Wall Street Flat As Virus Cases Rise; Tech Stocks Advance

The S&P 500 and Dow Jones indexes were largely flat on Monday as investors weighed the implications of rising corona virus infections for business activity while the tech-heavy Nasdaq rose for a seventh session.

The World Health Organization reported a record rise in global coronavirus cases on Sunday, driving demand for perceived safe-havens, including gold and longer-term U.S. Treasuries.

Travel-related stocks, one of the worst-hit sectors due to the outbreak, fell. The S&P 1500 airlines index dropped 2.1%, while shares of cruise operators Norwegian Cruise Line and Royal Caribbean Cruises tumbled about 8% each.

“Investors are keeping a keen eye on how the consumer behavior adjusts itself to the rise in cases,” said Keith Buchanan, portfolio manager at GLOBALT in Atlanta.

“Unless we see consumer confidence get back and resume activities, it might definitely create some anxiety on how the market looks at-risk assets.”

The S&P 500 is trading in a tight range of late as several U.S. states, mainly in the West and South, have reported a surge in cases, with Apple Inc’s move to temporarily shut some U.S. stores again on Friday underscoring concerns of a delay in the recovery.

The benchmark index has climbed some 40% from its March lows thanks to trillions of dollars in monetary and fiscal support, the reopening of businesses and improving economic data.

It is now just about 9% off its Feb. 19 record high.

Technology stocks, which have powered much of the rebound, provided the biggest boost to the benchmark index. Five of the 11 major S&P sectors were higher.

At 11:21 a.m. ET, the Dow Jones Industrial Average was down 12.29 points, or 0.05%, at 25,859.17, the S&P 500 was up 2.24 points, or 0.07%, at 3,099.98. The Nasdaq Composite was up 41.66 points, or 0.42%, at 9,987.78.

U.S.-based meat processor Tyson Inc slipped 3.5% as China’s customs authority suspended imports of poultry products from a plant owned by the company that had been hit by the coronavirus.

American Airlines Group Inc fell 6.8% as it planned to secure $3.5 billion in new financing by selling shares and convertible senior notes to boost liquidity.

Virgin Galactic Holdings Inc soared 10.1% as it signed up with NASA to develop a program to promote private missions to the International Space Station.

Declining issues outnumbered advancers for a 1.32-to-1 ratio on the NYSE and for a 1.26-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and no new low, while the Nasdaq recorded 84 new highs and six new lows.

Source

Advertisement

Click To Join Our Community Telegram Group