S&P 500 closes down, snapping four-day rally

By Stephen Culp (Reuters) - The S&P 500 lost ground on Thursday as investors took profits in advance of Friday's jobs report, ending a four-day rally driven by rising economic sentiment.

Reuters June 05, 2020 02:05:32 IST
S&P 500 closes down, snapping four-day rally

SP 500 closes down snapping fourday rally

By Stephen Culp

(Reuters) - The S&P 500 lost ground on Thursday as investors took profits in advance of Friday's jobs report, ending a four-day rally driven by rising economic sentiment.

The Nasdaq joined the S&P 500 in negative territory, while the blue-chip Dow posted a nominal gain.

"We were pretty overvalued going into this week," said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance, Charlotte, NC. "It's not surprising to see a pullback."

The market has shown remarkable resilience since its late March plunge, and the Nasdaq, S&P 500 and Dow remain within 3%, 9% and 12% of their respective record highs reached in February.

"This market has gone up so far so fast there's a lot of people saying, 'I'm going to take a little profit,'" said Jim Paulson, chief investment strategist at The Leuthold Group in Minneapolis.

Economic data showed the number of Americans filing for unemployment benefits dipped below 2 million for the first time since mid-March, and plummeting international commerce resulted in a net widening of the U.S. trade gap.

Friday's much-anticipated jobs report from the Labor Department is expected to show the U.S. unemployment rate sky-rocketing to a historic 19.7%.

Violent protests overnight against the death of George Floyd appeared to abate as prosecutors brought new charges against the officers implicated in the killing.

The European Central Bank approved a stimulus package that surpassed expectations, nearly doubling the size of its Pandemic Emergency Purchase Plan to 1.35 trillion Euros.

Its American counterpart, the U.S. Federal Reserve, is due to meet next week for its two-day policy meeting.

Unofficially, the Dow Jones Industrial Average <.DJI> rose 0.04% to end at 26,281.61 points, while the S&P 500 <.SPX> lost 0.34% to 3,112.33. The Nasdaq Composite <.IXIC> dropped 0.69%, to 9,615.81.

American Airlines Group Inc announced it would beef up its flight schedule in July to 55% of its year-ago capacity as the U.S. economy reopens, sending its shares soaring.

The hard-hit ARCA Airline index <.XAL> also jumped on the news.

Global online commerce platform EBay Inc advanced after raising current quarter forecasts due to a surge in customer orders.

The Department of Justice gave anti-trust approval for Charles Schwab Corp's purchase of TD Ameritrade Holding Corp .

Shares of J.M. Smucker Co fell after the packaged food company forecast a decline in full-year sales.

(Reporting by Stephen Culp; additonal reporting by Sinead Carew; Editing by Cynthia Osterman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

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

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

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.