S&P 500, Dow set to snap six-day run; stimulus in focus
By Medha Singh and Devik Jain (Reuters) - The Dow and the S&P 500 pulled back slightly on Tuesday after a six-day run, with investors closely tracking progress in passing a proposed $1.9 trillion stimulus plan.
By Medha Singh and Devik Jain
(Reuters) - The Dow and the S&P 500 pulled back slightly on Tuesday after a six-day run, with investors closely tracking progress in passing a proposed $1.9 trillion stimulus plan.
The tech-heavy Nasdaq, on the other hand, hit an all-time high for the fifth consecutive session, supported by gains in Apple Inc and Netflix Inc.
The NYSE FANG+TM index, which includes the core FAANG group of stocks, rose 1.4% to an all-time high.
Largely upbeat corporate earnings so far along with monetary and fiscal support have powered the major U.S. stock indexes to record highs but analysts have cautioned against risks from new coronavirus variants and any glitches in vaccine rollouts.
"A six-day winning streak will give any reasonable investor a reason to pause," said William Herrmann, co-founder and managing partner at Wilshire Phoenix in New York City.
"But the backdrop is largely positive for stocks and I'm not sure there could be a better backdrop for risk assets in the near to intermediate term with monetary and fiscal stimulus and then the hope that the vaccine rollout goes out as planned."
The energy sector, among the sectors that led the recent rally, shed nearly 2%, while communication services added about 0.4%.
Last week's data showing slower-than-expected growth in the labor market underscored the need for more government aid to blunt the effects of the COVID-19 pandemic.
Democrats in the U.S. Senate continue to try to find a way to include a minimum wage increase in a comprehensive COVID-19 relief bill they aim to advance in the coming weeks, Senate Majority Leader Chuck Schumer said on Tuesday.
At 11:43 a.m. ET, the Dow Jones Industrial Average fell 25.58 points, or 0.08%, to 31,360.18 and the S&P 500 lost 4.70 points, or 0.12%, to 3,910.89. The Nasdaq Composite gained 28.65 points, or 0.20%, to 14,016.30.
The banking index shed about 0.4%, tracking a fall in U.S. Treasury yields.
Toymaker Mattel Inc rose about 1%, while telephone equipment maker Cisco Systems Inc slipped 0.8% ahead of their earnings after market close.
Analysts see fourth-quarter S&P earnings to gain 2.5%, a stark reversal from the 10.3% annual decline seen at the beginning of the year, per Refinitiv.
Gucci lipstick maker Coty Inc tumbled 17% as weak demand for makeup products wiped off millions off its quarterly revenue.
Take-Two Interactive Software Inc fell about 6% after the videogame publisher posted a drop in quarterly adjusted sales and shied away from announcing any new big releases.
Bitcoin fast approached the $50,000-mark as the afterglow of Elon Musk-led Tesla's investment in the cryptocurrency had investors reckoning it may become a mainstream asset class for both corporations and money managers.
Cryptocurrency miner Riot Blockchain and Marathon Patent Group jumped 6% and 8%, extending their sharp gains for the second day. Tesla's shares dropped about 2%.
Advancing issues matched decliners on the NYSE and outnumbered decliners by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 posted 30 new 52-week highs and no new low, while the Nasdaq recorded 498 new highs and 19 new lows.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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