NEW YORK (Reuters) – The S&P 500 only closed in positive territory on Wednesday as an expected stimulus deal and the loss of unemployment claims prompted investors to place their money in the sectors most likely to benefit. reopening the economy when it recovers from the global health crisis.
While the blue Dow and lowercase letters led to gains, the highly technical Nasdaq ended the session below.
Economically vulnerable cyclical stocks, which have been hit by mandatory shutdowns and will benefit most from the economic recovery, outperformed.
Cyclic rotation reflects a growing confidence in recovery after the pandemic recession and began in crises and begins after promising data on the late-stage vaccine were released in early November.
“It’s a very welcome sign to see rotation in downed sectors,” said Matthew Keator, managing partner of Keator Group, a wealth management firm in Lenox, Massachusetts. “He talks about the importance of evaluation and the importance of diversification.”
“He also talks about the hope that exists,” Keator added. “When you see oil rise and the tourism and tourism industries rise, they are looking forward to the market and prices in this hope.”
The possibility of the US government closing at the end of the year, as well as the lack of a new fiscal stimulus, raised its head after President Donald Trump threatened to veto a $ 2.3 trillion funding package, which also includes a long-awaited deal $ 892 billion to reduce the pandemic.
A Brexit trade deal between Britain and the European Union has more likely emerged after a senior European diplomat told Reuters that a deal could be imminent.
A series of mixed economic data showed a welcome drop in unemployment claims and an increase in new orders for durable goods, as well as a decline in consumer spending, declining personal incomes and extinguishing sentiment as the holiday shopping season approaches. finally, against the background of an invigorating pandemic.
But languid inflation data provided further assurance that the US Federal Reserve is likely to maintain its accommodative monetary policy at least until 2024.
The Dow Jones industrial average rose 114.32 points, or 0.38%, to 30,129.83, the S&P 500 gained 2.75 points, or 0.07%, to 3,690.01, and the Nasdaq Composite fell by 36.80 points, or 0.29%, to 12,771.11.
Of the 11 major sectors in the S&P 500, all real estate technologies and utilities, except real estate, ended the session in black.
Dr. Pfizer Inc. grew 1.9 percent following an agreement with the United States to provide an additional 100 million doses of COVID-19 vaccine by July.
Supernus Pharmaceuticals Inc. grew 14.6% after its experimental drug for attention deficit hyperactivity disorder reached the primary endpoint of a late-adult study.
Shares of Nikola Corp fell 10.7% after canceling an agreement to develop electric garbage trucks with recycling and waste disposal company Republic Services Inc.
American Airlines Group and United Airlines Holdings rose 2.6% and 2.7%, respectively, after revealing plans to bring back employees who were hired this month. The airline hopes to receive about $ 15 billion in wage support as part of the pending tax relief package.
Advanced issues outperformed the low number on the NYSE by a ratio of 2.38 to 1; on the Nasdaq, a 1.73-to-1 ratio favored the forwards.
The S&P 500 recorded 33 new highs of 52 weeks and no new lows; Nasdaq Composite recorded 280 new highs and two new lows.
The volume of US stock markets was 12.22 billion shares, compared to the average of 11.52 billion in the last 20 trading days.
Stephen Culp’s report; Montage by Cynthia Osterman