S&P 500 opens lower pressured by slumping energy shares
Aug 23 2020
That remark thumped the S&P 500 from another intraday record set on Wednesday. However, its market cap fell below the 2-trillion-dollar mark at the close as the shares eked out a modest gain of 0.13 percent, well off intraday highs.
Looking back at past instances when the benchmark index broke even following a bear market, the S&P 500 has historically added another 4.5 percent over the ensuing six months, with the next peak arriving after climbing 71 percent on average.
At 10:06 a.m. ET, the Dow Jones Industrial Average .DJI was up 65.61 points, or 0.24%, at 27,805.34, the S&P 500 .SPX was up 2.98 points, or 0.09%, at 3,388.49.
The Nasdaq composite picked up 118.49 points, or 1.1%, to 11,264.95. Federal Reserve minutes released on Wednesday signaled tempered optimism about growth in the second half of 2020, with policy makers noting that the health crisis would "weigh heavily" on activity.
"The Fed minutes brought a reality check that they're seeing things out there (that) they're concerned about".
Several Fed policymakers said they may need to ease monetary policy to help get the economy through the coronaviruspandemic.
In bonds, the yield on the benchmark 10-year U.S. Treasury ticked lower to 0.627%, from 0.644% Thursday. The industry has sustained stock market momentum, despite concern over lofty valuations. But it's slowed recently after roaring back from a terrifying plummet of almost 34% in February and March.
The discouraging reports helped send almost two out of every three stocks in the S&P 500 lower.
"If U.S. -China plays out as a war of words, rather than actions, then the market can shrug it off", said Edward Park, deputy chief investment officer at Brooks Macdonald.
Asian markets were also weak. Democrats and Republicans have been stuck at an impasse and sniping back and forth, but a GOP senator said Tuesday that Senate Republican leaders are preparing a slimmed-down coronavirus relief package. Stocks were down Friday morning ahead of President Donald Trump's news conference on China.
USA -listed shares of BioNTech (O:) jumped 8.1%. More than 93 percent of the earnings reports are in, and the index is on pace for a roughly 33 percent drop from the prior year.
Target jumped 12.7% for the biggest gain in the S&P 500 after it reported results for the spring that easily beat Wall Street's expectations.
Apple continued its run of dominance and rose 0.1%.
The major US averages rose earlier in the day as Apple became the first USA company in history to reach a market cap of $2 trillion. It's the latest accolade for Big Tech, which has thrived as the pandemic accelerates work-from-home and other tech-friendly trends.
The S&P 500 had reached an all-time high earlier in the week as prices recovered to their pre-pandemic levels.
The S&P 500 index was little changed on Thursday as gains in heavyweight tech stocks offset gloom over downbeat data that underlined the Federal Reserve's view of a hard road to recovery.
Britain's FTSE 100 (^FTSE) was down 1% in early trading, Germany's DAX (^GDAXI) lost 1.1% and France's CAC 40 (^FCHI) lost 1.3%. Japan's Nikkei 225 fell 1%, South Korea's Kospi sank 3.7% and Hong Kong's Hang Seng lost 1.5%.
The Canadian dollar traded for 75.78 cents U.S. compared with 75.79 cents United States on Thursday.
Brent crude, the global standard, lost 34 cents to $45.12 per barrel.