The Stock Market This Week: September 8-11

The Stock Market This Week: September 8-11

By: Stacey Nickens

On Tuesday, major indexes continued to decline as mega-caps struggled and investors chose not to buy the dip. The S&P 500 fell 2.8%. The Nasdaq tumbled 4.1%, and the Dow Jones dropped 2.3%. Both Apple and Tesla dragged the major indexes down. Tesla shareholders were also displeased at being snubbed by the S&P 500 Index Committee. Overall, information technology declined a total of 4.6%. Energy and financials also fell as oil prices declined. The utility sector fell the least with only a 0.6% drop. Investors seemed nervous about a market correction while also responding to various political events. Democratic leadership declined the Senate’s COVID relief package. President Trump suggested ways they may disincentive companies from outsourcing jobs to China, and there were reports that China’s largest semiconductor foundry may be put on a trade blacklist. On a positive note, Nikola and General Motors were both up after announcing a partnership. Walt Disney also climbed after their stock was upgraded to Buy at Deutsche Bank.

On Wednesday, the market rebounded with the S&P 500 adding 2%. The Nasdaq gained 2.7%, and the Dow Jones added 1.6%. The information technology sector led the way, with a 3.4% gain in daily trading. Materials and consumer discretionary also made significant gains. Energy trailed behind, only rising 0.6% despite an increase in oil prices. There didn’t seem to be a specific catalyst for the market’s improvements. Indeed, the market gained despite some negative headlines in the news. AstraZeneca had to pause COVID-19 vaccine trials in the UK after a patient became ill. Washington remained pessimistic about the passage of a coronavirus relief package, and several airlines expressed concern about the travel industry. Additionally, shares in Lululemon and Slack both fell after their earnings reports were released. In economic news, job openings increased in July. The weekly MBA Mortgage Application Index also rose.

On Thursday, major indexes reversed course and declined. The S&P 500 rose earlier in the day due to a strong performance by mega-caps and growth stocks. However, investors began selling off these same stocks later in the day, and by close, the S&P 500 had fallen 1.8%. The Nasdaq declined 2%, and the Dow Jones fell 1.5%. All sectors finished in the negative, with the biggest losses in information technology and energy. The market may have been impacted by the Senate’s inability to pass a $300 billion coronavirus relief bill as well as an underwhelming initial jobless claims report. The initial claims for the week ending in September 5 remained at 884,000 while continuing claims for the week ending in August 29 increased. In other economic news, the Producer Price Index for August increased 0.3% month over month. Wholesale inventories fell 0.3% in July, a reduction from the 1.3% drop in June.

On Friday, major indexes fluctuated throughout the day, but the S&P 500 was able to recoup some of its losses by closing. The index finished with a 0.05% gain. The Dow Jones also gained, adding 0.48%. However, the Nasdaq dropped 0.6%. Tech stocks dragged the market down yet again as investors sold off shares in companies such as Amazon, Microsoft, and Alphabet. However, losses in the information technology, consumer discretionary, and communication services sectors were somewhat offset by gains in industrials, materials, and financials. In individual company news, Oracle, Peloton, and Kroger’s stocks fell in daily trading after they each released their earnings reports. In economic news, the Consumer Price Index rose 0.4% m/m in August. The CPI also reported the largest increase for cars and trucks since March 1969.

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Source: briefing.com
By Categories: BlogPublished On: September 8th, 2020