Dow, S&P 500 up; tech-related shares underperform value
By Caroline Valetkevitch (Reuters) - The S&P 500 and Dow rose on Monday, as investors rotated into value stocks from heavyweight tech-related names while they awaited news on progress in a fiscal support bill for the country's battered economy. The Nasdaq , which hit a record high every day of last week, was dragged lower by Microsoft Corp , Amazon.com Inc and Facebook Inc
By Caroline Valetkevitch
(Reuters) - The S&P 500 and Dow rose on Monday, as investors rotated into value stocks from heavyweight tech-related names while they awaited news on progress in a fiscal support bill for the country's battered economy.
The Nasdaq <.IXIC>, which hit a record high every day of last week, was dragged lower by Microsoft Corp
Value stocks, which tend to outperform growth coming out of a recession, have gotten a lift in recent days. The Russell 1000 value <.RLV> index rose 0.9% on Monday, while the Russell 1000 growth <.RLG> index slipped 0.6%.
Similar rotations in recent years have not lasted very long, said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
So, "I'm looking at this more of a correction in growth stocks as opposed to just a correction" in the market.
Bets on a potential coronavirus vaccine, historic fiscal and monetary support, and more recently, a better-than-expected second-quarter earnings season have brought the S&P 500 close to its February record closing high.
The Dow Jones Industrial Average <.DJI> rose 352.34 points, or 1.28%, to 27,785.82, the S&P 500 <.SPX> gained 8.95 points, or 0.27%, to 3,360.23 and the Nasdaq Composite <.IXIC> dropped 39.74 points, or 0.36%, to 10,971.24.
Providing some support, U.S. President Donald Trump signed executive orders that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week.
U.S. Treasury Secretary Steven Mnuchin, in an interview to CNBC on Monday, said the Trump administration and Congress could reach an agreement as soon as this week if Democrats are "reasonable."
(Graphic: Three-month spread between Russell 100 growth and value indexes https://fingfx.thomsonreuters.com/gfx/mkt/qzjvqwladvx/Pasted%20image%201597076191372.png)
Energy <.SPNY> and industrials <.SPLRCI>, among the worst performers this year, led gains among major S&P sectors. Technology <.SPLRCT> and communication services <.SPLRCL> fell.
Among individual movers, Eastman Kodak Co
Advancing issues outnumbered declining ones on the NYSE by a 2.51-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 101 new highs and 10 new lows.
(Additional reporting by Ambar Warrick and Medha Singh in Bengaluru, additional reporting by Chuck Mikolajczak; editing by Uttaresh.V and Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.