna said it would ask U.S. and European regulators Monday to allow emergency use of its COVID-19 vaccine. Its shares jumped 20.2% Monday.

Moderna follows Pfizer and German partner BioNTech in seeking to begin vaccinations in the U.S. in December. British regulators also are assessing the Pfizer shot and another from AstraZeneca.

That’s helped the stock market’s rally broaden out. Early in Wall Street's recovery this spring, it was Big Tech that almost singlehandedly carried the market higher on expectations that work-from-home and other trends would mean bigger profits for them. But hopes for a more widespread economic recovery are now boosting stocks of companies whose profits are more closely tied to the economy’s strength.

Energy stocks in the S&P 500 ended November with a nearly 27% gain. It’s a sharp turnaround from earlier this year, when oil prices plunged as the pandemic kept airplanes, trucks and factories around the world idled or slowed.

Financial stocks have also been big winners on expectations that a stronger economy will create a stronger job market and higher interest rates. That could mean more people paying back loans made at more profitable rates for banks. The smaller stocks in the Russell 2000 index, meanwhile, closed out November with an 18.3% surge. The index fell 35.45 points, or 1.9%, to 1,819.82 Monday.

Many of those stocks, though, gave back some of their big gains Monday following discouraging economic reports and as investors locked in some profits from their big recent gains. Apache lost 7.4% and American Airlines fell 2.7%.

Many of the gains in November were justified by the good news from vaccine development, but markets will likely see more churning ahead, said Katie Nixon, chief investment officer at Northern Trust Wealth Management.


ASX 200 expected to edge lower.

The Australian share market looks set to start the month in a subdued manner. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning. This follows a poor start to the week on Wall Street, which close saw the Dow Jones down 0.91%, the S&P 500 down 0.46%, and the Nasdaq down 0.06%.

https://www.usnews.com/news/busines...es-mixed-despite-fresh-records-on-wall-street

Stocks Slip, but S&P 500 Still Logs Best Month Since April
Stocks pulled back slightly from their record levels Monday as Wall Street put a quiet coda on one of its most rocking months in decades.
By Associated Press, Wire Service Content Nov. 30, 2020, at 4:48 p.m.

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

Stocks pulled back slightly from their record levels Monday as Wall Street put a quiet coda on one of its most rocking months in decades.

The S&P 500 fell 0.5%, but the benchmark index still clocked a surge of 10.8% for the month, it's biggest monthly gain since April. The Dow Jones Industrial Average, which has far less impact on 401(k) accounts than the S&P 500 does, had its best month since 1987.

The market's slide followed reports showing how the worsening pandemic is dragging down the economy in the near term. But most investors are looking beyond that. The market's strong November gains reflect Wall Street latching on to hopes that the economy will get closer to normal next year and strengthen in the long term. That scenario hinges largely on promising coronavirus vaccines being rolled out in coming weeks and, eventually, leading to fewer new virus cases, which have been increasing.

“Today’s pullback in equities is a sidestep in a market that seems poised to trend higher,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We still think the market trends higher into the new year.”

The S&P 500 lost 16.72 points to 3,621.63. The Dow fell 271.73 points, or 0.9%, to 29,638.64. The Nasdaq composite slipped 7.11 points, or 0.1%, to 12,198.74. The S&P 500 and Dow are close to their record levels, and the Dow crested the 30,000 level last week for the first time.

Several big forces are behind this month's surge, beginning with the clearing of some of the uncertainty that had dogged markets leading into the U.S. elections. Now, Democrat Joe Biden is firmly in place as the president-elect in Wall Street’s eyes, and investors have avoided their worst-case scenario of weeks or months of limbo with an unknown winner.

Investors also found encouragement in prospects that Washington will remain under divided political control. Republicans are on track to hold onto control of the Senate if they can win one of two upcoming runoff elections in Georgia. A split government would mean low tax rates and other pro-business policies could remain the status quo.

But the turbocharger for the market’s move higher has been a huge dose of hope as pharmaceutical companies come closer to delivering vaccines to a world beaten down by the COVID-19 pandemic. Several have reported encouraging data recently suggesting their vaccine candidates are highly effective.

Moderna said it would ask U.S. and European regulators Monday to allow emergency use of its COVID-19 vaccine. Its shares jumped 20.2% Monday.

Moderna follows Pfizer and German partner BioNTech in seeking to begin vaccinations in the U.S. in December. British regulators also are assessing the Pfizer shot and another from AstraZeneca.

That’s helped the stock market’s rally broaden out. Early in Wall Street's recovery this spring, it was Big Tech that almost singlehandedly carried the market higher on expectations that work-from-home and other trends would mean bigger profits for them. But hopes for a more widespread economic recovery are now boosting stocks of companies whose profits are more closely tied to the economy’s strength.

Energy stocks in the S&P 500 ended November with a nearly 27% gain. It’s a sharp turnaround from earlier this year, when oil prices plunged as the pandemic kept airplanes, trucks and factories around the world idled or slowed.

Financial stocks have also been big winners on expectations that a stronger economy will create a stronger job market and higher interest rates. That could mean more people paying back loans made at more profitable rates for banks. The smaller stocks in the Russell 2000 index, meanwhile, closed out November with an 18.3% surge. The index fell 35.45 points, or 1.9%, to 1,819.82 Monday.

Many of those stocks, though, gave back some of their big gains Monday following discouraging economic reports and as investors locked in some profits from their big recent gains. Apache lost 7.4% and American Airlines fell 2.7%.

Many of the gains in November were justified by the good news from vaccine development, but markets will likely see more churning ahead, said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

“You'll see a diminishing impact from vaccine-related news and much more focus on when the economic recovery will take hold in a more organic way,” she said.

A report on Monday morning showed that growth in business activity in the Chicago area slowed more than economists expected. A separate report said that the pace of pending sales of homes was slower in October than expected. They’re the latest data to suggest the resurgent pandemic is dragging on the economy, including a pickup in layoffs.

With coronavirus counts and hospitalizations surging across the United States, Europe and elsewhere, governments are bringing back varying degrees of restrictions on businesses. An additional worry for markets is that the worsening pandemic will keep customers hunkered at home regardless of what kind of stay-at-home orders arrive. Experts are warning of a potentially brutal winter.

IHS Markit jumped 7.4% for Monday's biggest gain in the S&P 500 after S&P Global said it would buy the data provider in a deal valued at $44 billion, including $4.8 billion of debt. S&P Global rose 3%.

European and Asian markets ended broadly lower. The yield on the 10-year Treasury ticked up to 0.84% from 0.83% late Friday.

 

[bigdog]

Strong start to December as S&P 500 index sets another high

Wall Street kicked off December with more milestones Tuesday after a broad rally for stocks pushed the S&P 500 and Nasdaq composite to new highs.

The S&P 500 gained 1.1%, with Big Tech companies and banks driving a big part of the rally. The strong opening to December follows a 10.8% surge for the broad index in November, marking its best month since April. The tech-heavy Nasdaq climbed 1.3%. Both indexes beat the record highs they set on Friday. Treasury yields also rose in another sign of optimism from investors.

Stocks have been ramping higher in recent weeks as investors focus on the possibility that coronavirus vaccines could soon help usher in a fuller global economic recovery. Meanwhile, lawmakers in Washington are debating once more whether to deliver another round of coronavirus relief to the economy before President Donald Trump leaves office.

“It seems like both the House and the Senate are trying to break this logjam,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “It seems the market is feeding off that.”

The S&P 500 rose 40.82 points to 3,662.45. The Dow Jones Industrial Average gained 185.28 points, or 0.6%, to 29,823.92. The Nasdaq climbed 156.37 points to 12,355.11. Small company stocks also added to their recent gains. The Russell 2000 index picked up 16.23 points, or 0.9%, to 1,836.05.

While the economic recovery has been stunted by a resurgence of the virus, investors are looking past much of that because of good progress on vaccine development. Several pharmaceutical companies have reported encouraging data recently suggesting their vaccine candidates are highly effective, raising hopes on Wall Street that the economy will begin to turn around next year as the vaccines are distributed to a world beaten down by the COVID-19 pandemic.

The Organization for Economic Cooperation and Development said in a report that the world economy will bounce back to its pre-pandemic levels by the end of next year, though the recovery will be uneven across the countries and many risks remain.

European regulators could approve a coronavirus vaccine developed by drugmakers Pfizer and BioNTech within four weeks. The companies have already asked for approval to begin vaccinations in the U.S. in December. Moderna is also asking U.S. and European regulators to allow emergency use of its COVID-19 vaccine.

Traders are also holding out hope that Democrats and Republicans may reach a deal on some amount of economic stimulus for the economy before 2021, but the parties remain divided on the details and the cost.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. The virus, which has claimed more than 269,000 lives nationwide, is resurgent across the country amid holiday travel and colder weather sending people indoors.


ASX 200 expected to storm higher.

The Australian share market looks set to storm higher on Wednesday after a positive night on global markets. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.75% higher this morning. Wall Street finished with the Dow Jones is up 0.63%, the S&P 500 is up 1.13%, and the Nasdaq has jumped 1.28%.

https://apnews.com/article/financia...n=SocialFlow&utm_medium=AP&utm_source=Twitter

Strong start to December as S&P 500 index sets another high

DAMIAN J. TROISE and ALEX VEIGA

Wall Street kicked off December with more milestones Tuesday after a broad rally for stocks pushed the S&P 500 and Nasdaq composite to new highs.

The S&P 500 gained 1.1%, with Big Tech companies and banks driving a big part of the rally. The strong opening to December follows a 10.8% surge for the broad index in November, marking its best month since April. The tech-heavy Nasdaq climbed 1.3%. Both indexes beat the record highs they set on Friday. Treasury yields also rose in another sign of optimism from investors.

Stocks have been ramping higher in recent weeks as investors focus on the possibility that coronavirus vaccines could soon help usher in a fuller global economic recovery. Meanwhile, lawmakers in Washington are debating once more whether to deliver another round of coronavirus relief to the economy before President Donald Trump leaves office.

“It seems like both the House and the Senate are trying to break this logjam,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “It seems the market is feeding off that.”

The S&P 500 rose 40.82 points to 3,662.45. The Dow Jones Industrial Average gained 185.28 points, or 0.6%, to 29,823.92. The Nasdaq climbed 156.37 points to 12,355.11. Small company stocks also added to their recent gains. The Russell 2000 index picked up 16.23 points, or 0.9%, to 1,836.05.

While the economic recovery has been stunted by a resurgence of the virus, investors are looking past much of that because of good progress on vaccine development. Several pharmaceutical companies have reported encouraging data recently suggesting their vaccine candidates are highly effective, raising hopes on Wall Street that the economy will begin to turn around next year as the vaccines are distributed to a world beaten down by the COVID-19 pandemic.

The Organization for Economic Cooperation and Development said in a report that the world economy will bounce back to its pre-pandemic levels by the end of next year, though the recovery will be uneven across the countries and many risks remain.

European regulators could approve a coronavirus vaccine developed by drugmakers Pfizer and BioNTech within four weeks. The companies have already asked for approval to begin vaccinations in the U.S. in December. Moderna is also asking U.S. and European regulators to allow emergency use of its COVID-19 vaccine.

Traders are also holding out hope that Democrats and Republicans may reach a deal on some amount of economic stimulus for the economy before 2021, but the parties remain divided on the details and the cost.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. The virus, which has claimed more than 269,000 lives nationwide, is resurgent across the country amid holiday travel and colder weather sending people indoors.

President-elect Joe Biden on Tuesday repeated calls for Congress to pass immediate pandemic relief funding even before he takes office.

The coronavirus vaccine optimism, low interest rates, economic data that, while uneven, continue to point to a recovery, and now signs that Washington might take another stab at a stimulus bill are giving investors a green light to push stocks to new highs, said Samana.

“When you take it all together and piece it into a mosaic, to a lot of investors it seems like there’s no way to lose if all of these tailwinds are conspiring to drive equities higher,” he said, adding the market’s upward push may be getting “a bit overdone.”

Roughly 76% of the companies in the S&P 500 rose Tuesday, as did every sector in the index, except for industrials. Technology stocks led the way higher, with the Big Tech companies notching gains. Apple rose 3.1% and Microsoft gained 1%. Facebook climbed 3.5%, while Netflix added 2.8%. Google parent Alphabet rose 2.3% and Amazon gained 1.6%.

Banks, health care stocks and companies that rely on direct consumer spending also helped drive the market higher. JP Morgan Chase gained 1.6% and Pfizer rose 2.9%.

Early in Wall Street’s recovery this spring, it was Big Tech that almost singlehandedly carried the market higher on expectations that work-from-home and other trends would mean bigger profits for them. But hopes for a vaccine and return to economic normalcy have been helping boost stocks of companies whose profits are more closely tied to the economy’s strength.

Salesforce.com shares fell 4% in after-hours trading after the business software pioneer announced it is buying work chatting service Slack for $27.7 billion. The acquisition is by far the largest in the 21-year history of San Francisco-based Salesforce.

The yield on the 10-year Treasury rose to 0.93% from 0.83% late Monday, a big move. The higher yields are also helped bolster banks, which rely on higher bond yields to charge more lucrative interest on loans.

European and Asian markets rose.

 

[bigdog]

Stock indexes shake off a weak start and end mostly higher

Stocks shook off a sluggish start to finish with modest gains Wednesday, nudging the S&P 500 index to an all-time high for the second straight day.

The benchmark index rose 0.2% after spending much of the day drifting between small gains and losses. About 54% of the stocks in the index rose, with communications, financial and health care companies driving the bulk of the gains. A pullback in technology stocks, companies that rely on consumer spending and elsewhere kept the market’s gains in check.

Treasury yields continued to head mostly higher, a sign of growing confidence in the outlook for the economy. That confidence has also been pushing stocks higher in recent weeks as traders hope coronavirus vaccines will start driving a stronger economic recovery. Investors were not deterred by new data Wednesday showing that hiring by U.S. companies slowed last month.

“The biggest thing about the market that we’ve seen the last couple of weeks is (investors) keep trying to sell it, and it still hangs in there,” said J.J. Kinahan, chief strategist at TD Ameritrade.

The S&P 500 rose 6.56 points to 3,669.01. The index is now up about 13.6% for the year. The Dow Jones Industrial Average gained 59.87 points, or 0.2%, to 29,883.79. The tech-heavy Nasdaq composite, which also opened the month with a new record, slipped 5.74 points, or 0.1%, to 12,349.37.

Stocks have been ramping higher in recent weeks as drugmakers make steady progress in developing coronavirus vaccines. The rollout of a vaccine in the U.S. could begin this month, if regulators give their approval.

Pfizer shares rose 3.5% after the drugmaker and BioNTech said they won permission for emergency use of their COVID-19 vaccine in Britain. The vaccine is the world’s first coronavirus shot that’s backed by rigorous science and a major step toward eventually ending the pandemic. The move makes Britain one of the first countries to begin vaccinating its population against the virus. The companies have already asked for approval to begin vaccinations in the U.S. in December.

Moderna is also asking U.S. and European regulators to allow emergency use of its COVID-19 vaccine. Its shares rose 1.4%.

Optimism about vaccine developments have tempered lingering concerns over rising virus cases in the U.S., though worries persist about the economic fallout from new government restrictions on businesses aimed at limiting the spread.

“My farther-out fear for the market is once this vaccine starts to roll out, will it be able to meet these amazing expectations people have for everything getting back to normal?” Kinahan said.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. Payroll processor ADP said Wednesday that its latest survey of private U.S. employers shows they added 307,000 jobs last month. That fell short of Wall Street analysts’ expectations for a gain of 405,000 jobs, according to FactSet.

The report precedes a broader jobs survey from the Labor Department due out Friday. Economists are forecasting that will show employers added about 441,000 jobs in November, down from a gain of 638,000 in October.

Meanwhile, traders are holding out hope that Democrats and Republicans may reach a deal on some amount of economic stimulus for the economy before 2021, though the parties remain divided on the details and the cost.

ASX 200 expected to rise.

The Australian share market looks set to rise on Thursday despite a weak night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.25% higher this morning. The Dow Jones was up 0.20%, the S&P 500 is up 0.18%, and the Nasdaq has fallen 0.05% on closing.

https://apnews.com/article/financia...ong-shanghai-75a1547e71292b79b7c101b48ec8fd84

Stock indexes shake off a weak start and end mostly higher

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off a sluggish start to finish with modest gains Wednesday, nudging the S&P 500 index to an all-time high for the second straight day.

The benchmark index rose 0.2% after spending much of the day drifting between small gains and losses. About 54% of the stocks in the index rose, with communications, financial and health care companies driving the bulk of the gains. A pullback in technology stocks, companies that rely on consumer spending and elsewhere kept the market’s gains in check.

Treasury yields continued to head mostly higher, a sign of growing confidence in the outlook for the economy. That confidence has also been pushing stocks higher in recent weeks as traders hope coronavirus vaccines will start driving a stronger economic recovery. Investors were not deterred by new data Wednesday showing that hiring by U.S. companies slowed last month.

“The biggest thing about the market that we’ve seen the last couple of weeks is (investors) keep trying to sell it, and it still hangs in there,” said J.J. Kinahan, chief strategist at TD Ameritrade.

The S&P 500 rose 6.56 points to 3,669.01. The index is now up about 13.6% for the year. The Dow Jones Industrial Average gained 59.87 points, or 0.2%, to 29,883.79. The tech-heavy Nasdaq composite, which also opened the month with a new record, slipped 5.74 points, or 0.1%, to 12,349.37.

Stocks have been ramping higher in recent weeks as drugmakers make steady progress in developing coronavirus vaccines. The rollout of a vaccine in the U.S. could begin this month, if regulators give their approval.

Pfizer shares rose 3.5% after the drugmaker and BioNTech said they won permission for emergency use of their COVID-19 vaccine in Britain. The vaccine is the world’s first coronavirus shot that’s backed by rigorous science and a major step toward eventually ending the pandemic. The move makes Britain one of the first countries to begin vaccinating its population against the virus. The companies have already asked for approval to begin vaccinations in the U.S. in December.

Moderna is also asking U.S. and European regulators to allow emergency use of its COVID-19 vaccine. Its shares rose 1.4%.

Optimism about vaccine developments have tempered lingering concerns over rising virus cases in the U.S., though worries persist about the economic fallout from new government restrictions on businesses aimed at limiting the spread.

“My farther-out fear for the market is once this vaccine starts to roll out, will it be able to meet these amazing expectations people have for everything getting back to normal?” Kinahan said.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. Payroll processor ADP said Wednesday that its latest survey of private U.S. employers shows they added 307,000 jobs last month. That fell short of Wall Street analysts’ expectations for a gain of 405,000 jobs, according to FactSet.

The report precedes a broader jobs survey from the Labor Department due out Friday. Economists are forecasting that will show employers added about 441,000 jobs in November, down from a gain of 638,000 in October.

Meanwhile, traders are holding out hope that Democrats and Republicans may reach a deal on some amount of economic stimulus for the economy before 2021, though the parties remain divided on the details and the cost.

The Federal Reserve’s latest survey of business conditions around the U.S. found economic activity has slowed in some parts of the country as amid a surge in new coronavirus cases. On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin told lawmakers during a House Financial Services Committee hearing that Congress needs to approve COVID-19 relief funds without further delay.

However, it’s looks like most lawmakers are willing to wait until after President-elect Joe Biden takes office, said Ross Mayfield, investment strategy analyst at Baird.

“The problem is, by that point you’re going to have six to 10 more weeks of economic damage,” he said.

Technology stocks, which have been leading the market higher since the pandemic started wreaking havoc on the global economy, helped limit the market’s gains Wednesday. Salesforce.com was the biggest decliner in the S&P 500, tumbling 8.5%, after announcing a deal late Tuesday to buy messaging platform Slack for $27.7 billion. Microsoft slipped 0.4%.

Lyft climbed 9.6% after the ride-hailing company posted a smaller loss this quarter and better margins. The news helped boost rival Uber Technologies up 7%.

Treasury yields headed higher, giving banks a boost because they allow them to charge more lucrative interest rates on loans. The yield on the 10-year Treasury rose to 0.96% from 0.92% late Tuesday. JPMorgan Chase rose 1.9% and Citigroup gained 3.1%.

Germany’s DAX shed 0.5% and France’s CAC 40 was flat. In Britain, the FTSE 100 rose 1.2%. Markets in Asia were mixed.

 

[bigdog]

A late stumble left the S&P 500 just short of its third record high in a row even as other indexes rose Thursday.

U.S. stock indexes closed mostly higher Thursday after a late stumble pulled the S&P 500 just short of its third straight all-time high.

The benchmark index slipped 0.1% after spending much of the day higher. It's on track for its second weekly gain as Wall Street continues to coast following its rocket ride last month powered by hopes for coming COVID-19 vaccines. The Nasdaq composite set a record high for the second straight day. Treasury yields mostly declined, a reversal from earlier in the week.

A couple reports on the economy that were better than expected helped support stocks. One showed that growth in the U.S. services sector, including health care and retail, was slightly stronger last month than economists expected. A separate report said fewer U.S. workers filed for unemployment benefits last week than forecast, though economists cautioned the number may have been distorted by the Thanksgiving holiday.

Investors have also been encouraged this week by signs that Democrats and Republicans in Washington may get past their bitter partisanship to reach a deal to provide more financial support for the economy. House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell spoke Thursday, a day after Pelosi signaled a willingness to make major concessions in search of a coronavirus rescue package. President-elect Joe Biden urged Congress on Wednesday to pass a relief bill now, with more aid to come next year.

“There’s a lot of optimism being built into the market right now,” said Sam Stovall, chief investment strategist at CFRA. “Investors are sort of keeping their fingers crossed that we come up with a stimulus package, no matter the size.”

The S&P 500 slipped 2.29 points to 3,666.72. The Dow Jones Industrial Average gained 85.73 points, or 0.3%, to 29,969.52. The Nasdaq composite added 27.82 points, or 0.2%, to 12,377.18. Small company stocks made out better than the broader market. The Russell 2000 index picked up 10.67 points, or 0.6%, to 1,848.70.

Momentum across markets has slowed after the S&P 500 surged 10.8% last month on hopes that one or more coronavirus vaccines will get the global economy closer to normal next year. The burst of optimism boosted stocks of travel companies, banks and smaller businesses in particular, after they were among the most harshly punished during the pandemic.

“It’s pretty clear that investors are looking at some of those areas that would benefit from a more complete reopening,” said David Lefkowitz, head of Americas equities at UBS Global Wealth Management.

Now that stock indexes are back at all-time highs, worries about the still-raging pandemic are making further big gains more difficult. Governments around the world are considering the approval of several coronavirus vaccines, and a U.S. rollout could begin this month if regulators give their approval. Britain has already approved emergency use of a COVID-19 vaccine developed by Pfizer and BioNTech.

But vaccines would initially go out only to protect health care workers and others at high risk. In the meantime, coronavirus counts and hospitalizations continue to surge. That has governments around the world bringing back varying degrees of restrictions on businesses and consumers worried about their own health. That, in turns, is threatening the economic recovery that got underway in the spring

ASX 200 expected to rise.

The Australian share market looks set to rise on Friday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.17% higher. The Dow Jones closed up 0.29%, the S&P 500 is flat, and the Nasdaq has risen 0.23%.

https://www.usnews.com/news/busines...es-advance-on-optimism-over-vaccines-stimulus

Late Stumble Leaves S&P 500 Just Short of a Record High
A late stumble left the S&P 500 just short of its third record high in a row even as other indexes rose Thursday.
By Associated Press, Wire Service Content Dec. 3, 2020, at 5:07 p.m.

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

U.S. stock indexes closed mostly higher Thursday after a late stumble pulled the S&P 500 just short of its third straight all-time high.

The benchmark index slipped 0.1% after spending much of the day higher. It's on track for its second weekly gain as Wall Street continues to coast following its rocket ride last month powered by hopes for coming COVID-19 vaccines. The Nasdaq composite set a record high for the second straight day. Treasury yields mostly declined, a reversal from earlier in the week.

A couple reports on the economy that were better than expected helped support stocks. One showed that growth in the U.S. services sector, including health care and retail, was slightly stronger last month than economists expected. A separate report said fewer U.S. workers filed for unemployment benefits last week than forecast, though economists cautioned the number may have been distorted by the Thanksgiving holiday.

Investors have also been encouraged this week by signs that Democrats and Republicans in Washington may get past their bitter partisanship to reach a deal to provide more financial support for the economy. House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell spoke Thursday, a day after Pelosi signaled a willingness to make major concessions in search of a coronavirus rescue package. President-elect Joe Biden urged Congress on Wednesday to pass a relief bill now, with more aid to come next year.

“There’s a lot of optimism being built into the market right now,” said Sam Stovall, chief investment strategist at CFRA. “Investors are sort of keeping their fingers crossed that we come up with a stimulus package, no matter the size.”

The S&P 500 slipped 2.29 points to 3,666.72. The Dow Jones Industrial Average gained 85.73 points, or 0.3%, to 29,969.52. The Nasdaq composite added 27.82 points, or 0.2%, to 12,377.18. Small company stocks made out better than the broader market. The Russell 2000 index picked up 10.67 points, or 0.6%, to 1,848.70.

Momentum across markets has slowed after the S&P 500 surged 10.8% last month on hopes that one or more coronavirus vaccines will get the global economy closer to normal next year. The burst of optimism boosted stocks of travel companies, banks and smaller businesses in particular, after they were among the most harshly punished during the pandemic.

“It’s pretty clear that investors are looking at some of those areas that would benefit from a more complete reopening,” said David Lefkowitz, head of Americas equities at UBS Global Wealth Management.

Now that stock indexes are back at all-time highs, worries about the still-raging pandemic are making further big gains more difficult. Governments around the world are considering the approval of several coronavirus vaccines, and a U.S. rollout could begin this month if regulators give their approval. Britain has already approved emergency use of a COVID-19 vaccine developed by Pfizer and BioNTech.

But vaccines would initially go out only to protect health care workers and others at high risk. In the meantime, coronavirus counts and hospitalizations continue to surge. That has governments around the world bringing back varying degrees of restrictions on businesses and consumers worried about their own health. That, in turns, is threatening the economic recovery that got underway in the spring.

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Across the country, the Labor Department said 712,000 workers applied for jobless benefits last week. That's an improvement from the 787,000 of the prior week, but it still towers over the roughly 225,000 workers that were applying weekly before the pandemic struck.

Concerns about the potential economic fallout from more restrictions on businesses has intensified the pressure on Washington to deliver more aid. Still, Democrats and Republicans have been arguing for months without much progress.

“Ideally we would get some kind of fiscal support sooner rather than later,” Lefkowitz said. “The big news is there’s more of a line of sight on the fact that the economy will likely get back to full strength.”

On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin underscored the importance of such relief during a House Financial Services Committee hearing. The economy has been struggling more since extra unemployment benefits and other stimulus approved earlier this year by Congress expired.

Ralph Lauren led the gainers in the S&P 500 Thursday, vaulting 8.7%. Several travel-related companies also finished near the top of the leaderboard, clawing back more of their precipitous losses from earlier in the pandemic. American Airlines Group rose 8.3%, Norwegian Cruise line gained 8.6, and United Airlines climbed 6.8%. All three, though, remain more than 40% lower for 2020.

Boeing surged 6% after Ireland’s Ryanair announced that it will order 75 more of the aircraft manufacturer's 737 Max jets, a vote of confidence for the troubled Max from one of Europe’s biggest budget airlines. The plane was grounded in March 2019 after two crashes killed 346 people.

The yield on the 10-year Treasury dipped to 0.91% from 0.94% late Wednesday.

European stock markets closed mostly lower. Markets in Asia were mixed.

 

[bigdog]

More record highs for stocks as hopes grow for economic aid

Wall Street closed out a solid week for stocks Friday with more record highs as traders took a discouraging jobs report as a sign that Congress will finally move to deliver more aid for the pandemic-stricken economy.

The S&P 500 rose 0.9%, notching its third all-time high this week. The Dow Jones Industrial Average, Nasdaq composite and Russell 2000 index of smaller companies also closed at record highs.

The gains were broad, with about 81% of the companies in the S&P 500 moving higher. Gains in technology, health care and energy stocks helped lift the market, outweighing losses in utilities and companies that rely on consumer spending. Treasury yields rose, a sign of growing confidence in the economic outlook.

Hopes remain deeply rooted on Wall Street that one or more coronavirus vaccines are coming to rescue the global economy next year. But efforts to contain a surge in new virus cases has stoked worries about more economic pain for companies and consumers.

That’s why Friday’s much weaker-than-expected jobs report perversely helped lift stocks. Investors are betting the report may be bad enough to help kick Congress out of its paralysis and deliver more support for the economy.

“In a twist of irony, the bad jobs number is positive for markets today,” said Keith Buchanan, portfolio manager at Globalt Investments. “The market is telling us today that if the labor market continues to show slowing momentum, it’s much more likely the powers that be in D.C. agree to something that’s material.”

The S&P 500 rose 32.40 points to 3,699.12. The benchmark index climbed 1.7% for the week, it’s second consecutive weekly gain. The Dow picked up 248.74 points, or 0.8%, to 30,218.26. The Nasdaq picked up 87.05 points, or 0.7%, to 12,464.23.

Stocks of smaller companies, which have recently helped lead the market after lagging earlier this year, outgained the broader market Friday. The Russell 2000 climbed 43.75 points, or 2.4%, to 1,892.45, more than double the gain for the big stocks in the S&P 500.

Stocks seemed headed for a downbeat day early Friday as traders weighed the disappointing jobs report. Treasury yields sank, and U.S. stock futures wobbled after the data showed employers added just 245,000 jobs last month, half of what economists were expecting. The report marked a sharp step down from October’s gain of 610,000 and was the fifth straight month of slowing growth.

Economists called the numbers disappointing and evidence that the worsening pandemic will likely destroy more jobs and income for the economy in the coming months, which are shaping up to be a bleak winter.

But markets quickly firmed amid hopes that the dour data could spur some action from Congress, which has dithered for months after much of its last round of financial support for the economy expired during the summer.

“Overall, today’s report is beckoning lawmakers to act on additional fiscal stimulus measures in order to bridge the output gap in the economy until a vaccine is deployed, and the longer they hold out the wider the gap may become,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Democrats and Republicans have been making on-and-off progress on talks for another round of support for the economy, including aid for laid-off workers and industries hit hard by the pandemic. Momentum has seemed to swing back to “on” this week after Democrats signaled willingness to accept a smaller package than they were earlier demanding.

https://apnews.com/article/financia...ong-shanghai-3e3e3e453bf1ced6e37999a109c88964

More record highs for stocks as hopes grow for economic aid

By STAN CHOE and ALEX VEIGA

Wall Street closed out a solid week for stocks Friday with more record highs as traders took a discouraging jobs report as a sign that Congress will finally move to deliver more aid for the pandemic-stricken economy.

The S&P 500 rose 0.9%, notching its third all-time high this week. The Dow Jones Industrial Average, Nasdaq composite and Russell 2000 index of smaller companies also closed at record highs.

The gains were broad, with about 81% of the companies in the S&P 500 moving higher. Gains in technology, health care and energy stocks helped lift the market, outweighing losses in utilities and companies that rely on consumer spending. Treasury yields rose, a sign of growing confidence in the economic outlook.

Hopes remain deeply rooted on Wall Street that one or more coronavirus vaccines are coming to rescue the global economy next year. But efforts to contain a surge in new virus cases has stoked worries about more economic pain for companies and consumers.

That’s why Friday’s much weaker-than-expected jobs report perversely helped lift stocks. Investors are betting the report may be bad enough to help kick Congress out of its paralysis and deliver more support for the economy.

“In a twist of irony, the bad jobs number is positive for markets today,” said Keith Buchanan, portfolio manager at Globalt Investments. “The market is telling us today that if the labor market continues to show slowing momentum, it’s much more likely the powers that be in D.C. agree to something that’s material.”

The S&P 500 rose 32.40 points to 3,699.12. The benchmark index climbed 1.7% for the week, it’s second consecutive weekly gain. The Dow picked up 248.74 points, or 0.8%, to 30,218.26. The Nasdaq picked up 87.05 points, or 0.7%, to 12,464.23.

Stocks of smaller companies, which have recently helped lead the market after lagging earlier this year, outgained the broader market Friday. The Russell 2000 climbed 43.75 points, or 2.4%, to 1,892.45, more than double the gain for the big stocks in the S&P 500.

Stocks seemed headed for a downbeat day early Friday as traders weighed the disappointing jobs report. Treasury yields sank, and U.S. stock futures wobbled after the data showed employers added just 245,000 jobs last month, half of what economists were expecting. The report marked a sharp step down from October’s gain of 610,000 and was the fifth straight month of slowing growth.

Economists called the numbers disappointing and evidence that the worsening pandemic will likely destroy more jobs and income for the economy in the coming months, which are shaping up to be a bleak winter.

But markets quickly firmed amid hopes that the dour data could spur some action from Congress, which has dithered for months after much of its last round of financial support for the economy expired during the summer.

“Overall, today’s report is beckoning lawmakers to act on additional fiscal stimulus measures in order to bridge the output gap in the economy until a vaccine is deployed, and the longer they hold out the wider the gap may become,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Democrats and Republicans have been making on-and-off progress on talks for another round of support for the economy, including aid for laid-off workers and industries hit hard by the pandemic. Momentum has seemed to swing back to “on” this week after Democrats signaled willingness to accept a smaller package than they were earlier demanding.

House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell spoke on the phone about a possible deal on Thursday, and lawmakers from both parties have been voicing support for a bipartisan deal. The glimmers of progress follow months of cajoling and pleading by economists and investors, who say such aid is essential. Many obstacles remain, though.

The hope in markets is that financial support from Washington could help carry the economy through a dark winter. Surging coronavirus counts, hospitalizations and deaths are pushing governments around the world to bring back varying degrees of restrictions on businesses. They’re also scaring consumers away from stores, restaurants and other normal economic activity.

Hopefully, the economy will be able to stand more on its own next year after one or more COVID-19 vaccines help start a slow return to more normal conditions. Such hopes helped stocks muscle 10.8% higher in November, though the momentum has slowed a bit recently as the pandemic accelerates at a troubling rate.

Energy companies were some of Friday’s best performers, as oil prices climb further out of the hole they plunged into during the spring following a collapse in demand. Diamondback Energy jumped 12.7%, and Occidental Petroleum gained 13.4% for the two biggest gains in the S&P 500. Both stocks remain down by about 50% for the year, though.

The yield on the 10-year Treasury shook off an initial stumble following the release of the jobs report to rise to 0.97%, up from 0.91% late Thursday.

European markets rose. Asian markets mostly rose, except in Japan, where the Nikkei slipped.

 

[bigdog]

ASX futures pointing higher.

The Australian share market looks set to start the week on a positive note after a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points or 0.6% higher. On Friday night, the Dow Jones jumped 0.8%, the S&P 500 climbed 0.9%, and the Nasdaq rose 0.7%. This led to the Dow Jones reaching a new record high

 

[bigdog]

Stocks close mostly lower, pushing pause on recent rally

Stocks closed mostly lower Monday as Wall Street pumped the brakes after a recent run of strong gains.

The S&P 500 fell 0.2%, as losses in health care, financial and energy companies outweighed gains in technology, communication and utilities stocks. The pickup in technology companies, whose profits have proven more resistant to the pandemic’s effect on the economy, helped nudge the Nasdaq composite to its third consecutive all-time high.

The downbeat start to the week comes as investors balance optimism that one or more coconravirus vaccines will soon be cleared for distribution in the U.S., setting the stage for an economic turnaround, against worries about more economic pain as states impose new restrictions on businesses in a bid to stem a surge in new virus cases and hospitalizations.

Traders also continue to hold out hope that Washington will deliver another round of financial aid for Americans and businesses hurt most by the pandemic. But if Congress fails to reach a deal to carry the economy through the winter, stocks could be set up for more declines.

“The market is taking a much needed pause as it waits for answers on the stimulus package,” said Quincy Krosby, chief market strategist at Prudential Financial. “Will it be closer to a trillion or closer to $500 billion? That’s going to be important for the market.”

The S&P 500 dropped 7.16 points to 3,691.96. The Dow Jones Industrial Average slid 148.47 points, or 0.5%, to 30,069.79. The Nasdaq gained 55.71 points, or 0.4%, to 12,519.95. Small company stocks slipped 1.20 points, or 0.1%, to 1,891.25.

Stocks have mounted a strong, weeks long run around the world. The S&P 500 had one of its best months in decades during November and added more to it last week, in large part because of optimism about the development of coronavirus vaccines. Hope has also built that Washington may be able to get past its partisanship to deliver some form of aid for the still-struggling economy in the meantime.

Lawmakers on Capitol Hill are trying to figure out how to deliver long-delayed pandemic relief, including additional help for businesses hard hit by the pandemic, further unemployment benefits, funding to distribute COVID-19 vaccines and funding demanded by Democrats for state and local governments.

The worsening pandemic is pushing governments around the world to bring back varying degrees restrictions on businesses, keeping customers away from businesses and threatening to drag down the economy through what’s expected to be a bleak winter. Job growth in the United States slowed sharply last month, a report on Friday showed, and the numbers may get only worse.

Uncertainty over the impact of the virus surge, the timing of a vaccine rollout and potential aid from Washington has helped slow the momentum for financial markets and made technology stocks go-to buys for traders. Apple rose 1.2%, while Facebook gained 2.1% and Netflix climbed 3.5%.

ASX 200 expected to fall.

The Australian share market looks set to give back some of its gains on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.25% lower this morning. This follows a reasonably mixed start to the week on Wall Street. On closing, the Dow Jones is down 0.49%, the S&P 500 is down 0.19%, and the Nasdaq is up 0.45%.

https://apnews.com/article/beijing-...ong-shanghai-b0d546a13c533c8b61c5d7d6cf6bc3db

Stocks close mostly lower, pushing pause on recent rally

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Stocks closed mostly lower Monday as Wall Street pumped the brakes after a recent run of strong gains.

The S&P 500 fell 0.2%, as losses in health care, financial and energy companies outweighed gains in technology, communication and utilities stocks. The pickup in technology companies, whose profits have proven more resistant to the pandemic’s effect on the economy, helped nudge the Nasdaq composite to its third consecutive all-time high.

The downbeat start to the week comes as investors balance optimism that one or more coconravirus vaccines will soon be cleared for distribution in the U.S., setting the stage for an economic turnaround, against worries about more economic pain as states impose new restrictions on businesses in a bid to stem a surge in new virus cases and hospitalizations.

Traders also continue to hold out hope that Washington will deliver another round of financial aid for Americans and businesses hurt most by the pandemic. But if Congress fails to reach a deal to carry the economy through the winter, stocks could be set up for more declines.

“The market is taking a much needed pause as it waits for answers on the stimulus package,” said Quincy Krosby, chief market strategist at Prudential Financial. “Will it be closer to a trillion or closer to $500 billion? That’s going to be important for the market.”

The S&P 500 dropped 7.16 points to 3,691.96. The Dow Jones Industrial Average slid 148.47 points, or 0.5%, to 30,069.79. The Nasdaq gained 55.71 points, or 0.4%, to 12,519.95. Small company stocks slipped 1.20 points, or 0.1%, to 1,891.25.

Stocks have mounted a strong, weeks long run around the world. The S&P 500 had one of its best months in decades during November and added more to it last week, in large part because of optimism about the development of coronavirus vaccines. Hope has also built that Washington may be able to get past its partisanship to deliver some form of aid for the still-struggling economy in the meantime.

Lawmakers on Capitol Hill are trying to figure out how to deliver long-delayed pandemic relief, including additional help for businesses hard hit by the pandemic, further unemployment benefits, funding to distribute COVID-19 vaccines and funding demanded by Democrats for state and local governments.

The worsening pandemic is pushing governments around the world to bring back varying degrees restrictions on businesses, keeping customers away from businesses and threatening to drag down the economy through what’s expected to be a bleak winter. Job growth in the United States slowed sharply last month, a report on Friday showed, and the numbers may get only worse.

Uncertainty over the impact of the virus surge, the timing of a vaccine rollout and potential aid from Washington has helped slow the momentum for financial markets and made technology stocks go-to buys for traders. Apple rose 1.2%, while Facebook gained 2.1% and Netflix climbed 3.5%.

“Whenever there are concerns about growth, investors and traders migrate to the tech names,” Krosby said.

Monday’s tech rally is a flip of the market’s recent momentum and a callback to how it was trading earlier this year, before enthusiasm burst higher in November that one or more COVID-19 vaccines will get the global economy closer to normal next year.

“It gave us all some hope and hope is a pretty good ingredient for the markets,” said Frank Panayotou, managing director at UBS Private Wealth Management.

And while the markets are likely in good shape for the medium or long-term, he said, investors can expect some choppiness as the the virus’ impact continues ahead of vaccines reaching people next year.

Stocks that would benefit most from a reopening, healthier economy were taking some of the sharper losses, giving back some of their big recent gains. Energy stocks in the S&P 500 fell 2.4% after their 16.8% surge in November, for example. Bank stocks were also weaker than the rest of the market, and roughly two-thirds of the stocks in the S&P 500 fell.

Chevron Corp. fell 2.7% amid worries that the worsening pandemic could choke off more demand for oil and energy.

Other companies whose profits desperately need the economy to improve and the world to get closer to normal also fell. Mall owner Simon Property Group dropped 4.8%, Olive Garden-owner Darden Restaurants fell 2.4% and airline operator Alaska Air Group lost 3.6%.

In Europe, stock indexes closed mostly lower, and the value of the British pound fell as negotiators in the United Kingdom’s exit from the European Union seemed to remain stuck on the same issues that have prevented a deal for months.

In Asia, markets were mixed as relations between the United States and China, the world’s two largest economies, remain tense.

The yield on the 10-year Treasury fell to 0.93% from 0.96% late Friday.

 

[bigdog]

Steady gains throughout the day delivered another round of record highs for major indexes on Wall Street Tuesday.

Technology and health care companies helped drive stocks to more gains Tuesday, leading to more milestones on Wall Street.

The S&P 500 index rose 0.3%, eclipsing the all-time high it set on Friday. The Nasdaq composite and Russell 2000 index of small company stocks also set record highs. The likelihood that one or more coronavirus vaccines could begin to be distributed in the U.S. in coming weeks has kept investors in a buying mood, boosting their optimism for an economic recovery next year.

The gains, which came after a shaky start for the market, came as the U.K. became the first Western country to start a mass vaccination program. On Tuesday, U.S. health regulators issued a positive initial review of that vaccine and a decision to allow its use is expected within days, though wide distribution is likely months away.

“The vaccine news and the focus on that is the most important thing for the market at the moment,” said Stephanie Roth, portfolio macro analyst, J.P. Morgan Private Bank. “At this point, the excitement is for the post-vaccine world.”

The S&P 500 rose 10.29 points to 3,702.25. The index had one of its best months in decades during November and is already up 2.2% so far this month. The Dow Jones Industrial Average gained 104.09 points, or 0.4%, to 30,173.88. The tech-heavy Nasdaq picked up 62.83 points, or 0.5%, to 12,582.77, marking its fourth straight record high.

Small-company stocks rose much more than the rest of the market, a signal that investors are feeling more optimistic about the economy. The Russell 2000 index climbed 26.53 points, or 1.4%, to 1,917.78.

Nearly 60% of the companies in the benchmark S&P 500 closed higher, with energy stocks notching the biggest gain. Stocks had been down in the early going on worries about rising coronavirus cases, but turned higher around midday. Traders are looking ahead to Thursday, when U.S. regulators will meet to determine whether to green-light the distribution of a COVID-19 vaccine developed by U.S. drugmaker Pfizer and Germany’s BioNTech.

The need for a vaccine has been heightened in recent weeks as the coronavirus has been surging across much of the world. The virus has claimed more than 1.5 million lives, including over 284,000 in the U.S., the highest toll of any country. Governments worldwide have been tightening restrictions on businesses in an effort to stem the latest surge in cases, stoking worries about the potential economic fallout.

That's kept investors focused on Washington and the prospects for another round of aid for Americans and business hit hardest by the pandemic. Congress is still stuck in a partisan stalemate over the size and scope of any additional aid to help cushion the financial impact to people and businesses. The economy has been showing signs of a stalled recovery as the virus surge broadens nationally, including slower job growth in the U.S. last month.

Big Tech stocks that have been big winners during the pandemic helped power the rally Tuesday. Apple rose 0.5% and Microsoft gained 0.8%.

Health care stocks made solid gains. Pfizer rose 3.2% and Johnson & Johnson rose 1.7%. Exxon Mobil was among the big gainers in the energy sector, climbing 3.3%.

Shop-from-home clothing seller Stitch Fix soared 39.2% after reporting a surprise profit in its latest quarter. Etsy jumped 4.5%.

A mix of companies that rely on direct consumer spending and those that would greatly benefit from a fuller economic recovery continued to see a bit of churn. The moves reflect the constant push-and-pull of hope for an eventual economic recovery pitted against the continued economic damage inflicted by the pandemic.

ASX 200 expected to rise.

The Australian share market looks set to push higher again on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 29 points or 0.4% higher this morning. This follows a positive night of trade on Wall Street, where closing sees the Dow Jones up 0.35%, the S&P 500 up 0.28%, and the Nasdaq up 0.5%.

https://www.usnews.com/news/busines...s-follow-wall-street-lower-amid-virus-worries

Steady Gains for Stocks Deliver More Records on Wall Street
Steady gains throughout the day delivered another round of record highs for major indexes on Wall Street Tuesday.
By Associated Press, Wire Service Content Dec. 8, 2020, at 4:55 p.m

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

Technology and health care companies helped drive stocks to more gains Tuesday, leading to more milestones on Wall Street.

The S&P 500 index rose 0.3%, eclipsing the all-time high it set on Friday. The Nasdaq composite and Russell 2000 index of small company stocks also set record highs. The likelihood that one or more coronavirus vaccines could begin to be distributed in the U.S. in coming weeks has kept investors in a buying mood, boosting their optimism for an economic recovery next year.

The gains, which came after a shaky start for the market, came as the U.K. became the first Western country to start a mass vaccination program. On Tuesday, U.S. health regulators issued a positive initial review of that vaccine and a decision to allow its use is expected within days, though wide distribution is likely months away.

“The vaccine news and the focus on that is the most important thing for the market at the moment,” said Stephanie Roth, portfolio macro analyst, J.P. Morgan Private Bank. “At this point, the excitement is for the post-vaccine world.”

The S&P 500 rose 10.29 points to 3,702.25. The index had one of its best months in decades during November and is already up 2.2% so far this month. The Dow Jones Industrial Average gained 104.09 points, or 0.4%, to 30,173.88. The tech-heavy Nasdaq picked up 62.83 points, or 0.5%, to 12,582.77, marking its fourth straight record high.

Small-company stocks rose much more than the rest of the market, a signal that investors are feeling more optimistic about the economy. The Russell 2000 index climbed 26.53 points, or 1.4%, to 1,917.78.

Nearly 60% of the companies in the benchmark S&P 500 closed higher, with energy stocks notching the biggest gain. Stocks had been down in the early going on worries about rising coronavirus cases, but turned higher around midday. Traders are looking ahead to Thursday, when U.S. regulators will meet to determine whether to green-light the distribution of a COVID-19 vaccine developed by U.S. drugmaker Pfizer and Germany’s BioNTech.

The need for a vaccine has been heightened in recent weeks as the coronavirus has been surging across much of the world. The virus has claimed more than 1.5 million lives, including over 284,000 in the U.S., the highest toll of any country. Governments worldwide have been tightening restrictions on businesses in an effort to stem the latest surge in cases, stoking worries about the potential economic fallout.

That's kept investors focused on Washington and the prospects for another round of aid for Americans and business hit hardest by the pandemic. Congress is still stuck in a partisan stalemate over the size and scope of any additional aid to help cushion the financial impact to people and businesses. The economy has been showing signs of a stalled recovery as the virus surge broadens nationally, including slower job growth in the U.S. last month.

Big Tech stocks that have been big winners during the pandemic helped power the rally Tuesday. Apple rose 0.5% and Microsoft gained 0.8%.

Health care stocks made solid gains. Pfizer rose 3.2% and Johnson & Johnson rose 1.7%. Exxon Mobil was among the big gainers in the energy sector, climbing 3.3%.

Shop-from-home clothing seller Stitch Fix soared 39.2% after reporting a surprise profit in its latest quarter. Etsy jumped 4.5%.

A mix of companies that rely on direct consumer spending and those that would greatly benefit from a fuller economic recovery continued to see a bit of churn. The moves reflect the constant push-and-pull of hope for an eventual economic recovery pitted against the continued economic damage inflicted by the pandemic.

Cruise line operators gained ground, including a 6.2% rise from Norwegian Cruise Line. The sector very much needs the virus to recede in order to get back to normal operations. Other companies that need a more normal economy in order to recover are still slipping. Darden Restaurants, which operates Olive Garden, fell 0.4%.

Overall, many of the companies that have been beaten down have been doing better as investors see an eventual end to the pandemic. There's been a push for broader investments in many of those industries and not much pullback, said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.

“It’s a very positive sign when you see very broad participation,” he said. “It tells me positioning is still in the process of moving more into cyclical stocks.”

The yield on the 10-year Treasury rose to 0.92% from 0.91% late Monday.

European markets closed mixed and Asian markets fell.

 

[bigdog]

Weakness in Tech Companies Leads Stocks Lower on Wall Street
Stocks closed broadly lower on Wall Street, led by weakness in technology companies.

U.S. stock indexes pulled back from their recent record highs Wednesday, as virus cases surge and coronavirus vaccines move closer to distribution.

The S&P 500 index fell 0.8%, as losses in technology companies outweighed gains in industrial, energy and materials stocks. The benchmark index is still up 1.4% for the month after climbing to record highs four times in the past two weeks.

Markets have been mostly pushing higher in recent weeks on hopes that one or more coronvairus vaccines will begin to be distributed in coming weeks and begin to ease the economy out of the pandemic's grip.

A vaccine from Pfizer and German partner BioNTech, which is already in use in the U.K., is on track for a positive review and potential approval in the U.S. within the next week. The Food and Drug Administration will also consider a vaccine developed by Moderna later this month.

But there could be more economic damage in store over the next few months and investors are still closely watching Washington for any developments on another shot of stimulus for people, businesses and state governments. Congress is still divided over the size and scope of any new package and the Trump administration has added to the potential plans with a new $916 billion proposal.

“You haven’t seen a deal out of Congress, so to the extent that markets have been rallying on another round of hope about stimulus, not getting that lets a little bit of air out of the market,” said Willie Delwiche, investment strategist at Baird.

The S&P 500 dropped 29.43 points to 3,672.82. The Dow Jones Industrial Average lost 105.07 points, or 0.4%, to 30,068.81. The tech-heavy Nasdaq composite fell 243.82 points, or 1.9%, to 12,338.95.

The Russell 200 index of small company stocks gave up 15.63 points, or 0.8%, to 1,902.15. Small company stocks have been outgaining the broader market this month and the Russell 2000 is holding onto a 4.5% gain.

Technology stocks fell and dragged much of the market with them. Health care and communications stocks also slipped. Microsoft shed 1.9% while Pfizer Inc. fell 1.7%.

About 56% of the companies in the S&P 500 fell, led by Qorvo, which declined 5.6%.

Treasury yields gained ground in a sign of optimism for the the economy. The yield on the 10-year Treasury rose to 0.94% from 0.90% late Tuesday.

Investors still have an appetite for IPO's as meal delivery service DoorDash soared 85.8% in its market debut. The company has been one of the beneficiaries of the stay-at-home economy as more people shop and order food from their homes.

The market has generally been making gains as investors weigh the continued economic damage being inflicted by the virus against anticipation for a return to normalcy as vaccines start to move closer to approval and wider distribution. The recent surge in coronavirus cases and tighter restrictions on businesses over the last few weeks has again raised the importance of a vaccine for beaten down businesses.

ASX 200 expected to drop.

The Australian share market looks to have run out of steam and is expected to drop lower on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day 49 points or 0.7% lower this morning. This follows a disappointing night on Wall Street, where closing sees the Dow Jones down 0.35%, the S&P 500 down 0.79%, and the Nasdaq down a sizeable 1.94%.

https://www.usnews.com/news/busines...s-extend-gains-after-more-wall-street-records

Weakness in Tech Companies Leads Stocks Lower on Wall Street
Stocks closed broadly lower on Wall Street, led by weakness in technology companies.
By Associated Press, Wire Service Content Dec. 9, 2020, at 4:48 p.m.

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

U.S. stock indexes pulled back from their recent record highs Wednesday, as virus cases surge and coronavirus vaccines move closer to distribution.

The S&P 500 index fell 0.8%, as losses in technology companies outweighed gains in industrial, energy and materials stocks. The benchmark index is still up 1.4% for the month after climbing to record highs four times in the past two weeks.

Markets have been mostly pushing higher in recent weeks on hopes that one or more coronvairus vaccines will begin to be distributed in coming weeks and begin to ease the economy out of the pandemic's grip.

A vaccine from Pfizer and German partner BioNTech, which is already in use in the U.K., is on track for a positive review and potential approval in the U.S. within the next week. The Food and Drug Administration will also consider a vaccine developed by Moderna later this month.

But there could be more economic damage in store over the next few months and investors are still closely watching Washington for any developments on another shot of stimulus for people, businesses and state governments. Congress is still divided over the size and scope of any new package and the Trump administration has added to the potential plans with a new $916 billion proposal.

“You haven’t seen a deal out of Congress, so to the extent that markets have been rallying on another round of hope about stimulus, not getting that lets a little bit of air out of the market,” said Willie Delwiche, investment strategist at Baird.

The S&P 500 dropped 29.43 points to 3,672.82. The Dow Jones Industrial Average lost 105.07 points, or 0.4%, to 30,068.81. The tech-heavy Nasdaq composite fell 243.82 points, or 1.9%, to 12,338.95.

The Russell 200 index of small company stocks gave up 15.63 points, or 0.8%, to 1,902.15. Small company stocks have been outgaining the broader market this month and the Russell 2000 is holding onto a 4.5% gain.

Technology stocks fell and dragged much of the market with them. Health care and communications stocks also slipped. Microsoft shed 1.9% while Pfizer Inc. fell 1.7%.

About 56% of the companies in the S&P 500 fell, led by Qorvo, which declined 5.6%.

Treasury yields gained ground in a sign of optimism for the the economy. The yield on the 10-year Treasury rose to 0.94% from 0.90% late Tuesday.

Investors still have an appetite for IPO's as meal delivery service DoorDash soared 85.8% in its market debut. The company has been one of the beneficiaries of the stay-at-home economy as more people shop and order food from their homes.

The market has generally been making gains as investors weigh the continued economic damage being inflicted by the virus against anticipation for a return to normalcy as vaccines start to move closer to approval and wider distribution. The recent surge in coronavirus cases and tighter restrictions on businesses over the last few weeks has again raised the importance of a vaccine for beaten down businesses.

Looking ahead, the economy will likely still have a long way to recovery in 2021, said Barry Bannister, head of institutional equity strategy at Stifel.

“What we’ve said is the sky is not falling, but there are some dark clouds and indexes are showing signs of fatigue,” he said.

European markets ended mixed. France’s CAC 40 was down 0.3%, Germany’s DAX rose 0.5% and the FTSE 100 in London rose 0.1%. Asian markets mostly rose.

 

[bigdog]

Stocks wobbled to a mixed finish on Wall Street Thursday following more evidence that the pandemic is tightening its grip on the economy.

U.S. stock indexes closed mostly lower Thursday following more evidence that the pandemic is tightening its grip on the economy while Congress remains in a stalemate over how to do something about it.

The S&P 500 slipped 0.1% after flipping between gains and losses in the early going. The index is within 1% of its all-time high set on Tuesday. Some 60% of the companies in the S&P 500 fell, led by declines in industrial and communication services stocks. Those losses outweighed gains in energy, technology and financial companies.

Treasury yields fell following a report that showed 853,000 U.S. workers applied for unemployment benefits last week. That was more than economists expected and an acceleration from the prior week. It’s also the latest reminder that the pandemic is doing more damage to the economy in the near term, even if prospects are rising that a COVID-19 vaccine will get the economy healthy in the longer term.

Economists and investors have been imploring Congress to deliver more financial support in the meantime, to help carry the economy until it can stand on its own. After months of partisan bickering and no progress on Capitol Hill, momentum seemed to swing higher recently for a deal, but talks are still mired in deep uncertainty.

On Thursday, Treasury Secretary Steven Mnuchin reported headway in talks over President Donald Trump’s latest $900 billion-plus plan. But, Democrats and Republicans are still at odds over the size and scope of any deal.

“There's nothing really new there, except now you've got some softening economic data,” said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute

The S&P 500 fell 4.72 points to 3,668.10. The Dow Jones Industrial Average dropped 69.55 points, or 0.2%, to 29,999.26. The Nasdaq composite rose 66.85 points, or 0.5%, to 12,405.81.

Small company stocks continued to do better than the broader market. The Russell 2000 climbed 20.56, or 1.1%, to 1,922.70, a record high.

Stocks have been climbing to new heights in recent weeks on hopes that the distribution of one or more coronvairus vaccines will put the pandemic-ravaged economy on the path to recovery. But Thursday's discouraging report on joblessness adds to worries that the economy is in for more pain, especially in the wake of a surge in new coronavirus cases in many parts of the U.S.

ASX 200 expected to drop again.

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is poised to open the day 32 points or 0.5% lower this morning. This follows a mixed night of trade on Wall Street, where closing sees the Dow Jones down 0.23%, the S&P 500 down 0.13%, but the Nasdaq up 0.54%. The Airbnb share price doubled after its IPO on the Nasdaq.

https://www.usnews.com/news/busines...-lower-in-asia-after-tech-led-drop-on-wall-st

Stock Indexes End Mixed as Damage to the Economy Piles Up
Stocks wobbled to a mixed finish on Wall Street Thursday following more evidence that the pandemic is tightening its grip on the economy.
By Associated Press, Wire Service Content Dec. 10, 2020, at 4:59 p.m.

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

U.S. stock indexes closed mostly lower Thursday following more evidence that the pandemic is tightening its grip on the economy while Congress remains in a stalemate over how to do something about it.

The S&P 500 slipped 0.1% after flipping between gains and losses in the early going. The index is within 1% of its all-time high set on Tuesday. Some 60% of the companies in the S&P 500 fell, led by declines in industrial and communication services stocks. Those losses outweighed gains in energy, technology and financial companies.

Treasury yields fell following a report that showed 853,000 U.S. workers applied for unemployment benefits last week. That was more than economists expected and an acceleration from the prior week. It’s also the latest reminder that the pandemic is doing more damage to the economy in the near term, even if prospects are rising that a COVID-19 vaccine will get the economy healthy in the longer term.

Economists and investors have been imploring Congress to deliver more financial support in the meantime, to help carry the economy until it can stand on its own. After months of partisan bickering and no progress on Capitol Hill, momentum seemed to swing higher recently for a deal, but talks are still mired in deep uncertainty.

On Thursday, Treasury Secretary Steven Mnuchin reported headway in talks over President Donald Trump’s latest $900 billion-plus plan. But, Democrats and Republicans are still at odds over the size and scope of any deal.

“There's nothing really new there, except now you've got some softening economic data,” said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute

The S&P 500 fell 4.72 points to 3,668.10. The Dow Jones Industrial Average dropped 69.55 points, or 0.2%, to 29,999.26. The Nasdaq composite rose 66.85 points, or 0.5%, to 12,405.81.

Small company stocks continued to do better than the broader market. The Russell 2000 climbed 20.56, or 1.1%, to 1,922.70, a record high.

Stocks have been climbing to new heights in recent weeks on hopes that the distribution of one or more coronvairus vaccines will put the pandemic-ravaged economy on the path to recovery. But Thursday's discouraging report on joblessness adds to worries that the economy is in for more pain, especially in the wake of a surge in new coronavirus cases in many parts of the U.S.

The market sometimes rallies following discouraging economic data on the theory that the bad news might pressure Congress to deliver more aid for the economy. But in the face of uncertainty, though, trading was wobbly Thursday.

“In the broader market, people are waiting to see what happens with a stimulus package,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

Energy stocks, which often move with expectations for the economy's strength, notched the biggest gain among the 11 sectors that make up the S&P 500, at 2.9%. They rose with crude oil prices.

Starbucks gained 5% after the coffee chain backed its profit forecast for this fiscal year and said it expects “outsized growth” in the following one.

But industrial companies, whose stocks have been been tracking hopes for the economy, fell. United Parcel Service declined 2.9%.

The choppiness in the market is not unheard of, considering the stellar gains for stocks in November and uncertainty still lingering over the timing of vaccine distribution as virus cases rise, Christopher said.

“It’s not unusual to see some consolidation after a strong month like that,” he said.

Elsewhere in the market, shares of Airbnb soared 112.8% on their first day of trading. Interest has been high for the home sharing company, which has seen its business recover faster through the pandemic than hotels.

A day earlier, another San Francisco-based company, DoorDash, soared nearly 86% in the first day of trading for its stock.

In Europe, stock markets were subdued even though the European Central Bank delivered another half-trillion of euros ($600 billion) in stimulus for the economy. Coronavirus counts are also spiraling higher on the continent, and its central bank is promising to buy more bonds to push the economy along. Asian markets made modest moves.

The yield on the 10-year Treasury fell to 0.90% from 0.93% late Wednesday. A government report released Thursday morning showed that inflation was slightly stronger last month than economists expected, though it remains modest.

 

[bigdog]

Stocks extend losses as virus aid languishes in Congress

U.S. stock indexes pulled further away from their recent highs Friday as prospects for another aid package from Washington faded while a surge in virus cases threatens to inflict more damage on an already battered economy.

The S&P 500 slipped 0.1%, its third-straight decline since it set a record high on Tuesday. The benchmark index ended the week 1% lower after two weeks of solid gains. Losses in financial, technology, health care and other sectors outweighed gains in communication services stocks, industrial companies and elsewhere. Treasury yields fell broadly, a signal that traders were seeking to lessen their exposure to riskier holdings.

The latest bout of selling, which eased toward the end of the day, came as investors continue to hope for Washington to come through with another financial lifeline for people, businesses and state governments struggling as the coronavirus pandemic worsens. But an emerging $900 billion aid package from a bipartisan group of lawmakers has essentially collapsed because of continued partisan bickering.

“We still don’t have a deal in Congress for a rescue package,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “If it doesn’t happen, the market could struggle.”

The S&P 500 slipped 4.64 points to 3,663.46. The index had been down 34 points in the early going. The Dow Jones Industrial Average got a boost from Disney, which hit a new high. The index rose 47.11 points, or 0.2%, to 30,046.37. The tech-heavy Nasdaq lost 27.94 points, or 0.2%, to 12,377.87.

Small company stocks, which have been making solid gains this month, also fell. The Russell 2000 small-cap index gave up 11.01 points, or 0.6%, to 1,911.70.

Technology companies and banks led the decline. Apple fell 0.7% and Bank of America dropped 1.9%.

Disney jumped 13.6%, a record high and the biggest gain in the S&P 500, after giving investors an encouraging update on subscriber growth and future plans for its Disney Plus streaming service.

Stocks have been climbing over the last few weeks as advances in vaccine development raised hopes that the pandemic could be tamed in the coming months and set the global economy on a path to normalcy.

“The excitement over the vaccine has already been priced in and the market is fairly overbought, based on where we are in the economy right now,” said Kenny Polcari, managing partner at Kace Capital Advisors.

https://apnews.com/article/financia...ong-shanghai-508a9d07ebf6051bef6d46d445343ae3

Stocks extend losses as virus aid languishes in Congress

By DAMIAN J. TROISE and ALEX VEIGA

U.S. stock indexes pulled further away from their recent highs Friday as prospects for another aid package from Washington faded while a surge in virus cases threatens to inflict more damage on an already battered economy.

The S&P 500 slipped 0.1%, its third-straight decline since it set a record high on Tuesday. The benchmark index ended the week 1% lower after two weeks of solid gains. Losses in financial, technology, health care and other sectors outweighed gains in communication services stocks, industrial companies and elsewhere. Treasury yields fell broadly, a signal that traders were seeking to lessen their exposure to riskier holdings.

The latest bout of selling, which eased toward the end of the day, came as investors continue to hope for Washington to come through with another financial lifeline for people, businesses and state governments struggling as the coronavirus pandemic worsens. But an emerging $900 billion aid package from a bipartisan group of lawmakers has essentially collapsed because of continued partisan bickering.

“We still don’t have a deal in Congress for a rescue package,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “If it doesn’t happen, the market could struggle.”

The S&P 500 slipped 4.64 points to 3,663.46. The index had been down 34 points in the early going. The Dow Jones Industrial Average got a boost from Disney, which hit a new high. The index rose 47.11 points, or 0.2%, to 30,046.37. The tech-heavy Nasdaq lost 27.94 points, or 0.2%, to 12,377.87.

Small company stocks, which have been making solid gains this month, also fell. The Russell 2000 small-cap index gave up 11.01 points, or 0.6%, to 1,911.70.

Technology companies and banks led the decline. Apple fell 0.7% and Bank of America dropped 1.9%.

Disney jumped 13.6%, a record high and the biggest gain in the S&P 500, after giving investors an encouraging update on subscriber growth and future plans for its Disney Plus streaming service.

Stocks have been climbing over the last few weeks as advances in vaccine development raised hopes that the pandemic could be tamed in the coming months and set the global economy on a path to normalcy.

“The excitement over the vaccine has already been priced in and the market is fairly overbought, based on where we are in the economy right now,” said Kenny Polcari, managing partner at Kace Capital Advisors.

The U.K. has already started vaccinating people with Pfizer and BioNTech’s vaccine. A U.S. government advisory panel on Thursday endorsed widespread use of that vaccine, putting the country just one step away from launching an epic vaccination campaign against the outbreak that has killed close to 300,000 Americans.

Widespread vaccination will take months and the virus pandemic is prompting tighter restrictions on businesses. An already slow economic recovery appears to be stalling in the wake of the latest surge and unemployment is rising.

Polcari said markets are simply churning and consolidating following a strong November and he expects that to continue through December as stimulus talks continue. Wall Street is also waiting for a special election in Georgia in early January, which could potentially switch the balance of power in the U.S. Senate.

European stocks slipped over the increased possibility that the U.K. and the European Union will fail to strike a deal on a new economic relationship heading into next year. Britain left the EU on Jan. 31 but has continued to follow the trading bloc’s rules during a transition period that lasts until the end of the year. A no-deal split would bring overnight tariffs and other economic barriers that would hurt both sides.

The yield on the 10-year Treasury held steady at 0.89%.

European markets ended lower, while Asian markets closed mixed.

 

[bigdog]

ASX futures pointing slightly lower.

It looks set to be a subdued start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is poised to open the week a single point lower this morning. This follows a mixed end to the week on Wall Street. On Friday night the Dow Jones rose 0.15%, the S&P 500 fell 0.15%, and the Nasdaq dropped 0.2%.

 

[bigdog]

U.S. Stocks End Mostly Lower After an Early Rally Evaporates

Stocks closed mostly lower on Wall Street Monday after an early rally faded, extending the market's recent pullback from record highs.

The S&P 500 fell 0.4% after having been up 0.9% in the early going. The reversal handed the benchmark index its fourth straight decline, something that hasn't happened since September. Losses in the financial, industrial and health care sectors accounted for much of the decline, outweighing gains by technology stocks and companies that rely on consumer spending. Treasury yields were mostly higher, a sign of optimism in the economy.

Stocks initially headed higher as Americans began receiving the country’s first vaccinations against COVID-19, a process that's expected to take months. Meanwhile, investors are still waiting to see whether Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic. They're also monitoring talks on reaching a trade deal between Britain and the European Union.

“To a large degree, we’re in a wait-and-see mode,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “The good news is the vaccine is being distributed, which suggests we’re on the road to recovery.”

The S&P 500 fell 15.97 points to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween.

The Dow Jones Industrial Average dropped 184.82 points, or 0.6%, to 29,861.55. The Nasdaq rose 62.17 points, or 0.5%, to 12,440.04. Smaller companies held up better than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects. The Russell 2000 index gained 2.16 points, or 0.1%, to 1,913.86.

Hospital workers are unloading the first batches of a coronavirus vaccine developed by Pfizer and its German partner, BioNTech, following its approval for emergency use by U.S. regulators. Health care workers and nursing home residents will be first in line for vaccinations, and the hope in markets is that a wider rollout next year will help pull the economy back toward normal following its devastation this year.

Such optimism has helped Wall Street's rally broaden out beyond Big Tech stocks, which were pulling the market higher almost singlehandedly earlier in the pandemic, though Monday's pullback dragged down many of the companies that desperately need the economy to get healthier and reopen. American Airlines dropped 2.1%, while Carnival slid 1.8%. Marriott International gave up 1.5%.

Alexion Pharmaceuticals soared 29.2% for the biggest gain in the S&P 500. It’s the first trading day for the stock since AstraZeneca said on Saturday that it would buy the company for $39 billion in cash and stock.

Of course, the hopes for the economy in the future are tempered by the worsening pandemic in the present. Surging coronavirus counts have forced a downshift to the economy’s momentum, including last week’s worse-than-expected report on joblessness. The increasing death toll is pushing governments around the world to bring back varying degrees of restrictions on companies, and it’s also scaring potential customers away from businesses on its own.

To help in the interim, economists and investors have been asking Congress to deliver another round of financial support for the economy. Democratic and Republican legislators have been discussing a bipartisan possibility, which has raised hopes on Wall Street recently. But bitter partisanship has prevented a deal for months, and a deep divide still dominates on Capitol Hill.

ASX 200 expected to edge higher.

The Australian share market looks set to start the day slightly higher. According to the latest SPI futures, the ASX 200 is poised to open the day 3 points higher this morning. This follows a reasonably mixed start to the week on Wall Street. At closing the Down Jones fell 0.62%, the S&P 500 was down 0.44%, and the Nasdaq was higher 0.5%.

https://www.usnews.com/news/busines...rend-higher-japan-data-offsets-wall-st-losses

U.S. Stocks End Mostly Lower After an Early Rally Evaporates
Stocks ended mostly lower on Wall Street Monday after an early rally evaporated.
By Associated Press, Wire Service Content Dec. 14, 2020, at 4:52 p.m.

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

Stocks closed mostly lower on Wall Street Monday after an early rally faded, extending the market's recent pullback from record highs.

The S&P 500 fell 0.4% after having been up 0.9% in the early going. The reversal handed the benchmark index its fourth straight decline, something that hasn't happened since September. Losses in the financial, industrial and health care sectors accounted for much of the decline, outweighing gains by technology stocks and companies that rely on consumer spending. Treasury yields were mostly higher, a sign of optimism in the economy.

Stocks initially headed higher as Americans began receiving the country’s first vaccinations against COVID-19, a process that's expected to take months. Meanwhile, investors are still waiting to see whether Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic. They're also monitoring talks on reaching a trade deal between Britain and the European Union.

“To a large degree, we’re in a wait-and-see mode,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “The good news is the vaccine is being distributed, which suggests we’re on the road to recovery.”

The S&P 500 fell 15.97 points to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween.

The Dow Jones Industrial Average dropped 184.82 points, or 0.6%, to 29,861.55. The Nasdaq rose 62.17 points, or 0.5%, to 12,440.04. Smaller companies held up better than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects. The Russell 2000 index gained 2.16 points, or 0.1%, to 1,913.86.

Hospital workers are unloading the first batches of a coronavirus vaccine developed by Pfizer and its German partner, BioNTech, following its approval for emergency use by U.S. regulators. Health care workers and nursing home residents will be first in line for vaccinations, and the hope in markets is that a wider rollout next year will help pull the economy back toward normal following its devastation this year.

Such optimism has helped Wall Street's rally broaden out beyond Big Tech stocks, which were pulling the market higher almost singlehandedly earlier in the pandemic, though Monday's pullback dragged down many of the companies that desperately need the economy to get healthier and reopen. American Airlines dropped 2.1%, while Carnival slid 1.8%. Marriott International gave up 1.5%.

Alexion Pharmaceuticals soared 29.2% for the biggest gain in the S&P 500. It’s the first trading day for the stock since AstraZeneca said on Saturday that it would buy the company for $39 billion in cash and stock.

Of course, the hopes for the economy in the future are tempered by the worsening pandemic in the present. Surging coronavirus counts have forced a downshift to the economy’s momentum, including last week’s worse-than-expected report on joblessness. The increasing death toll is pushing governments around the world to bring back varying degrees of restrictions on companies, and it’s also scaring potential customers away from businesses on its own.

To help in the interim, economists and investors have been asking Congress to deliver another round of financial support for the economy. Democratic and Republican legislators have been discussing a bipartisan possibility, which has raised hopes on Wall Street recently. But bitter partisanship has prevented a deal for months, and a deep divide still dominates on Capitol Hill.

Even without another round of stimulus, investors are facing a robust environment heading into next year that includes low inflation and an accommodative Federal Reserve.

“The market is prepping itself for a really good year in 2021 with earnings starting to kick in during the second and third quarter,” said Marc Chaikin, founder of Chaikin Analytics.

Across the Atlantic, hope was rising that talks are making progress in what has been just as frustrating as the stalemate in Washington, a potential deal on the terms of the United Kingdom’s exit from the European Union.

The EU’s chief negotiator Michel Barnier said Monday he believes a trade agreement is possible following nine months of negotiations, now that remaining disputes have been whittled down to just two. Both sides are still teetering on the brink of a no-deal departure, though. They have committed to a final push ahead of Jan. 1, when a transitional period following Britain’s Jan. 31 departure from the bloc is to end.

Hope for a deal helped the value of the British pound rise against other currencies. European stock markets closed mostly higher, and Asian markets ended mostly lower.

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

 

[bigdog]

Stocks Climb on Wall Street, Breaking a 4-Day Losing Streak

Stocks closed broadly higher on Wall Street, breaking a four-day losing streak for the S&P 500.

Stocks notched broad gains on Wall Street Tuesday as renewed optimism that Washington will deliver more aid to the struggling economy put investors in a buying mood.

The S&P 500 climbed 1.3%, snapping a four-day losing streak. Technology companies powered much of the rally, which helped push the tech-heavy Nasdaq composite to an all-time high. An index of small-company stocks also set a record high. Treasury yields rose.

Negotiations between Democrats and Republicans on another round of coronavirus relief have been dragging on for weeks. Fresh signs of cooperation Tuesday appeared to boost the market's confidence that Washington can get past its partisan divide and hammer out a deal. A bipartisan group of lawmakers unveiled a detailed proposal. Meanwhile, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held another round of talks.

“The most important thing is this idea of a fiscal stimulus package actually seeing some positive chance of being approved,” said Tom Martin, senior portfolio manager with Globalt Investments.

Also helping to steady the market were hopes for an improving economy next year as COVID-19 vaccines become widely distributed. A vaccine candidate developed by Moderna and the National Institutes of Health may be on the cusp of regulatory approval after the Food and Drug Administration said its preliminary analysis confirmed its safety and effectiveness. It would join the nation's first vaccine, which just began rolling out. Hundreds of hospital and health care facilities will get their first shipments Tuesday of the vaccine developed by Pfizer and BioNTech.

The S&P 500 rose 47.13 points to 3,694.62. The Dow Jones Industrial Average gained 337.76 points, or 1.1%, to 30,199.31. The Nasdaq climbed 155.02 points, or 1.3%, to 12,595.06. That eclipsed the index's last all-time high set a week ago.

About 90% of the companies in the benchmark S&P 500 notched gains, led by technology, financial and health care stocks.

Small-company stocks did especially well, a sign that investors are feeling more optimistic about prospects for the economy. The Russell 2000 index picked up 45.91 points, or 2.4%, to 1,959.76, a record high.

The Russell 2000 trailed the broader market for most of this year as investors bet that larger companies, especially Big Tech stocks, would be better suited to weather the economic fallout from the pandemic. Now it's up 17.5% for the year, while the S&P 500 is up 13.4%.

“Nobody wanted to reverse that trade until you started to be able to see the light at the end of the tunnel, and that happened when we started getting some real vaccine news that was positive,” Martin said.

Another big gain for Apple also helped to lift Wall Street. It’s the most influential stock in the S&P 500 because of the company's massive market value, and it rose 5% after a report from Japan’s Nikkei said it may produce more iPhones in the first half of 2021 than analysts had been expecting.

Much of the market’s focus remains on Washington, though, where a deep partisan divide has kept Congress from delivering another dose of financial support for the economy. Economists and investors have been clamoring for more aid for jobless workers and hard-hit industries, among other things, particularly as surging coronavirus counts pummel the economy again.

The number of U.S. workers applying for unemployment benefits is back on the rise, as governments around the country and world bring back varying degrees of restrictions on businesses. Even without lockdown orders, the fear is that the rising number of deaths will keep customers away from businesses.

ASX 200 to rebound.

It looks set to be a better day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 35 points or 0.5% higher this morning. This follows a solid night on Wall Street: upon closing the Dow Jones was up 1.13%, the S&P 500 up 1.29%, and the Nasdaq up 1.25%. Renewed stimulus hopes drove shares higher.

https://www.usnews.com/news/busines...cline-following-lackluster-day-on-wall-street

Stocks Climb on Wall Street, Breaking a 4-Day Losing Streak

Stocks closed broadly higher on Wall Street, breaking a four-day losing streak for the S&P 500.
By Associated Press, Wire Service Content Dec. 15, 2020, at 4:55 p.m.

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

Stocks notched broad gains on Wall Street Tuesday as renewed optimism that Washington will deliver more aid to the struggling economy put investors in a buying mood.

The S&P 500 climbed 1.3%, snapping a four-day losing streak. Technology companies powered much of the rally, which helped push the tech-heavy Nasdaq composite to an all-time high. An index of small-company stocks also set a record high. Treasury yields rose.

Negotiations between Democrats and Republicans on another round of coronavirus relief have been dragging on for weeks. Fresh signs of cooperation Tuesday appeared to boost the market's confidence that Washington can get past its partisan divide and hammer out a deal. A bipartisan group of lawmakers unveiled a detailed proposal. Meanwhile, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held another round of talks.

“The most important thing is this idea of a fiscal stimulus package actually seeing some positive chance of being approved,” said Tom Martin, senior portfolio manager with Globalt Investments.

Also helping to steady the market were hopes for an improving economy next year as COVID-19 vaccines become widely distributed. A vaccine candidate developed by Moderna and the National Institutes of Health may be on the cusp of regulatory approval after the Food and Drug Administration said its preliminary analysis confirmed its safety and effectiveness. It would join the nation's first vaccine, which just began rolling out. Hundreds of hospital and health care facilities will get their first shipments Tuesday of the vaccine developed by Pfizer and BioNTech.

The S&P 500 rose 47.13 points to 3,694.62. The Dow Jones Industrial Average gained 337.76 points, or 1.1%, to 30,199.31. The Nasdaq climbed 155.02 points, or 1.3%, to 12,595.06. That eclipsed the index's last all-time high set a week ago.

About 90% of the companies in the benchmark S&P 500 notched gains, led by technology, financial and health care stocks.

Small-company stocks did especially well, a sign that investors are feeling more optimistic about prospects for the economy. The Russell 2000 index picked up 45.91 points, or 2.4%, to 1,959.76, a record high.

The Russell 2000 trailed the broader market for most of this year as investors bet that larger companies, especially Big Tech stocks, would be better suited to weather the economic fallout from the pandemic. Now it's up 17.5% for the year, while the S&P 500 is up 13.4%.

“Nobody wanted to reverse that trade until you started to be able to see the light at the end of the tunnel, and that happened when we started getting some real vaccine news that was positive,” Martin said.

Another big gain for Apple also helped to lift Wall Street. It’s the most influential stock in the S&P 500 because of the company's massive market value, and it rose 5% after a report from Japan’s Nikkei said it may produce more iPhones in the first half of 2021 than analysts had been expecting.

Much of the market’s focus remains on Washington, though, where a deep partisan divide has kept Congress from delivering another dose of financial support for the economy. Economists and investors have been clamoring for more aid for jobless workers and hard-hit industries, among other things, particularly as surging coronavirus counts pummel the economy again.

The number of U.S. workers applying for unemployment benefits is back on the rise, as governments around the country and world bring back varying degrees of restrictions on businesses. Even without lockdown orders, the fear is that the rising number of deaths will keep customers away from businesses.

Another round of financial support from Washington could help carry the economy through what’s expected to be a bleak winter, before vaccines help things get closer to normal next year.

Worries about the worsening pandemic and stop-and-start talks in Washington about support for the economy have made the market shaky in recent weeks. It earlier surged through November on hopes for coming COVID-19 vaccines and relief that the U.S. presidential election ended with a clear winner, Democrat Joe Biden. The electoral college confirmed Biden's victory on Monday.

Still, the S&P 500 remains near its record set a week ago. Massive efforts by the Federal Reserve have provided another huge underpinning, and the central bank begins its last policy meeting of the year on Tuesday. It will announce its decision on Wednesday after already cutting short-term interest rates to nearly zero and indicating it will keep them there for a while even if inflation rises above its target of 2%.

European markets mostly rose, while Asian markets ended mostly lower.

The yield on the 10-year Treasury rose to 0.91% from 0.88% late Monday.

 

[bigdog]

S&P 500 Nears Record Following Stimulus Progress, Fed Moves

The S&P 500 ticked up to the edge of its record Wednesday after the Federal Reserve pledged to keep buying bonds until the economy makes substantial progress from its virus-wracked state.

The S&P 500 ticked up to the edge of its record Wednesday after the Federal Reserve pledged to keep buying bonds until the economy makes substantial progress from its virus-wracked state.

In a mixed and muted day of trading, the S&P 500 rose 6.55 points, or 0.2%, to 3,701.17. It’s within roughly 1 point of its record set last week. The Dow Jones Industrial Average slipped 44.77 points, or 0.1%, to 30,154.54, and the Nasdaq composite rose 63.13, or 0.5%, to 12,658.19, setting a record for the second straight day.

Massive efforts by the Fed have helped underpin the market since the spring, and the central bank said Wednesday that it will buy at least $80 billion in Treasurys each month and $40 billion in agency mortgage-backed securities until “substantial further progress” has been made. It also said again that it would keep short-term interest rates at their record low of nearly zero, as it keeps the accelerator floored on its support for the economy.

But investors are more interested in what's happening across Washington, where Democrats and Republicans in Congress appear to be nearing a deal to deliver another dose of financial support for the economy. A deep partisan divide has stymied such a deal for months, but a rush of recent momentum has hopes rising that a compromise could be sealed soon to send direct payments of perhaps $600 to most Americans, among other things.

Economists, investors and even Fed officials have been saying such support is crucial, because the Fed's tools alone can help the economy only so much. The lower interest rates ushered in by the Fed can help goose home prices and stocks on Wall Street, for example, but they can't replace the paychecks lost by workers whose businesses have shut because of the pandemic.

The stakes are rising by the day for Congress to act. A report released Wednesday morning showed that retail sales sank 1.1% last month. It's the second straight month of weakness, a much worse showing than the 0.3% decline that economists expected and the latest evidence that the renewed wave of coronavirus infections is ripping more chunks out of the economy.

Restaurants posted sharp declines in sales, and the numbers may get only works. Just this week, restaurants in New York City were limited to outdoor dining, even as colder temperatures and snow arrive. Governments around the country and world are bringing back varying degrees of restrictions on businesses to slow the spread of the virus. Even without lockdowns, the rising death toll of the pandemic is scaring customers away from businesses and normal economic activity.

If Congress can indeed reach a deal, it could help carry the economy through what's expected to be a bleak winter, before one or more coronavirus vaccines can help the economy get closer to normal next year.

So far, Pfizer and partner BioNTech’s coronavirus shots have gained emergency approval, and health care workers are among the first in line to get it. The Food and Drug Administration has given a second vaccine a positive analysis, and the candidate developed by Moderna could be be on the cusp of regulatory approval itself.

Distribution of vaccines to the wider population will likely take months, but more vaccines on the market will speed up the process and get the economy back on a path to normalcy sooner.

“If markets can continue to look forward, that clearly bodes well,” said Jeff Buchbinder, equity strategist at LPL Financial.

While the long-term view for the economy and markets remains positive, investors are likely in for more volatility in the coming months.

“We could be in for a choppy January and February until we can get more people inoculated and really put this pandemic to bed,” Buchbinder said.

ASX 200 to rise again.

The Australian share market looks set to continue its rise on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.4% higher this morning. This is despite it being a reasonably mixed night of trade on Wall Street. The Dow Jones finished down 0.15%, the S&P 500 is up 0.18%, and the Nasdaq is up 0.50%.

https://www.usnews.com/news/busines...cks-advance-after-stimulus-talks-lift-wall-st

S&P 500 Nears Record Following Stimulus Progress, Fed Moves
The S&P 500 ticked up to the edge of its record Wednesday after the Federal Reserve pledged to keep buying bonds until the economy makes substantial progress from its virus-wracked state.
By Associated Press, Wire Service Content Dec. 16, 2020, at 4:31 p.m.

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

NEW YORK (AP) — The S&P 500 ticked up to the edge of its record Wednesday after the Federal Reserve pledged to keep buying bonds until the economy makes substantial progress from its virus-wracked state.

In a mixed and muted day of trading, the S&P 500 rose 6.55 points, or 0.2%, to 3,701.17. It’s within roughly 1 point of its record set last week. The Dow Jones Industrial Average slipped 44.77 points, or 0.1%, to 30,154.54, and the Nasdaq composite rose 63.13, or 0.5%, to 12,658.19, setting a record for the second straight day.

Massive efforts by the Fed have helped underpin the market since the spring, and the central bank said Wednesday that it will buy at least $80 billion in Treasurys each month and $40 billion in agency mortgage-backed securities until “substantial further progress” has been made. It also said again that it would keep short-term interest rates at their record low of nearly zero, as it keeps the accelerator floored on its support for the economy.

But investors are more interested in what's happening across Washington, where Democrats and Republicans in Congress appear to be nearing a deal to deliver another dose of financial support for the economy. A deep partisan divide has stymied such a deal for months, but a rush of recent momentum has hopes rising that a compromise could be sealed soon to send direct payments of perhaps $600 to most Americans, among other things.

Economists, investors and even Fed officials have been saying such support is crucial, because the Fed's tools alone can help the economy only so much. The lower interest rates ushered in by the Fed can help goose home prices and stocks on Wall Street, for example, but they can't replace the paychecks lost by workers whose businesses have shut because of the pandemic.

The stakes are rising by the day for Congress to act. A report released Wednesday morning showed that retail sales sank 1.1% last month. It's the second straight month of weakness, a much worse showing than the 0.3% decline that economists expected and the latest evidence that the renewed wave of coronavirus infections is ripping more chunks out of the economy.

Restaurants posted sharp declines in sales, and the numbers may get only works. Just this week, restaurants in New York City were limited to outdoor dining, even as colder temperatures and snow arrive. Governments around the country and world are bringing back varying degrees of restrictions on businesses to slow the spread of the virus. Even without lockdowns, the rising death toll of the pandemic is scaring customers away from businesses and normal economic activity.

If Congress can indeed reach a deal, it could help carry the economy through what's expected to be a bleak winter, before one or more coronavirus vaccines can help the economy get closer to normal next year.

So far, Pfizer and partner BioNTech’s coronavirus shots have gained emergency approval, and health care workers are among the first in line to get it. The Food and Drug Administration has given a second vaccine a positive analysis, and the candidate developed by Moderna could be be on the cusp of regulatory approval itself.

Distribution of vaccines to the wider population will likely take months, but more vaccines on the market will speed up the process and get the economy back on a path to normalcy sooner.

“If markets can continue to look forward, that clearly bodes well,” said Jeff Buchbinder, equity strategist at LPL Financial.

While the long-term view for the economy and markets remains positive, investors are likely in for more volatility in the coming months.

“We could be in for a choppy January and February until we can get more people inoculated and really put this pandemic to bed,” Buchbinder said.

In the bond market, Treasury yields initially climbed following the Fed's afternoon announcement, but they quickly receded. The yield on the 10-year Treasury rose to 0.92% from 0.91% late Tuesday. It was at 0.94% shortly after the Fed's announcement.

Bitcoin, the world's largest cryptocurrency, topped $20,000 for the first time.

Investors also have been encouraged by signs that the European Union and United Kingdom may finally broker a trade deal following the UK’s departure from the bloc. Germany’s DAX rose 1.5% and France’s CAC 40 gained 0.3%. The FTSE 100 in London rose 0.9%

Asian markets ended mostly higher.

 

[bigdog]

Stocks reach record highs as investors hope for stimulus

Major U.S. stock indexes climbed to new highs Thursday as investors remained optimistic that Washington will deliver another round of financial support for the economy and as vaccines begin slowly rolling out to the public.

The S&P 500 rose 0.6%, with technology and health care stocks powering much of the market’s broad rally. The index, which is a key benchmark for many 401(k) accounts, has now set 31 record highs this year. The Dow Jones Industrial Average and Nasdaq composite also hit new highs. Treasury yields moved broadly higher, a sign of bonds traders’ confidence in the economy.

Optimism that Congress will deliver more financial aid to people and businesses most hurt by the pandemic, and hopes that the rollout of coronavirus vaccinations will pave the way for an economic recovery next year have helped keep investors in a buying mood.

“Investors are being hopeful because of that, even though we’re seeing a widening lockdown threat from cities, states and countries,” said Sam Stovall, chief investment strategist at CFRA. “The market is traveling on an end-of-year autopilot, which should allow share prices to drift higher, unless we hit an unexpected pothole.”

The S&P 500 rose 21.31 points to 3,722.48. It’s the index’s third straight gain. The Dow picked up 148.83 points, or 0.5%, to 30,303.37. The Nasdaq extended its winning streak to a fourth day, gaining 106.56 points, or 0.8%, to 12,764.75.

Traders continued to bid up shares in smaller companies. That pushed the Russell 2000 small-caps index up 25.32 points, or 1.3%, to 1,978.05, a record high. The index is on track for a gain of 8.7% this month, while the S&P 500 is up 2.8%.

Wall Street has been more hopeful that Congress is getting closer to striking a deal that will give a financial lifeline to people and businesses. Democrats and Republicans have been locked in a partisan fight over the size and scope of any additional package, just as the economic recovery shows signs of stalling amid a surge in virus cases.

Stimulus cannot come soon enough for investors, and more importantly, for businesses like restaurants and theaters as well as the workers in those industries. The Labor Department, in another worrisome sign, reported that the number of Americans seeking unemployment benefits rose to 885,000 last week, the most since September. Unemployment has been edging higher and retail sales have been hurt as tighter restrictions squeeze people and businesses.

Investors received more encouragement from the Federal Reserve, which helped shore up the markets early in the pandemic. The central bank has again pledged to keep buying bonds until the economy makes substantial progress. Still, the Fed has said it can only do so much to tide over the economy and that more financial support from Washington is critical for a continued recovery.

Homebuilders rose Thursday following news from the Commerce Department that showed building permits and housing construction starts rose in November, despite the winter weather and pandemic. Lennar Corp. notched the biggest gain in the S&P 500, vaulting 7.6%. The Miami-based builder reported quarterly results on Wednesday that topped Wall Street’s forecasts. PulteGroup was rose up 5.4% and D.R. Horton gained 3.2%.

The gains on Thursday came from nearly every sector in the S&P 500, with the exception of the energy and telecommunications services. The real estate and materials sectors notched the biggest gains.

ASX 200 futures pointing lower.

The Australian share market looks set to end the week in a subdued manner. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points lower. This is despite US stocks climbing higher overnight. On closing the Dow Jones was up 0.49%, the S&P 500 up 0.58%, and the Nasdaq up 0.84%

https://apnews.com/article/financia...rus-pandemic-46b9a41fb0eabdf8f8db57f0ca111bda

Stocks reach record highs as investors hope for stimulus

By DAMIAN J. TROISE, KEN SWEET and ALEX VEIGA

Major U.S. stock indexes climbed to new highs Thursday as investors remained optimistic that Washington will deliver another round of financial support for the economy and as vaccines begin slowly rolling out to the public.

The S&P 500 rose 0.6%, with technology and health care stocks powering much of the market’s broad rally. The index, which is a key benchmark for many 401(k) accounts, has now set 31 record highs this year. The Dow Jones Industrial Average and Nasdaq composite also hit new highs. Treasury yields moved broadly higher, a sign of bonds traders’ confidence in the economy.

Optimism that Congress will deliver more financial aid to people and businesses most hurt by the pandemic, and hopes that the rollout of coronavirus vaccinations will pave the way for an economic recovery next year have helped keep investors in a buying mood.

“Investors are being hopeful because of that, even though we’re seeing a widening lockdown threat from cities, states and countries,” said Sam Stovall, chief investment strategist at CFRA. “The market is traveling on an end-of-year autopilot, which should allow share prices to drift higher, unless we hit an unexpected pothole.”

The S&P 500 rose 21.31 points to 3,722.48. It’s the index’s third straight gain. The Dow picked up 148.83 points, or 0.5%, to 30,303.37. The Nasdaq extended its winning streak to a fourth day, gaining 106.56 points, or 0.8%, to 12,764.75.

Traders continued to bid up shares in smaller companies. That pushed the Russell 2000 small-caps index up 25.32 points, or 1.3%, to 1,978.05, a record high. The index is on track for a gain of 8.7% this month, while the S&P 500 is up 2.8%.

Wall Street has been more hopeful that Congress is getting closer to striking a deal that will give a financial lifeline to people and businesses. Democrats and Republicans have been locked in a partisan fight over the size and scope of any additional package, just as the economic recovery shows signs of stalling amid a surge in virus cases.

Stimulus cannot come soon enough for investors, and more importantly, for businesses like restaurants and theaters as well as the workers in those industries. The Labor Department, in another worrisome sign, reported that the number of Americans seeking unemployment benefits rose to 885,000 last week, the most since September. Unemployment has been edging higher and retail sales have been hurt as tighter restrictions squeeze people and businesses.

Investors received more encouragement from the Federal Reserve, which helped shore up the markets early in the pandemic. The central bank has again pledged to keep buying bonds until the economy makes substantial progress. Still, the Fed has said it can only do so much to tide over the economy and that more financial support from Washington is critical for a continued recovery.

Homebuilders rose Thursday following news from the Commerce Department that showed building permits and housing construction starts rose in November, despite the winter weather and pandemic. Lennar Corp. notched the biggest gain in the S&P 500, vaulting 7.6%. The Miami-based builder reported quarterly results on Wednesday that topped Wall Street’s forecasts. PulteGroup was rose up 5.4% and D.R. Horton gained 3.2%.

The gains on Thursday came from nearly every sector in the S&P 500, with the exception of the energy and telecommunications services. The real estate and materials sectors notched the biggest gains.

Treasury yields moved broadly higher. The yield on the 10-year Treasury rose to 0.93% from 0.90% late Wednesday.

European markets closed mixed, and Asian markets closed mostly higher.