Wall Street headed for second straight weekly fall

By Medha Singh and Devik Jain (Reuters) - The S&P 500 was largely flat in afternoon trading on Friday towards the end of another volatile week as investors weighed Oracle's strong results against data that suggested a long and wobbly economic revival from a coronavirus-led downturn. Oracle's shares edged higher after hitting a record high earlier in the session as the cloud services company's earnings beat estimates and it signaled a recovery in client spending due to higher remote working-led demand. Trading in so-called 'stay-at-home winners' — Apple Inc , Amazon.com Inc , Microsoft Corp and Netflix Inc — were mixed but the mega-caps were set to fall between 5% and 8% for the week, extending losses from last Friday that brought Wall Street's rally to a screeching halt.

Reuters September 12, 2020 02:05:36 IST
Wall Street headed for second straight weekly fall

Wall Street headed for second straight weekly fall

By Medha Singh and Devik Jain

(Reuters) - The S&P 500 was largely flat in afternoon trading on Friday towards the end of another volatile week as investors weighed Oracle's strong results against data that suggested a long and wobbly economic revival from a coronavirus -led downturn.

Oracle's shares edged higher after hitting a record high earlier in the session as the cloud services company's earnings beat estimates and it signaled a recovery in client spending due to higher remote working-led demand.

Trading in so-called "stay-at-home winners" — Apple Inc , Amazon.com Inc , Microsoft Corp and Netflix Inc — were mixed but the mega-caps were set to fall between 5% and 8% for the week, extending losses from last Friday that brought Wall Street's rally to a screeching halt.

The S&P 500 was headed for the first back-to-back weekly decline since March as concerns about the massive build-up in call options tied to tech names exacerbated the selloff.

"We are seeing some rotation from the previous leaders into some of the laggards and it's a potentially encouraging sign that we're not just having a 'sell everything' moment like in March," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

Industrials <.SPLRCI> and financial <.SPSY> stocks provided the biggest boost to the benchmark index. Material <.SPLRCM> was the only S&P sector poised to end higher on the week.

"The upward trajectory is in play but it's just going to be much more of a volatile give-and-take relationship and it might cause some investors some pain on those pullbacks," Detrick said.

Many investors view the slump as a healthy consolidation after a stunning five-month rally in the S&P 500 that was powered by a narrow group of heavyweight tech names and scores of fiscal and monetary stimulus.

Meanwhile, latest data showed U.S. consumer prices increased solidly in August, but the labor market's slack is likely to keep a lid on inflation as the economy recovers from the COVID-19 recession. At 12:45 p.m. ET, the Dow Jones Industrial Average <.DJI> was up 96.22 points, or 0.35%, at 27,630.80 and the S&P 500 <.SPX> was down 2.59 points, or 0.08%, at 3,336.60. The Nasdaq Composite <.IXIC> was down 88.99 points, or 0.81%, at 10,830.60.

Exercise bike maker Peloton Interactive Inc climbed 1% as it reported forecast-beating quarterly revenue due to a surge in subscribers and increased demand for its fitness products during the pandemic.

Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.05-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and one new low, while the Nasdaq recorded 21 new highs and 20 new lows.

(Reporting by Medha Singh and Devik Jain in Bengaluru; editing by Uttaresh.V and Maju Samuel)

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

Updated Date:

TAGS:

also read

JPMorgan freezes donations to Republicans who contested 2020 election
Business

JPMorgan freezes donations to Republicans who contested 2020 election

By Pete Schroeder WASHINGTON (Reuters) - JPMorgan Chase & Co will resume making political donations to U.S. lawmakers but will not give to Republican members of Congress who voted to overturn President Joe Biden's election victory, according to an internal memo on Friday seen by Reuters. The bank was among many corporations that paused political giving following the deadly Jan

Square considers making bitcoin hardware wallet - Dorsey
Business

Square considers making bitcoin hardware wallet - Dorsey

(Reuters) - Fintech company Square Inc is considering making a hardware wallet for bitcoin, Chief Executive Officer Jack Dorsey said in a tweet https://twitter.com/jack/status/1400839179513339905 on Friday. As bitcoin and other crypto-currencies have gained in popularity, many companies have emerged to serve a growing need to protect these assets from online theft. Bitcoin wallets can be stored offline or online at cryptocurrency exchanges, venues where bitcoin can be bought and sold for traditional currencies or other virtual coins.

Critics still unhappy as EU clarifies revamped copyright rules
Business

Critics still unhappy as EU clarifies revamped copyright rules

By Foo Yun Chee BRUSSELS (Reuters) -The European Commission on Friday defined the scope of revised copyright rules adopted last year following criticism from governments, including France and Poland, but EU broadcasters and internet activists said there was a danger of censorship. The revamped copyright directive, the first overhaul in two decades, aimed to provide fair compensation for the bloc's $1 trillion creative industry and its 11.7 million employees. A central provision, Article 17, backed by the creative industry, would force Google-owned YouTube, Facebook's Instagram and other sharing platforms to install filters to prevent users from uploading copyrighted materials