clearn.png
Tuesday August 11th, 2020 9:39PM

Wall Street returns to rallying; gold jumps to record high

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Wall Street’s rally got back on track Monday, while gold rushed to a record at the start of a week packed with potentially market-moving events.

The S&P 500 rose 0.7% to more than recover all its losses from last week, as Apple and other tech giants returned to their winning ways. Nervousness was still hanging over markets, though, and gold briefly topped $1,940 per ounce for the first time.

The S&P 500 climbed 23.78 points to 3,239.41. The Dow Jones Industrial Average rose 114.88, or 0.4%, to 26,584.77, and the Nasdaq composite gained 173.09, or 1.7%, to 10,536.27.

“If there ever was a week to pay attention, this is likely the one,” Kevin Giddis, chief fixed income strategist at Raymond James, wrote in a report. “There is as much going on for the markets as there has been since the crisis began, and almost all of it has some potential meaning on the future of the US economy.”

At the head of the pack is a two-day meeting for the Federal Reserve on interest rates that begins Tuesday. The Fed helped end the market’s sell-off in March, catapulting it into a tremendous rally, after promising to keep interest rates at record lows and to hoover up a wide range of bonds to support the economy. Investors are waiting to hear what the Fed says this week about the economy’s prospects and what it plans to do on interest rates.

This week is also a busy one for corporate earnings, with more than a third of the companies in the S&P 500 scheduled to report how they fared from April through June.

So far, profit reports have been better than Wall Street forecast, though still far weaker than a year earlier because of the recession. Companies that have reported results topping expectations, though, have been getting a smaller bump than usual versus the rest of the market the following day, analysts wrote in a BofA Global Research report.

Several of the market’s most influential companies are scheduled to report this week, including Amazon, Apple, Facebook and Google’s parent company. Those four account for 16% of the S&P 500’s total value, which gives their movements outsized influence on the index.

Such tech-oriented giants have cruised through much of the pandemic on expectations that they can continue to grow regardless of whether the economy is quarantined. But critics say their stocks have bubbled too high, even after accounting for the huge profits they produce.

The tech titans stumbled last week on such concerns, which helped pull the S&P 500 to its first weekly loss in four weeks.

Worries about an uptick in layoffs across the country also hurt stocks last week, as businesses close down again amid rising coronavirus counts across much of the Sun Belt. An extra $600 in weekly unemployment benefits from the U.S. government is set to expire soon, and Congress is still arguing about how to offer more aid for the economy.

The Trump administration’s chief negotiators spent the weekend on Capitol Hill working on a relief bill, though Democrats and Republicans still have much to negotiate.

“Investors are optimistic about the impending stimulus coming out of Congress, and they are expecting that it could be even greater than the current $1 trillion amount that is being floated,” said Sam Stovall, chief investment strategist at CFRA. “In order for the Democrats to come onboard, it could end up being double that amount.”

All the uncertainty about the economy, the pandemic and how long interest rates will remain at nearly zero have helped drive the price of gold higher, making it the best performing investment of 2020. More recently, a weaker U.S. dollar and worries about rising tensions between the United States and China have given gold an extra boost.

Gold for delivery in August added another $33.50 to settle at $1,931.00 per ounce Monday, after earlier climbing as high as $1,941.90. That’s an intraday record for the most actively traded contract, and it follows up on Friday’s record high for a settlement price.

It’s unusual for the price of gold, which tends to rise when worries about the economy are high, to do so well at the same as stocks, which tend to wilt under such worries.

“It’s a tug of war between those investors and they’re really not acting in a normal way,” said Mark Hackett, chief of investment research for Nationwide.

“But it’s 2020, nothing’s normal.”

The yield on the 10-year Treasury note ticked up to 0.60% from 0.58% late Friday.

Benchmark U.S. crude rose 31 cents to settle at $41.60 per barrel. Brent crude, the international standard, rose 7 cents to $43.41 a barrel.

In Asia, Japan’s Nikkei 225 slipped 0.2%, South Korea’s Kospi gained 0.8% and stocks in Shanghai added 0.3%. The Hang Seng in Hong Kong lost 0.4%.

In Europe, Germany’s DAX was close to flat, and France’s CAC 40 lost 0.3%. The FTSE 100 in London dipped 0.3%.

  • Associated Categories: Business News, Local/State News, Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Wall Street returns to rallying; gold jumps to record high
Stocks resumed their upward march on Wall Street Monday, while the price of gold rushed to a record high at the start of a week packed with potentially market-moving events
4:26PM ( 8 minutes ago )
The Latest: Pence visits Florida to discuss COVID-19 vaccine
Vice President Mike Pence visited Florida on Monday to hold a round table with University of Miami researchers to speak about the final-stage testing of the experimental COVID-19 vaccine
4:25PM ( 9 minutes ago )
Gold's luster grows as investors hedge in uncertain times
Wall Street is in the throes of a gold rush, as investors drive the price of the precious metal to new heights
4:24PM ( 9 minutes ago )
Associated Press (AP)
The Latest: Saints QB Drew Brees donating another $5 million
Saints quarterback Drew Brees and his wife, Brittany, say they’re donating $5 million toward a partnership with a Louisiana health care provider to build “numerous” health centers in economically struggling communities around the state
3:17PM ( 1 hour ago )
Oprah's O Mag to end regular print editions after 20 years
O, The Oprah Magazine is ending its regular monthly print editions with the December 2020 issue after 20 years of publication
3:02PM ( 1 hour ago )
The Latest: Florida judge upholds county mask requirement
 A Florida judge has upheld a county’s coronavirus ordinance that requires masks be worn in public places like stores, saying government officials have the authority to protect their residents from the spread of infectious diseases
2:59PM ( 1 hour ago )
AP Business
Stocks tick higher, gold rushes to record ahead of busy week
Stocks are ticking higher in early Monday trading on Wall Street, while gold rushes to a record at the start of a week packed with potentially market-moving events
10:10AM ( 6 hours ago )
Gold at record high, stocks drift as US-China tensions flare
The price of gold is at a record high and a stock market rally is stalling as tensions between the U.S. and China rachet higher and coronavirus infections continue to hamper travel and other businesses
9:43AM ( 6 hours ago )
Orders for big-ticket manufactured goods jump 7.3% in June
Orders to U.S. factories for big-ticket manufactured goods rose a solid 7.3% in June, the second big monthly gain as manufacturing tries to climb out of a spring slump triggered by the coronavirus pandemic
8:52AM ( 7 hours ago )
AP Business - Economy
Hundreds rally in Manila ahead of Duterte's annual speech
Hundreds of protesters have marched, staged motorcades and held a rally against a new anti-terror law and other issues in the Philippine capital despite police threats of arrests ahead of the president’s annual state of the nation speech
1:04AM ( 15 hours ago )
Asian stocks mixed amid US-China feud, economic unease
Asian stock markets are mixed amid unease about U.S.-China tensions and concern a recovery from the coronavirus pandemic might be weakening
11:59PM ( 16 hours ago )
Wall Street down after worldwide slide; gold at record high
Stocks fell on Wall Street Friday as tensions flared again between the world’s two largest economies, jitters continued over the fallout from the coronavirus and companies turned in a mixed batch of earnings
4:42PM ( 2 days ago )
AP Business - Financial Markets
The Latest: Vaccine study begins in fight against COVID-19
The world’s biggest COVID-19 vaccine study has begun with the first of 30,000 planned volunteers helping to test shots created by the U.S. government -- one of several candidates in the final stretch of the global vaccine race
9:42AM ( 6 hours ago )
Japan's Mitsubishi Motors racks up red ink on pandemic pain
Mitsubishi Motors Corp. has reported a loss of 176 billion yen, or $1.7 billion, in the April-June quarter, and is forecasting more red ink, as the coronavirus pandemic slams auto demand around the world
5:07AM ( 11 hours ago )
Trump to discuss energy, tour oil rig, raise money in Texas
The White House says President Donald Trump will shift his focus to American energy dominance when he stops in Texas later this week on a visit that will include his first tour of an oil rig
7:33PM ( 21 hours ago )
AP Business - Industries
Why are coins hard to find during the pandemic?
Why is there a coin shortage during the pandemic
3:32AM ( 4 days ago )
Senate panel approves Trump's controversial Fed nominee
The Senate Banking Committee approved President Donald Trump’s choice of Judy Shelton for the Federal Reserve board of governors on a party-line vote, overcoming widespread questions about her qualifications for the Fed
3:59PM ( 6 days ago )
Senate panel approves Trump's questionable Fed nominee
The Senate Banking Committee approved President Donald Trump’s controversial nominee for the Federal Reserve, Judy Shelton, on a party-line vote Tuesday
2:39PM ( 6 days ago )
AP Business - Financial Services
The Latest: Pence visits Florida to discuss COVID-19 vaccine
Vice President Mike Pence visited Florida on Monday to hold a round table with University of Miami researchers to speak about the final-stage testing of the experimental COVID-19 vaccine
4:25PM ( 10 minutes ago )
Gold's luster grows as investors hedge in uncertain times
Wall Street is in the throes of a gold rush, as investors drive the price of the precious metal to new heights
4:24PM ( 10 minutes ago )
2 MLB games postponed as Marlins deal with virus outbreak
Two major league games scheduled for Monday night have been postponed after more than a dozen Miami Marlins players and staff members tested positive for the coronavirus in an outbreak that stranded the team in Philadelphia
4:19PM ( 15 minutes ago )
Trump seeks political shot in the arm in vaccine push
President Donald Trump’s handling of the coronavirus pandemic put his political fate in grave jeopardy
4:12PM ( 22 minutes ago )
Stocks resume rise, gold rushes to record ahead of busy week
Stocks resumed their upward march on Wall Street Monday, while the price of gold rushed to a record high at the start of a week packed with potentially market-moving events
4:08PM ( 26 minutes ago )