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Major U.S. stock indexes ended Tuesday, mostly in record territory, despite ongoing wrangling in Congress over additional coronavirus help and concerns about how the economy will fare when a series of Unprecedented fiscal stimulus will eventually die out.
The Dow Jones Industrial Average DJIA,
slipped 66.84 points, or 0.2%, to close at 27,778.07. The S&P 500 SPX index,
gained 7.79 points, or 0.2%, finishing at a record 3,389.78, his first all-time closing record since February 19. The Nasdaq Composite Index COMP,
added 81.84 points to reach 11,210.84, also a record close and his 34th of the year.
On Tuesday, the Dow Jones fell 86.11 points, or 0.3%, to end at 27,844.91, or 5.8% of its record close. The S&P 500 rose 9.14 points, or 0.3%, closing at 3,381.99, just 0.1% from its all-time high closing at 3,386.15. The Nasdaq Composite Index added 110.42 points, or 1%, ending at 11,129.73, while recording its 33rd year-end record.
What drove the market?
The S&P 500 closed a new record on Tuesday, setting a new record for an index that tracks several of the nation’s largest companies.
Despite lingering concerns about the trajectory of the pandemic, the shape of the economic recovery and political turmoil in the United States, it also marked the S&P 500’s fastest recovery since the bear market in history, according to Dow Jones Market Data.
“We feel like a lot of the lifting ease is behind us,” said Michael Hans, chief investment officer at Clarfeld Citizens Private Wealth, after the S&P 500 also briefly set its first intraday record since the 19th. February.
“We have a resilient consumer, and the benchmarks are back to all-time highs,” he told MarketWatch, but he also added that it was unclear what improvements in consumer spending, labor markets and economic activity could be sustained without permanent monetary and fiscal support.
“The policy is not expected to be in place forever,” he said.
Two of the nation’s largest retailers reported second quarter results that beat expectations, giving benchmarks a temporary boost. Actions of Walmart Inc.
WMT,
and Home Depot Inc.
HD,
briefly jumped up to save the territory, but closed lower.
Many retailers have been leveled by the business closures imposed due to the COVID-19 pandemic, although Home Depot and Walmart have found some support from consumers focusing on home improvement projects and the needs of home improvement. general purchasing. Walmart sells about 25% of all groceries purchased in the United States and its results have been boosted by its partnership with Instacart, an internet startup for grocery deliveries.
Lily: Transactions of $ 1,000 or more increased 16% at Home Depot in second quarter
In economic reports, U.S. home builders began building homes at a seasonally adjusted annual rate of 1.496 million in July, up 22.6% from the previous month and 23.4% from a year ago. is one year old, the US Census Bureau reported Tuesday, pointing to a powerful turnaround. for the market affected by the coronavirus.
Higher starts of single-family and multi-family dwellings contributed to the increase. Licensing activity took place at a seasonally adjusted annual rate of 1.495 million, up 18.8% from June and 9.4% from July 2019.
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, pointed to the “huge amounts of liquidity that the Federal Reserve has pumped into the system” as a catalyst for “the staggering recovery we have just seen”, in a commentary. sent by e-mail. warned of many headwinds, including high unemployment, that could weigh on the market.
As US economic activity slowly recovers from the coronavirus crisis, investors have started to point to “political disarray” in America as a reason for the recent decline of the US dollar.
Treasury Secretary Steven Mnuchin, in an interview with CNBC, said the economy was doing better as more businesses reopened, but President Donald Trump wanted Congress to do more. “He wants us to provide money for children and jobs, and a second phase of PPP and direct payments is clearly part of that,” he said of the Paycheque Protection Program. Treasury to help small businesses cover payroll during the pandemic.
Meanwhile, Senate Republicans were soon to introduce a ‘skinny’ coronavirus relief plan that also includes $ 10 billion for the U.S. Postal Service, which is now at the heart of a mail-order controversy for the United States. general election of November 3, according to several reports. It’s unclear whether the new proposal will help break a deadlock between the two political parties after $ 600 a week in additional unemployment benefits expired at the end of July.
The Republican proposal includes an improved unemployment benefit of $ 300 per week, money for helping small businesses and protection for employers from lawsuits resulting from COVID-19 infections, according to Bloomberg.
Several Democratic state attorneys general also said on Tuesday that they plan to sue the Trump administration to thwart any changes to the U.S. postal service that could hamper postal voting for the upcoming election. Postmaster General Louis DeJoy has promised the Postal Service is ready today to process any ballots it receives in November.
Also on investor radar, the United States has placed further restrictions on Huawei, after President Donald Trump once again declared that the Chinese tech group’s products are spyware.
What actions were targeted?
- Oracle Corp. ORCL,
+ 2.20%
entered the scene as a potential buyer of TikTok, the Financial Times reported Monday evening. Its shares closed up 2.2%. - Actions of Walmart Inc.
WMT,
-0.65%
finished 0.7% lower, following a surge in pre-market trading after the retailer performed better than expected in the second quarter. - Retailer Kohl’s
KSS,
-14.67%
also reported results above consensus expectations, but the company did not provide same-store sales results due to the coronavirus closings. Shares fell 14.7%. - Home Depot Inc. HD Shares,
-1.12%
Tuesday, after the retailer reported a second-quarter tax profit that beat expectations but closed down 1.1%. - Actions of Advance Auto Parts Inc.
AAP,
+ 1.14%
rose 1.2% on Tuesday, after the auto parts seller reported second-quarter tax profit well above expectations, helped by the best same-store sales performance in nearly 10 years. - Boeing Co. BA,
-1.03%
will offer its employees a second wave of buybacks, the aviation giant announced on Monday. “Although we have seen signs of recovery from the pandemic, our industry and our customers continue to face significant challenges,” Boeing said in a statement. The shares closed down 1% on Tuesday. - Carnival corp
CCL,
-1.83%
Shares ended down 1.8% after the cruise liner announced its Holland America Line division was opening bookings for Grand Africa Voyage 2021 and Grand World Voyage 2022. - Tesla Inc
TSLA,
+ 2.80%
Shares rose 2.8% on Tuesday, marking a fifth straight gain and a third consecutive record. - PG&E Corp. PCG,
+ 2.07%
Shares rose 2.1%, as California customers were to expect further blackouts on Tuesday that could last around two hours. amid “above normal” temperatures across the state.
How did other markets trade?
Monday in Asia, the Chinese index CSI 300 000 300,
closed less than 0.1% lower, while the Hong Kong Hang Seng HSI Index,
increased by 0.1% and the Japanese Nikkei 225 NIK,
decreased by 0.2%.
In Europe, the Stoxx 600 Europe SXXP index,
closed down 0.6% in the region, while the UK FTSE 100 UKX,
ended down 0.8%.
The yield of the 10-year Treasury bill TMUBMUSD10Y,
was 1.5 basis points lower at 0.668%. Bond prices move inversely with yields.
Gold price for delivery in December GCZ20,
rose 0.7% to $ 2,012.10 an ounce. US CLU20 crude oil price,
finished unchanged at $ 42.89 per barrel.
The ICE US Dollar DXY index,
a silver gauge against half a dozen major rivals, was down 0.6% to 92.29, near its lowest level since 2018.
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