Stocks Rise as Dip Buying Tempers Stimulus Concern: Markets Wrap

(Bloomberg) — Stocks climbed as dip buyers emerged after the market slide, tempering concern over a cloudy outlook for a U.S. stimulus package.


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The S&P 500 rebounded from session lows and the Nasdaq 100 outperformed as giants Apple and Tesla jumped at least 2.1%. Industrial, consumer-discretionary and financial shares also gained. Carnival and Royal Caribbean Cruises rallied after being upgraded at Barclays, which said the “worst is in the past” for cruise companies. The benchmark gauge was still on track for its fourth straight weekly decline — the longest losing streak since August 2019. The dollar headed toward its best week since April.

Equities fell earlier Friday as a last-ditch attempt by Democrats and the White House to restart negotiations on new stimulus drew skepticism in Congress that a deal could be reached and written into law by the November election. There’s a perception that the two sides still remain far apart on the size of a relief package. Amid mounting signs that the pace of recovery will ebb, investors have once again turned back to the companies flush with cash and tested in times of crisis.

“If I were to be unsure about a stimulus package, unsure about whether there will be a vaccine, there’s no better thing than to hide out in the megacap tech stocks because they work in an economy-closed scenario,” Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.

Read: ‘Complete Mess’: Traders Fear Volatility Long After Election Day

chart: Nasdaq 100 extends 2020 rally

© Bloomberg
Nasdaq 100 extends 2020 rally

These are some of the main moves in markets:


The S&P 500 increased 0.6% as of 12:17 p.m. New York time.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index climbed 0.3%.


The Bloomberg Dollar Spot Index increased 0.4%.The euro dipped 0.4% to $1.1623.The Japanese yen depreciated 0.2% to 105.58 per dollar.


The yield on 10-year Treasuries decreased one basis point to 0.65%.Britain’s 10-year yield fell three basis points to 0.189%.Germany’s 10-year yield decreased three basis points to -0.53%.


West Texas Intermediate crude dipped 0.6% to $40.05 a barrel.Gold depreciated 0.4% to $1,861.11 an ounce.Silver weakened 0.8% to $22.97 per ounce.

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©2020 Bloomberg L.P.

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