Industry
: The S&P 500 and the Dow rose on Wednesday, while the Nasdaq declined as investors moved out of technology and into cheaper sectors ready to benefit from re- final economic recovery.
PHOTO FILE: Raindrops hanging on a sign for Wall Street outside the New York stock exchange in Manhattan in New York City, New York, USA, October 26, 2020. REUTERS / Mike Segar
NEW YORK – The S&P 500 closed in positive territory Wednesday as an expected stimulus contract and unemployed bids forced investors to invest in sectors that are more likely to benefit from the re-economy -open when it overcomes the global health crisis.
While the Dow-blue Dow and a small captain dominated the gains, the tech-heavy Nasdaq ended the session a little lower.
Economically vulnerable cyclical stocks, hit by licensed closures and benefiting most from economic recovery, performed better.
The move into cyclical cycles reflects growing confidence in recovering from the pandemic recession, and began to respond and begin after promising end-of-term vaccine data released in early November.
“It’s a very welcome sign to see circulation into depressed sectors,” said Matthew Keator, managing partner at Keator Group, a wealth management company in Lenox, Massachusetts. “It talks about the importance of valuation and the importance of diversification.”
“It also speaks to the hope that is out there,” Keator said. “When you see oil construction and the travel and tourism industries pick up, it speaks to the forward-looking market and prices in that hope.”
The potential end-of-year closure of the U.S. government, not to mention the lack of new fiscal stimulus, lifted its head after President Donald Trump threatened to block a $ 2.3 trillion funding package, which is also including a long-awaited $ 892 billion package. pandemic relief contract.
The Brexit trade deal between Britain and the European Union has become more likely after a top European representative told Reuters that an agreement could be close.
A number of mixed economic data showed a welcome decrease in jobless claims and an increase in new orders for durable goods, but also a pullback in consumer spending, allowing for personal income and reducing sentiment while and the holiday shopping period is coming to an end amid a relapsing remitting disease.
But languid inflation data provided further confirmation that the U.S. Federal Reserve is likely to maintain its appropriate monetary policy at least until 2024.
Officially, the Dow Jones industrial average rose 113.96 points, or 0.38per percent, to 30,129.47, the S&P 500 gained 2.72 points, or 0.07per percent, to 3,689.98 and the Nasdaq Composite fell 36.80 points, or 0.29per percent, to 12,771.11.
Drugmaker Pfizer Inc rose after a deal with the United States to deliver an additional 100 million doses of the COVID-19 vaccine by July.
Merck & Co Inc agreed to supply the U.S. government with up to 100,000 doses of the COVID-19 treatment, raising its stock.
Supernus Pharmaceuticals Inc came in after its experimental drug for attention deficit hyperactivity disorder achieved the primary goal of late stage study in adults.
Shares of Nikola Corp were implicated in the cancellation of a contract to develop electric waste trucks with recycling and waste disposal company Republic Services Inc.
American Airlines Group and United Airlines Holdings came forward after announcing plans to bring back furloughed employees this month. The company’s business hopes to raise around US $ 15 billion in payment support as part of its upcoming fiscal relief package.
(Reporting by Stephen Culp; Editing by Cynthia Osterman)