NYSE Dow Jones finished today at:

[bigdog]

US Stocks Slide From Records as Wait Continues for Congress

U.S. stock indexes pulled back from their record levels Friday as the wait drags on to see if Congress can reach a deal to send more cash to struggling workers and businesses.

Wall Street capped a solid week of gains on a down note Friday as the wait drags on to see if Congress can reach a deal to send more cash to struggling workers and businesses.

The S&P 500 fell 0.4%, a day after it and other major indexes returned to record heights. The decline snapped a three-day winning streak for the benchmark index, but it still notched a 1.3% weekly gain that more than made up its prior week's loss.

Hope that Congress may be nearing a deal to offer more financial support for the economy has helped stocks set more record highs. The S&P clocked its 31st all-time high this year on Thursday. Enthusiasm about vaccines for COVID-19, which investors hope will get the economy back on the road to normalcy next year, has also fueled traders' optimism.

Friday's selling came on a particularly busy day on Wall Street. Index funds were expected to snap up more than $80 billion worth of shares in Tesla as they moved to rebalance their holdings for the quarter ahead of the electric car maker's entry into the S&P 500, effective Monday. In addition, Friday was also quadruple witching day, Wall Street-speak for the quarterly expiration of stock options and futures contracts, which forces traders to tie up loose ends in contracts they hold, leading to particularly heavy trading volume.

“This is an unusual day because we have Tesla entering the S&P and it’s quadruple witching day," said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management.

The S&P 500 index fell 13.07 points to 3,709.41. The Dow Jones Industrial Average lost 124.32 points, or 0.4%, to 30,179.05. The Nasdaq composite gave up 9.11 points, or 0.1%, to 12,755.64. The Russell 2000 dropped 8.06 points, or 0.4%, to 1,969.99.

Some 57% of the companies in the S&P 500 closed lower. Technology stocks, banks and companies that rely on consumer spending accounted for a big slice of the decline. They outweighed gains by household goods makers and materials stocks, among others.

Much of the market’s focus recently has been on Capitol Hill, where momentum has kicked back up for on-and-off-again talks for financial aid for the economy. Negotiations on nearly $1 trillion in relief had seemed to be on the brink of success, but a final agreement has yet to be sealed. The package could include benefits for laid-off workers and cash payments sent to most Americans.

Economists and investors say the need for such action is urgent, as the worsening pandemic tightens its chokehold on the economy. Reports this week showed that more workers are applying for jobless benefits and that sales for retailers slumped by more last month than economists expected.

The rising coronavirus counts and deaths are pushing governments around the world to bring back varying degrees of restrictions on businesses, and fear is keeping people and companies away from normal economic activity.

Wall Street’s hope is that Congress can approve big stimulus for the economy, which could carry it through what’s expected to be a dismal winter, before the widespread rollout of COVID-19 vaccines can help it begin to stand on its own next year.

Within the S&P 500, FedEx dropped 5.7% for one of the sharpest losses in the index, even though it reported stronger revenue and profit for its latest quarter than Wall Street expected. Analysts said some of the weakness may have been due to expectations simply building too high for the company, which has been a winner of the suddenly shop-from-home economy. FedEx also reported higher costs, including expenses for keeping workers safe from the coronavirus.

Shares of Tesla surged 6%. Roughly $4.6 trillion in investments directly mimics the index, and those funds will collectively be adding tens of billions of dollars of Tesla shares, which is set to become one of the 10 biggest stocks in the S&P 500.

https://www.usnews.com/news/busines...s-mixed-after-wall-st-record-on-stimulus-hope

US Stocks Slide From Records as Wait Continues for Congress

U.S. stock indexes pulled back from their record levels Friday as the wait drags on to see if Congress can reach a deal to send more cash to struggling workers and businesses.
By Associated Press, Wire Service Content Dec. 18, 2020, at 4:49 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Wall Street capped a solid week of gains on a down note Friday as the wait drags on to see if Congress can reach a deal to send more cash to struggling workers and businesses.

The S&P 500 fell 0.4%, a day after it and other major indexes returned to record heights. The decline snapped a three-day winning streak for the benchmark index, but it still notched a 1.3% weekly gain that more than made up its prior week's loss.

Hope that Congress may be nearing a deal to offer more financial support for the economy has helped stocks set more record highs. The S&P clocked its 31st all-time high this year on Thursday. Enthusiasm about vaccines for COVID-19, which investors hope will get the economy back on the road to normalcy next year, has also fueled traders' optimism.

Friday's selling came on a particularly busy day on Wall Street. Index funds were expected to snap up more than $80 billion worth of shares in Tesla as they moved to rebalance their holdings for the quarter ahead of the electric car maker's entry into the S&P 500, effective Monday. In addition, Friday was also quadruple witching day, Wall Street-speak for the quarterly expiration of stock options and futures contracts, which forces traders to tie up loose ends in contracts they hold, leading to particularly heavy trading volume.

“This is an unusual day because we have Tesla entering the S&P and it’s quadruple witching day," said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management.

The S&P 500 index fell 13.07 points to 3,709.41. The Dow Jones Industrial Average lost 124.32 points, or 0.4%, to 30,179.05. The Nasdaq composite gave up 9.11 points, or 0.1%, to 12,755.64. The Russell 2000 dropped 8.06 points, or 0.4%, to 1,969.99.

Some 57% of the companies in the S&P 500 closed lower. Technology stocks, banks and companies that rely on consumer spending accounted for a big slice of the decline. They outweighed gains by household goods makers and materials stocks, among others.

Much of the market’s focus recently has been on Capitol Hill, where momentum has kicked back up for on-and-off-again talks for financial aid for the economy. Negotiations on nearly $1 trillion in relief had seemed to be on the brink of success, but a final agreement has yet to be sealed. The package could include benefits for laid-off workers and cash payments sent to most Americans.

Economists and investors say the need for such action is urgent, as the worsening pandemic tightens its chokehold on the economy. Reports this week showed that more workers are applying for jobless benefits and that sales for retailers slumped by more last month than economists expected.

The rising coronavirus counts and deaths are pushing governments around the world to bring back varying degrees of restrictions on businesses, and fear is keeping people and companies away from normal economic activity.

Wall Street’s hope is that Congress can approve big stimulus for the economy, which could carry it through what’s expected to be a dismal winter, before the widespread rollout of COVID-19 vaccines can help it begin to stand on its own next year.

The nation’s first coronavirus vaccine just began being administered this past week, and Vice President Mike Pence got a shot on live television Friday in hopes of assuring Americans that it’s safe. That vaccine was developed by Pfizer and BioNTech. A second vaccine from Moderna and the National Institutes of Health may also be on the brink of regulatory approval after a government advisory panel endorsed it on Thursday.

Of course, it will be months before most people will be able to get access to a vaccine, and the pandemic is likely to do even more damage in the interim.

Within the S&P 500, FedEx dropped 5.7% for one of the sharpest losses in the index, even though it reported stronger revenue and profit for its latest quarter than Wall Street expected. Analysts said some of the weakness may have been due to expectations simply building too high for the company, which has been a winner of the suddenly shop-from-home economy. FedEx also reported higher costs, including expenses for keeping workers safe from the coronavirus.

Shares of Tesla surged 6%. Roughly $4.6 trillion in investments directly mimics the index, and those funds will collectively be adding tens of billions of dollars of Tesla shares, which is set to become one of the 10 biggest stocks in the S&P 500.

Stock markets overseas made mostly modestly moves.

In Asia, some of the sharpest swings came from Hong Kong, where the Hang Seng index fell 0.7% and shares of Semiconductor Manufacturing International Corp. lost 5.2%. The U.S. Commerce Department said Friday it will restrict exports to China's top chipmaker, alleging it has ties to the military. The company has previously said it has no ties to the Chinese government

It's the latest escalation in trade tensions between the world's two largest economies.

Other Asian markets were mixed. European markets ended mostly lower.

In the bond market, the yield on the 10-year Treasury rose to 0.94% from 0.91% late Thursday.

 

[bigdog]

ASX futures pointing lower.

The Australian share market looks set to start the week in a cautious manner after an underwhelming finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the week 10 points or 0.15% lower this morning. On Friday night on the United States, the Dow Jones fell 0.4%, the S&P 500 dropped 0.35%, and the Nasdaq edged 0.1% lower.

 

[bigdog]

Stocks Fall on Worries About Virus' Spread, but Pare Losses
Stocks ended lower on Wall Street as a new, potentially more infectious strain of the coronavirus has countries around the world restricting travel from the United Kingdom, raising worries that the economy is about to take even worse punishment.

Stocks fell on Wall Street Monday, giving back some of their recent gains, as a new, potentially more infectious strain of the coronavirus in the United Kingdom raised worries that the global economy could be in for even more punishment.

The S&P 500 lost 0.4%, it's second straight decline after climbing to an all-time high on Thursday. The benchmark index pared its loss as the day progressed, however, recovering from an earlier 2% drop. Treasury yields mostly fell, a sign that investors are worried about the economy. Crude oil prices fell on worries about disappearing demand.

The selling came on a busy day of trading, with plenty of forces pushing and pulling the market. Thin trading ahead of a holiday-shortened week may also be exacerbating moves, analysts said.

News of a new and potentially more infectious strain of the coronavirus has countries around the world restricting travel from the United Kingdom. That has traders worried about the possible economic consequences should it spread to other countries or prove resistant to vaccines being distributed now.

“The market is focused on the restrictions in place in the U.K., with more and more of the U.K. being locked down, and whether or not this is going to happen in the U.S.," said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 fell 14.49 points to 3,694.92. The Dow Jones Industrial Average rose 37.40 points, or 0.1%, to 30,216.45 after erasing an earlier 423 point loss. The Nasdaq composite slipped 13.12 points, or 0.1%, to 12,742.52. The Russell 2000 small-cap index gained 0.34 points, or less than 0.1%, to 1,970.33.

Encouraging news out of Washington helped keep the selling in check. Congress finally appeared set to act on a $900 billion relief effort for the economy. House and Senate leaders were planning to vote Monday on the deal, which would include $600 in cash payments sent to most Americans, extra benefits for laid-off workers and other financial support.

Economists and investors have been clamoring for such aid for months, and a recent upswing in momentum for talks had stock prices rising in anticipation of a deal. Analysts said some traders may have been selling to lock in profits, with the compromise all but assured and prices close to the highest they’ve ever been. Even after Monday’s drop, the S&P 500 is back only to where it was earlier this month.

Monday is also the first day of trading for Tesla since joining the S&P 500 index. The electric-vehicle maker surged so much this year, nearly 731% as of Friday evening, that some critics say its price doesn’t make sense. But its inclusion in the benchmark index triggered $90.3 billion in trades, as the company instantly became the sixth-biggest in the S&P 500. Tesla slumped 6.5% Monday.

All the new restrictions on movement sent travel-related stocks on Wall Street lower. Cruise operator Carnival dropped 1.9%, Norwegian Cruise Line fell 1.6% and American Airlines lost 2.5%.

Stocks of energy producers were also weak on worries that heightened travel restrictions could mean even fewer airplane seats filled and fewer miles driven by automobiles.

Amid the market's few gainers was Nike, which rose 4.9% after reporting stronger revenue and profit for its latest quarter than analysts expected.

Financial stocks were another rare source of resilience, after the Federal Reserve said Friday that the 33 largest banks look healthy enough to survive a sharp downturn. The Fed also permitted buybacks of company stock, with some limits.

ASX 200 expected to fall.

The Australian share market looks set to drop lower on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.4% lower this morning. This follows a mixed start to the week on Wall Street. On closing the Dow Jones is up 0.12%, the S&P 500 is down 0.39%, and the Nasdaq has fallen 0.1%.

https://www.usnews.com/news/busines...shares-skid-despite-us-economic-stimulus-deal

Stocks Fall on Worries About Virus' Spread, but Pare Losses
Stocks ended lower on Wall Street as a new, potentially more infectious strain of the coronavirus has countries around the world restricting travel from the United Kingdom, raising worries that the economy is about to take even worse punishment.
By Associated Press, Wire Service Content Dec. 21, 2020, at 4:54 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Stocks fell on Wall Street Monday, giving back some of their recent gains, as a new, potentially more infectious strain of the coronavirus in the United Kingdom raised worries that the global economy could be in for even more punishment.

The S&P 500 lost 0.4%, it's second straight decline after climbing to an all-time high on Thursday. The benchmark index pared its loss as the day progressed, however, recovering from an earlier 2% drop. Treasury yields mostly fell, a sign that investors are worried about the economy. Crude oil prices fell on worries about disappearing demand.

The selling came on a busy day of trading, with plenty of forces pushing and pulling the market. Thin trading ahead of a holiday-shortened week may also be exacerbating moves, analysts said.

News of a new and potentially more infectious strain of the coronavirus has countries around the world restricting travel from the United Kingdom. That has traders worried about the possible economic consequences should it spread to other countries or prove resistant to vaccines being distributed now.

“The market is focused on the restrictions in place in the U.K., with more and more of the U.K. being locked down, and whether or not this is going to happen in the U.S.," said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 fell 14.49 points to 3,694.92. The Dow Jones Industrial Average rose 37.40 points, or 0.1%, to 30,216.45 after erasing an earlier 423 point loss. The Nasdaq composite slipped 13.12 points, or 0.1%, to 12,742.52. The Russell 2000 small-cap index gained 0.34 points, or less than 0.1%, to 1,970.33.

Encouraging news out of Washington helped keep the selling in check. Congress finally appeared set to act on a $900 billion relief effort for the economy. House and Senate leaders were planning to vote Monday on the deal, which would include $600 in cash payments sent to most Americans, extra benefits for laid-off workers and other financial support.

Economists and investors have been clamoring for such aid for months, and a recent upswing in momentum for talks had stock prices rising in anticipation of a deal. Analysts said some traders may have been selling to lock in profits, with the compromise all but assured and prices close to the highest they’ve ever been. Even after Monday’s drop, the S&P 500 is back only to where it was earlier this month.

Across the Atlantic, negotiators blew past a Sunday deadline set for talks on trade terms for the United Kingdom’s exit from the European Union. Investors have been fixed on the progress of those talks because a Brexit with no deal could cause massive disruptions for businesses on New Year’s Day.

Monday is also the first day of trading for Tesla since joining the S&P 500 index. The electric-vehicle maker surged so much this year, nearly 731% as of Friday evening, that some critics say its price doesn’t make sense. But its inclusion in the benchmark index triggered $90.3 billion in trades, as the company instantly became the sixth-biggest in the S&P 500. Tesla slumped 6.5% Monday.

U.K. Prime Minister Boris Johnson said Saturday that he was placing London and the southeast of England in a new level of restrictions after scientific advisers warned they detected a new variant of the coronavirus. There is no evidence that the new strain’s mutations make it more deadly, but it seems to infect more easily than others.

Two COVID-19 vaccines have already been approved for the United States, and regulators around the world have also either approved or are considering usage of the vaccines. Hope that widespread vaccinations will nurse the economy back to some semblance of normal has been a big reason for surging prices across markets worldwide.

For now, vaccinations are only for health care workers and other high-risk populations. It will be a while before a more widespread rollout can get life around the world closer to normal, and surging numbers of coronavirus counts and deaths in the meanwhile are setting the global economy up for a bleak few months.

The worries hit stock markets hardest in Europe, where France banned U.K. trucks from entering for a period of 48 hours. Other countries around the world also halted flights from the United Kingdom.

France’s CAC 40 fell 2.4%, and Germany’s DAX lost 2.8%. The FTSE 100 in London dropped 1.7%.

All the new restrictions on movement sent travel-related stocks on Wall Street lower. Cruise operator Carnival dropped 1.9%, Norwegian Cruise Line fell 1.6% and American Airlines lost 2.5%.

Stocks of energy producers were also weak on worries that heightened travel restrictions could mean even fewer airplane seats filled and fewer miles driven by automobiles.

Amid the market's few gainers was Nike, which rose 4.9% after reporting stronger revenue and profit for its latest quarter than analysts expected.

Financial stocks were another rare source of resilience, after the Federal Reserve said Friday that the 33 largest banks look healthy enough to survive a sharp downturn. The Fed also permitted buybacks of company stock, with some limits.

Goldman Sachs rose 6.1% after it said it expects to begin buying back its stock again next quarter. Goldman Sachs and Nike are two of the 30 stocks in the Dow, and their big moves higher helped the Dow hold up better than the broader stock market.

The yield on the 10-year Treasury held steady at 0.93%.

 

[bigdog]

Stocks Drift Mostly Lower, Even as Nasdaq Sets Another High

Stocks drifted to a mostly lower close on Wall Street Tuesday, even as more gains for technology companies pushed the Nasdaq to another all-time high.

The S&P 500 spent much of the day wavering between small gains and losses before finishing with a 0.2% loss, its third straight decline. About 65% of the companies in the index fell. Losses in communication services, financial and other companies accounted for much of the selling.

Those losses were kept in check by solid gains in small-company stocks, which did better than the rest of the market. Tech companies also rose, adding to the sector's blockbuster, 41% gain so far this year.

The mixed showing for stocks came as Congress finally approved a $900 billion rescue to carry the economy through what's likely to be a bleak winter. A couple of discouraging reports on the economy may have also weighed on the market. Trading was relatively thin ahead of the Christmas holiday later in the week.

The S&P 500 fell 7.66 points to 3,687.26. The Dow Jones Industrial Average slid 200.94 points, or 0.7%, to 30,015.51. The Nasdaq composite rose 65.40 points, or 0.5%, to 12,807.92, a record high. The Russell 2000 index of smaller companies also set a record high, gaining 19.55 points, or 1%, to 1,989.88.

After months of bickering, Congress approved a deal on Monday night to send $600 cash payments to most Americans, give $300 per week to laid-off workers and deliver other aid to businesses struggling under the weight of the pandemic. The bill is going to President Donald Trump’s desk for his signature.

The hope for investors is that such support can prop up the economy for the next several months, before a more widespread rollout of coronavirus vaccines can allow it to stand on its own. That expectation has been driving markets for a while, but a new worry is casting some doubt on it.

ASX 200 to rebound.

It looks set to be a much more positive day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.9% higher this morning. This is despite a mixed night of trade on Wall Street. On closing the Dow Jones was down 0.67%, the S&P 500 is down 0.21% and the Nasdaq is up 0.51%.

https://www.usnews.com/news/busines...xtend-losses-on-worries-about-spread-of-virus

Stocks Drift Mostly Lower, Even as Nasdaq Sets Another High
Stocks drifted to a mostly lower close on Wall Street Tuesday, even as more gains for technology companies pushed the Nasdaq to another all-time high.
By Associated Press, Wire Service Content Dec. 22, 2020, at 4:57 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

A listless day on Wall Street left stocks mostly lower Tuesday, even as more gains by technology companies pushed the Nasdaq to an all-time high.

The S&P 500 spent much of the day wavering between small gains and losses before finishing with a 0.2% loss, its third straight decline. About 65% of the companies in the index fell. Losses in communication services, financial and other companies accounted for much of the selling.

Those losses were kept in check by solid gains in small-company stocks, which did better than the rest of the market. Tech companies also rose, adding to the sector's blockbuster, 41% gain so far this year.

The mixed showing for stocks came as Congress finally approved a $900 billion rescue to carry the economy through what's likely to be a bleak winter. A couple of discouraging reports on the economy may have also weighed on the market. Trading was relatively thin ahead of the Christmas holiday later in the week.

The S&P 500 fell 7.66 points to 3,687.26. The Dow Jones Industrial Average slid 200.94 points, or 0.7%, to 30,015.51. The Nasdaq composite rose 65.40 points, or 0.5%, to 12,807.92, a record high. The Russell 2000 index of smaller companies also set a record high, gaining 19.55 points, or 1%, to 1,989.88.

After months of bickering, Congress approved a deal on Monday night to send $600 cash payments to most Americans, give $300 per week to laid-off workers and deliver other aid to businesses struggling under the weight of the pandemic. The bill is going to President Donald Trump’s desk for his signature.

The hope for investors is that such support can prop up the economy for the next several months, before a more widespread rollout of coronavirus vaccines can allow it to stand on its own. That expectation has been driving markets for a while, but a new worry is casting some doubt on it.

A new strain of the coronavirus has emerged, one that has caught hold in at least London and southern England. There’s no evidence that it’s more deadly, but it seems to spread more easily. Worries are high enough about it that countries around the world have restricted flights from London, raising concerns that more economy-punishing lockdowns may be on the way.

Helping to keep the worries in check was the CEO of BioNTech, the German company that developed a coronavirus vaccine with Pfizer. Ugur Sahin said it “is highly likely” that his company’s vaccine can protect against the new variant, though further studies are needed to be sure. His company's vaccine is one of two already approved for use in the United States. .

Even without the new coronavirus strain, the resurgent pandemic has already been dragging on the U.S. economy, which had roared to a record annualized pace of 33.4% growth during the summer. Two weaker reports on important areas of the economy added to the growing pile of discouraging data on Tuesday.

One showed that confidence among U.S. consumers dropped this month, and the reading was well below what economists had forecast. That’s discouraging for an economy driven largely by consumers spending. Another showed that even the red-hot housing market is slowing slightly. The reading on sales of previously occupied homes roughly matched economists’ expectations.

Such worries have caused momentum to slow for the stock market, which set record highs last week, after earlier surging on hopes that COVID-19 vaccines will trigger a return to normal for the economy next year and that Washington would approve big stimulus to tide the economy over until then.

Healthy gains for some of the S&P 500's most influential stocks helped limit the index's losses Tuesday. Apple rose 2.8%, for example. Because it's the biggest company in the index by market value, its movements carry more sway on the benchmark index than any other stock.

Travel-related companies were targets of some of the heaviest selling, again, amid worries about more restrictions on movement. Norwegian Cruise Line lost 6.9%, and American Airlines Group slid 3.9%.

CarMax fell 8.1%, the biggest decline in the S&P 500, despite reporting stronger profit and revenue for the latest quarter than analysts expected. It said that sales trended downward toward the end of the quarter as coronavirus cases mounted. It also said its stores open more than a year sold fewer used cars during the quarter than analysts expected.

European indexes regained some of their sharp drops from the day before, and stocks retreated in Asia.

The yield on the 10-year Treasury slipped to 0.92% from 0.93% late Monday.

 

[bigdog]

S&P 500 Index Ticks Higher, Breaking a 3-Day Losing Streak
Stocks managed small gains on Wall Street Wednesday following a mixed set of reports on the economy.

Stocks closed higher on Wall Street Wednesday, nudging the S&P 500 to its first gain in four days, as investors weighed a mixed set of reports on the economy.

The S&P 500 inched up 0.1% after shedding most of its gains from earlier in the day. The benchmark index remains on track for a weekly loss. Gains by financial, communication services, energy and other sectors were kept in check by declines elsewhere, including technology companies, which helped pulled the Nasdaq slightly lower.

Investors continued to bid up shares in smaller company stocks, driving the Russell 2000 small-cap index to its second straight all-time high.

An hour before trading began on Wall Street, the government released an avalanche of data on the economy that showed some optimistic signs and several disappointing ones. But the market seemed to largely shrug off the reports.

“The economic data is being largely discounted,” said J.J. Kinahan, chief strategist with TD Ameritrade. "It seems to be that the rollout of the vaccine for the coronavirus is starting to go pretty well, so that’s what’s giving people a lot of hope. At the end of the day that still remains the top story.”

The S&P 500 rose 2.75 points to 3,690.01. The benchmark index set a record high on Thursday and is up 14.2% so far this year. The Dow Jones Industrial Average added 114.32 points, or 0.4%, to 30,129.83. The Nasdaq composite fell 36.80 points, or 0.3%, to 12,771.11. The tech-heavy index has notched new highs 54 times this year as Big Tech companies have led the market higher.

The Russell 2000 index climbed above the 2,000-point mark for the first time. It gained 17.22 points, or 0.9%, to 2,007.10. The index has risen 10.3% this month, roughly half of its gain for far this year.

Overnight, Wall Street had seemed to be heading for a rockier day of trading. U.S. stock futures initially dropped after President Donald Trump said that he may not sign the $900 billion rescue for the economy that Congress just approved. But they eventually drifted upward as investors looked past the unexpected push back.

A mixed batch of economic data didn't keep the market from grinding higher Wednesday. The Labor Department said fewer U.S. workers filed for unemployment benefits last week. The number is still incredibly high compared with before the pandemic, but it was better than economists were expecting. It also meant at least a temporary halt to the increase in unemployment claims the economy had been suffering as the pandemic worsens and tightens its chokehold on the economy.

Another report said that orders for long-lasting goods strengthened by more than expected last month, a good sign for the nation’s manufacturers.

Other data reports were more grim, though. Consumers pulled back on their spending by more last month than economists expected. It was the first drop since April, and it’s a discouraging signal for an economy that’s driven mostly by consumer spending. A big reason was the sharp drop in incomes that Americans took in November, worse than economists had forecast.


ASX 200 expected to rise again.

The Australian share market looks set to end the shortened week on a positive note. According to the latest SPI futures, the ASX 200 is poised to open the day 53 points or 0.8% higher this morning. Stocks managed small gains on Wall Street Wednesday following a mixed set of reports on the economy and on closing saw the Dow Jones up 0.38%, the S&P 500 up 0.07%, and the Nasdaq trading 0.29% lower.

https://www.usnews.com/news/busines...gain-after-trump-criticizes-economic-aid-bill

S&P 500 Index Ticks Higher, Breaking a 3-Day Losing Streak
Stocks managed small gains on Wall Street Wednesday following a mixed set of reports on the economy.
By Associated Press, Wire Service Content Dec. 23, 2020, at 4:56 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Stocks closed higher on Wall Street Wednesday, nudging the S&P 500 to its first gain in four days, as investors weighed a mixed set of reports on the economy.

The S&P 500 inched up 0.1% after shedding most of its gains from earlier in the day. The benchmark index remains on track for a weekly loss. Gains by financial, communication services, energy and other sectors were kept in check by declines elsewhere, including technology companies, which helped pulled the Nasdaq slightly lower.

Investors continued to bid up shares in smaller company stocks, driving the Russell 2000 small-cap index to its second straight all-time high.

An hour before trading began on Wall Street, the government released an avalanche of data on the economy that showed some optimistic signs and several disappointing ones. But the market seemed to largely shrug off the reports.

“The economic data is being largely discounted,” said J.J. Kinahan, chief strategist with TD Ameritrade. "It seems to be that the rollout of the vaccine for the coronavirus is starting to go pretty well, so that’s what’s giving people a lot of hope. At the end of the day that still remains the top story.”

The S&P 500 rose 2.75 points to 3,690.01. The benchmark index set a record high on Thursday and is up 14.2% so far this year. The Dow Jones Industrial Average added 114.32 points, or 0.4%, to 30,129.83. The Nasdaq composite fell 36.80 points, or 0.3%, to 12,771.11. The tech-heavy index has notched new highs 54 times this year as Big Tech companies have led the market higher.

The Russell 2000 index climbed above the 2,000-point mark for the first time. It gained 17.22 points, or 0.9%, to 2,007.10. The index has risen 10.3% this month, roughly half of its gain for far this year.

Overnight, Wall Street had seemed to be heading for a rockier day of trading. U.S. stock futures initially dropped after President Donald Trump said that he may not sign the $900 billion rescue for the economy that Congress just approved. But they eventually drifted upward as investors looked past the unexpected push back.

Markets around the world were relatively buoyant. Many Asian and European stock markets also rose, while Treasury yields climbed. Thin trading in this holiday-shortened week could make market moves more erratic. So could investors looking to close out positions as the end of the year approaches.

“The market is just inclined to go higher," said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. "There’s a positive seasonal trend behind that. There’s obviously a tremendous momentum move that we’ve seen in the market over the last eight months and it just doesn’t seem like it wants to end.”

A mixed batch of economic data didn't keep the market from grinding higher Wednesday. The Labor Department said fewer U.S. workers filed for unemployment benefits last week. The number is still incredibly high compared with before the pandemic, but it was better than economists were expecting. It also meant at least a temporary halt to the increase in unemployment claims the economy had been suffering as the pandemic worsens and tightens its chokehold on the economy.

Another report said that orders for long-lasting goods strengthened by more than expected last month, a good sign for the nation’s manufacturers.

Other data reports were more grim, though. Consumers pulled back on their spending by more last month than economists expected. It was the first drop since April, and it’s a discouraging signal for an economy that’s driven mostly by consumer spending. A big reason was the sharp drop in incomes that Americans took in November, worse than economists had forecast.

The resurgent pandemic is pushing governments around the country and world to bring back varying degrees of restrictions on businesses. Those, plus lost sales for companies from customers scared to do business amid the pandemic, are dragging the economy down following its initial bounce-back from its springtime plunge. A new, potentially more infectious coronavirus strain identified in southern England is raising worries further.

The hope in markets had been that $900 billion in economic support that Congress approved Monday night could tide the economy over until widespread vaccinations could help the world begin a return to normal next year. The package includes one-time cash payments to most Americans, extra benefits for laid-off workers and other financial support.

But Trump said late Tuesday that he wants to see bigger cash payments going to most Americans, up to $2,000 for individuals. He also criticized other parts of the bill.

Wall Street's gains on Wednesday were modest but widespread. Stocks of companies that would benefit the most from a healthier economy were doing the heaviest lifting. Energy stocks rose 2.2% for the biggest gain among the 11 sectors that make up the S&P 500. Financial stocks were close behind, adding 1.6%.

The yield on the 10-year Treasury rose to 0.95% from 0.90% late Tuesday.

 

[bigdog]

To all, merry Xmas to you and your families and a happy New Year which will be better than 2020

Stocks Close Higher in Holiday Shortened Week

Stocks closed slightly higher on Christmas Eve, as investors went into the holiday weekend not bothered by President Donald Trump’s threat not to sign a major economic stimulus package approved by Congress this week.

Trading was extremely light in the abbreviated session ahead of the Christmas holiday. Trading on the New York Stock Exchange and the Nasdaq ended at 1 p.m. ET instead of the usual 4 p.m. ET. Volume was a less than half of a typical trading day.

The S&P 500 index closed up 13.05 points, or 0.4%, to 3703.06. Despite the gains, the index ended the week down 0.2%. Relatively safe investments like utilities and real estate were among the biggest gainers, while energy stocks fell.

The Dow Jones Industrial Average rose 70.04 points, or 0.2%, to 30,199.87 and the Nasdaq composite rose 33.62 points, or 0.3%, to 12,804.73.

Investors remain focused on Washington, where Democrats in Congress are expected to try to make alterations to the $900 billion COVID stimulus bill that President Trump has threatened to veto. Trump has asked for higher individual payments to Americans, something Democrats support but which is unlikely to get a vote in the Republican-held Senate.

The hope has been that Trump will back away from his veto threat and the stimulus package might tide the economy over until widespread vaccinations can help the world begin to return to normal.

Meanwhile the U.S. economy continues to deteriorate under widespread coronavirus outbreaks, infections and hospitalizations. The Labor Department said fewer U.S. workers filed for unemployment benefits last week. The number is still incredibly high compared with before the pandemic, but it was better than economists were expecting.

Other reports were grimmer. Consumers pulled back on their spending by more last month than economists expected, mainly because of a drop in income.

“Despite the churning of the Washington D.C. pond by vetoes, new votes, and overrides, Wall Street clearly believes something positive will float to the top of the barrel when the churning stops," Jeffrey Halley of Oanda said in a commentary to investors.

https://www.usnews.com/news/busines...ets-advance-after-s-p-500-snaps-losing-streak

Stocks Close Higher in Holiday Shortened Week
Stocks closed slightly higher on Christmas Eve, as investors went into the holiday weekend not bothered by President Donald Trump’s threat not to sign a major economic stimulus package approved by Congress this week.
By Associated Press, Wire Service Content Dec. 24, 2020, at 1:39 p.m.

NEW YORK (AP) — Stocks closed slightly higher on Christmas Eve, as investors went into the holiday weekend not bothered by President Donald Trump’s threat not to sign a major economic stimulus package approved by Congress this week.

Trading was extremely light in the abbreviated session ahead of the Christmas holiday. Trading on the New York Stock Exchange and the Nasdaq ended at 1 p.m. ET instead of the usual 4 p.m. ET. Volume was a less than half of a typical trading day.

The S&P 500 index closed up 13.05 points, or 0.4%, to 3703.06. Despite the gains, the index ended the week down 0.2%. Relatively safe investments like utilities and real estate were among the biggest gainers, while energy stocks fell.

The Dow Jones Industrial Average rose 70.04 points, or 0.2%, to 30,199.87 and the Nasdaq composite rose 33.62 points, or 0.3%, to 12,804.73.

Investors remain focused on Washington, where Democrats in Congress are expected to try to make alterations to the $900 billion COVID stimulus bill that President Trump has threatened to veto. Trump has asked for higher individual payments to Americans, something Democrats support but which is unlikely to get a vote in the Republican-held Senate.

The hope has been that Trump will back away from his veto threat and the stimulus package might tide the economy over until widespread vaccinations can help the world begin to return to normal.

Meanwhile the U.S. economy continues to deteriorate under widespread coronavirus outbreaks, infections and hospitalizations. The Labor Department said fewer U.S. workers filed for unemployment benefits last week. The number is still incredibly high compared with before the pandemic, but it was better than economists were expecting.

Other reports were grimmer. Consumers pulled back on their spending by more last month than economists expected, mainly because of a drop in income.

“Despite the churning of the Washington D.C. pond by vetoes, new votes, and overrides, Wall Street clearly believes something positive will float to the top of the barrel when the churning stops," Jeffrey Halley of Oanda said in a commentary to investors.

 

[bigdog]

US Stocks Higher After Trump Signs $900B Aid Package
Stocks were moderately higher Monday as Wall Street entered the final week of 2020.

Stocks began the final week of 2020 moderately higher after President Donald Trump signed a $900 billion economic aid package that helps reduce uncertainty amid the re-imposition of travel and business curbs in response to a new coronavirus variant.

The S&P 500 index was up 1% as of 2:50 p.m. Eastern. The Dow Jones Industrial Average rose 244 points, or 0.8%, to 30,442 and the Nasdaq composite was up 1%. The gains put the indexes on track to close at all-time highs.

Trump signed the measure, which also includes money for other government functions through September, despite expressing frustration that $600 payments to the public weren’t bigger. His signature helped to clear away uncertainty as reinstated travel and business curbs threaten to weigh on global economic activity.

“By and large, it’s a kind of broad-based optimism, so-far-so-good on the vaccine rollout, and the stimulus bill to bridge the gap,” said Ross Mayfield, investment strategist at Baird, “It’s really just a continuation of the broader strength that we’ve seen over the last couple of months.”

Stocks are getting a seasonal tailwind, too, Mayfield said. The market tends to climb in the final five days of trading in December and the first two trading days in January, a phenomenon known as the “Santa Claus rally.” Since 1950, the S&P 500 index has risen an average of 1.3% during those seven days.

Companies that were hit the hardest by the pandemic — restaurants, airlines and the cruise industry — were among the biggest gainers Monday. American Airlines was up 3.4%, Norwegian Cruise Lines rose 5.2% and Carnival gained 4.9%.

Technology and communication services stocks accounted for a big slice of the broad market rally. Apple climbed 3.8% and Facebook rose 3.1%.

Shares in Chinese e-commerce giant Alibaba Group rose 0.3%, recovering some of their losses after plunging last week when government regulators launched an anti-monopoly investigation and the stock market debut of Ant Group, an online finance platform in which Alibaba owns a 33% stake, was suspended.

ASX futures pointing higher.

The Australian share market looks set to start the week higher following a very positive night on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the week 32 points or 0.5% higher this morning. On closing Wall Street, the Dow Jones was up 0.68%, the S&P 500 has risen 0.87%, and the Nasdaq is up 0.74%.

https://www.usnews.com/news/busines...ks-advance-after-trump-signs-900b-aid-package

US Stocks Higher After Trump Signs $900B Aid Package
Stocks were moderately higher Monday as Wall Street entered the final week of 2020.

By Associated Press, Wire Service Content Dec. 28, 2020, at 2:54 p.m.

By ALEX VEIGA, AP Business Writer

Stocks began the final week of 2020 moderately higher after President Donald Trump signed a $900 billion economic aid package that helps reduce uncertainty amid the re-imposition of travel and business curbs in response to a new coronavirus variant.

The S&P 500 index was up 1% as of 2:50 p.m. Eastern. The Dow Jones Industrial Average rose 244 points, or 0.8%, to 30,442 and the Nasdaq composite was up 1%. The gains put the indexes on track to close at all-time highs.

Trump signed the measure, which also includes money for other government functions through September, despite expressing frustration that $600 payments to the public weren’t bigger. His signature helped to clear away uncertainty as reinstated travel and business curbs threaten to weigh on global economic activity.

“By and large, it’s a kind of broad-based optimism, so-far-so-good on the vaccine rollout, and the stimulus bill to bridge the gap,” said Ross Mayfield, investment strategist at Baird, “It’s really just a continuation of the broader strength that we’ve seen over the last couple of months.”

Stocks are getting a seasonal tailwind, too, Mayfield said. The market tends to climb in the final five days of trading in December and the first two trading days in January, a phenomenon known as the “Santa Claus rally.” Since 1950, the S&P 500 index has risen an average of 1.3% during those seven days.

Companies that were hit the hardest by the pandemic — restaurants, airlines and the cruise industry — were among the biggest gainers Monday. American Airlines was up 3.4%, Norwegian Cruise Lines rose 5.2% and Carnival gained 4.9%.

Technology and communication services stocks accounted for a big slice of the broad market rally. Apple climbed 3.8% and Facebook rose 3.1%.

Shares in Chinese e-commerce giant Alibaba Group rose 0.3%, recovering some of their losses after plunging last week when government regulators launched an anti-monopoly investigation and the stock market debut of Ant Group, an online finance platform in which Alibaba owns a 33% stake, was suspended.

Treasury yields were broadly higher, a sign of confidence in the economy. The 10-year Treasury yield, which can affect interest rates on mortgages and other consumer loans, was at 0.94%.

Trading is expected to be light this week, as most fund managers and investors have closed their books for the year. It will be another holiday-shortened week, with New Year's Day on Friday.

European indexes closed broadly higher, helped by more details about the European Union - United Kingdom trade deal as part of the U.K.'s exit from the trade bloc. Germany's DAX rose 1.5%, while the CAC-40 in France gained 1.2%.

In Asia, the Shanghai Composite Index rose less than 0.1% to 3,397.29 while the Nikkei 225 in Tokyo added 0.7% to 26,854.03.

The Hang Seng in Hong Kong declined 0.3% to 26,314.63 after e-commerce giant Alibaba Group announced it was expanding a share buyback from $6 billion to $10 billion.

 

[bigdog]

US Stocks Fall as Investors Turn Cautious Following Records
Stocks gave up an early gain and closed modestly lower on Wall Street, giving the S&P 500 is first loss in four days.

Stocks closed modestly lower on Wall Street Tuesday as investors turned cautious a day after major indexes closed at their latest record highs.

The S&P 500 slipped 0.2%, the benchmark index's first decline in four days. Investors shifted money away from technology companies, which have been among of the biggest winners since the pandemic began. Industrial and financial stocks also fell broadly. Those losses outweighed gains in health care stocks and companies that rely on consumer spending.

Small-company stocks, which have been the biggest gainers this month, fell more than the rest of the market, pulling the Russell 2000 index of smaller companies 1.8% lower. The index is still on track to end the month 7.7% higher, more than twice as much as the S&P 500.

“That segment is probably due for a little bit of a pullback given its outperformance,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 8.32 points to 3,727.04. The Dow Jones Industrial Average dropped 68.30 points, or 0.2%, to 30,335.67. The tech-heavy Nasdaq slid 49.20 points, or 0.4%, to 12,850.22. The Russell 2000 gave up 36.89 points to 1,959.36.

The market’s pullback follows a strong, record-shattering run on Wall Street in recent weeks amid optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic's grip. With two days of trading left in 2020, the S&P 500 is up 15.4% this year, while the Nasdaq is up 43.2%.

Wall Street set fresh records on Monday after President Donald Trump signed a wide-ranging spending bill that includes $900 billion in COVID-19 aid and reams of other legislation on taxes, energy, education and health care. Investors hope that the measures will help tide the economy over until more people get vaccinations and help it through its pandemic-induced slump.

“We’re kind of seeing the same thing we've been seeing, the dichotomy between where the financial markets are and where the actual economy is,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The recent round of aid from Washington was mostly expected and it would have taken a much bigger package to really make markets jump, he said.

The only other pending set of business from Washington is whether Senate Republicans will pass President Trump's push to get $2,000 stimulus checks to Americans instead of the current $600. Senate Majority Leader Mitch McConnell on Tuesday blocked Democrats’ push to immediately bring President Donald Trump’s demand for bigger $2,000 COVID-19 relief checks up for a vote, saying the chamber would “begin a process” to address the issue.

Treasury yields moved higher Tuesday, a sign of confidence in the economy. The yield on the 10-year Treasury rose to 0.93% from 0.92% late Monday.

Trading has been thin as a tumultuous 2020 draws to a close. The market will be closed for New Year's Day Friday

ASX 200 to drop lower.

It looks set to be a much tougher day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.45% lower this morning. This follows a subdued night of trade on Wall Street which on closing sees the Dow Jones down 0.22%, the S&P 500 down 0.22%, and the Nasdaq 0.38% lower

https://www.usnews.com/news/busines...kkei-at-30-year-high-after-trump-oks-stimulus

US Stocks Fall as Investors Turn Cautious Following Records
Stocks gave up an early gain and closed modestly lower on Wall Street, giving the S&P 500 is first loss in four days.
By Associated Press, Wire Service Content Dec. 29, 2020, at 4:38 p.m.

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

Stocks closed modestly lower on Wall Street Tuesday as investors turned cautious a day after major indexes closed at their latest record highs.

The S&P 500 slipped 0.2%, the benchmark index's first decline in four days. Investors shifted money away from technology companies, which have been among of the biggest winners since the pandemic began. Industrial and financial stocks also fell broadly. Those losses outweighed gains in health care stocks and companies that rely on consumer spending.

Small-company stocks, which have been the biggest gainers this month, fell more than the rest of the market, pulling the Russell 2000 index of smaller companies 1.8% lower. The index is still on track to end the month 7.7% higher, more than twice as much as the S&P 500.

“That segment is probably due for a little bit of a pullback given its outperformance,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 8.32 points to 3,727.04. The Dow Jones Industrial Average dropped 68.30 points, or 0.2%, to 30,335.67. The tech-heavy Nasdaq slid 49.20 points, or 0.4%, to 12,850.22. The Russell 2000 gave up 36.89 points to 1,959.36.

The market’s pullback follows a strong, record-shattering run on Wall Street in recent weeks amid optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic's grip. With two days of trading left in 2020, the S&P 500 is up 15.4% this year, while the Nasdaq is up 43.2%.

Wall Street set fresh records on Monday after President Donald Trump signed a wide-ranging spending bill that includes $900 billion in COVID-19 aid and reams of other legislation on taxes, energy, education and health care. Investors hope that the measures will help tide the economy over until more people get vaccinations and help it through its pandemic-induced slump.

“We’re kind of seeing the same thing we've been seeing, the dichotomy between where the financial markets are and where the actual economy is,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The recent round of aid from Washington was mostly expected and it would have taken a much bigger package to really make markets jump, he said.

The only other pending set of business from Washington is whether Senate Republicans will pass President Trump's push to get $2,000 stimulus checks to Americans instead of the current $600. Senate Majority Leader Mitch McConnell on Tuesday blocked Democrats’ push to immediately bring President Donald Trump’s demand for bigger $2,000 COVID-19 relief checks up for a vote, saying the chamber would “begin a process” to address the issue.

Treasury yields moved higher Tuesday, a sign of confidence in the economy. The yield on the 10-year Treasury rose to 0.93% from 0.92% late Monday.

Trading has been thin as a tumultuous 2020 draws to a close. The market will be closed for New Year's Day Friday.

European markets mostly rose. The French CAC 40 rose 0.4%, while the FTSE 100 was up 1.5%. The German DAX fell 0.2%.

In Tokyo, the Nikkei 225 jumped 2.7% to 27,568.15, the first time it has traded above 27,000 since August 1990, according to FactSet. The market hit its all-time peak close of 38,915.87 on Dec. 29, 1989.

 

[qldfrog]

In Tokyo, the Nikkei 225 jumped 2.7% to 27,568.15, the first time it has traded above 27,000 since August 1990, according to FactSet. The market hit its all-time peak close of 38,915.87 on Dec. 29, 1989.

Time in the market ROL

 

[bigdog]

Stocks Hold on to Modest Gains, Marking Another Dow Record
Stocks are closing modestly higher on Wall Street, keeping major indexes at or near record highs.

Stocks eked out modest gains Wednesday, keeping the major stock indexes on Wall Street at or near record highs.

The S&P 500 inched up 0.1%, recovering some of its losses from a day earlier. It's hovering within 0.1% of the record high it set on Monday. The Dow Jones Industrial Average closed just above its own all-time high from Monday.

Energy and materials companies led the gains. Industrial and financial stocks also had a strong showing. Communication services stocks fell the most. Roughly 73% of stocks in the S&P 500 rose. Treasury yields mostly fell.

Small-company stocks again outpaced their larger rivals, a sign that investors are feeling more optimistic about the economy.

Stocks have been mostly grinding higher in recent weeks, with indexes setting new highs, amid optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic’s grip.

“This is overall a market that’s setting the stage for 2021 and looking at an economy that is going to normalize, albeit at a probably slower pace than initially projected," said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 index rose 5 points to 3,732.04. The Dow gained 73.89 points, or 0.2%, to 30,409.56. The Nasdaq composite picked up 19.78 points, or 0.2%, to 12,870. The Russell 2000 index of smaller companies climbed 20.63 points, or 1.1%, to 1,979.99.

Ahead of the final day of trading in 2020, the S&P 500 is up 15.5% this year, while the Nasdaq is up 43.4%.

The modest gains came as the effort to develop and distribute vaccines to fight the virus pandemic intensifies. Britain has authorized the use of a COVID-19 vaccine developed by AstraZeneca and Oxford University. The vaccine is considered easier to store and handle than others hitting the market. Earlier in December, both the U.K. and U.S. approved a vaccine made by Pfizer.

Meanwhile, vaccine development continues around the globe, with China’s Sinopharm becoming the latest to release encouraging study results.

Investors are optimistic about more vaccines gaining approval and reaching the market in coming weeks, though the potential for problems with their distribution remains a concern, said Ryan Detrick, chief market strategist for LPL Financial.


ASX 200 futures pointing higher.

The Australian share market looks set to bounce back on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher this morning. This follows a positive night on Wall Street which on closing sees the Dow Jones up 0.24%, the S&P 500 up 0.13%, and the Nasdaq 0.15% higher.

https://www.usnews.com/news/busines...mixed-as-boost-from-us-stimulus-package-fades

Stocks Hold on to Modest Gains, Marking Another Dow Record
Stocks are closing modestly higher on Wall Street, keeping major indexes at or near record highs.
By Associated Press, Wire Service Content Dec. 30, 2020, at 4:40 p.m

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

Stocks eked out modest gains Wednesday, keeping the major stock indexes on Wall Street at or near record highs.

The S&P 500 inched up 0.1%, recovering some of its losses from a day earlier. It's hovering within 0.1% of the record high it set on Monday. The Dow Jones Industrial Average closed just above its own all-time high from Monday.

Energy and materials companies led the gains. Industrial and financial stocks also had a strong showing. Communication services stocks fell the most. Roughly 73% of stocks in the S&P 500 rose. Treasury yields mostly fell.

Small-company stocks again outpaced their larger rivals, a sign that investors are feeling more optimistic about the economy.

Stocks have been mostly grinding higher in recent weeks, with indexes setting new highs, amid optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic’s grip.

“This is overall a market that’s setting the stage for 2021 and looking at an economy that is going to normalize, albeit at a probably slower pace than initially projected," said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 index rose 5 points to 3,732.04. The Dow gained 73.89 points, or 0.2%, to 30,409.56. The Nasdaq composite picked up 19.78 points, or 0.2%, to 12,870. The Russell 2000 index of smaller companies climbed 20.63 points, or 1.1%, to 1,979.99.

Ahead of the final day of trading in 2020, the S&P 500 is up 15.5% this year, while the Nasdaq is up 43.4%.

The modest gains came as the effort to develop and distribute vaccines to fight the virus pandemic intensifies. Britain has authorized the use of a COVID-19 vaccine developed by AstraZeneca and Oxford University. The vaccine is considered easier to store and handle than others hitting the market. Earlier in December, both the U.K. and U.S. approved a vaccine made by Pfizer.

Meanwhile, vaccine development continues around the globe, with China’s Sinopharm becoming the latest to release encouraging study results.

Investors are optimistic about more vaccines gaining approval and reaching the market in coming weeks, though the potential for problems with their distribution remains a concern, said Ryan Detrick, chief market strategist for LPL Financial.

“The hiccups are the actual rollout,” he said. “Approving them is one thing, but getting them out and into people’s arms is another thing.”

Treasury yields were mostly lower. The yield on the 10-year Treasury slipped to 0.92% from 0.93% late Tuesday.

Stock markets in Europe closed lower after European Union officials and British lawmakers approved a separation deal that will govern trade and other relations after the year ends. The U.K. left the EU almost a year ago, but remained within the bloc’s economic embrace during a transition period that ends this year.

Britain’s FTSE 100 fell 0.7% and Germany’s DAX slipped 0.3%. The CAC 40 in Paris dropped 0.2%.

Markets in Asia closed mostly higher, though Japan’s Nikkei fell 0.5% as the Tokyo exchange marked the end of trading for the year.

Traders in cryptocurrencies continued to push up the price of bitcoin, which has more than doubled the past three months. It rose 5.4% to $28,635, according to the tracking site CoinDesk. Bitcoin futures on the Chicago Mercantile Exchange climbed 6.5% to $28,970. The futures allow investors to make bets on the future price of the digital currency.

Trading volume on Wall Street has been thin in the final week of 2020. The market will be closed for New Year’s Day Friday.

 

[bigdog]

S&P 500 Ends at Another Record High as Tumultuous 2020 Ends
The S&P 500 and the Dow Jones Industrial Average ended 2020 at more record highs Thursday, closing out one of the most tumultuous years in recent memory.

Wall Street closed out a tumultuous year for stocks with more record highs Thursday, a fitting coda to the market’s stunning comeback from its historic plunge in the early weeks of the coronavirus pandemic.

The benchmark S&P 500 index finished with a gain of 16.3% for the year, or a total return of about 18.4%, including dividends. The Nasdaq composite, powered by high-flying Big Tech stocks, soared 43.6%. The Dow Jones Industrial Average gained 7.2%, with Apple and Microsoft leading the way.

The market’s milestone-setting finish follows a mostly upward grind for stocks in recent weeks, fueled by cautious optimism that the U.S. economy and corporate profits will bounce back in 2021 now that the distribution of COVID-19 vaccines is under way.

“We came into the year expecting slow growth and it turned out to be the fastest bear market recovery in history,” said Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management.

The virus pandemic shocked markets early in the year. The S&P 500 fell 8.4% in February, then plunged 12.5% in March as the pandemic essentially froze the global economy. Businesses shut down in the face of the virus threat and tighter government restrictions. People shifted to working, shopping and doing pretty much everything else from home.

The dire economic situation weighed heavily on almost any company that relied on direct consumer spending or a physical presence, including airlines, restaurants, hotels and mall-based retailers.

Volatility spiked. The Dow had several day-to-day swings of about 2,000 points. And the S&P 500 rose or fell by at least 1% on twice as many days in 2020 than it did, on average, since 1950.

The VIX, which measures how much volatility investors expect from the S&P 500, climbed to a record high 82.69 in March and remained above its historical average for much of the year.

The wave of selling accelerated as the economic fallout from the pandemic widened, leaving many long-term investors looking on as their gains after a blockbuster 2019 for stocks evaporated. Five months later, the market recouped all of its losses.

“It was probably very hard to imagine getting those back in such a short period fo time,” said Shawn Cruz, senior market strategist at TD Ameritrade.

Wall Street's recovery was due in large part to unprecedented actions from the Federal Reserve and Congress to support the economy. Investors also flocked to big technology companies such as Apple and Amazon and smaller companies like Grubhub and Etsy that were poised to take advantage of the shift to working and shopping from home.

The S&P 500 jumped 12.7% in April. From there, markets disconnected from the rest of the still-reeling economy and pushed higher in fits and starts as vaccine development progressed and analysts and economists looked ahead to the eventual end of the pandemic.

The market’s turnaround was faster than anyone might have expected in March, when the S&P 500′s nearly 11-year bull-market run ended. By August, the index had recovered all of its losses and climbed to new highs, rewarding investors who had stuck it out. All told, the S&P 500 set 33 record highs in 2020.

“It was another reminder that unless you have a foolproof market timing technique the adage to remember is it’s always better buy than bail,” said Sam Stovall, chief investment strategist at CFRA.

“There’s a good possibility that we get a deep pullback — pullbacks being 5%-10% — or maybe a shallow correction,” he said. “Enough to remind investors that share prices don’t go up forever.”

Markets were mostly quiet on the final day of trading for the year. Several overseas markets were closed for holidays, and U.S. markets will be closed for New Years Day on Friday.

The S&P 500 rose 24.03 points, or 0.6%, to 3,756.07, an all-time high. The Dow rose 196.92 points, or 0.7%, to 30,606.48, a record high. The Nasdaq rose 18.28 points, or 0.1%, to 12,888.28.

The Russell 2000 index of smaller companies fell 5.14 points, or 0.3%, to 1,974.86. Smaller companies notched strong gains in recent weeks after lagging in the early months of the broader market rebound. The Russell 2000 ended the year with a gain of 18.4%.

ASX 200 expected to tumble.

The Australian share market looks set to start the year in a disappointing fashion. According to the latest SPI futures, the ASX 200 is poised to open the week 80 points or 1.2% lower this morning. This is despite a positive finish to the year on Wall Street, which saw the Dow Jones rise 0.65%, the S&P 500 climb 0.65%, and the Nasdaq push 0.15% higher. This led to the Dow Jones finishing the year at a record high.

https://www.usnews.com/news/busines...-closed-for-holiday-other-asian-indexes-mixed

S&P 500 Ends at Another Record High as Tumultuous 2020 Ends
The S&P 500 and the Dow Jones Industrial Average ended 2020 at more record highs Thursday, closing out one of the most tumultuous years in recent memory.

By Associated Press, Wire Service Content Dec. 31, 2020, at 7:17 p.m.

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

Wall Street closed out a tumultuous year for stocks with more record highs Thursday, a fitting coda to the market’s stunning comeback from its historic plunge in the early weeks of the coronavirus pandemic.

The benchmark S&P 500 index finished with a gain of 16.3% for the year, or a total return of about 18.4%, including dividends. The Nasdaq composite, powered by high-flying Big Tech stocks, soared 43.6%. The Dow Jones Industrial Average gained 7.2%, with Apple and Microsoft leading the way.

The market’s milestone-setting finish follows a mostly upward grind for stocks in recent weeks, fueled by cautious optimism that the U.S. economy and corporate profits will bounce back in 2021 now that the distribution of COVID-19 vaccines is under way.

“We came into the year expecting slow growth and it turned out to be the fastest bear market recovery in history,” said Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management.

The virus pandemic shocked markets early in the year. The S&P 500 fell 8.4% in February, then plunged 12.5% in March as the pandemic essentially froze the global economy. Businesses shut down in the face of the virus threat and tighter government restrictions. People shifted to working, shopping and doing pretty much everything else from home.

The dire economic situation weighed heavily on almost any company that relied on direct consumer spending or a physical presence, including airlines, restaurants, hotels and mall-based retailers.

Volatility spiked. The Dow had several day-to-day swings of about 2,000 points. And the S&P 500 rose or fell by at least 1% on twice as many days in 2020 than it did, on average, since 1950.

The VIX, which measures how much volatility investors expect from the S&P 500, climbed to a record high 82.69 in March and remained above its historical average for much of the year.

The wave of selling accelerated as the economic fallout from the pandemic widened, leaving many long-term investors looking on as their gains after a blockbuster 2019 for stocks evaporated. Five months later, the market recouped all of its losses.

“It was probably very hard to imagine getting those back in such a short period fo time,” said Shawn Cruz, senior market strategist at TD Ameritrade.

Wall Street's recovery was due in large part to unprecedented actions from the Federal Reserve and Congress to support the economy. Investors also flocked to big technology companies such as Apple and Amazon and smaller companies like Grubhub and Etsy that were poised to take advantage of the shift to working and shopping from home.

The S&P 500 jumped 12.7% in April. From there, markets disconnected from the rest of the still-reeling economy and pushed higher in fits and starts as vaccine development progressed and analysts and economists looked ahead to the eventual end of the pandemic.

Even as the stock market charged ahead as the fortunes of larger companies improved, millions remained out of work and many small businesses around the country, such as bars and restaurants, remained shuttered or limped along at a fraction of their usual capacity.

Individual investors, sometimes referred to as retail investors on Wall Street, hopped onto the market rally via commission-free online trading platforms like Robinhood. Along the way, they helped power shares in companies like Tesla to new heights. The electric car maker jumped 743.4% in 2020 for the biggest gain in the S&P 500.

“Retail investors represented a larger portion of the market than they ever have,” Cruz said. “It was retail and institutional investors all coming to the same conclusion about what was going to work and what wasn’t going to work this year at the same time.”

The market’s turnaround was faster than anyone might have expected in March, when the S&P 500′s nearly 11-year bull-market run ended. By August, the index had recovered all of its losses and climbed to new highs, rewarding investors who had stuck it out. All told, the S&P 500 set 33 record highs in 2020.

“It was another reminder that unless you have a foolproof market timing technique the adage to remember is it’s always better buy than bail,” said Sam Stovall, chief investment strategist at CFRA.

The end of the virus and its pummeling of the economy seems even closer now that vaccine approval and distribution is ramping up. The U.S. and U.K. have both approved Pfizer’s COVID-19 vaccine and Britain recently approved another vaccine from AstraZeneca and Oxford University. Meanwhile, the U.S. government has approved another round of aid for businesses and people dealing with another surge in the virus and tighter restrictions on businesses.

Thomas expects pent-up demand and high savings rates to help drive an economic recovery in 2021. Many of the more beaten-down stocks will benefit from a “vaccine-shaped” recovery as the number of vaccines on the market increases and distribution widens.

“We have more visibility that by midyear we start to be able to reopen the economy,” she said.

The sharp run-up in stock prices relative to the outlook for earnings growth suggests stocks could be in for a correction, or drop of at least 10%, in 2021, Stovall said.

“There’s a good possibility that we get a deep pullback — pullbacks being 5%-10% — or maybe a shallow correction,” he said. “Enough to remind investors that share prices don’t go up forever.”

Markets were mostly quiet on the final day of trading for the year. Several overseas markets were closed for holidays, and U.S. markets will be closed for New Years Day on Friday.

The S&P 500 rose 24.03 points, or 0.6%, to 3,756.07, an all-time high. The Dow rose 196.92 points, or 0.7%, to 30,606.48, a record high. The Nasdaq rose 18.28 points, or 0.1%, to 12,888.28.

The Russell 2000 index of smaller companies fell 5.14 points, or 0.3%, to 1,974.86. Smaller companies notched strong gains in recent weeks after lagging in the early months of the broader market rebound. The Russell 2000 ended the year with a gain of 18.4%.

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

 

[bigdog]

Stocks Fall as Trading Starts for Year of Great Expectations
U.S. stocks are closing lower Monday as big swings return to Wall Street to start a year when the dominant expectation is for a powerful economic rebound to sweep the world.

U.S. stocks pulled back from their recent record highs Monday, as big swings return to Wall Street at the onset of a year where the dominant expectation is for a powerful economic rebound to sweep the world.

The S&P 500, which ended 2020 at an all-time high, slid 1.5% after earlier dropping as much as 2.5%. It was the benchmark index's biggest decline since late October. Technology companies accounted for a big share of the sell-off, along with industrial, communication services, health care and other stocks. Only the S&P 500's energy sector managed to eked out a gain.

The selling comes as coronavirus cases keep climbing at frightening rates around the world, threatening to bring more lockdown orders that would punish the economy. The worsening numbers also raise the possibility that Wall Street has been overly optimistic about the big economic recovery it sees coming because of COVID-19 vaccines. Tuesday's upcoming runoff elections to determine which party controls the Senate may also be contributing to the volatility.

“We’ve got a wobbly start to the year here,” said Lindsey Bell, chief investment strategist at Ally Invest. “Investors are looking for a reason to lock in profits. The selling is probably a bit overdone.”

The S&P 500 fell 55.42 points to 3,700.65. The Dow Jones Industrial Average also fell from its record set last week, shedding 382.59 points, or 1.3%, to 30,223.89. At one point, it was down 724 points. The tech-heavy Nasdaq composite lost 189.84 points, or 1.5%, to 12,698.45.

Small company stocks, which have been notching solid gains in recent weeks, also fell. The Russell 2000 index of smaller companies dropped 28.94 points, or 1.5%, to 1,945.91.

Treasury yields held relatively steady after giving up a healthy gain in the morning. Gold jumped 2.7%, while the price of U.S. crude oil fell 1.9%.

“Investors should look through the bumpier start to the new economic cycle and focus on the improved earnings outlook,” Craig said.

Of course, many risks remain for the market, even beyond the threat of economic lockdowns coming in the near term because of the raging pandemic. Prices have climbed enough that critics say stocks may be too expensive, particularly if the big rebound in corporate profits that investors expect to occur later this year doesn’t materialize.

Politics is also still a wild card. If Democrats sweep the two runoff races in Georgia, that could lead to higher corporate tax rates, tighter regulations and other changes from Washington that would hinder corporate profits. Democrats already control the House, and President-elect Joe Biden is a Democrat.

“The concern around that is regulatory risk and tax policy risk are back on the table,” Bell said. "That has investors feeling a little bit anxious.”

Almost nine out of 10 stocks in the S&P 500 fell Monday. On the losing end of the market were several Big Tech stocks. Apple fell 2.5%, Microsoft dropped 2.1% and Amazon lost 2.2%. Because they're so massive in size, the movements of Big Tech stocks have much more sway over the S&P 500 than other companies. Those three were the biggest drags on the index.

Airlines, cruise operators, hotel chains and stocks of other companies hit particularly hard by the pandemic also had some of the market's sharpest losses. Alaska Air Group slid 5.3%, while Norwegian Cruise Line fell 6.7%.

Tesla rose 3.4% after it said it delivered 499,500 vehicles last year. That’s a 36% jump on the year, though it fell short of CEO Elon Musk’s goal of 500,000, which was set before the pandemic hit.

ASX 200 expected to fall.

The Australian share market looks set to drop lower on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.4% lower this morning. This follows a very poor start to the week on Wall Street. At closing, the Dow Jones is down 1.25%, the S&P 500 is down 1.48%, and the Nasdaq has fallen 1.47%.

https://www.usnews.com/news/busines...rise-after-wall-street-ends-2020-at-new-highs

Stocks Fall as Trading Starts for Year of Great Expectations
U.S. stocks are closing lower Monday as big swings return to Wall Street to start a year when the dominant expectation is for a powerful economic rebound to sweep the world.
By Associated Press, Wire Service Content Jan. 4, 2021, at 4:33 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

U.S. stocks pulled back from their recent record highs Monday, as big swings return to Wall Street at the onset of a year where the dominant expectation is for a powerful economic rebound to sweep the world.

The S&P 500, which ended 2020 at an all-time high, slid 1.5% after earlier dropping as much as 2.5%. It was the benchmark index's biggest decline since late October. Technology companies accounted for a big share of the sell-off, along with industrial, communication services, health care and other stocks. Only the S&P 500's energy sector managed to eked out a gain.

The selling comes as coronavirus cases keep climbing at frightening rates around the world, threatening to bring more lockdown orders that would punish the economy. The worsening numbers also raise the possibility that Wall Street has been overly optimistic about the big economic recovery it sees coming because of COVID-19 vaccines. Tuesday's upcoming runoff elections to determine which party controls the Senate may also be contributing to the volatility.

“We’ve got a wobbly start to the year here,” said Lindsey Bell, chief investment strategist at Ally Invest. “Investors are looking for a reason to lock in profits. The selling is probably a bit overdone.”

The S&P 500 fell 55.42 points to 3,700.65. The Dow Jones Industrial Average also fell from its record set last week, shedding 382.59 points, or 1.3%, to 30,223.89. At one point, it was down 724 points. The tech-heavy Nasdaq composite lost 189.84 points, or 1.5%, to 12,698.45.

Small company stocks, which have been notching solid gains in recent weeks, also fell. The Russell 2000 index of smaller companies dropped 28.94 points, or 1.5%, to 1,945.91.

Treasury yields held relatively steady after giving up a healthy gain in the morning. Gold jumped 2.7%, while the price of U.S. crude oil fell 1.9%.

Stocks also fell in Japan as officials there mull a state of emergency due to surging virus cases. But optimism was more prevalent in other markets, with European and most Asian indexes closing higher.

The United Kingdom has been hit particularly hard by a new variant of the coronavirus that appears to be more contagious. On Monday, the United Kingdom became the first nation to start using the COVID-19 vaccine developed by Oxford University and drugmaker AstraZeneca.

In the United States, regulators have already approved two other vaccines. China last week gave the greenlight for its first domestically developed vaccine. Others are also being tested.

Investors have been hoping that vaccines will allow daily life around the world to slowly return to normal. That's helped spark a recent recovery for stocks of travel-related businesses, smaller companies and other industries left behind for much of the pandemic.

Still, rising coronavirus cases, the emergence of a mutant variant of the virus and concerns that the rollout of the vaccine isn't happening fast enough are keeping investors on edge, said Adam Taback, chief investment officer for Wells Fargo Private Bank.

“The (virus), the severity of the impact it's going to have during the winter, is still weighing on people’s minds,” Taback said.

Even though infection rates and hospitalizations are at frightening levels, many investors have been betting that ultralow interest rates provided by the Federal Reserve and financial support for the economy recently approved by Congress can help tide the economy over until vaccinations become more widespread.

Governments might throw less stimulus at their economies than last year, but policy is “still at a very loose setting,” which supports stock prices and lending, said Kerry Craig of JP Morgan Asset Management in a report.

“Investors should look through the bumpier start to the new economic cycle and focus on the improved earnings outlook,” Craig said.

Of course, many risks remain for the market, even beyond the threat of economic lockdowns coming in the near term because of the raging pandemic. Prices have climbed enough that critics say stocks may be too expensive, particularly if the big rebound in corporate profits that investors expect to occur later this year doesn’t materialize.

Politics is also still a wild card. If Democrats sweep the two runoff races in Georgia, that could lead to higher corporate tax rates, tighter regulations and other changes from Washington that would hinder corporate profits. Democrats already control the House, and President-elect Joe Biden is a Democrat.

“The concern around that is regulatory risk and tax policy risk are back on the table,” Bell said. "That has investors feeling a little bit anxious.”

But even in a Democratic sweep, markets see some causes for upside, including the potential for more stimulus for the economy. Democrats have been lobbying for $2,000 payments to go to most individuals, for example.

Almost nine out of 10 stocks in the S&P 500 fell Monday. On the losing end of the market were several Big Tech stocks. Apple fell 2.5%, Microsoft dropped 2.1% and Amazon lost 2.2%. Because they're so massive in size, the movements of Big Tech stocks have much more sway over the S&P 500 than other companies. Those three were the biggest drags on the index.

Airlines, cruise operators, hotel chains and stocks of other companies hit particularly hard by the pandemic also had some of the market's sharpest losses. Alaska Air Group slid 5.3%, while Norwegian Cruise Line fell 6.7%.

Tesla rose 3.4% after it said it delivered 499,500 vehicles last year. That’s a 36% jump on the year, though it fell short of CEO Elon Musk’s goal of 500,000, which was set before the pandemic hit.

In European stock markets, France’s CAC 40 gained 0.7%, and Germany’s DAX returned 0.1%. The FTSE 100 in London rose 1.7%.

In Asia, Tokyo’s Nikkei 225 lost 0.7% after Prime Minister Yoshihide Suga said a state of emergency was under consideration for the Japanese capital and three surrounding prefectures due to surging virus caseloads.

Suga called on restaurants and bars to close by 8 p.m. and said it would be difficult to restart a travel promotion program that was suspended last month. He said the government would expedite approval of coronavirus vaccines and begin providing injections in February.

South Korea’s Kospi rose 2.5%, Hong Kong’s Hang Seng gained 0.9% and stocks in Shanghai climbed 0.9%.

In the bond market, the yield on the 10-year Treasury rose to 0.91% from 0.89% late Thursday. Earlier in the morning, it had climbed as high as 0.96% in a signal of rising expectations of economic growth and inflation. Markets were closed Friday for New Year’s Day.

 

[tech/a]

Hey BD

I look in everyday to your Report.
Thanks for the continued effort.
Many follow and like me silent.

Tech

 

[Bourseboy]

Hey BD

I look in everyday to your Report.
Thanks for the continued effort.
Many follow and like me silent.

Tech

I too check it out everyday (part of my routine). Big thank you to you Bigdog.

 

[bigdog]

US Stocks Recoup Some Losses After Sharp Slide to Start 2021
U.S. stocks are closing higher Tuesday, regaining their footing a day after suffering their worst loss in months amid the worsening pandemic and potentially market-moving Senate elections.

Stocks closed broadly higher on Wall Street Tuesday, regaining their footing a day after suffering their worst loss in months amid the worsening pandemic and potentially market-moving Senate elections.

The S&P 500 rose 0.7%, recovering about half of the index's losses from a day earlier. The majority of big stocks in the S&P 500 notched gains, with oil producers leading the way as crude prices strengthened. Stocks of smaller companies did even better than the broader market, driving the Russell 2000 index of small-caps to a market-leading 1.7% gain. Treasury yields rose.

The market’s moves were tenuous early on, though. At one point, the S&P 500 gave up all of an early-morning rise and was down 0.2% even after a report showed U.S. manufacturing grew last month at its strongest rate since 2018.

“While we probably will end up having a pullback sometime in the near future, the bull is not ready to wind down just yet,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 26.21 points to 3,726.86. The Dow Jones Industrial Average gained 167.71 points, or 0.6%, to 30,391.60. The Nasdaq composite picked up 120.51 points, or 1%, to 12,818.96. The Russell 2000 climbed 33.19 points to 1,979.11.

Wall Street's uneven start to the year comes as investors remain optimistic that the economy will recover this year as more Americans receive coronavirus vaccinations. Optimism is being kept in check as new infections climb at frightening rates around the world, threatening to bring more lockdown orders that would punish the economy.

Traders have also focused on the outcome of the runoff elections in Georgia Tuesday, which will determine which party controls the Senate. Some analysts say the results could mark clear winners and losers in the stock market.

The general thinking is that a Democratic sweep would open the door to higher tax rates, tougher regulation on businesses and other potentially profit-crimping changes from Washington. That would put broad pressure on the stock market, with Big Tech stocks in particular perhaps attracting more regulatory scrutiny.

But Democratic control of the Senate, White House and House of Representatives could also make another dose of big financial support for the economy more likely. Democrats have lobbied for $2,000 cash payments to go to most Americans, for example, and they could push for more spending on infrastructure projects.

Such stimulus could eventually lead to higher inflation across the economy, something that has been nearly nonexistent for years. Increasing inflation expectations have helped buoy Treasury yields recently, and the yield on the 10-year Treasury rose to 0.95% from 0.90% late Monday.

“There's some risk on the election, but mostly just due to uncertainty,” said James Ragan, director of wealth management research at D.A. Davidson.

Investors likely shouldn't worry much about either a Democratic or Republican victory, strategists at Barclays said in a report. Even a Democratic sweep of the runoffs would leave the party with only the slimmest of majorities in the Senate, which would make big, bold changes less likely.

ASX 200 expected to edge higher.

The Australian share market looks set to edge higher on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 3 points higher this morning. This follows a better night of trade on Wall Street.

On closing, the Dow Jones is up 0.55%, the S&P 500 was up 0.71%, and the Nasdaq had risen 0.95%.

https://www.usnews.com/news/busines...xed-after-wall-st-retreat-as-virus-cases-rise

US Stocks Recoup Some Losses After Sharp Slide to Start 2021
U.S. stocks are closing higher Tuesday, regaining their footing a day after suffering their worst loss in months amid the worsening pandemic and potentially market-moving Senate elections.
By Associated Press, Wire Service Content Jan. 5, 2021, at 4:50 p.m

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

Stocks closed broadly higher on Wall Street Tuesday, regaining their footing a day after suffering their worst loss in months amid the worsening pandemic and potentially market-moving Senate elections.

The S&P 500 rose 0.7%, recovering about half of the index's losses from a day earlier. The majority of big stocks in the S&P 500 notched gains, with oil producers leading the way as crude prices strengthened. Stocks of smaller companies did even better than the broader market, driving the Russell 2000 index of small-caps to a market-leading 1.7% gain. Treasury yields rose.

The market’s moves were tenuous early on, though. At one point, the S&P 500 gave up all of an early-morning rise and was down 0.2% even after a report showed U.S. manufacturing grew last month at its strongest rate since 2018.

“While we probably will end up having a pullback sometime in the near future, the bull is not ready to wind down just yet,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 26.21 points to 3,726.86. The Dow Jones Industrial Average gained 167.71 points, or 0.6%, to 30,391.60. The Nasdaq composite picked up 120.51 points, or 1%, to 12,818.96. The Russell 2000 climbed 33.19 points to 1,979.11.

Wall Street's uneven start to the year comes as investors remain optimistic that the economy will recover this year as more Americans receive coronavirus vaccinations. Optimism is being kept in check as new infections climb at frightening rates around the world, threatening to bring more lockdown orders that would punish the economy.

Traders have also focused on the outcome of the runoff elections in Georgia Tuesday, which will determine which party controls the Senate. Some analysts say the results could mark clear winners and losers in the stock market.

The general thinking is that a Democratic sweep would open the door to higher tax rates, tougher regulation on businesses and other potentially profit-crimping changes from Washington. That would put broad pressure on the stock market, with Big Tech stocks in particular perhaps attracting more regulatory scrutiny.

But Democratic control of the Senate, White House and House of Representatives could also make another dose of big financial support for the economy more likely. Democrats have lobbied for $2,000 cash payments to go to most Americans, for example, and they could push for more spending on infrastructure projects.

Such stimulus could eventually lead to higher inflation across the economy, something that has been nearly nonexistent for years. Increasing inflation expectations have helped buoy Treasury yields recently, and the yield on the 10-year Treasury rose to 0.95% from 0.90% late Monday.

“There's some risk on the election, but mostly just due to uncertainty,” said James Ragan, director of wealth management research at D.A. Davidson.

Investors likely shouldn't worry much about either a Democratic or Republican victory, strategists at Barclays said in a report. Even a Democratic sweep of the runoffs would leave the party with only the slimmest of majorities in the Senate, which would make big, bold changes less likely.

Beyond Georgia and Washington, though, worries about the worsening global pandemic continue to weigh on markets. A new, seemingly more contagious variant of the coronavirus is pushing countries to announce or consider more restrictions on businesses. That’s threatening Wall Street’s widespread belief that financial support offered by central banks and governments can keep the economy afloat until a big recovery sweeps the world later this year due to the rollout of COVID-19 vaccines.

Worries are also rising that markets have simply stormed too high since hitting bottom early last year and are setting investors up for big disappointment.

“The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble,” the famed value investor Jeremy Grantham wrote in a recent report titled “Waiting for the last dance.”

“Featuring extreme overvaluation, explosive price increases, frenzied issuance, and hysterically speculative investor behavior, I believe this event will be recorded as one of the great bubbles of financial history, right along with the South Sea bubble, 1929, and 2000.”

Grantham has correctly predicted big market turns in the past, including the plunge caused by the 2008 financial crisis and the sharp rebound higher in early 2009. But he acknowledges that his calls have sometimes been early: He got out of Japanese stocks in 1987, for example, only for the bubble to keep inflating through the end of 1989.

Energy stocks led the way higher Tuesday as the price of U.S. crude oil climbed 4.9%. Occidental Petroleum jumped 10.1% for the biggest gain in the S&P 500.

The surge in energy stocks is an indication that investors believe the economy will improve this year, driving up demand for oil and pushing up prices, Stovall said.

In overseas stock markets, Asian indexes closed mostly higher. South Korea's Kospi rose 1.6%, Hong Kong's Hang Seng added 0.6% and stocks in Shanghai gained 0.7%. Japan's Nikkei 225 fell 0.4%.

In Europe, France's CAC 40 fell 0.4%, and Germany's DAX lost 0.6%. The FTSE 100 in London rose 0.6%.

 

[bigdog]

Stocks rally despite protests on hopes for Senate turnover

Wall Street rallied Wednesday on expectations of more stimulus for the economy, although the enthusiasm was dampened by chaotic scenes in Washington as pro-Trump protestors stormed the U.S. Capitol. The S&P 500 rose 0.6%, giving up much of an earlier rally, while the Dow Jones Industrial Average closed at a record high. Small-company stocks did especially well as investors ploughed money into businesses that would be winners if Democrats can pump even more financial stimulus into the economy amid rising expectations that the GOP may lose control of Washington. The yield on the 10-year Treasury topped 1% for the first time since March.

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

Wall Street is piling into stocks of smaller companies, banks and other businesses that would be winners if Democrats can pump even more financial stimulus into the economy, as expectations rise that the GOP may lose control of Washington.

The rally lost some momentum Wednesday afternoon after the U.S. Capitol building went into lockdown as supporters of President Donald Trump broke through barricades and entered the building following clashes with police. Both houses of Congress abruptly went into recess, interrupting debate over the Electoral College vote that gave Joe Biden the presidency. Earlier, Trump riled up the crowd with his baseless claims of election fraud.

Most stocks were still higher after Democrats won one of the two runoff elections in Georgia that will determine which party controls the Senate. The second runoff was still too early to call. The S&P 500 was up 0.8% in afternoon trading, giving up about half of its gain from earlier. The Dow Jones Industrial Average was up 446 points, or 1.5%, at 30,839, as of 3:19 p.m. Eastern time.

The moves on Wall Street masked even bigger shifts happening underneath the surface as investors jockey to find the winners and losers of a Senate, White House and House of Representatives that may all soon be under Democratic control. The yield on the 10-year Treasury topped 1% for the first time since March, for example.

Big Tech stocks are also in the spotlight as investors shift away from the winners of the stay-at-home economy of the pandemic and rotate into companies whose profits would benefit most from a healthier economy. The Nasdaq composite, which is full of tech stocks, struggled for much of the morning and was flat after shedding modest early gains.

“This is just a market taking into account the likely outcomes from what happened in the election,” said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. “You have the recognition that the Democratic agenda is probably much more mainstream than people feared.”

A report on Wednesday underscored how fragile the economy is because of the worsening pandemic. Payroll processor ADP said private employers cut 123,000 more jobs last month than they added. It was much worse than economists’ expectations for job growth, and it was the weakest such report since April. The Labor Department’s more comprehensive report on jobs growth is due on Friday.

The Russell 2000 index of small-cap stocks nevertheless surged 3.3%, much more than the rest of the market. Another round of stimulus for the economy could benefit smaller companies in particular because they tend to have smaller financial cushions to survive long-term downturns.

Stocks of companies that would profit from increased spending on infrastructure were also helping to lead the market. United Rentals, whose catalog includes forklifts and light towers for construction sites, jumped 9% for one of the bigger gains in the S&P 500. Vulcan Materials, which sells asphalt and other construction materials, rose 8.2%.

“More fiscal support forthcoming likely means a stronger economic recovery and markets are pricing that in,” said Brian Levitt, global market strategist at Invesco. “Today is the recovery trade.”

Big spending plans for the economy could trigger not only stronger growth for the economy in the future but also heavier borrowing by the U.S. government and maybe even inflation. Those factors are helping to push up Treasury yields, and the yield on the 10-year Treasury rose to 1.04% from 0.94% late Tuesday.


ASX 200 expected rebound.

It looks set to be a much better day for the Australian share market on Thursday. According to the latest SPI futures, the ASX 200 is poised to open 129 points or 2% higher.

This follows a strong night of trade on Wall Street after the Democrats came close to taking control of the Senate. On closing, the Dow Jones was up 1.44%, the S&P 500 up 0.57%, and the Nasdaq was down 0.61%.

https://apnews.com/article/legislat...cial-markets-97f349d06fcf54f043c37e266a4609b8

Stocks rally despite protests on hopes for Senate turnover

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA30 minutes ago

Wall Street rallied Wednesday on expectations of more stimulus for the economy, although the enthusiasm was dampened by chaotic scenes in Washington as pro-Trump protestors stormed the U.S. Capitol. The S&P 500 rose 0.6%, giving up much of an earlier rally, while the Dow Jones Industrial Average closed at a record high. Small-company stocks did especially well as investors ploughed money into businesses that would be winners if Democrats can pump even more financial stimulus into the economy amid rising expectations that the GOP may lose control of Washington. The yield on the 10-year Treasury topped 1% for the first time since March.

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

Wall Street is piling into stocks of smaller companies, banks and other businesses that would be winners if Democrats can pump even more financial stimulus into the economy, as expectations rise that the GOP may lose control of Washington.

The rally lost some momentum Wednesday afternoon after the U.S. Capitol building went into lockdown as supporters of President Donald Trump broke through barricades and entered the building following clashes with police. Both houses of Congress abruptly went into recess, interrupting debate over the Electoral College vote that gave Joe Biden the presidency. Earlier, Trump riled up the crowd with his baseless claims of election fraud.

Most stocks were still higher after Democrats won one of the two runoff elections in Georgia that will determine which party controls the Senate. The second runoff was still too early to call. The S&P 500 was up 0.8% in afternoon trading, giving up about half of its gain from earlier. The Dow Jones Industrial Average was up 446 points, or 1.5%, at 30,839, as of 3:19 p.m. Eastern time.

The moves on Wall Street masked even bigger shifts happening underneath the surface as investors jockey to find the winners and losers of a Senate, White House and House of Representatives that may all soon be under Democratic control. The yield on the 10-year Treasury topped 1% for the first time since March, for example.

Big Tech stocks are also in the spotlight as investors shift away from the winners of the stay-at-home economy of the pandemic and rotate into companies whose profits would benefit most from a healthier economy. The Nasdaq composite, which is full of tech stocks, struggled for much of the morning and was flat after shedding modest early gains.

“This is just a market taking into account the likely outcomes from what happened in the election,” said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. “You have the recognition that the Democratic agenda is probably much more mainstream than people feared.”

A report on Wednesday underscored how fragile the economy is because of the worsening pandemic. Payroll processor ADP said private employers cut 123,000 more jobs last month than they added. It was much worse than economists’ expectations for job growth, and it was the weakest such report since April. The Labor Department’s more comprehensive report on jobs growth is due on Friday.

The Russell 2000 index of small-cap stocks nevertheless surged 3.3%, much more than the rest of the market. Another round of stimulus for the economy could benefit smaller companies in particular because they tend to have smaller financial cushions to survive long-term downturns.

Stocks of companies that would profit from increased spending on infrastructure were also helping to lead the market. United Rentals, whose catalog includes forklifts and light towers for construction sites, jumped 9% for one of the bigger gains in the S&P 500. Vulcan Materials, which sells asphalt and other construction materials, rose 8.2%.

“More fiscal support forthcoming likely means a stronger economic recovery and markets are pricing that in,” said Brian Levitt, global market strategist at Invesco. “Today is the recovery trade.”

Big spending plans for the economy could trigger not only stronger growth for the economy in the future but also heavier borrowing by the U.S. government and maybe even inflation. Those factors are helping to push up Treasury yields, and the yield on the 10-year Treasury rose to 1.04% from 0.94% late Tuesday.

The increase in yields, along with rising hopes for a strengthening economy, helped push banks higher. Financial stocks rose 4.4% for the biggest gain among the 11 sectors that make up the S&P 500. Zions Bancorporation jumped 11%, and KeyCorp gained 9.6%.

On the other end of the market was Big Tech. A Democratic controlled D.C. could mean tougher regulations are on the way for the group, which already has been facing increased scrutiny. Apple, the most valuable stock on Wall Street, said in a regulatory filing Tuesday that its board regularly reviews the company’s antitrust risks.

Several Big Tech stocks were lagging, including a 2.5% drop for Apple and a 2% fall for Facebook. These are among the biggest companies on Wall Street, which gives their stock movements outsized weight on the S&P 500 and other indexes.

The rise in Treasury yields also undercuts one of the underpinnings for some tech stocks and other high fliers that breezed through the pandemic.

When bonds are paying more in interest, it can pull some investors away from stocks. And that can hit companies in particular that trade at relatively expensive prices compared with their earnings. That could accelerate the rotation that has already begun by investors out of tech stocks and into beaten-down, cheaper areas of the stock market.

The rise in yields also adds pressure on the Federal Reserve, which has kept short-term interest rates at record lows in hopes of goosing the economy.

“The ball will be in the Fed’s court next and the question becomes how are they going to react to this evolving political backdrop,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

Democratic control of Washington could also lead to higher tax rates for businesses, which would crimp profits and add downward pressure on stocks broadly.

Analysts, though, also caution that no big changes may ultimately come from Washington given how slim the Democratic majority may be. If the party ultimately wins the second runoff for a Georgia Senate seat, they would have a 50-50 split in the Senate with Democratic Vice President-elect Kamala Harris providing a tie-breaking vote.

“Investors that have concerns today should probably check some of those concerns,” Levitt said. “The first year of this administration is going to be about providing as much support as possible to an economic recovery.”

European markets ended broadly higher, and Asian markets ended mixed.

 

[bigdog]

Wall Street Keeps Rising on Democratic Wins, Stimulus Hopes
Wall Street rallied to more record highs as investors hope the Democratic sweep of Washington means more stimulus is on the way for the economy.

Major U.S. stock indexes surged to all-time highs Thursday as Wall Street bet that the Democratic sweep of Washington means more stimulus is on the way for the economy.

The S&P 500 rose 1.5% to a record high in the first day of trading after Congress confirmed Joe Biden as the winner of the presidential election and Jon Ossoff was declared the winner of a Georgia runoff election, tipping control of the Senate to Democrats. The Dow Jones Industrial Average, Nasdaq composite and Russell 2000 index of smaller companies also notched new highs.

The rally was broad-based, though the S&P 500's technology sector notched the biggest gain, recouping losses after a pullback a day earlier. Treasury yields continued to rise, reflecting expectations that higher government spending will drive up inflation.

Investors and analysts are anticipating the Biden administration and a Democrat-controlled Congress will try to deliver $2,000 checks to most Americans, increase spending on infrastructure and take other measures to nurse the economy amid the worsening pandemic.

“The expectations are shifting to more stimulus, sooner, which is generally better for the economy and better for the market as well,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management.

The S&P 500 rose 55.65 points to 3,803.79. The Dow gained 211.73 points, or 0.7%, to 31,041.13. The tech-heavy Nasdaq climbed 326.69 points, or 2.6%, to 13,067.48. The Russell 2000 picked up 38.96 points, or 1.9%, to 2,096.89.

Wall Street's latest rally adds to gains from a day before, when stocks climbed after Raphael Warnock was declared the winner of the first of two Georgia runoffs and expectations built for a Democratically controlled D.C. Markets gave up much of their early gains on Wednesday, though, after loyalists to President Donald Trump stormed the Capitol as lawmakers were confirming his loss.

Investors have largely looked past the current political ugliness — and the pandemic 's acceleration around the world — and are focused on prospects for an improving economy in the future. Beyond hopes for increased stimulus for the economy from Washington, much of Wall Street expects the rollout of COVID-19 vaccines that’s just begun to help daily life around the world get closer to normal. That has investors anticipating a explosive return to growth for corporate profits later this year.

The market “is really looking through to year-end at what looks like a really solid year for earnings growth,” Haworth said.

Trump may have backed up investors’ expectations that the turmoil engulfing Washington may be only temporary. Shortly after Congress certified his loss, he issued a statement saying there will be an “ orderly transition on January 20th.” Trump still claims falsely that he won, having appeared to excuse the violent occupation of the Capitol by his supporters. Earlier, Trump riled up the crowd with baseless claims of election fraud.

Even so, the market could be in for more choppy trading in the days before Biden takes over as president.

“We still see this as a market on edge with volatility higher than normal,” Haworth said. "We think there’s a lot of risk out there. Part of that is certainly political transition, part of it is certainly the virus and virus uncertainty.”

A report on Thursday showed that the economy remains fragile because of the worsening pandemic, but it wasn’t quite as bad as economists expected. Slightly fewer U.S. workers applied for unemployment benefits last week than the week before, at 787,000, when economists were forecasting an increase.

ASX 200 poised to rise.

The Australian share market looks set to push higher on Friday. According to the latest SPI futures, the ASX 200 is poised to open the day 11 points or 0.2% higher. This follows another very strong night of trade on Wall Street which sees the Dow Jones close up 0.69%, the S&P 500 up 1.48%, and the Nasdaq up a sizeable 2.56% to a record high.

https://www.usnews.com/news/busines...res-track-wall-st-rally-on-hopes-for-stimulus

Wall Street Keeps Rising on Democratic Wins, Stimulus Hopes
Wall Street rallied to more record highs as investors hope the Democratic sweep of Washington means more stimulus is on the way for the economy.
By Associated Press, Wire Service Content Jan. 7, 2021, at 4:43 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Major U.S. stock indexes surged to all-time highs Thursday as Wall Street bet that the Democratic sweep of Washington means more stimulus is on the way for the economy.

The S&P 500 rose 1.5% to a record high in the first day of trading after Congress confirmed Joe Biden as the winner of the presidential election and Jon Ossoff was declared the winner of a Georgia runoff election, tipping control of the Senate to Democrats. The Dow Jones Industrial Average, Nasdaq composite and Russell 2000 index of smaller companies also notched new highs.

The rally was broad-based, though the S&P 500's technology sector notched the biggest gain, recouping losses after a pullback a day earlier. Treasury yields continued to rise, reflecting expectations that higher government spending will drive up inflation.

Investors and analysts are anticipating the Biden administration and a Democrat-controlled Congress will try to deliver $2,000 checks to most Americans, increase spending on infrastructure and take other measures to nurse the economy amid the worsening pandemic.

“The expectations are shifting to more stimulus, sooner, which is generally better for the economy and better for the market as well,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management.

The S&P 500 rose 55.65 points to 3,803.79. The Dow gained 211.73 points, or 0.7%, to 31,041.13. The tech-heavy Nasdaq climbed 326.69 points, or 2.6%, to 13,067.48. The Russell 2000 picked up 38.96 points, or 1.9%, to 2,096.89.

Wall Street's latest rally adds to gains from a day before, when stocks climbed after Raphael Warnock was declared the winner of the first of two Georgia runoffs and expectations built for a Democratically controlled D.C. Markets gave up much of their early gains on Wednesday, though, after loyalists to President Donald Trump stormed the Capitol as lawmakers were confirming his loss.

Investors have largely looked past the current political ugliness — and the pandemic 's acceleration around the world — and are focused on prospects for an improving economy in the future. Beyond hopes for increased stimulus for the economy from Washington, much of Wall Street expects the rollout of COVID-19 vaccines that’s just begun to help daily life around the world get closer to normal. That has investors anticipating a explosive return to growth for corporate profits later this year.

The market “is really looking through to year-end at what looks like a really solid year for earnings growth,” Haworth said.

Trump may have backed up investors’ expectations that the turmoil engulfing Washington may be only temporary. Shortly after Congress certified his loss, he issued a statement saying there will be an “ orderly transition on January 20th.” Trump still claims falsely that he won, having appeared to excuse the violent occupation of the Capitol by his supporters. Earlier, Trump riled up the crowd with baseless claims of election fraud.

Even so, the market could be in for more choppy trading in the days before Biden takes over as president.

“We still see this as a market on edge with volatility higher than normal,” Haworth said. "We think there’s a lot of risk out there. Part of that is certainly political transition, part of it is certainly the virus and virus uncertainty.”

A report on Thursday showed that the economy remains fragile because of the worsening pandemic, but it wasn’t quite as bad as economists expected. Slightly fewer U.S. workers applied for unemployment benefits last week than the week before, at 787,000, when economists were forecasting an increase.

Another more encouraging report said that growth in U.S. services industries accelerated last month and was stronger than economists expected.

Anticipation of more stimulus for the economy, increased U.S. government borrowing and perhaps inflation across the country have been pushing Treasury yields to levels not seen since early in the pandemic. The 10-year yield rose to 1.08% from 1.02% late Wednesday, after topping the 1% level for the first time since March.

Higher interest rates allow banks to make bigger profits from making loans, as would a stronger economy, and financial stocks were again among the market’s leaders. JPMorgan Chase rose 3.3%, and Bank of America gained 2.2%.

Tech stocks also rose, recovering from weakness a day earlier on worries that a Democratically run Washington would target them with tougher regulations. Facebook rose 2.1% after losing 2.8% Wednesday.

Hong Kong’s Hang Seng index slipped 0.5% after the New York Stock Exchange reversed again and said it would delist three big Chinese telecoms companies following an earlier order from the White House. The companies are heavyweights in the Hang Seng.

Shares in those companies and Internet companies affected by an expanded ban on transactions with some Chinese companies’ apps fell sharply “because of the actions of Donald Trump, trying to hurt China,” said Francis Lun, chief executive officer for Geo Securities in Hong Kong.

“Saner heads, people with better reasoning, hope that when Biden becomes president he will try to correct the mistakes that Donald Trump has done in damaging the U.S.-China relationship,” Lun said.

 

[bigdog]

Stock Market Shakes off a Slump to Reach More Record Highs
Stocks shook off a midday slump and powered higher in the afternoon, bringing major indexes to record highs and leaving the market with solid gains for the first week of the year.

Wall Street notched more milestones Friday as the market largely shrugged off another discouraging jobs report amid expectations that the incoming Biden administration will pump more aid into the pandemic-ravaged economy.

The S&P 500 rose 0.5%, its second straight record high, after bouncing back from a midday slump that knocked it down 0.5%. The Dow Jones Industrial Average and Nasdaq composite all closed at new highs.

Technology stocks and companies that rely on consumer spending helped lift the market, outweighing losses in financial, industrial and other sectors. The gains pushed the S&P 500 to its second weekly gain in a row. Treasury yields continued to move higher, fueled by expectations of increased federal borrowing, more stimulus for the economy and the possibility of higher inflation.

The Labor Department said Friday employers cut jobs for the first time since April as the worsening pandemic led more businesses to shut down. But Wall Street remains hopeful that Washington will come through with more badly needed support for American workers and businesses following President-elect Joe Biden's inauguration.

“There are still close to 4 million people who have been long-term unemployed, which could threaten growth in the next couple of months,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “The market continues to slowly grind higher because (investors) are expecting additional stimulus when the new administration goes into effect later this month.”

The S&P 500 fell 20.89 points to 3,824.68. The Dow gained 56.84 points, or 0.2%, to 31,097.97. The Nasdaq climbed 134.50 points, or 1%, to 13,201.98.

President Donald Trump acknowledged late Thursday that he’ll be leaving the White House later this month. With Democrats soon in control of the presidency, Senate and House, investors are anticipating Washington will try to deliver even more stimulus for the struggling economy. That’s layering on top of expectations already built up for the economy to get healthier as coronavirus vaccines roll out in 2021.

The much weaker-than-expected report on the jobs market underscored the stakes for the economy, and analysts said it adds more pressure on Congress to act. Employers cut 140,000 more jobs last month than they added, the Labor Department said.

It was the first month of job losses for the economy since April, and it was much a worse reading than the modest growth that economists were expecting to see. Such pressure is rising on economies around the world as the pandemic accelerates.

Stocks of smaller companies fell. The Russell 2000 index of small-cap stocks dropped 5.23 points, or 0.2%, to 2,091.66. It ended the week with a 5.9% gain, well ahead of the 1.8% gain for the big stocks in the S&P 500.

https://www.usnews.com/news/busines...res-climb-on-wall-street-rally-stimulus-hopes

Stock Market Shakes off a Slump to Reach More Record Highs
Stocks shook off a midday slump and powered higher in the afternoon, bringing major indexes to record highs and leaving the market with solid gains for the first week of the year.
By Associated Press, Wire Service Content Jan. 8, 2021, at 4:58 p.m

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

Wall Street notched more milestones Friday as the market largely shrugged off another discouraging jobs report amid expectations that the incoming Biden administration will pump more aid into the pandemic-ravaged economy.

The S&P 500 rose 0.5%, its second straight record high, after bouncing back from a midday slump that knocked it down 0.5%. The Dow Jones Industrial Average and Nasdaq composite all closed at new highs.

Technology stocks and companies that rely on consumer spending helped lift the market, outweighing losses in financial, industrial and other sectors. The gains pushed the S&P 500 to its second weekly gain in a row. Treasury yields continued to move higher, fueled by expectations of increased federal borrowing, more stimulus for the economy and the possibility of higher inflation.

The Labor Department said Friday employers cut jobs for the first time since April as the worsening pandemic led more businesses to shut down. But Wall Street remains hopeful that Washington will come through with more badly needed support for American workers and businesses following President-elect Joe Biden's inauguration.

“There are still close to 4 million people who have been long-term unemployed, which could threaten growth in the next couple of months,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “The market continues to slowly grind higher because (investors) are expecting additional stimulus when the new administration goes into effect later this month.”

The S&P 500 fell 20.89 points to 3,824.68. The Dow gained 56.84 points, or 0.2%, to 31,097.97. The Nasdaq climbed 134.50 points, or 1%, to 13,201.98.

President Donald Trump acknowledged late Thursday that he’ll be leaving the White House later this month. With Democrats soon in control of the presidency, Senate and House, investors are anticipating Washington will try to deliver even more stimulus for the struggling economy. That’s layering on top of expectations already built up for the economy to get healthier as coronavirus vaccines roll out in 2021.

The much weaker-than-expected report on the jobs market underscored the stakes for the economy, and analysts said it adds more pressure on Congress to act. Employers cut 140,000 more jobs last month than they added, the Labor Department said.

It was the first month of job losses for the economy since April, and it was much a worse reading than the modest growth that economists were expecting to see. Such pressure is rising on economies around the world as the pandemic accelerates.

Treasury yields zigzagged following the release of the jobs report, but they remain on an upward trend. The yield on the 10-year Treasury rose to 1.12%. That’s up from 1.05% late Thursday and 0.90% early this week.

Stocks of smaller companies fell. The Russell 2000 index of small-cap stocks dropped 5.23 points, or 0.2%, to 2,091.66. It ended the week with a 5.9% gain, well ahead of the 1.8% gain for the big stocks in the S&P 500.

Smaller stocks tend to rise and fall more than their bigger rivals with expectations for the economy’s strength. And many investors are expecting Washington to soon try to send bigger cash payments to most Americans, spend more on infrastructure and provide other support for the struggling economy.

Vaccine distribution is ramping up, but will still likely take many months while people continue to struggle with unemployment, said Jack Manley, global market strategist at J.P. Morgan Asset Management.

“That's why we're excited about what we might see from a fiscal perspective,” he said. “You’re going to need something to shore up those people.”

The expectations began building shortly after November’s elections, and they accelerated this week after Democrats won two Georgia runoff elections for the Senate. They will give Democrats a majority in the Senate, with Vice President-elect Kamala Harris providing a tie-breaking vote amid a 50-50 split with Republicans. Democrats already controlled the House, and Democrat Joe Biden is set to take the presidential oath of office on Jan. 20.

Another encouraging thing for many investors is that Democrats will have only a thin majority in the Senate. In the optimistic case for Wall Street, that could give them enough clout to push through more stimulus for the economy but not enough to raise tax rates sharply and toughen up regulations so much that they significantly damage profits for companies.

Financial stocks gave up some of their big gains from earlier in the week, which were triggered by expectations for a strengthening economy and bigger profits from making loans at higher interest rates. Bank of America fell 1%.

On the other end was Tesla, which climbed 7.8% for the biggest gain in the S&P 500. The auto maker surged more than 740% last year, and they're climbing more amid hopes that a Democratically run D.C. could encourage the use of more electric vehicles. The jump pushes Tesla's total market value past Facebook's, and it's now the fifth-largest stock in the S&P 500.

Japan’s Nikkei 225 rose 2.4%, its highest finish in more than 30 years. Stocks also rose in South Korea and Hong Kong. European markets ended higher.

 

[bigdog]

ASX 200 expected to rise.

The Australian share market looks set to start the week higher. According to the latest SPI futures, the ASX 200 is poised to open the week 7 points or 0.1% higher. This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.55%, and the Nasdaq jump 1% higher.

 

[bigdog]

Stocks slip as Wall Street takes a breather after 4-day run

Stocks pulled back on Wall Street Monday as markets around the world paused following record-setting runs.

The S&P 500 fell 0.7%, breaking a four-day winning streak. Tesla, Amazon, Apple and other big gainers over the past year led the way lower, even as financial, health care and energy stocks notched gains. Treasury yields continued to rise.

Analysts said a pullback was no surprise following the big rally recently for everything from stocks to bond yields to commodities amid a wave of optimism. With Democrats set to take control of Washington, investors expect Congress to try soon to deliver more stimulus to the economy through larger cash payments for Americans and other programs. That’s building on top of enthusiasm already built about a powerful economic recovery coming later this year as COVID-19 vaccines roll out.

The market managed to look past much of last week’s bad news, including the attack on the U.S. Capitol on Wednesday, surging virus cases, and a disappointing employment report, said Julian Emanuel, BTIG chief equity and derivatives strategist. That both speaks to the market’s resiliency and could signal a change in attitudes.

“The fact that the market shrugged all of this news off, it’s ushering in a more speculative stage in the bull market,” he said.

The S&P 500 dropped 25.07 points to 3,799.61. The Dow Jones Industrial Average fell 89.28 points, or 0.3%, to 31,008.69. The Nasdaq composite slid 165.54 points, or 1.3%, to 13,036.43. The three indexes set all-time highs on Friday.

The market’s record-setting run means stocks and other investments are even more expensive, leaving critics to say they’ve gone too high. One of the main ways professional investors gauge a stock’s value is by measuring its price against how much profit it made in the prior 12 months. Stocks in the S&P 500 are trading at roughly 29 times their earnings. That’s a much more expensive price tag than their average over the last decade of a little below 18, according to FactSet.

“Given where we are in terms of valuation, there’s not going to be tolerance for news that isn’t good,” Emanuel said.

At the same time, the worsening pandemic continues to slam the economy. U.S. employers cut more jobs last month than they added, for example, the first month of job losses since last spring. New, potentially more contagious strains of the coronavirus are helping the pandemic to tighten its grip on the economy around the world.

In the background, political uncertainty also continues to hang over markets. Democrats are pushing for the removal of President Donald Trump, who has less than two weeks left in his term, after his words helped incite a group of loyalists to storm the Capitol last week.

“The equity markets remain forward-looking and focused on what is to come beyond the next 10-15 days,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.


ASX 200 expected to rise.

It looks set to be a better day for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open 4 points higher this morning. This is despite a weak start to the week on Wall Street. On closing, the Dow Jones is down 0.29%, the S&P 500 has fallen 0.66%, and the Nasdaq has tumbled 1.25% lower.

https://apnews.com/article/joe-bide...rus-pandemic-9d76f22c51377a95706caa3a071c16ac

Stocks slip as Wall Street takes a breather after 4-day run

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA4 minutes ago



Stocks pulled back on Wall Street Monday as markets around the world paused following record-setting runs.

The S&P 500 fell 0.7%, breaking a four-day winning streak. Tesla, Amazon, Apple and other big gainers over the past year led the way lower, even as financial, health care and energy stocks notched gains. Treasury yields continued to rise.

Analysts said a pullback was no surprise following the big rally recently for everything from stocks to bond yields to commodities amid a wave of optimism. With Democrats set to take control of Washington, investors expect Congress to try soon to deliver more stimulus to the economy through larger cash payments for Americans and other programs. That’s building on top of enthusiasm already built about a powerful economic recovery coming later this year as COVID-19 vaccines roll out.

The market managed to look past much of last week’s bad news, including the attack on the U.S. Capitol on Wednesday, surging virus cases, and a disappointing employment report, said Julian Emanuel, BTIG chief equity and derivatives strategist. That both speaks to the market’s resiliency and could signal a change in attitudes.

“The fact that the market shrugged all of this news off, it’s ushering in a more speculative stage in the bull market,” he said.

The S&P 500 dropped 25.07 points to 3,799.61. The Dow Jones Industrial Average fell 89.28 points, or 0.3%, to 31,008.69. The Nasdaq composite slid 165.54 points, or 1.3%, to 13,036.43. The three indexes set all-time highs on Friday.

The market’s record-setting run means stocks and other investments are even more expensive, leaving critics to say they’ve gone too high. One of the main ways professional investors gauge a stock’s value is by measuring its price against how much profit it made in the prior 12 months. Stocks in the S&P 500 are trading at roughly 29 times their earnings. That’s a much more expensive price tag than their average over the last decade of a little below 18, according to FactSet.

“Given where we are in terms of valuation, there’s not going to be tolerance for news that isn’t good,” Emanuel said.

At the same time, the worsening pandemic continues to slam the economy. U.S. employers cut more jobs last month than they added, for example, the first month of job losses since last spring. New, potentially more contagious strains of the coronavirus are helping the pandemic to tighten its grip on the economy around the world.

In the background, political uncertainty also continues to hang over markets. Democrats are pushing for the removal of President Donald Trump, who has less than two weeks left in his term, after his words helped incite a group of loyalists to storm the Capitol last week.

“The equity markets remain forward-looking and focused on what is to come beyond the next 10-15 days,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

Shares of Twitter slid 6.4% for one of the largest losses in the S&P 500 after it banned Trump from his account and his 89 million followers. Twitter cited “the risk of further incitement of violence,” but the move has drawn a lot of anger from conservatives who may abandon the service and ask for more regulatory scrutiny of the company. Facebook fell 4% after it suspended Trump’s accounts.

Other areas of the market also lost momentum, but not by as much as social media stocks and Big Tech. Stocks of smaller companies fell, nudging the Russell 2000 index down 0.65 points, or less than 0.1%, to 2,091.01. It remains 5.9% higher for 2021 so far, more than quadruple the gain of the big stocks in the S&P 500. Investors have been rotating out of the winners of the stay-at-home pandemic economy and looking for potential winners of a recovering economy.

In the bond market, Treasury yields have been shooting higher, in part on expectations that the U.S. government is set to borrow a lot more money for stimulus programs. That has investors raising their expectations for economic growth and inflation. The yield on the 10-year Treasury climbed to 1.13% from 1.09% late Friday. It was just 0.89% at the end of 2020 after setting a record low during the year.

Higher long-term yields can put pressure on stock prices and make them look even more expensive. That’s because when bonds are paying investors more in interest to own them, they can pull buyers away from stocks. In general, higher interest rates make investors less willing to pay higher prices for stocks relative to their earnings.

Strategists at Morgan Stanley have been saying for months that bond yields may be set for a big rise, and they said in a report on Monday that stocks may have hit their peak for how much investors are willing to pay for each $1 of corporate earnings. That would put more pressure on companies to grow their earnings for their stock prices to rise further or even to hold steady.

Analysts expect strong profit growth to return for companies later this year as the economy recovers. But in upcoming weeks, when CEOs are scheduled to tell shareholders how much profit they made during the last three months of 2020, Wall Street expects to see a sharp drop. Analysts forecast S&P 500 companies to report a decline of nearly 9% in earnings per share from a year earlier, according to FactSet. If they’re right, it would be the third-worst drop since the summer of 2009.

European markets closed lower and Asian markets were mixed.