Stocks are Mixed on Wall St 09/23 09:49
U.S. stock indexes are mixed Wednesday morning, as Wall Street's tumultuous
month continues to churn.
New York (AP) -- U.S. stock indexes are mixed Wednesday morning, as Wall
Street's tumultuous month continues to churn.
The S&P 500 was 0.2% lower after giving up an earlier gain, the latest
erratic trading for a market dominated by several sudden turns of momentum
recently. The Dow Jones Industrial Average was up 53 points, or less than 0.2%,
at 27,341, as of 10:29 a.m. Eastern time, and the Nasdaq composite was down
This week alone, a Monday swoon brought the S&P 500 near the edge of a 10%
drop from its record high set on Sept. 2. It rebounded the following day to
snap its first four-day slide since stocks were selling off in February, though
momentum has been quick to shift even by the hour.
Nike jumped 8.7% for one of the biggest gains in the S&P 500 after it
reported much stronger profit than analysts expected.
Johnson & Johnson rose 1.3% as it begins a huge final study to try to prove
if a single dose COVID-19 vaccine can protect against the virus. A handful of
other vaccines are already in final-stage studies, and investors increasingly
expect one to be available within the first three months of 2021. The hope is
that it can help the economy get close to normal again and allow strong growth
At the center of the market's big swings this month have been Apple, Amazon
and other Big Tech stocks. They soared through the pandemic on expectations
that their growth will only strengthen as the pandemic accelerates
work-from-home and other trends that benefit them. But they began falling early
this month amid fears that they had grown too expensive.
Several were weakening again on Wednesday, with Amazon down 1.9% and
Microsoft down 1.2%. Apple was down 1.2% after earlier flirting with a small
Stocks that would benefit from a return to normal were rising, though.
Norwegian Cruise Line Holdings rose 1.9%, and Delta Air Lines gained 1.6%.
Part of this week's early stumble for stocks was due to worries about
European governments imposing tougher restrictions on businesses to slow the
spread of the coronavirus, which hurt travel-related companies in particular.
But analysts said the U.K. orders announced Tuesday weren't as extreme as some
investors had feared.
European stocks rose despite data showing the region's economic recovery may
be faltering. Business activity is slowing as weakness in the service sector is
countering strength in manufacturing, according to preliminary data from a
survey of purchasing managers by IHS Markit.
The survey's composite reading was at a three-month low, though
manufacturing was at a 25-month high.
Germany's DAX returned 0.8%, France's CAC 40 rose 1% and the FTSE 100 in
London gained 1.4%.
In Asia, markets were more subdued. Japan's Nikkei 225 slipped 0.1%, South
Korea's Kospi was virtually flat and Hong Kong's Hang Seng ticked up by 0.1%.
Treasury yields were holding relatively steady, and the 10-year yield
slipped to 0.67% from 0.68%.
Yields have remained very low as the Federal Reserve has said it expects to
keep short-term rates at nearly zero for years. Such support helped Wall Street
halt its sell-off of nearly 34% earlier this year, along with a big stimulus
effort by Congress.
But extra unemployment benefits and other aid from Congress have already
expired. Some areas of the economy have seen growth slow as a result, and
investors say a renewal is crucial. But partisan disagreements have kept
Congress stymied. The vacancy on the Supreme Court following Justice Ruth Bader
Ginsburg's death has deepened the country's partisan split even more.
Fed Chair Jerome Powell said on Tuesday that the economy would benefit from
support by both the central bank and Congress. He is testifying again Wednesday
at a hearing for a House subcommittee on the coronavirus crisis.