mcloudyn.png
Tuesday June 22nd, 2021 5:45AM

Stocks end another wobbly day lower as virus cases rise

By The Associated Press

Wall Street's losses mounted for the second straight day Tuesday as momentum slows on worries about rising virus counts and Washington's inability to deliver more aid to the economy.

The S&P 500 fell 0.3% after spending much of the day swinging between small gains and losses. Most of the stocks in the index fell, particularly banks, oil producers and other companies whose profits tend to track the strength of the economy. Those losses outweighed gains in technology stocks and companies that rely on consumer spending. Traders also welcomed news that AMD has agreed to buy fellow chipmaker Xilinx for $35 billion.

The market’s latest pullback, which follows the S&P 500's worst day in a month, cuts further into what had been a solid rebound this month after heavy selling in September snapped a five-month winning streak. Just two weeks ago, the S&P 500 was holding on to 4.4% gain for the month. It’s now on track for a gain of just 0.8%.

“Even though we had a really nice runup for a few months, we had been concerned there would be some volatility coming in pre-election, and it’s just a function of the huge uncertainty level,” said Lisa Erickson, head of the Traditional Investment Group at U.S Bank Wealth Management.

The S&P 500 fell 10.29 points to 3,390.68. The Dow Jones Industrial Average lost 222.19 points, or 0.8%, to 27,463.19. The Nasdaq composite rose 72.41 points, or 0.6%, to 11,431.35.

Caution continues to hang over markets. Coronavirus counts keep climbing at a troubling rate across much of the United States and Europe. The worry is that could lead to the return of lockdowns aimed at slowing the pandemic’s spread, which could further choke off the improvements the economy showed during the summer.

The U.S. economy’s momentum has already slowed following the expiration of supplemental benefits for laid-off workers and other support that Congress approved for the economy earlier this year.

Reports on the economy released Tuesday were mixed. Orders for big-ticket manufactured goods rose 1.9% in September, an acceleration from August’s 0.4% growth and better than economists expected but well below July’s 11.8%. Consumer confidence also weakened a bit in October, when economists were expecting it to hold steady.

“The market was really set up for any sort of a negative surprise that could potentially impact it,” said Scott Knapp, chief market strategist at CUNA Mutual Group.

Investors have been clamoring for Congress to deliver another round of stimulus for the economy, but they’re increasingly acknowledging it won’t happen anytime soon.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their negotiations on a deal Monday afternoon, and a Pelosi spokesman said she’s optimistic an agreement can happen before Election Day next week. But even if a deal is reached, it could wither in the face of resistance from Republicans controlling the Senate. After confirming the latest Supreme Court justice, the Senate is unlikely to return to session until Nov. 9.

“The market has accepted the odds of a stimulus package before the election and even before the end of the year have gone down dramatically,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

Wall Street's caution is also apparent in how it's reacting to corporate profit reports. Through the first two weeks of earnings season, companies that reported better results than expected have not been getting the typical pop in their stock price the day after.

“Companies that are beating expectations are not being rewarded to the degree that companies that miss expectations are being punished,” Knapp said. “That’s going to be the case when you have valuations this high."

The parade of companies reporting better profits than expected for the last quarter continued to grow Tuesday, helping to steady the market somewhat. Merck, Invesco and Laboratory Corp. of America were among the roughly two dozen companies in the S&P 500 reporting earnings for the summer that topped analysts’ expectations.

F5 Networks climbed 8.5% for one of the biggest gains in the S&P 500 after it reported better earnings than expected. But 3M fell 3.1% despite likewise reporting stronger results than forecast.

Caterpillar slid 3.2% after reporting stronger earnings than expected, while Eli Lilly slumped 6.9% after its profit report fell short of Wall Street's forecast.

This is the busiest week of earnings reporting season, and Microsoft is the next big company on the schedule after trading ends Tuesday.

Xilinx jumped 8.6% for the biggest gain in the S&P 500 following the announcement of its all-stock acquisition by AMD.

In another sign of increased caution, Treasury yields retrenched again. The yield on the 10-year Treasury dipped to 0.77% from 0.81% late Monday.

European stock markets fell, and Asian markets ended mixed.

___

AP Business Writer Elaine Kurtenbach contributed.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Supreme Court ruling spurs Wisconsin to get early votes in
With just a week to go until Election Day and 320,000 outstanding absentee ballots in hotly contested battleground Wisconsin, the push is on to get all ballots returned
4:27PM ( 6 minutes ago )
The Latest: Melania Trump makes 1st solo 2020 campaign trip
Melania Trump is slamming Joe Biden, Democrats and the media as she campaigns for her husband in Pennsylvania
4:11PM ( 22 minutes ago )
Virus pushes twin cities El Paso and Juarez to the brink
A record surge in coronavirus cases has pushed hospitals to the brink in the border cities of El Paso and Ciudad Juarez, confronting health officials in Texas and Mexico with twin disasters in the metropolitan area of 3 million people
4:10PM ( 24 minutes ago )
Associated Press (AP)
Stop the music! Chorus of artists tell Trump to tune it down
The presidential campaign season has brought an unprecedented onslaught of angry musicians who say President Donald Trump can't always get what he wants
3:41PM ( 52 minutes ago )
Woman injured in police shooting says cops let boyfriend die
A Black woman injured in a police shooting in suburban Chicago says she begged officers to help her boyfriend, who was also shot and eventually died
3:18PM ( 1 hour ago )
Worst place, worst time: Trump faces virus spike in Midwest
The coronavirus is getting worse in states that President Donald Trump needs the most
3:10PM ( 1 hour ago )
AP National News
Push is on in Wisconsin to return 320K outstanding ballots
With just a week to go until Election Day and 320,000 outstanding absentee ballots in hotly contested battleground Wisconsin, the push is on to get all ballots returned
1:40PM ( 2 hours ago )
A look at artists who've objected to Trump using their songs
Dozens of artists have objected to Donald Trump using their music in his two presidential campaigns
1:30PM ( 3 hours ago )
Hurricane warning for New Orleans as Zeta swirls over Mexico
Gulf Coast residents are steeling themselves for yet another hurricane
1:26PM ( 3 hours ago )
AP Online National News
The Latest: U.N. cancels meetings after reported virus cases
The United Nations canceled all in-person meetings after a U.N. member nation reported five coronavirus cases among its staff
3:43PM ( 51 minutes ago )
The Latest: Biden says Trump turned 'crisis into a tragedy'
Joe Biden is telling Americans to “clear the decks for action” on everything from the coronavirus pandemic to the economy if he is elected president
2:56PM ( 1 hour ago )
Collins votes against Barrett, heads home to save Senate job
Republican Sen. Susan Collins of Maine is back on the campaign trail after another controversial vote on another of President Donald Trump's Supreme Court nominees
2:51PM ( 1 hour ago )
AP Online Headlines - Washington
Medicare finalizing coverage policy for coronavirus vaccine
A senior Trump administration official says Medicare will cover the yet-to-be approved coronavirus vaccine free for older people under a policy change expected to be announced soon
12:46PM ( 3 hours ago )
The Latest: Mask-less Pope Francis noticed by commission
The decision by Pope Francis to forgo wearing a mask has been noticed by a member of the Vatican’s coronavirus commission
11:50AM ( 4 hours ago )
The Latest: Czech Republic average cases double in 2 weeks
The Czech government is asking the Parliament to approve its plan to extend a state of emergency it declared a month until Dec 3
10:37AM ( 5 hours ago )
AP Online Congress News
Strong sales of drugs, vaccines, propel Merck in 3Q
Drugmaker Merck, bouncing back from a $1.6 billion hit from the coronavirus pandemic in the second quarter, boosted its third-quarter profit by 55% and blew past Wall Street expectations
3:08PM ( 1 hour ago )
T-Mobile offers up yet another TV streaming service
Yet another service provider is jumping into the TV streaming wars
3:05PM ( 1 hour ago )
Insider Q&A: Google's Annie Jean-Baptiste on inclusion
As the head of product inclusion at Google, Annie Jean-Baptiste works to help ensure that the company’s products -- from photos to search to everything else -- are built with everyone in mind
2:15PM ( 2 hours ago )
AP Business
Stocks are off to a wobbly start as hopes for virus aid fade
Stocks are wobbling in early trading on Wall Street as hopes for a pre-election economic stimulus package slipped further away and as virus cases continued to increase
9:46AM ( 6 hours ago )
September factory orders up 1.9%, economists see risks ahead
Orders to U.S. factories for big-ticket manufactured goods rose a better-than-expected 1.9% in September with a key category that tracks business investment showing a solid gain as well
9:41AM ( 6 hours ago )
UK judge to rule Nov 2 on Depp's libel suit against tabloid
A British judge will rule next week on whether Johnny Depp was libelled by a tabloid newspaper that branded him a wife-beater
9:24AM ( 7 hours ago )
AP Business - Corporate News
Consumer confidence dips to 100.9 as virus spreads in US
U.S. consumer confidence dipped slightly in October as coronavirus cases continue to rise across the country
10:36AM ( 6 hours ago )
US consumer confidence dips slightly in October to 100.9
U.S. consumer confidence dipped slightly in October as coronavirus cases continue to rise across the country
10:15AM ( 6 hours ago )
Wall Street steadies itself a day after worst loss in weeks
U.S. stocks are drifting Tuesday, as momentum slows a day after Wall Street slumped to its worst loss in a month on worries about rising virus counts and Washington’s inability to deliver more aid to the economy
10:13AM ( 6 hours ago )
AP Business - Economy
US stocks tumble toward worst day in a month amid virus woes
Stocks are slumping in afternoon trading on Wall Street Monday and deepening last week’s losses
3:08PM ( 1 day ago )
Turkish lira drops to record low over US sanction threat
The Turkish currency has fallen to an all-time low against the U.S. dollar after President Recep Tayyip Erdogan challenged the United States to slap sanctions over his government’s decision to test its Russian-made air defense system
1:39PM ( 1 day ago )
Wall Street slumps again as coronavirus counts keep climbing
Stocks are falling in early trading on Wall Street Monday and deepening last week’s losses
10:56AM ( 1 day ago )
AP Business - Financial Markets
The Latest: France ponders new restrictions as cases soar
France’s government is holding emergency virus meetings and warning of possible new lockdowns, as hospitals fill up with new COVID patients and doctors plead for backup
5:09AM ( 11 hours ago )
California braces for more fire danger from winds
California is bracing for another round of fire danger from gusts even as crews battle two southern blazes that have left more than 100,000 under evacuation orders
1:52AM ( 14 hours ago )
Utility says its equipment may have sparked California blaze
Southern California Edison says its equipment may have sparked a Southern California wildfire that has prompted evacuation orders for more than 90,000 people and critically injured two firefighters
11:49PM ( 16 hours ago )
AP Business - Industries
The Latest: Biden adding Iowa, Wisconsin to travel itinerary
Democrat Joe Biden says he’s adding Iowa and Wisconsin to his travel itinerary for the final week before Election Day, but insists he’s not overconfident about his prospects of unseating President Donald Trump
4:20PM ( 1 day ago )
The Latest: Trump says great winter ahead, not 'dark winter'
President Donald Trump is downplaying his opponent’s concerns about the surge in coronavirus cases as he campaigns in Pennsylvania
2:56PM ( 1 day ago )
The Latest: Trump holds 1st of 3 rallies in key Pennsylvania
President Donald Trump has wrapped up the first of three campaign rallies in Pennsylvania, where he told supporters that he wanted to discuss an issue of “existential importance” as he focuses on former Vice President Joe Biden’s policies on energy
1:24PM ( 1 day ago )
AP Business - Utilities
Supreme Court ruling spurs Wisconsin to get early votes in
With just a week to go until Election Day and 320,000 outstanding absentee ballots in hotly contested battleground Wisconsin, the push is on to get all ballots returned
4:27PM ( 12 minutes ago )
Virus pushes twin cities El Paso and Juarez to the brink
A record surge in coronavirus cases has pushed hospitals to the brink in the border cities of El Paso and Ciudad Juarez, confronting health officials in Texas and Mexico with twin disasters in the metropolitan area of 3 million people
4:10PM ( 29 minutes ago )
The Latest: Positive test halts Cal basketball workouts
California’s men’s basketball team is pausing workouts after an unidentified player tested positive for COVID-19
4:05PM ( 34 minutes ago )
Philadelphia victim's kin: We sought ambulance, not police
A lawyer says the family of a Black man who was killed under more than a dozen police-fired rounds in Philadelphia had called for an ambulance to get him help with a mental health crisis, not for police intervention
4:04PM ( 34 minutes ago )
Wind a risk as California fires keep tens of thousands away
Crews are trying to beat back two out-of-control wildfires in Southern California that have kept tens of thousands of people out of their homes
4:01PM ( 37 minutes ago )