Stock Indexes Mixed Thursday 08/13 09:20
Stocks are drifting in early trading on Wall Street Thursday, with indexes
mixed, and the market remains within a breath of erasing the last of its
NEW YORK (AP) -- Stocks are drifting in early trading on Wall Street
Thursday, with indexes mixed, and the market remains within a breath of erasing
the last of its pandemic losses.
The S&P 500 was virtually unchanged after the first 25 minutes of trading.
It's within 0.2% of its record, which was set in February before investors
appreciated how much devastation the new coronavirus would cause for the global
The Dow Jones Industrial Average was down 29 points, or 0.1%, at 27,947, as
of 9:55 a.m. Eastern time, and the Nasdaq composite was up 0.4%.
Treasury yields perked higher after a report showed that fewer than 1
million U.S. workers filed for unemployment benefits last week. It's still an
incredibly high number, but it's the first time the tally has dropped below
that threshold since March, before widespread business lockdowns caused a
tsunami of layoffs.
Economists said the drop in jobless claims, which was better than the market
was expecting, is an encouraging step. But they also cautioned that it could be
more of an outlier than a trend, and more data reports are needed to confirm it.
After the report's release, the yield on the 10-year Treasury rallied back
from an earlier dip, and it was sitting at 0.69% in morning trading. It was at
0.57% just on Monday.
Wall Street has erased almost all of the nearly 34% drop the S&P 500
suffered from late February into March, even though the economy is still
hobbled despite some recent improvements.
Massive efforts to support the economy by the Federal Reserve and U.S.
government helped trigger the rally, and investors are now waiting for Congress
and the White House to deliver another round of aid after unemployment benefits
and other measures in the last tranche expired.
Democrats and Republicans remain far apart, but hope remains on Wall Street
that they'll reach a deal on stimulus that investors say is crucially needed.
"The stalemate in Washington certainly looms large, and it's unclear how
long the market will tolerate the impasse," said Mike Loewengart, managing
director of investment strategy at E-Trade Financial. "It's nothing short of
impressive that the S&P flirts with record highs in just five months since the
downturn, but it's unknown if the disconnect between economic data and market
activity will continue."
Other analysts also urged caution following the market's huge run back to a
record, even if numbers of new U.S. coronavirus cases are moderating and
companies say they're making progress in developing a vaccine for COVID-19.
"Encouraging signs of U.S. COVID curve flattening alongside vaccine hopes
are reason for cautious optimism, not unbridled exuberance," said Hayaki Narita
at Mizuho Bank in Singapore.
Big Tech stocks were once again leading the market, with all five of the
market's biggest titans making modest gains. Apple, Microsoft, Amazon, Facebook
and Google's parent company together make up more than 22% of the S&P 500,
giving their movements extra heft in the index, and each rose at least 0.6%.
Cisco slumped 10.8% for the biggest loss in the S&P 500, even though it
reported better results for its latest quarter than Wall Street expected. It
gave a forecast for the current quarter that fell short of analysts' forecasts.
In Asian stock markets, Japan's benchmark Nikkei 225 jumped 1.8%, South
Korea's Kospi gained 0.2% and Hong Kong's Hang Seng slipped 0.1%. Stocks in
Shanghai were virtually flat.
In European markets, Germany's DAX lost 0.6%, and France's CAC 40 fell 0.6%.
The FTSE 100 in London dropped 1.3%.
Benchmark U.S. crude edged down 2 cents to $42.65 per barrel. Brent crude,
the international standard, was down 0.2% at $45.36 per barrel.
Gold, which has been setting records recently, slipped 40 cents to $1,948.60