Dow Suffers Weekly Loss as Stocks Slip
By Joe Wallace and Gunjan Banerji
The S&P 500 drifted decrease Friday, ending a uneven week with muted losses.
The broad stock-market gauge slipped 0.7%. The Dow Jones Industrial Common fell 0.8%. The tech-heavy Nasdaq Composite declined 0.4%.
A profitable stretch for the stock market has stagnated just lately, after enthusiasm concerning the growth of efficient coronavirus vaccines propelled the Dow industrials to a document firstly of the week. Surging coronavirus infections, indicators that the economic system has misplaced momentum, and the U.S. Treasury’s choice to permit a number of emergency Federal Reserve applications to run out have deflated a few of the optimism.
Some traders mentioned the current strikes mark a wholesome pause after a vigorous rally for the reason that presidential election.
“You are obtained simply this spike up with so many stocks,” mentioned Mark Stoeckle, chief government of Adams Funds. “I do suppose we’d like a breather right here.”
The S&P 500 and Dow notched losses of lower than 1% for the week. The Nasdaq added 0.2%.
Quite a lot of components have raised considerations amongst traders in current days. Treasury Secretary Steven Mnuchin mentioned Thursday that a number of novel applications which have backed company credit score and municipal-borrowing markets would finish Dec. 31. Mr. Mnuchin requested the Fed to return greater than $70 billion in funds that had already been transferred to the central bank to cowl loan losses.
The choice raises uncertainty concerning the diploma of assist that can be in place for the economic system if states impose additional restrictions to quell the wave of infections.
Each indicator of the virus’s unfold throughout the U.S. continued to speed up. The nation logged its highest-ever variety of newly reported Covid-19 infections in a day Thursday and reported record-high hospitalizations for the 10th day in a row. California Gov. Gavin Newsom issued a brand new stay-at-home order that may require probably the most of residents to remain at house and companies to shut between 10 p.m. and 5 a.m.
“We’re taking a look at short-term negatives,” mentioned Paul Jackson, head of asset allocation analysis at Invesco. “The markets are busy making an attempt to steadiness that with the longer-term excellent news that’s coming from vaccines.”
The dearth of settlement in Congress on a brand new spherical of support for the economic system has weighed on investor sentiment recently.
“The U.S. economic system nonetheless wants stimulus to recover from the hump in the meanwhile,” mentioned Brian O’Reilly, head of market technique at Mediolanum Worldwide Funds. Nonetheless, Mediolanum is positioning its funds for a bounceback subsequent yr in shares of industries, similar to monetary companies and supplies, which have suffered in the course of the pandemic.
In company information, shares of Pfizer rose 1.5% after the pharmaceutical big mentioned it plans to ask U.S. well being regulators on Friday to allow use of its Covid-19 vaccine. It is going to be as much as the U.S. Meals and Drug Administration to resolve whether or not the two-shot vaccine works safely sufficient to roll out to thousands and thousands of individuals.
Gilead Sciences fell 0.8% after the World Well being Group advisable in opposition to using antiviral drug remdesivir for Covid-19.
In bonds, the yield on 10-year U.S. Treasury notes slipped to 0.831%, from 0.854% Thursday.
Abroad, basic-resources, retail and oil-and-gas stocks led European markets increased. The pan-continental Stoxx Europe 600 edged up 0.5%.
The Shanghai Composite Index gained 0.4%, and Japan’s Nikkei 225 ticked down 0.4%.
Write to Joe Wallace at Joe.Wallace@wsj.com and Gunjan Banerji at Gunjan.Banerji@wsj.com
(END) Dow Jones Newswires
November 20, 2020 16:22 ET (21:22 GMT)
Copyright (c) 2020 Dow Jones & Firm, Inc.
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Dow Jones – Dow Suffers Weekly Loss as Stocks Slip