S&P 500 end up slightly, tech-related shares underperform value
By Caroline Valetkevitch (Reuters) - The S&P 500 ended up slightly and the Nasdaq fell on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill
By Caroline Valetkevitch
(Reuters) - The S&P 500 ended up slightly and the Nasdaq fell on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill.
The Nasdaq, 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, while the Russell 1000 growth <.RLG> index slipped.
Similar rotations in recent years have not lasted very long, said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
"Part of the reason the S&P 500 has been held back is we're starting to see yet another rotation to value and away from growth," he said. "That tends to hold back the S&P because it's so dominated by big tech."
But, he said, at this point, "I'm looking at this more as a correction of growth than it is people abandoning stocks."
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.
Unofficially, the Dow Jones Industrial Average <.DJI> rose 359.4 points, or 1.31%, to 27,792.88, the S&P 500 <.SPX> gained 9.33 points, or 0.28%, to 3,360.61 and the Nasdaq Composite <.IXIC> dropped 42.63 points, or 0.39%, to 10,968.36.
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."
Energy <.SPNY> and industrials <.SPLRCI>, among the worst performers this year, gained, while technology <.SPLRCT> and communication services <.SPLRCL> fell.
(Graphic: Three-month spread between Russell 100 growth and value indexes https://fingfx.thomsonreuters.com/gfx/mkt/qzjvqwladvx/Pasted%20image%201597076191372.png)
Among individual movers, Eastman Kodak Co
(Additional reporting by Ambar Warrick and Medha Singh in Bengaluru, editing by Uttaresh.V and Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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