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Dow and S&P 500 fear outbreaks of virus


(Reuters) – The S&P 500 and Dow fell Thursday as fears of a new wave of business closings to contain a spike in coronavirus cases have overshadowed data indicating a downward trend in weekly jobless claims.

However, Amazon.com (AMZN.O), Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O) helped Nasdaq, techno-heavy, reverse previous losses to a new record.

The United States recorded more than 60,000 new COVID-19 infections on Wednesday, setting a world record on a single day, while Florida and Texas reported a record one-day increase in deaths.

“We need consumers and businesses to be engaged in a recovery – shutdown or no halt – and the news of an increased spread of the virus is weighing on consumer psychology and sentiment,” said strategist Willie Delwiche investment at Baird in Milwaukee.

“The market has recovered in anticipation of economic progress and is today a step backwards.”

A lot of optimistic economic data, including the record pace of job additions in June, pointed out that the domestic economy stimulated by the recovery was on the road to recovery.

The S&P 500 benchmark has risen more than 40% from its March lows and is now about 7.8% below its February record. The Nasdaq hit a record in the previous session and the Dow Jones is about 13.6% of its own historic February record.

US stocks had opened higher after data showed that the number of Americans filing for unemployment fell to a low of nearly four months last week, but a record number of 32.9 million people were perceiving unemployment checks in the third week of June.

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At 1:10 p.m. ET, the Dow Jones Industrial Average .DJI index lost 1.16% to 25,764.46. The .SPX lost 0.65% to 3,149.26 and the Nasdaq .IXIC rose 0.21% to 10,515 points.

Cyclical energy .SPNY and financial .SPSY lost the most ground among the 11 main S&P sectors.

In a bullish signal for short-term momentum, the S&P 500’s benchmark chart formed a “golden cross” pattern, in which its 50-day moving average exceeded the 200-day moving average.

Walgreens Boots Alliance Inc (WBA.O) fell 9% after posting a quarterly loss from profit a year earlier, affected by non-cash impairment charges of $ 2 billion as COVID-19 disrupted activities of its Boots UK division.

Cisco Systems Inc (CSCO.O) rose 2% as Morgan Stanley raised its rating on the stock of network equipment supplier to “overweight”.

Declining emissions outnumbered the advancers by 3.69: 1 on the NYSE and 2.78: 1 on the Nasdaq.

The S&P index recorded 31 new highs over 52 weeks and a new low, while the Nasdaq recorded 107 new highs and 28 new lows.

https://s2.reutersmedia.net/resources/r/?m=02&d=20200709&t=2&i=1525170105&w=1200&r=LYNXMPEG680SH

Source: Reuters

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