Post by Dave on Sept 24, 2020 2:47:54 GMT -8
Good morning. The pre-market is red yet again at -$0.15 at the moment. Let’s see how this day unfolds.
US STOCKS-Wall Street retreats as business activity slows, raising fears over economy
US STOCKS-Wall Street retreats as business activity slows, raising fears over economy
By Herbert Lash
Sept 23 (Reuters) - Wall Street's main indexes fell on Wednesday after data showing a cooling of U.S. business activity and the stalemate in Congress over more fiscal stimulus heightened fears of a choppy economic recovery from the pandemic-driven recession.
Ten of the 11 major S&P sectors were down, with energy - already the worst performing sector this year - leading declines.
Hopes of a strong recovery and historic stimulus fueled the U.S. stock rally following the coronavirus-driven crash in March, but doubts over the next relief bill and a sell-off in heavyweight technology-related stocks have weighed on sentiment this month.
The economy is leveling off at about 80% of activity before the pandemic and won't get back to normal until a vaccine is in place, said Jason Pride, chief investment officer of private wealth at Glenmede in Philadelphia.
"We're at that phase where it's harder to get that next bit of the recovery, that next bit of the reopening in place," Pride said. "We're still doing it, but the progress is way slower than it was in the first three months of the reopening."
Investors are struggling to understand where to invest with mega-cap tech stocks overvalued, but the deep-value stocks represent maturing industries, such as energy and brick-an- mortar banks, he said.
The Russell 1000 Growth index was down 2%, compared to a 1.3% decline in the Russell 1000 Value index.
"We’re spending more of our time in that sweet spot in the middle to get away from the extremes of growth," Pride said.
Federal Reserve Chair Jerome Powell said on Wednesday that the central bank was not planning any "major" changes to its Main Street Lending Program, while saying that both the Fed and Congress need to "stay with it" in working to bolster the economic recovery.
"The longer we go without more stimulus, the harder it will be to sustain the gains in the economy," said Willie Delwiche, investment strategist at Baird in Milwaukee.
Data from IHS Markit showed gains at factories were offset by a slowdown in the broader services sector in September, suggesting a loss of momentum in the economy at a time when concerns are rising about a potential surge in COVID-19 cases heading into the colder months.
Meanwhile, the U.S. Justice Department unveiled a legislative proposal, which would need congressional approval, that seeks to reform a legal immunity for internet companies and follows through on President Donald Trump's bid from earlier this year to crack down on tech giants.
Wall Street favorites including Facebook Inc, Apple Inc, Google-parent Alphabet Inc and Amazon.com Inc, which have borne the brunt of recent losses, were down between 1.5% and 3.4% in afternoon trading.
Sept 23 (Reuters) - Wall Street's main indexes fell on Wednesday after data showing a cooling of U.S. business activity and the stalemate in Congress over more fiscal stimulus heightened fears of a choppy economic recovery from the pandemic-driven recession.
Ten of the 11 major S&P sectors were down, with energy - already the worst performing sector this year - leading declines.
Hopes of a strong recovery and historic stimulus fueled the U.S. stock rally following the coronavirus-driven crash in March, but doubts over the next relief bill and a sell-off in heavyweight technology-related stocks have weighed on sentiment this month.
The economy is leveling off at about 80% of activity before the pandemic and won't get back to normal until a vaccine is in place, said Jason Pride, chief investment officer of private wealth at Glenmede in Philadelphia.
"We're at that phase where it's harder to get that next bit of the recovery, that next bit of the reopening in place," Pride said. "We're still doing it, but the progress is way slower than it was in the first three months of the reopening."
Investors are struggling to understand where to invest with mega-cap tech stocks overvalued, but the deep-value stocks represent maturing industries, such as energy and brick-an- mortar banks, he said.
The Russell 1000 Growth index was down 2%, compared to a 1.3% decline in the Russell 1000 Value index.
"We’re spending more of our time in that sweet spot in the middle to get away from the extremes of growth," Pride said.
Federal Reserve Chair Jerome Powell said on Wednesday that the central bank was not planning any "major" changes to its Main Street Lending Program, while saying that both the Fed and Congress need to "stay with it" in working to bolster the economic recovery.
"The longer we go without more stimulus, the harder it will be to sustain the gains in the economy," said Willie Delwiche, investment strategist at Baird in Milwaukee.
Data from IHS Markit showed gains at factories were offset by a slowdown in the broader services sector in September, suggesting a loss of momentum in the economy at a time when concerns are rising about a potential surge in COVID-19 cases heading into the colder months.
Meanwhile, the U.S. Justice Department unveiled a legislative proposal, which would need congressional approval, that seeks to reform a legal immunity for internet companies and follows through on President Donald Trump's bid from earlier this year to crack down on tech giants.
Wall Street favorites including Facebook Inc, Apple Inc, Google-parent Alphabet Inc and Amazon.com Inc, which have borne the brunt of recent losses, were down between 1.5% and 3.4% in afternoon trading.