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Dow Ends Off Lows as Bulls Find Solace in Value Stocks

Stock MarketsOct 15, 2020 04:09PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Dow pared losses Thursday, as big tech cut losses and value stocks shined despite uncertainty over stimulus. 

The Dow Jones Industrial Average fell 0.07%, or 20 points. The S&P 500 was down 0.13%, while the Nasdaq Composite slumped 0.47%.

Value stocks proved an unlikely source of optimism for investors as financials,  industrials and energy attracted bids offsetting weakness in tech.

The Fab 5 had weighed on the broader tech sector, before paring some losses even as analysts warned of a choppy month ahead.

"[O]ur optics still suggest a choppy bottoming process in the October-November timeframe with a floor around/above 3050-3150 SPX," Technical Strategist Dan Wantrobski said.

Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL) and Microsoft  (NASDAQ:MSFT) traded in the red.

Investor sentiment was hurt intraday by data suggesting the resilience seen in the labor market could start to give way without further stimulus to support the broader economy.

The Labor Department said 898,000 Americans filed for unemployment insurance, up 53,000 from the prior week's 845,000. That was above economists' estimates for 820,000 claims and the highest since Aug. 22.

"The bottom line here is that the state of the labor market is contingent on the virus picture, so we can’t rule out further increases, and at this point we’d regard a zero print for October payrolls as a decent result; a clear decline is entirely possible," Pantheon Macroeconomics said.

A day after conceding that stimulus was unlikely to be rolled out before the Nov. 3 election, Treasury Secretary Steven Mnuchin said he would continue talks with House Speaker Nancy Pelosi on Thursday to resolve differences, particularly on funding for a national testing plan, which remains a sticking point.  

Healthcare stocks were also among the biggest losers on the day, led by 20% slump in Vertex Pharmaceuticals (NASDAQ:VRTX) after it stopped testing on a protein deficient treatment amid safety concerns.

Walgreens Boots Alliance (NASDAQ:WBA) rose 5% after reporting better-than-expected quarterly results, underpinned by higher U.S. sales.

Elsewhere on the earnings front, United Airlines Holdings Inc (NASDAQ:UAL) slumped more than 4% after its second-quarter results,  released late-Wednesday, fell short of Wall Street estimates as the pandemic continues to weigh on air travel.

In other news, cloud computing company Fastly (NYSE:FSLY) plunged 27% after trimming its third-quarter guidance, citing an uncertain geopolitical backdrop and lower-than-expected demand.

Zoom Video Communications (NASDAQ:ZM) ended at record highs, up 5%, after Bernstein hiked its price target on the stock to $611 from $228, citing optimism over new product releases. 

Dow Ends Off Lows as Bulls Find Solace in Value Stocks
 

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Comments (16)
king michael
king michael Oct 15, 2020 8:25PM ET
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9 out of the past 10 recessions happened when republic being president. The primary reason is the republican policy are designed to print more money and using stock market, close to free loans to transfer wealth to super wealthy. At those recessions, low income people lost jobs and means of living, middle class lost their savings and many also lost jobs. Fact is fact.
New Jazenevd
New Jazenevd Oct 15, 2020 7:46PM ET
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US futures are solidly positive indicating positive day tomorrow. This silly stuff about “stimulus” cannot prevent further market rise. Also, in case someone gets confused with article’s title: it says “value stocks”, not “value”. It is not the same.
Brady Murray
Brady Murray Oct 15, 2020 7:38PM ET
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Wonderful day! Entered Spy calls at open. dip buying was insane. made 3 large in 40 minutes. should have stayed in would have been 6. Tomorrow we rise again.
Airon Nguyen
Airon Nguyen Oct 15, 2020 7:21PM ET
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fat red tomorrow.
Fernando Lazarini
Fernando Lazarini Oct 15, 2020 7:12PM ET
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This Nyse guy is such a nice dude
Ben Ma
Ben Ma Oct 15, 2020 6:44PM ET
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Is this headline a joke? What value ?
Fernando Lazarini
Fernando Lazarini Oct 15, 2020 6:44PM ET
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Jack Mayoffer
Jack Mayoffer Oct 15, 2020 5:16PM ET
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Look at the guy in the picture his HAT say “DOW ALMOST AT 20,000” now that would be nice about now...imo..hik hik ;-)
Ben Ma
Ben Ma Oct 15, 2020 5:16PM ET
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there still wouldn't be any real value at dow 20,000
Plopseven Schwartz
Plopseven Schwartz Oct 15, 2020 5:01PM ET
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Value stocks like the solar stocks that are up 1000% this year?!
Mesesan Bogdan Ionut
Mesesan Bogdan Ionut Oct 15, 2020 4:47PM ET
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bearish in this week?
New Jazenevd
New Jazenevd Oct 15, 2020 4:46PM ET
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It was a positive market day actually. One may just look at Russell. Most stocks had gains today.
Jiyun Xu
Jiyun Xu Oct 15, 2020 4:31PM ET
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The picture is good
bvwtl tcpkw
bvwtl tcpkw Oct 15, 2020 4:28PM ET
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bvwtl tcpkw 6 hours ago If you want to WOW us, push the market into green today on this data, that would be really funny ^)^ Reply  0  2 Report bvwtl tcpkw 4 hours ago one more push and we are in the green. no manipulation, just strong buy on strong economic fundamentals. Reply  0  2 Report bvwtl tcpkw 2 hours ago and there you have it, green. Mnuchin says he’ll give ground in stimulus talks while Trump says he would raise his offer Just in time...... Reply  0  0
bvwtl tcpkw
bvwtl tcpkw Oct 15, 2020 4:28PM ET
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great sense of "humor"
James Johannsen
James Johannsen Oct 15, 2020 4:22PM ET
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or the fed came in and bought it up again 🤣🤣🤣
Werner korze
Werner korze Oct 15, 2020 4:22PM ET
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great
Tong Luo
Tong Luo Oct 15, 2020 4:21PM ET
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solace......
Pradika Putra
Pradika Putra Oct 15, 2020 4:20PM ET
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Pikirin dika18061987
Matius Marvn
Matius Marvn Oct 15, 2020 4:17PM ET
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why write trash?? dow is up , banks citi goldman , Wellsfargoetc , want rally , BIDEN OR TRUMP IS ONLY PLAY , bullish
Amine Fourali
Amine Fourali Oct 15, 2020 4:17PM ET
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Another non sense comment! Poor world
 
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