cloudy.png
Sunday November 29th, 2020 11:56AM

Wall Street slips amid worries about worsening pandemic

By The Associated Press
Related Articles
  Contact Editor

Stocks closed broadly lower on Wall Street Friday following another choppy day of trading as worries about the worsening pandemic undercut growing optimism about a coming coronavirus vaccine.

The S&P 500 fell 0.7%, erasing its gains from a day earlier. The benchmark index, which climbed to an all-time high on Monday, posted its first weekly decline after two weeks of gains. The index is still up 8.8% so far this month.

Technology, financial and industrial companies drove much of the selling, which turned volatile in the final hour of regular trading. Treasury yields were mostly lower, a sign of caution in the market. Stock indexes around the world made modest moves.

Traders are balancing cautious optimism that a working coronavirus vaccine will be widely distributed next year against jitters over surging virus cases and the economic impact of new restrictions being put in place across the U.S. on people and businesses to limit the spread.

“It’s a market concerned about growth,” said Quincy Krosby, chief market strategist at Prudential Financial. “That’s the big uncertainty.”

The S&P 500 fell 24.33 points to 3,557.54. The Dow Jones Industrial Average slid 219.75 points, or 0.7%, to 29,263.48. The Nasdaq composite gave up an early gain and dropped 49.74 points, or 0.4%, to 11,854.97.

Small company stocks held up better than the rest of the market. The Russell 2000 small-cap index rose 1.21 points, or 0.1%, to 1,785.34.

Wall Street suddenly began to teeter-totter this week after a big November rally swept both the S&P 500 and Dow to record highs. Evidence is piling up for investors both for hope about the economy’s prospects next year and for fear about the damage accruing in the shorter term.

Adding to the optimistic side of the ledger Friday was Pfizer and BioNTech saying they’ll submit an application with U.S. regulators for emergency use of their vaccine candidate. Data suggests it may be 95% effective at preventing mild to severe COVID-19 disease.

If approved, a limited number of doses could begin being administered as early as next month, though widescale vaccinations likely wouldn’t happen until after a potentially brutal winter. Other vaccines are also under development, and the hope is that one or more could get the economy running closer to normal next year.

On the pessimistic side, more governments around the world are bringing back restrictions on daily life to slow the spread of the virus. Surging coronavirus counts and hospitalizations also threaten to frighten consumers enough to keep them hunkered at home and drag on the economy.

“The market is supposed to be forward-looking, but the reality is it’s hard to look past what’s been going on the past couple of weeks,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The other thing that’s a major concern is people going into lockdowns in major parts of the country. What is that going to be for businesses?”

California’s governor announced late Thursday an overnight curfew on most residents in the state, the Centers for Disease Control and Prevention is asking Americans not to travel for Thanksgiving and authorities from Lisbon to Sri Lanka announced varying degrees of restrictions.

“On the road to the other side of the pandemic are detours and we're in one of those detours,” Krosby said.

The U.S. Treasury Department also said late Thursday that it will not extend several emergency loan programs set up with the Federal Reserve during the worst of the spring’s turmoil to help prop up markets and the economy.

The announcement got some immediate pushback from the Fed, which has been keeping the accelerator floored on its support for the economy while asking politicians in the White House and Congress to do the same. The central bank said it “would prefer that the full suite of emergency facilities” created during the pandemic remain.

But Treasury Secretary Steven Mnuchin said closing the emergency loan programs could allow Congress to re-appropriate $455 billion to other relief programs. Democrats and Republicans in Washington have been deadlocked in efforts to deliver another round of financial support for the economy following the expiration of supplemental benefits for laid-off workers and other stimulus approved during the spring.

The majority of stocks in the S&P 500 fell, with technology companies taking the heaviest losses. Apple dropped 1.1%, while Intuit dropped 3.8%.

Travel-related stocks also fell. Cruise lines were among the biggest decliners. Norwegian Cruise Line slid 4.9% and Carnival fell 4.5%.

On the winning side was Williams-Sonoma, which rose 6.6% after reporting stronger profit and revenue for the latest quarter than analysts expected.

The yield on the 10-year Treasury slipped to 0.83% from 0.84% late Thursday.

European markets closed moderately higher and Asian markets ended mixed.

___

AP Business Writer Yuri Kageyama contributed.

  • Associated Categories: Homepage, Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Florida's Sen. Scott has coronavirus, 'very mild symptoms'
Sen_ Rick Scott of Florida says he has tested positive for the coronavirus and is isolating at home with “very mild symptoms.”
10:34AM ( 11 minutes ago )
Universal strikes another deal with a major theater chain
Another major movie theater chain has struck a deal with Universal Pictures to allow for shorter exclusive theatrical windows
10:25AM ( 21 minutes ago )
Browns star Garrett on COVID list; will miss Eagles game
Cleveland Browns defensive star Myles Garrett has tested positive for COVID-19 and will miss Sunday’s game against the Philadephia Eagles
10:10AM ( 35 minutes ago )
Associated Press (AP)
France looks to postpone 'Black Friday' to help small shops
France's government is working to get e-commerce businesses like Amazon and supermarket chains to delay the “Black Friday” discount shopping promotion by a week to Dec. 4
9:26AM ( 1 hour ago )
APEC leaders, including Trump, begin virtual meeting
Leaders from the Asia-Pacific Economic Cooperation forum have begun a virtual meeting to seek ways to revive their coronavirus-battered economies, with U.S. President Donald Trump participating for the first time since 2017
9:03AM ( 1 hour ago )
EU gives upbeat assessment of state of Brexit trade talks
 The European Union has issued one of its most upbeat assessments of the state of post-Brexit trade negotiations
8:50AM ( 1 hour ago )
AP Business
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 ( 6 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 ( 9 hours ago )
Japan, New Zealand press for open markets to boost recovery
Leaders from Japan and New Zealand have warned countries against the temptation of retreating into trade protectionism, saying that keeping markets open is the way to revive a global economy battered by COVID-19
10:51PM ( 11 hours ago )
AP Business - Economy
Stocks slip amid investors’ tug of war between hope, fear
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 come in the future
1:20PM ( 21 hours ago )
IMF director: virus could disrupt global recovery
The head of the International Monetary Fund says that the while the United States and other major economies turned in better-than-expected economic performances in the third quarter the world now faces slower momentum with a resurgence in coronavirus cases
12:56PM ( 21 hours ago )
Stocks open lower on Wall Street as virus infections spread
Stocks are opening lower on Wall Street as mounting coronavirus infections and evidence of the damage being cause to people's livelihoods rolls in
9:46AM ( 1 day ago )
AP Business - Financial Markets
Universal strikes another deal with a major theater chain
Another major movie theater chain has struck a deal with Universal Pictures to allow for shorter exclusive theatrical windows
10:25AM ( 21 minutes ago )
Browns star Garrett on COVID list; will miss Eagles game
Cleveland Browns defensive star Myles Garrett has tested positive for COVID-19 and will miss Sunday’s game against the Philadephia Eagles
10:10AM ( 35 minutes ago )
Biden to meet with Pelosi, Schumer as challenges loom
President-elect Joe Biden is set to hold his first in-person meeting since winning the election with House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer
10:09AM ( 37 minutes ago )
Bosnia marks 25 years since inking of US-brokered peace deal
Bosnians are marking the 25th anniversary of the U.S.-brokered peace agreement that ended more than 3 1/2 years of ethnic war in their country
10:06AM ( 40 minutes ago )
Wall Street stalls as worries rise about worsening pandemic
U.S. stocks are falling in early Friday trading with worries about the worsening pandemic, even amid optimism about a coming coronavirus vaccine
10:04AM ( 42 minutes ago )