clearn.png
Friday November 26th, 2021 6:24PM

A late afternoon slump leaves major US indexes mostly lower

By The Associated Press
Related Articles
  Contact Editor

A choppy day of trading on Wall Street ended with stocks mostly lower Monday, as a late-afternoon burst of selling derailed the market from another all-time high.

The S&P 500 fell 0.3% after having been up as much as 1% earlier in the day and on pace to eclipse the record high it set last Thursday. The Dow Jones Industrial Average eked out a 0.1% gain, while the Nasdaq shed an early gain and slid 1.3% below the all-time high it set on Friday.

Bond yields moved solidly higher. Gold prices fell and energy futures mostly rose.

The market was higher for much of the day as traders were relieved to learn that President Joe Biden would nominate Jerome Powell for a second four-year term at the helm of the Federal Reserve, a vote of confidence in Powell’s handling of central bank policies during the brutal disruptions caused by the coronavirus pandemic.

While stocks initially rallied on the news, bonds sold off, pushing yields broadly higher. The yield on the 10-year Treasury rose to 1.63% from 1.54% late Friday.

Higher Treasury yields make the more expensive areas of the market, like technology stocks, less attractive, which may explain why there was more selling in stocks toward the end of the day as the bond market shifted.

“Growth areas of (the stock) market do not like higher bond yields,” said Willie Delwiche, investment strategist at All Star Charts. “Energy and financials, however, loved them.”

The S&P 500 fell 15.02 points to 4,682.94. The Dow gained 17.27 points to 35,619.25. The tech-heavy Nasdaq gave up 202.68 points to 15,854.76.

Small company stocks also fell. The Russell 2000 index dropped 11.81 points, or 0.5%, to 2,331.35.

U.S. stocks have been mostly pushing higher since early October as companies reported much stronger profits for the summer than analysts expected. The benchmark S&P 500 has posted a weekly gain in eight out of the last nine weeks, notching successive record highs along the way.

Still, investors are seeking reassurance about how companies will fare in coming months as they grapple with higher raw materials costs and supply chain problems that could crimp future profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.

The Federal Reserve is starting to trim bond purchases that have helped maintain low interest rates in an effort to support the economy and markets as rising inflation hangs over the economic recovery. Investors are closely watching the Fed to see whether pressure from rising inflation prompts it to speed up its plans for trimming bond purchases and raising its benchmark interest rate.

“Powell getting the nod is a sign that Biden is staying the course on monetary policy and the Fed is steadily moving toward normalizing policy,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “On the whole, the Fed is going to continue to be a force for monetary stability.”

More than 55% of the stocks in the S&P 500 rose Monday, but losses by big technology and communication companies outweighed gains elsewhere in the benchmark index. Chipmaker Nvidia slid 3.1% and Netflix fell 2.9%.

Rising bond yields helped boost banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America rose 1.9%.

Energy companies were among the gainers, getting a bump as U.S. crude oil prices rose 0.9%. Chevron closed 1.8% higher. Companies that make household and personal care products made solid gains. Walmart rose 1.7% and supermarket operator Kroger rose 4.8%.

Companies that rely on consumer spending also weighed on the market, led by a pullback in shares of Target, which fell 2.5%, and Amazon, which lost 2.8%. Those retailers are on the cusp of the busy holiday shopping season, which traditionally kicks off right after the Thanksgiving holiday.

The dollar also strengthened against other currencies. The price of gold, a haven for when investors feel anxious, fell 2.4%.

Markets in Europe and Asia closed mixed as a resurgence of coronavirus outbreaks prompted some countries to look to stricter precautions to curb yet another wave of the pandemic.

Investors face a relatively light schedule of economic updates during this holiday-shortened week. The National Association of Realtors reported surprisingly good sales for previously occupied homes in October on Monday. The Commerce Department will report October data for new home sales on Wednesday, along with data on third-quarter gross domestic product.

Markets in the U.S. will be closed on Thursday for the Thanksgiving holiday. They will also close early on Friday.

  • Associated Categories: 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 - Financial Services
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Bidens open holidays with Christmas tree and 'friendsgiving'
President Joe Biden and his wife, Jill, are getting into the holiday spirit
4:29PM ( 6 minutes ago )
Peter Aykroyd, Emmy nominated 'SNL' actor-writer, dead at 66
Peter Aykroyd, an Emmy-nominated actor and writer on “Saturday Night Live” for the 1979-80 season who later worked with older brother, Dan, on everything from a TV show about the paranormal to such films as “Dragnet” and “Coneheads,” has died at age 66
4:22PM ( 12 minutes ago )
Alaska man pleads not guilty to threatening 2 US senators
A rural Alaska man charged with threatening the lives of Alaska’s two U.S. senators has pleaded not guilty
4:17PM ( 18 minutes ago )
Associated Press (AP)
Boston mayor divests vulnerable city from fossil fuels
Boston Mayor Michelle Wu has signed an ordinance designed to divest the city from fossil fuels
3:49PM ( 47 minutes ago )
Biden to keep Powell as Fed chair, Brainard gets vice chair
President Joe Biden announced he’s nominating Jerome Powell for a second term as Federal Reserve chair, endorsing Powell’s stewardship of the economy through a brutal pandemic recession in which the Fed’s ultra-low rate policies helped bolster confidence and revitalize the job market
3:18PM ( 1 hour ago )
Ethiopia PM says he will lead army 'from the battlefront'
Ethiopia’s prime minister says he will lead his country’s army “from the battlefront” as of Tuesday, a dramatic new step by the Nobel Peace Prize-winner in a devastating yearlong war
3:16PM ( 1 hour ago )
AP National News
Official: More than 90% of fed workers got shots by deadline
More than 90% of federal workers have received at least one dose of a COVID-19 vaccine by Monday’s deadline set by President Joe Biden
12:53PM ( 3 hours ago )
'Annoyed': Austria's national lockdown dampens holiday mood
Austrians have begun a new 10-day national lockdown and many are wondering how they will endure their fourth such ordeal as the nation seeks to reverse skyrocketing new infections
12:41PM ( 3 hours ago )
SUV driver in parade crash may have been fleeing a crime
Investigators are looking into whether the SUV driver who plowed through a Christmas parade in suburban Milwaukee, killing at least five people and injuring more than 40, was fleeing a crime
12:41PM ( 3 hours ago )
AP Online National News
DC Metro to stay on reduced service through end of the year
The regional train system serving the Washington D
3:43PM ( 54 minutes ago )
American, JetBlue ask court to toss US lawsuit against deal
American Airlines and JetBlue are asking a federal judge to throw out the government's effort to block a deal between the two airlines that has them working together on service in the Northeast
2:53PM ( 1 hour ago )
Amazon to cut down plastic packaging in Germany
Amazon says it plans to cut the use of plastic packaging in Germany following complaints that the online retailer is contributing to growing mountains of waste
1:49PM ( 2 hours ago )
AP Business
Stocks move higher after Biden taps Powell for new Fed term
Stocks are moving solidly higher in early trading on Wall Street at the beginning of a holiday-shortened week
9:49AM ( 6 hours ago )
Target will keep stores closed on Thanksgiving for good
Target will no longer open its stores on Thanksgiving Day, making permanent a shift to the unofficial start of the holiday season that was suspended during the pandemic
7:49AM ( 8 hours ago )
Xi says China will not seek dominance over Southeast Asia
Chinese leader Xi Jinping says his country will not seek dominance over Southeast Asia or bully its smaller neighbors, despite a rise in regional frictions
7:01AM ( 9 hours ago )
AP Business - Economy
El Salvador to build cryptocurrency-fueled "Bitcoin City"
El Salvador President Nayib Bukele says his government will build an oceanside “Bitcoin City” at the base of a volcano
11:18AM ( 1 day ago )
Tunisian trial shines light on use of military courts
A 40-year-old Tunisian computer engineer turned corruption fighter will stand trial again in a military court Monday
11:05AM ( 1 day ago )
Stocks end mostly lower, but tech gains push Nasdaq higher
Stocks closed mostly lower on Wall Street Friday, though gains for several tech companies pushed the Nasdaq composite to another record high and its first close over 16,000 points
5:10PM ( 2 days ago )
AP Business - Financial Markets
Coal-fired power plants to close after new wastewater rule
Climate change isn’t what’s driving some U.S. coal-fired power plants to shut down — instead it's the expense of stricter pollution controls on their wastewater
10:29AM ( 6 hours ago )
Thailand's DTAC and True to merge, pursue tech businesses
Thailand's DTAC and True Corp. plan a merger that they say will create an “equal partnership" for pursuing opportunities in the tech sector
6:21AM ( 10 hours ago )
Austria begins national lockdown to fight surging infections
Austria has gone into a nationwide lockdown to combat skyrocketing coronavirus infections
7:24PM ( 21 hours ago )
AP Business - Industries
Rare first printing of US Constitution sells for record $43M
A rare first printing of the U.S. Constitution has sold at Sotheby’s in New York for $43.2 million, a record price for a document or book sold at auction
3:20PM ( 3 days ago )
Two Democratic senators oppose Powell as Fed chair
Two Senate Democrats said Friday they oppose the reappointment of Jerome Powell as chair of the Federal Reserve, as President Joe Biden is expected to announce within days who he will pick for the nation’s most powerful economic position
11:49AM ( 3 days ago )
Europe's central banker: Not adding to pinch with rate hike
The head of the European Central Bank is doubling down on the message that it's no time to raise interest rates
9:08AM ( 3 days ago )
AP Business - Financial Services
Bidens open holidays with Christmas tree and 'friendsgiving'
President Joe Biden and his wife, Jill, are getting into the holiday spirit
4:29PM ( 10 minutes ago )
Peter Aykroyd, Emmy nominated 'SNL' actor-writer, dead at 66
Peter Aykroyd, an Emmy-nominated actor and writer on “Saturday Night Live” for the 1979-80 season who later worked with older brother, Dan, on everything from a TV show about the paranormal to such films as “Dragnet” and “Coneheads,” has died at age 66
4:22PM ( 16 minutes ago )
Alaska man pleads not guilty to threatening 2 US senators
A rural Alaska man charged with threatening the lives of Alaska’s two U.S. senators has pleaded not guilty
4:17PM ( 22 minutes ago )
Trump-backed Parnell loses custody battle, suspends campaign
The candidate endorsed by former President Donald Trump for U.S. Senate in Pennsylvania is suspending his campaign after he lost a court fight over custody of his three children
4:13PM ( 25 minutes ago )
Man locked up because of mistaken identity sues Hawaii
A formerly homeless man who ended up in a mental institution for more than two years because of mistaken identity is suing the state of Hawaii and various Honolulu police officers, public defenders and doctors
4:13PM ( 26 minutes ago )