The S&P 500 ended higher on Friday as investors weighed the prospect of more fiscal stimulus against fears of further business disruptions due to a record rise in COVID-19 cases in the US.
Netflix Inc tumbled 6.5 percent after the video streaming service forecast slower-than-expected subscriber growth during the third quarter, pulling the communication services sector down 0.4 percent.
The S&P 500 utilities, real-estate and healthcare indices were the session’s strongest gainers.
However, a 1.5 percent drop in Goldman Sachs Group Inc helped keep the Dow Jones Industrial Average in negative territory.
For the week, the S&P 500 and the Dow rose 1.25 percent and 2.29 percent respectively, after optimism over an eventual novel coronavirus vaccine and hopes of a post-pandemic economic recovery helped investors look past a continuous surge in COVID-19 cases.
Cases on Friday rose by at least 70,674, after climbing by a record 77,499 on Thursday.
The NASDAQ ended 1.08 percent lower for the week as investors sold shares of high-flying companies including Microsoft Corp and Amazon.com Inc and moved into cyclical sectors.
Next week, the second-quarter earnings season shifts into high gear with reports expected from corporate heavyweights including Microsoft, Tesla Inc, Intel Corp and Verizon Communications Inc.
With this year largely written off as a disaster for US corporations because of the virus, investors are looking for information from companies about the potential size and timing of an eventual recovery.
“The question is what 2021 and 2022 look like, and what can folks glean from the commentary, especially when companies have withdrawn their guidance and made it difficult to get a sense of what their prospects look like,” said Tom Hainlin, a national investment strategist at US Bank Wealth Management.
The Cboe Volatility Index, known as Wall Street’s “fear gauge,” ended at 25.68, its lowest closing level since June 5.
The Dow Jones Industrial Average fell 0.23 percent to end at 26,671.95 points, while the S&P 500 gained 0.28 percent to 3,224.73. The NASDAQ Composite climbed 0.28 percent to 10,503.19.
Unprecedented stimulus measures and improving economic data have helped the S&P 500 rise to within about 5 percent of its February record high.
Investors are also hoping for more fiscal support, as a program that offers additional unemployment benefits is set to expire on July 31. The US Congress is to return to Washington on Monday to debate another coronavirus aid bill.
“Both Republicans and Democrats have a strong incentive to agree upon further pre-election stimulus. It’s not a matter of ‘if’ a stimulus passes, it’s just what the size and content of that package looks like,” UBS Private Wealth Management senior vice president Andrea Bevis said.
BlackRock Inc, the world’s largest asset manager, rose 3.7 percent after reporting a jump in quarterly profit as investors poured money into its fixed-income funds and cash management services.
Volume on US exchanges was 9.5 billion shares, compared with the 11.6 billion average for the full session over the past 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 1.43-to-1 ratio; on the NASDAQ, a 1.50-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and no new lows; the NASDAQ Composite recorded 89 new highs and 11 new lows.
JPMorgan Chase & Co chief executive officer Jamie Dimon on Tuesday quipped that his company is likely to outlast the Chinese Communist Party (CCP), while reiterating the bank’s commitment to the country in wide-ranging comments that also touched on Taiwan, free speech and former US president Donald Trump. “We hope to be there [in China] for a long time,” Dimon told a panel discussion at the Boston College Chief Executives Club. Relaying a “joke” he made during a recent visit to Hong Kong, he said “The communist party is celebrating its 100th year. So is JPMorgan. And I’ll make you a
Taiwan is to start producing geothermal energy on a commercial scale for the first time in nearly 30 years tomorrow, when an Yilan County facility begins operations. The 4.2 megawatt Cingshuei Geothermal Power Plant in Datong Township (大同) — the first privately built geothermal power plant in Taiwan — was granted commercial license by the Bureau of Energy on Oct. 27, county authorities told the Central News Agency on Tuesday. Lin Kun-wei (林坤緯), a section head at the Yilan Business and Tourism Department, said that the facility would generate up to 3,150 kilowatts per hour, which could meet the demand of up
The Kaohsiung City Government yesterday said it would impose a property hoarding tax as it is seeking to contain speculation in the real-estate market, calling recent price increases “abnormal.” The announcement came in support of the Ministry of Finance’s call for local governments to levy a high tax rate on people with more than one property. Ministry officials on Tuesday discussed strategies to rein in speculation with the nation’s six special municipalities, as well as the Hsinchu city and county governments. About 84,000 out of 1.06 million housing units in Kaohsiung are not residential property, the city government said in a
BOOST EXPECTED: Higher market prices would offset effects of the industry’s transition to more climate-friendly production methods, a company official said China Steel Corp (CSC, 中鋼) expects steel demand to increase on the back of governments around the world subsidizing infrastructure construction amid a stabilizing COVID-19 pandemic, CSC chairman Wong Chao-tung (翁朝棟) told an investors’ meeting yesterday. “After getting through the hard times, I foresee at least one year, very possibly two years, of strong steel market,” Wong said. Calling a dip in steel prices a “short respite for the market,” Wong said that it would likely bounce back early next year on the back of mild winter temperatures around the world allowing construction activity. Despite COVID-19 spikes in some regions and increased