Zoom Video Communications : Wall St ends strong August with muted performance
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* Zoom tumbles on faster-than-expected drop in demand
* Apple off lifetime high, as tech broadly weighs
* All main indexes post solid monthly performances
Aug 31 (Reuters) – Wall Street’s main indexes closed
marginally lower on Tuesday, although the slightly subdued
ending to August failed to detract from a strong monthly
performance in what is traditionally regarded as a quiet period
Having all posted lifetime highs in the second half of the
month, including four record closings in five sessions for the
S&P 500 prior to Tuesday, the three benchmarks were weighed by
technology stocks on the final day of August.
For the S&P, it was a seventh straight month of gains,
reflecting the level of investor confidence in U.S. equities
derived from the Federal Reserve’s continued dovish tone toward
tapering its massive stimulus program.
“After all the monetary and fiscal interventions, the
question is where do we go from here? Does the S&P go to 5,000,
and how does it get there?” said Eric Metz, chief executive
officer of SpringRock Advisors.
While a strong recovery in economic growth and corporate
earnings have boosted U.S. stocks in August, investors are
concerned about rising coronavirus cases and the path of Fed
A Reuters poll last week showed strategists believe the S&P
500 is likely to end 2021 not far from its current level.
“Where’s leadership going to come from, for equities to
power higher? Is it earnings growth, is it growth versus value,
technology or energy? This needs to be defined, but I think the
next leg-up for equities will be sector driven,” Metz added.
Technology stocks have continued to garner interest from
investors in recent days, given the benefits which lower rates
have on their future earnings, although the sector’s index
was among the worst performers on Tuesday.
Shares of Apple fell after hitting a lifetime high
in the previous session, while Zoom Video Communications Inc
tumbled as it signaled a faster-than-expected easing in
demand for its video-conferencing service after a
A majority of the 11 major S&P sectors retreated. Among
those that did not were the real estate and the
communications services indexes, which had earlier in
the session hit intraday highs.
Unofficially, the Dow Jones Industrial Average fell
41.42 points, or 0.12%, to 35,358.42, the S&P 500 lost
6.13 points, or 0.14%, to 4,522.66 and the Nasdaq Composite
dropped 6.28 points, or 0.04%, to 15,259.61.
(Reporting by Shashank Nayar in Bengaluru and David French in
New York; Editing by Aditya Soni and Lisa Shumaker)