pcloudyn.png
Saturday September 26th, 2020 11:14PM

Stocks give up part of an early gain but still end higher

By The Associated Press
Related Articles
  Contact Editor

Stocks gave up part of their gains from earlier in the day but still closed higher on Wall Street Tuesday. Gains for big technology companies outweighed losses in banks and elsewhere in the market. The S&P 500 rose 0.5% after being up more than 1% earlier. It’s the second straight sizable gain for the benchmark index following its worst week since June. Big Tech stocks have been bouncing back this week after suddenly losing altitude earlier this month amid worries that their prices had climbed too high. Treasury yields held steady as the Federal Reserve began a two-day policy meeting.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

Stocks were losing some of their early strength Tuesday afternoon, with gains in big technology companies outweighing losses in banks and elsewhere in the market.

The S&P 500 was 0.2% higher in afternoon trading and on pace for a second day of gains on the heels of its worst week since June after the superstar tech stocks driving the market abruptly lost momentum.

Big Tech stocks have been bouncing back this week, with Microsoft up 1.2% and Amazon up 1.6%, after suddenly losing altitude earlier this month amid worries that their prices had simply climbed too high, even after taking into account their tremendous growth.

But the factors that have powered their gains through much of the pandemic, namely expectations that their profits will boom as even more of daily life shifts online, haven't changed.

“The things that are doing well or are beneficiaries or are working in this environment, for good reason, are the things that are going up,” said Tom Martin, senior portfolio manager with Globalt Investments. “That isn’t going to change until we get a notable change in one of the things that are uncertain: The virus itself and the effect that’s having on the economy, and whether we get anything new on the fiscal stimulus front.”

Because these companies have grown so massive, their movements alone can dictate the market’s performance more than ever. Tech stocks as a group account for nearly 28% of the S&P 500, and they’re up 2.9% this week after slumping more than 4% in each of the prior two weeks.

The Dow Jones Industrial Average was down 50 points, or 0.2%, to 27,941 after losing its gains from earlier in the day. The Nasdaq was up 0.8%. Stocks of smaller companies were also making gains, and the Russell 2000 index of small-caps was up 0.3%.

Stocks in Europe and much of Asia also ticked higher following encouraging economic reports from around the world. In China, retail sales were higher last month than a year earlier for the first such growth this year, after the pandemic pancaked the world’s second-largest economy. In Europe’s largest economy, a reading on German economic confidence rose more than expected.

In the United States, a report showed that industrial production also strengthened last month. But the growth wasn’t as strong as economists were expecting. Other reports showed that manufacturing in the New York state is expanding more than economists expected, as are import and export prices.

Treasury yields were holding relatively steady after giving up some of their earlier gains following the release of the report on industrial production. The yield on the 10-year Treasury was at 0.67%. The 30-year yield ticked up to 1.43% from 1.41%.

Shorter-term rates remain pinned at lower levels on expectations that the Federal Reserve will keep its benchmark rate at nearly zero for some time to help the economy recover. The central bank is beginning its latest meeting on interest-rate policy Tuesday, and it will announce its decision on Wednesday. Economists say it could change some of the language around its existing pledge to buy bonds to support markets, but they expect no major news.

On the losing side was Carnival, which dropped 11%. The cruise ship operator said it may sell up to $1 billion in stock to raise cash, and it reported a preliminary $2.9 billion loss for its latest quarter. More encouragingly, it also said its advance bookings for the second half of 2021 are similar to where booking positions were in 2018 for the second half of 2019, before the coronavirus pummeled the industry.

Financial stocks were also laggards. JPMorgan Chases fell 3%, losing an earlier modest gain. It trimmed its forecast for this year's net interest income, which measures how much profit it makes from interest payments for loans and other products after subtracting the interest it pays out on deposits.

In European stock markets, Germany’s DAX returned 0.2%, and the French CAC 40 rose 0.3%. The FTSE 100 in London climbed 1.3%. Markets in Asia ended mostly higher.

  • Associated Categories: 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.
Israel signs pacts with 2 Arab states: A 'new' Mideast?
Israel on Tuesday signed historic diplomatic pacts with two Gulf Arab states at a White House ceremony that President Donald Trump declared would mark the “dawn of a new Middle East.”
10:33PM ( 19 minutes ago )
Trump denies downplaying virus, casts doubt on mask usage
President Donald Trump is denying he played down the threat of the coronavirus earlier this year, although there is an audio recording of him stating he did just that
10:28PM ( 24 minutes ago )
Transgender activist wins Delaware state senate primary
Transgender activist Sarah McBride has won a Democratic state Senate primary in Delaware and is poised to make history as the first transgender person elected to the state's General Assembly
10:26PM ( 26 minutes ago )
Associated Press (AP)
Japan's PM Shinzo Abe resigns, clearing way for successor
Japanese Prime Minister Shinzo Abe and his Cabinet resigned Wednesday, clearing the way for his successor to take over after parliamentary confirmation later in the day
9:18PM ( 1 hour ago )
Google exec on hot seat in Congress over advertising power
A Senate panel put a top Google executive on the defensive over the company’s powerful position in online advertising as some lawmakers look hopefully toward an expected antitrust case against the tech giant by the Trump administration
7:45PM ( 3 hours ago )
FedEx's profit jumps as residential deliveries soar
FedEx’s profit jumped 67% in its latest quarter, as online shopping soared among customers avoiding stores and shipments between businesses improved
7:18PM ( 3 hours ago )
AP Business
Pelosi: House to stay in session until COVID-19 rescue pact
Speaker Nancy Pelosi says the House will remain in session until lawmakers deliver another round of COVID-19 relief
4:23PM ( 6 hours ago )
Stocks give up part of an early gain but still end higher
Stocks gave up part of their gains from earlier in the day but still closed higher on Wall Street Tuesday
4:09PM ( 6 hours ago )
The Latest: Fauci: Vermont's virus efforts model for nation
Dr. Anthony Fauci calls Vermont’s ongoing efforts to control the coronavirus a model for the nation
3:25PM ( 7 hours ago )
AP Business - Economy
Rosa Parks' home displayed in Italy as US race tensions rise
The run-down, paint-chipped Detroit house where U.S. civil rights icon Rosa Parks took refuge after her historic bus boycott is going on display in Italy
8:12AM ( 14 hours ago )
Global stocks rise on improved Chinese, German data
Global stock markets are mostly up on improved economic data from China and Germany
7:51AM ( 15 hours ago )
Global stocks mixed after Wall Street rises on dealmaking
Global stock markets are mixed after Wall Street surged on a flurry of corporate deal-making and Chinese economic activity improved
5:17AM ( 17 hours ago )
AP Business - Financial Markets
The Latest: Oklahoma inmate deaths likely linked to COVID-19
The Oklahoma State Department of Corrections says two more state prison inmates have died, and the deaths could be linked to COVID-19
5:14PM ( 5 hours ago )
The Latest: Missouri students expelled over virus violations
With more than 1,300 of its students infected with the coronavirus, the University of Missouri in Columbia has expelled two students and suspended three others for violating rules meant to slow the virus’ spread
4:19PM ( 6 hours ago )
The Latest: Casino boats break loose in storm; dock damaged
Two large casino boats have broken loose from a dock where they were undergoing construction work in Alabama as Hurricane Sally approaches the Gulf Coast
3:50PM ( 7 hours ago )
AP Business - Industries
Federal Reserve to meet after sharp changes to its outlook
Federal Reserve policymakers will meet this week for the first time since they significantly revised the Fed’s operating framework in ways that will likely keep short-term interest rates near zero for years to come
6:54AM ( 15 hours ago )
Billionaire hedge fund manager Cohen agrees to buy Mets
Billionaire hedge fund manager Steve Cohen has agreed to buy the New York Mets from the Wilpon and Katz families
7:46PM ( 1 day ago )
Wildfires during pandemic intensify economic pain in West
The fires consuming the forests of California and Oregon and darkening the skies over San Francisco and Portland are also damaging a regional economy already singed by the coronavirus outbreak
4:24PM ( 1 day ago )
AP Business - Financial Services
Israel signs pacts with 2 Arab states: A 'new' Mideast?
Israel on Tuesday signed historic diplomatic pacts with two Gulf Arab states at a White House ceremony that President Donald Trump declared would mark the “dawn of a new Middle East.”
10:33PM ( 19 minutes ago )
Science mag makes first endorsement in 175 years, taps Biden
The magazine Scientific American chose Democrat Joe Biden over President Donald Trump in the first presidential endorsement in the publication's 175-year history
10:29PM ( 23 minutes ago )
Trump denies downplaying virus, casts doubt on mask usage
President Donald Trump is denying he played down the threat of the coronavirus earlier this year, although there is an audio recording of him stating he did just that
10:28PM ( 24 minutes ago )
Transgender activist wins Delaware state senate primary
Transgender activist Sarah McBride has won a Democratic state Senate primary in Delaware and is poised to make history as the first transgender person elected to the state's General Assembly
10:26PM ( 26 minutes ago )
'Huge rainmaker': Hurricane Sally threatens historic floods
Heavy rain and high winds from Hurricane Sally's outer storm bands are pounding the Florida and Alabama coasts
10:22PM ( 30 minutes ago )