pcloudy.png
Tuesday May 18th, 2021 7:30PM

Stocks slip amid investors’ tug of war between hope, fear

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks are edging lower Thursday as Wall Street’s tug of war continues between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future.

The S&P 500 fell 0.2% in afternoon trading after earlier flipping between small losses and gains. It follows up on a 1.2% slide from the day before, as the benchmark index backed away from its record of 3,626.91 set on Monday.

The Dow Jones Industrial Average was down 126 points, or 0.4%, at 29,311 as of 1:10 p.m. Eastern time, and the Nasdaq composite was 0.4% higher.

Wall Street’s huge November rally has slowed this week as fears about the economy buckling in the near term collide with hopes that stronger growth will arrive next year. A discouraging report on Thursday underscored the fears, showing that more U.S. workers filed for unemployment benefits last week than the week before. It was a worse number than economists expected and the first increase in five weeks.

With infections and hospitalizations on the rise across much of the country, governors and mayors are grudgingly issuing mask mandates, limiting the size of gatherings, banning indoor restaurant dining, closing gyms and restricting the hours and capacity of other businesses.

Investors worry the moves and the worsening pandemic that caused them will hurt corporate profits and shake confidence among consumers, keeping them hunkered at home. New York City’s announcement that it’s halting in-person learning at public schools helped send stocks on their late-day slide Wednesday.

Democrats and Republicans in Washington, meanwhile, are still stymied in their attempts to deliver another dose of financial support to workers and businesses. That has the specter of a bleak winter looming for both the health care system and economy.

Counterbalancing all those fears is hope that coming vaccines can control the pandemic and get the global economy back toward normal next year.

“The market is grappling with the push and pull of the progress with the vaccine track, which allows a window to when our economy can reopen, with the current reality of rising cases,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

University of Oxford scientists expect to report results from the late-stage trials of the COVID-19 vaccine they're developing with AstraZeneca by Christmas, a key researcher said Thursday.

Already this month, pharmaceutical companies have offered data suggesting other vaccines under development could be highly effective. Pfizer and BioNTech said Wednesday they plan to ask U.S. regulators within days to allow emergency use of their vaccine.

That had led to a resurgence of interest for stocks that stand to gain the most from a healthy, reopening economy. These were also among the stocks most beaten down by the stay-at-home economy created by the pandemic, such as travel-related businesses, banks and smaller companies.

Investors will likely need more clarity on the timing and impact of a vaccine in order to gain more confidence in the economic recovery, Northey said.

“We saw a sharp recovery to date, but now its beginning to plateau,” he said. “We're doing that as we head into a very important holiday shopping season.”

A majority of stocks in the S&P 500 were lower in Thursday afternoon trading.

On the winning side of the market was L Brands, the company behind Bath & Body Works and Victoria’s Secret. It jumped 15.5% after reporting profit for the latest quarter that blew past Wall Street's expectations.

Nvidia was one of the heavier weights on the S&P 500, falling 0.5%. That was despite reporting a stronger quarterly profit than analysts expected and offering a better-than-expected forecast for the current quarter. Analysts said investors may have been disappointed with some portions of the company’s forecast and noted that expectations have already built to the sky for the tech company. Its stock had surged 128.3% in 2020 through Wednesday.

European stock markets were weaker, with the French CAC 40 down 0.7% and Germany's DAX losing 0.9%. The FTSE 100 in London dropped 0.8%.

In Asia, markets were mixed. Japan's Nikkei 225 fell 0.4%, Hong Kong's Hang Seng lost 0.7% and South Korea's Kospi inched up by 0.1%. Stocks in Shanghai added 0.5%.

The yield on the 10-year Treasury dipped to 0.85% from 0.86% late Wednesday.

___

AP Business Writer Joe McDonald contributed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden could announce Cabinet picks as soon as next week
President-elect Joe Biden is moving quickly to fill out his administration and could name top Cabinet nominations as early as next week
1:58AM ( 1 hour ago )
EXPLAINER: Trump's election challenges falling flat in court
While President Donald Trump vows to press ahead with efforts to overturn the election, judges across the country have consistently swatted down his legal challenges
1:18AM ( 1 hour ago )
Trump tries to leverage power of office to subvert Biden win
President Donald Trump is trying to leverage the power of the Oval Office in an extraordinary attempt to block President-elect Joe Biden’s victory
1:09AM ( 2 hours ago )
Associated Press (AP)
Georgia residents, doctor, lawmaker helped in vaccine effort
SAVANNAH, Ga. (AP) — Savannah’s Dr. Paul Bradley, who in July dosed the first patient in biotechnology company Moderna’s U.S. phase 3 COVID-19 vaccine trial, on Monday celebrated the...
12:01AM ( 3 hours ago )
US, Taiwan step up economic cooperation in new dialogue
The U.S. and Taiwan are stepping up cooperation in a newly created economic dialogue, in another move from the outgoing Trump administration to increase official exchanges with the self-ruled island
12:00AM ( 3 hours ago )
The Latest: Japan's confirmed COVID-19 cases hit new record
Japans health ministry says the number of confirmed COVID-19 cases in Japan reached a record for the third day straight, at 2,418 cases
11:25PM ( 3 hours ago )
AP Business
Trump makes late-term bid to lower prescription drug costs
President Donald Trump's administration is trying to close out major unfinished business on lowering prescription drug costs
5:37PM ( 9 hours ago )
What does emergency use of a COVID-19 vaccine mean?
The first COVID-19 vaccines to be given in the U.S. are expected to get a green light from regulators under a process known as emergency use authorization
2:25PM ( 12 hours ago )
What does emergency use for a COVID-19 vaccine mean?
The first COVID-19 vaccines to be given in the U.S. are expected to get a green light from regulators under a process known as emergency use authorization
9:46AM ( 17 hours ago )
AP Business - Corporate News
Wall Street slips amid worries about worsening pandemic
Stocks ended an up-and-down week on a down note on Wall Street Friday, taking 0.7% off the S&P 500
4:56PM ( 10 hours ago )
Mnuchin denies trying to hinder incoming administration
Treasury Secretary Steven Mnuchin is denying that he is trying to limit the choices President-elect Joe Biden will have to promote an economic recovery by ending several emergency loan programs being run by the Federal Reserve
3:44PM ( 11 hours ago )
APEC leaders, including Trump, agree on free trade
Leaders from the Asia-Pacific Economic Cooperation forum, including U.S. President Donald Trump, have pledged to work toward free, open and non-discriminatory trade and investment to revive their coronavirus-battered economies
11:39AM ( 15 hours ago )
AP Business - Economy
Global shares mixed amid tug of war between hope, fear
Global shares are mixed in muted trading amid a continuing conflict between current worries about the worsening pandemic and optimism that vaccines will rescue the economy in the future
3:47AM ( 23 hours ago )
Asian shares mixed amid tug of war between hope, fear
Asian shares are mixed in muted trading after Wall Street eked out modest gains amid a tug of war between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future
12:53AM ( 1 day ago )
Asian shares mostly climb amid tug of war between hope, fear
Asian shares are mostly rising in muted trading after Wall Street eked out modest gains amid a tug of war between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future
9:26PM ( 1 day ago )
AP Business - Financial Markets
Pfizer, BioNTech seek emergency use of COVID-19 shots in US
Pfizer has asked U.S. regulators to allow emergency use of its COVID-19 vaccine, starting a process that could bring first shots as early as next month
5:39PM ( 9 hours ago )
Pfizer seeking emergency use of its COVID-19 vaccine in US
Pfizer is set to ask U.S. regulators to allow emergency use of its COVID-19 vaccine, starting a process that could bring first shots as early as next month
12:10PM ( 15 hours ago )
India virus cases pass 9M; capital's hospitals under strain
India has hit a grim milestone, recording 9 million infections
8:47AM ( 18 hours ago )
AP Business - Industries
The Latest: EU official: 2 vaccines could be authorized soon
The European Union’s top official sayw two COVID-19 vaccines could receive conditional market authorization as early as the second half of December
5:36PM ( 1 day ago )
The Latest: Pence offers positive COVID-19 assessment in US
Vice President Mike Pence is offering an upbeat assessment of the status of the coronavirus in the U.S., despite a surge in cases, hospitalizations and more than a quarter of a million deaths
5:04PM ( 1 day ago )
Biden tells governors he'll help states overcome coronavirus
In a virtual meeting with governors, Joe Biden has expressed concern that President Donald Trump’s unprecedented attempt to block the peaceful transition of power at the White House has hindered the flow of information about programs to fast-track a coronavirus vaccine
4:29PM ( 1 day ago )
AP Business - Health Care
Biden could announce Cabinet picks as soon as next week
President-elect Joe Biden is moving quickly to fill out his administration and could name top Cabinet nominations as early as next week
1:58AM ( 1 hour ago )
EXPLAINER: Trump's election challenges falling flat in court
While President Donald Trump vows to press ahead with efforts to overturn the election, judges across the country have consistently swatted down his legal challenges
1:18AM ( 1 hour ago )
Trump tries to leverage power of office to subvert Biden win
President Donald Trump is trying to leverage the power of the Oval Office in an extraordinary attempt to block President-elect Joe Biden’s victory
1:09AM ( 2 hours ago )
The Latest: Hospitals in India's capital near capacity
India has reported 46,232 new confirmed coronavirus cases in the past 24 hours, with the situation particularly alarming in New Delhi
1:04AM ( 2 hours ago )
Analysis: With silence, GOP enables Trump's risky endgame
Republicans in Congress are engaged in a risky but calculated bet that once President Donald Trump has exhausted his legal challenges to the election, he will come to grips with his loss to President-elect Joe Biden
12:56AM ( 2 hours ago )