Stock indexes were modestly lower Tuesday after a big Monday for technology shares. There was some bad news on the Covid-19 vaccine front and little progress toward a fiscal stimulus bill in Washington, but most of Tuesday’s action was on the individual stock level, as third-quarter earnings season kicks off.
On Tuesday morning, the
Dow Jones Industrial Average
fell 110 points, or 0.4%, the
also dipped 0.4%, and the
ticked down less than 0.1%.
It was a contrast to Monday, when stocks jumped on little news during a light Columbus Day holiday and the technology-heavy Nasdaq rallied 2.6% to its third-highest close in history.
Contributing to the lackluster trading on Tuesday was an announcement from
Johnson & Johnson
(ticker: JNJ) on Monday night that it paused its trial of a coronavirus vaccine after an unexplained illness in a trial participant.
A winter wave of COVID-19 may be brewing in the U.S., with many states reporting distinct increases in confirmed cases. More economic stimulus may be necessary if the pandemic worsens from here, but Congress remains deadlocked on the issue. Despite all of this, the stock market was surging on Monday, with the Dow Jones Industrial Average(DJINDICES:^DJI) up 1.05% at 1:05 p.m. EDT.
Tech giant Apple(NASDAQ:AAPL) was the Dow’s top performer on Monday, rallying hard one day before the company is expected to announce iPhones that feature 5G technology. Shares of Cisco Systems(NASDAQ:CSCO) were also higher despite an analyst downgrade.
Image source: Getty Images.
Apple surges ahead of iPhone event
If 2020 were a normal year, Apple’s latest iPhones would have likely already launched. But supply chain disruptions due to the COVID-19 pandemic forced Apple to delay the launch by a few weeks. At an event in September,
US stocks sank on Friday after President Donald Trump and First Lady Melania Trump said they both tested positive for COVID-19.
The diagnosis adds more uncertainties to the final month of a presidential race already expected to fuel outsize market volatility.
While some sectors pared losses and swung higher, falling tech stocks dragged on major indexes and led the Nasdaq composite to underperform its peers.
Investors also faced off against weakening economic data. US businesses added 661,000 nonfarm payrolls in September, according to the Bureau of Labor Statistics. That’s less than economists’ expectation of 859,000 payrolls.
Oil futures continued to slide below the $40 support level. West Texas Intermediate crude dropped as much as 5.4%, to $36.63 per barrel.
Watch major indexes update live here.
US equities tumbled on Friday after President Donald Trump and First Lady Melania Trump announced they both tested positive for COVID-19.
Storied materials-science company Dow Inc. (DOW) – Get Report said that it would restructure, cutting “workforce costs” 6% and taking $500 million to $600 million of third-quarter charges for the effort.
It didn’t specify the amount of any layoffs.
The restructuring stems from the coronavirus pandemic, which has curbed demand for Dow products, the company said.
Besides the 6% cost cut, the revamp includes “[rationalizing] certain manufacturing assets,” the Midland, Mich., company said in a statement.
“These actions are expected to result in total annualized [earnings before interest, taxes, depreciation and amortization] savings of more than $300 million by the end of 2021.”
The industrial intermediates-and-infrastructure segment will shut certain amines and solvents facilities in the U.S. and Europe, as well as select small-scale downstream polyurethanes manufacturing facilities.
The performance-materials-and-coatings unit will shutter manufacturing assets, primarily small-scale coatings reactors.
“Given the expected gradual and uneven global economic recovery
The market moved sharply higher on Monday, trying to recover from its fourth straight week of losses, as investors cheered progress in negotiations over the next coronavirus stimulus bill.
The Dow Jones Industrial Average was up 1.5%, over 400 points, on Monday, while the S&P 500 rose 1.6% and the tech-heavy Nasdaq Composite gained 1.9%.
With only a few days of trading left in September, all three major averages are still on track to post their first monthly losses since March, when the stock market hit a low point during the coronavirus pandemic.
Big Tech stocks, which have been the main source of the market’s sell-off in September, rebounded on Monday: Shares of Amazon, Apple, Microsoft, Facebook and Google-parent Alphabet all rose.
Bank stocks also led the market higher, with JPMorgan Chase, Bank of America, Citigroup,
Major US stock indexes climbed on Friday, driven by a surge in technology stocks.
Still, Friday’s increase wasn’t enough to lift them into positive territory for the week. Both the S&P 500 and Dow Jones industrial average notched their fourth straight weekly decline.
Equities have come under pressure in recent week as investors monitor rising COVID-19 cases overseas and in the US.
Putting additional pressure on stocks is Congress’ likely inability to pass another round of fiscal stimulus before the November election.
Watch major indexes update live here.
Stocks climbed on Friday, driven by the same sector that’s led markets lower over the past month: technology. Investors bought the dip and pushed major indexes firmly into positive territory after tepid trading in the morning hours.
Still, Friday’s gains weren’t enough to salvage a positive week. The S&P 500 and Dow Jones industrial average both notched
The market fell sharply on Wednesday, adding to its sell-off so far in September as tech stocks again came under pressure and investors remained wary about a resurgence in coronavirus cases.
The Dow Jones Industrial Average was down 1.9%, nearly 550 points, on Wednesday, while the S&P 500 fell 2.4% and the tech-heavy Nasdaq Composite dropped 3.1%.
Shares of Big Tech stocks, which have been the source of the sell-off in recent weeks, again dragged the market lower: Apple, Amazon, Microsoft, Netflix and Google-parent Alphabet all fell by around 3% or more.
Tesla’s stock plunged over 9%, meanwhile, after the company’s highly anticipated ‘Battery Day’ in which CEO Elon Musk detailed a new battery design that he says will make Tesla’s cars cheaper to produce.
The market plunged on Monday, extending its three-week losing streak as stocks took a hit from an uptick in new coronavirus cases, declining tech shares and deadlocked stimulus talks in Congress.
The Dow Jones Industrial Average was down 3.2%, around 900 points, on Monday, while the S&P 500 fell 2.5% and the tech-heavy Nasdaq Composite dropped 1.9%.
Market sentiment took a hit after both the U.S. and Europe saw a resurgence in coronavirus cases over the weekend: The U.K. is reportedly considering another lockdown, while countries like France and Spain have seen an alarming rise in new infections.
Fears that a second wave of coronavirus could lead to further government restrictions and lockdowns caused shares of companies that would benefit from a reopening of the economy—including airlines, cruise operators and retailers—to
Stock futures sank Monday morning, following global equities lower and setting the three major indices up to extend last week’s sharp declines. The early moves lower came as concerns over stagnating coronavirus case improvement stoked fears of more lockdowns, and as political uncertainty nudged investors away from risk assets.
Dow futures sank more than 500 points, or 1.9%, Monday morning, adding to a cumulative more than 350-point slide in the index from Thursday to Friday last week. Futures on the S&P 500 were down more than 1.5% after ending last week at its lowest level in six weeks last week. As of Friday’s closing level, the S&P 500 was down more than 7% from its recent record high from Sept. 2.
“So far, the market has over-shot our expectations for a 4% to 6% haircut from recent highs on near-term extended valuations, as well as economic and Covid-19 risks. That