Wall Street had a lot to digest Wednesday: Congressional testimony by the head of the Federal Reserve, a possible setback for the U.S.-China trade deal, and the start of impeachment hearings on Capitol Hill.
Still, The Dow and S&P 500 managed to set fresh record closing highs but the Nasdaq inched lower.
Federal Reserve Chairman Jerome Powell told lawmakers the economy was in good shape and he saw no reason why the record-long 11-year expansion without a recession was near an end.
His testimony came on the same day a report showed consumer prices jumped the most in seven months, but remained below the Fed's two percent target.
That helped offset investor unease surrounding the U.S.-China trade deal that has yet to be signed.
Negotiations between the world's two biggest economies have hit a snag over farm purchases, according to the Wall Street Journal.
Ross Gerber is CEO of Gerber Kawasaki.
SOUNDBITE (ENGLISH) GERBER KAWASAKI CEO ROSS GERBER, SAYING: "It's clear that the markets and the economies of the world want resolution, want tariffs removed and so any hint that this deal might not get done is going to put pressure on stocks.
There is no question." Shares of Walt Disney jumped to an all-time high.
There were more than 10 million sign-ups for video streaming service Disney+ in just one day.
The entertainment conglomerate was the best performing stock in the Dow and S&P 500.
Getty Images US stocks extended losses into Monday's close as a lack of stimulus progress cut into hopes for a pre-election deal. House Speaker Nancy Pelosi expedited talks on Sunday, setting a 48-hour deadline for the White House and Democrats to ink a deal. She later told Democrats that significant obstacles in reaching a compromise remain. Even if an agreement is reached, the bill is set to die in the Senate as Republicans push a $500 billion measure.
The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and much better-than-expected retail sales data brought buyers back to the market. Fred Katayama reports.
[NFA] U.S. House of Representatives Speaker Nancy Pelosi on Thursday said legislation to help airline companies survive the fallout could only move through Congress with guarantees that lawmakers will work on a more comprehensive aid bill to help the unemployed, small businesses and revenue-depleted state and local governments. Conway G. Gittens reports.
On Thursday, US stocks fell 320 points. The drop comes even as weekly jobless-claims data came in better than expected. Business Insider reports that weekly jobless claims fell by more than 30,000 from the previous week, to 860,000. Tech stocks led the decline. Investors continued to process Federal Reserve Chairman Jerome Powell's comments expressing uncertainty about the economic recovery. Powell also said the Fed didn't expect to raise interest rates until at least 2023.
Stock market analysts always worry around the time of a Presidential election. The markets can react unpredictably when a certain candidate gets elected. According to Stifel the S&P 500 will sell off initially if the Senate or Presidency remains Republican after the election. Business Insider reports that a note from Stifel says the S&P may fall following this election outcome. With the Republicans in charge hopes of a large fiscal stimulus will fade.
The S&P 500 ended lower on Thursday after a rise in weekly jobless claims compounded worries about a stalling economic recovery and fading hopes for more fiscal aid before the election. Fred Katayama reports.
The Federal Reserve is targeting above 2% inflation. Scott Minerd, Guggenheim global CIO told Bloomberg on Wednesday it is "virtually impossible" for the Fed to achieve that without creating a bubble in asset prices. "The reality is that the inefficiencies that are building up in the system." Minerd said misinformation and mistaken investments will pose a challenge to investors.
U.S. stocks rallied on Tuesday with the Nasdaq snapping a five-day losing streak as investors bet there would be a soon-to-emerge agreement on an economic stimulus package. Netflix posted disappointing quarterly results. Conway G. Gittens has more.
Wall Street's main indexes ended higher Wednesday to snap a three-session losing streak as investors jumped back in to take advantage of the pullback in technology-related stocks, a day after the Nasdaq confirmed correction territory. Fred Katayama reports.
On Wednesday, Tesla shares rallied as much as 10%. The rally added about $32 billion in market value to the company. Other tech stocks like Apple, Amazon were also in the green after the Nasdaq tumbled a record 10% in three trading days. On Tuesday, Elon Musk's Tesla saw its stock price plunge 21%, erasing $82 billion from its market capitalization. Business Insider reports that Tesla completed a $5 billion share sale and a five-for-one stock split last week.
U.S. stocks closed lower for a third straight session Tuesday as tech stocks extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500. Fred Katayama reports.
As the Nasdaq fell 5% intraday Thursday, Crossmark Global Investments' Victoria Fernandez, who last month advocated trimming positions on big cap tech stocks, says the market may have further to drop. She tells Reuters' Fred Katayama investors should later buy consumer staples, utility, and energy stocks.