The Dow and S&P 500 on Friday edged higher and ended a turbulent week with slight increases, helped by gains in Tesla Inc and Facebook Inc that offset a tumble by Nike Inc.
Athletic wear company Nike’s shares fell 6.3 percent and were the biggest drag on the Dow and the S&P 500 after it delivered a downbeat sales forecast and warned of delays during the holiday shopping season, blaming a supply chain crunch.
Shares of footwear retailer Foot Locker Retail Inc also fell sharply.
On the flip side, Facebook climbed 2 percent and Tesla rose 2.7 percent.
The S&P communication services sector climbed 0.7 percent and was the second-biggest sector gainer of the day after energy, up 0.8 percent.
Stocks bounced back from a sharp sell-off at the start of the week tied in part to concerns over a default by China Evergrande Group (恆大集團) and its potential risk to global financial markets.
On Friday, Evergrande’s electric vehicle unit said that it faced an uncertain future unless it got a swift injection of cash, the clearest sign yet that the property developer’s liquidity crisis is worsening in other parts of its business.
“You’ve had a good recovery from the lows” this week, said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
“With rates this low — even if they are going to move up slowly — and with the fiscal stimulus you’ll probably see coming, I think investors still prefer stocks to any other asset class. Stocks remain in a weird way what investors see as the safe place,” Meckler said.
On Wednesday, the US Federal Reserve said it would reduce its monthly bond purchases “soon” and half of the Fed’s policymakers projected that borrowing costs would need to rise next year.
The Dow Jones Industrial Average rose 33.18 points, or 0.1 percent, to 34,798, the S&P 500 gained 6.5 points, or 0.15 percent, to 4,455.48 and the NASDAQ Composite dropped 4.54 points, or 0.03 percent, to 15,047.7.
For the week, the Dow was up 0.62 percent, the S&P 500 gained 0.51 percent and the NASDAQ gained 0.02 percent.
Shares of cryptocurrency-related firms Coinbase Global Inc, MicroStrategy Inc, Riot Blockchain Inc and Marathon Patent Group fell after China’s central bank put a ban on crypto trading and mining.
“It’s been a very volatile week to say the least, so I think going into the last week of September the volatility is likely to continue, especially with the end-of-the-quarter window dressing,” said Peter Cardillo, chief market economist at Spartan Capital Securities LLC in New York.
Investors are also looking for signs of progress on US President Joe Biden’s spending and budget bills.
Declining issues outnumbered advancing ones on the NYSE by a 1.50-to-1 ratio; on the NASDAQ, a 1.40-to-1 ratio favored decliners.
The S&P 500 posted 21 new 52-week highs and six new lows, while the NASDAQ Composite recorded 82 new highs and 73 new lows.
Volume on US exchanges was 9.00 billion shares, compared with the 10.11 billion average for the full session over the past 20 trading days.
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
PharmaEssentia Corp (藥華醫藥) shares have jumped 80.56 percent since the company obtained a US polycythemia vera (PV) drug license for its new interferon drug Besremi (ropeginterferon alfa-2b-njft) on Nov. 12. Shares on Friday closed at NT$195 in Taipei trading, up from the stock’s closing price of NT$108 on Nov. 12. PV is a rare, chronic and life-threatening blood cancer linked to a stem cell mutation in the bone marrow that results in an overproduction of blood cells and places sufferers at risk of having a blood clot, stroke or heart attack. PharmaEssentia is preparing to make Besremi available in the US in the
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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