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
REUTERS — The S&P 500 and the Dow rose on Wednesday, while the Nasdaq weakened as investors moved out of technology and into cheaper sectors ready to take advantage of re- final economic recovery.
Investors also appeared to have threatened US President Donald Trump to not sign a US $ 892 billion coronavirus relief bill, saying changes should be made to increase the amount in the surveys motivation.
“Either we get what’s just gone, which is very optimistic for the economy, or we get something even bigger and the market likes it either,” said Thomas Hayes, managing member at Great Hill Capital Llc in New York.
Ten of the top 11 S&P sectors were higher, with energy stocks rising the most as investors hoped to recover faster than expected on the back of easy monetary policy, high liquidity and the COVID vaccination program -19.
Technology stocks including Microsoft, Paypal and Amazon.com, which have been performing consistently during the pandemic, pulled the Nasdaq lower.
“Technology is going to be a key driver of growth, but at the same time there is better value in the market value segment, and that is especially true if the vaccine enables the economy to recover,” said Chuck Lieberman. chief investment officer at Capital Management Advisor in New Jersey.
Elsewhere, reports that the EU and Britain were in the final stages of a Brexit trade deal are also shattering some optimism in markets.
At 11:52 am ET, the Dow Jones industrial average rose 211.00 points, or 0.70per percent, at 30,226.51, the S&P 500 went up 18.26 points, or 0.50per percent, at 3,705.52. The Nasdaq Composite rose 7.52 points, or 0.06per cents, at 12,815.43.
Data showed that initial claims for state unemployment benefits fell last week but remained at high levels. A separate report showed that consumer spending fell last month.
Although the data painted a bleak picture of the economy, large Wall Street indices were still marked to highlight significant annual gains behind unprecedented fiscal and monetary responses to the pandemic.
Drugmaker Pfizer Inc rose 2.3per percent after a deal to deliver an additional 100 million doses of the COVID-19 vaccine to the United States by July.
Merck & Co Inc added 0.9per percent after its own COVID-19 treatment agreement with the United States.
Electric truck maker Nikola Corp fell 10.1 percent after it canceled a contract to develop electric garbage trucks with recycling and waste disposal company Republic Services Inc.
American Airlines Group and United Airlines Holdings rose 2.9per cents and 2.8per cents, respectively, outlining plans to bring back fur workers this month.
Promotion cases yielded numbers below the 2.91-to-1 ratio on the NYSE and according to a 2.08-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and no new levels, while the Nasdaq recorded 241 new highs and one new low.
(Reporting by Devik Jain and Ambar Warrick in Bengaluru; Editing by Bernard Orr, Sriraj Kalluvila and Maju Samuel)