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Stocks - Dow Falls as Tech Runs out of Steam; Fauci Warns on Reopening too Soon

Stock MarketsMay 12, 2020 02:36PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Dow fell on Tuesday as the rally in tech stocks cooled and worries that some states are lifting restrictions too soon weighed on sentiment.

The Dow Jones Industrial Average fell 0.62%, or 151 points, the S&P 500 fell 0.65%, while the Nasdaq Composite slipped 0.22%.

Investor optimism over the reopening of the economy remained cautious as White House health advisor Dr. Anthony Fauci told Congress that the virus is not under control yet and raised concerns that some states are reopening businesses too soon, which may lead to further Covid-19 outbreaks.

The warning comes as data from the White House coronavirus task force showed a spike in new infections in the past week, NBC reported, citing leaked data.

As the toll of U.S. coronavirus deaths topped 82,000, with as many as 1.4 million infected, investor focus on drugmakers' efforts to find Covid-19 therapies and vaccines has intensified.

Gilead Sciences (NASDAQ:GILD) and Moderna (NASDAQ:MRNA), the front runners in the race to find Covid-19 treatments, gave up some of their gains from a day earlier, keeping a lid on gains in the broader healthcare sector.

Technology, meanwhile, pared gains to trade roughly unchanged, with the bulk of FAANG turning negative.

Google-parent Alphabet (NASDAQ:GOOGL) fell 0.58% even as Citigroup upgraded its price on the tech giant to $1,600 From $1,400.

Financials, mostly banks, came under pressure as President Donald Trump exacerbated worries about a negative interest rate environment after calling on the Federal Reserve to deliver deeper interest rate cuts.

Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) were down more than 2%.

Trump has been a vocal critic of Fed Chairman Jerome Powell and expressed frustrations that the central bank had upped rates too quickly and subsequently trimmed rates too slowly.

The call on the Fed to cut more comes as the central bank got its historic corporate bond-buying program underway -- a move announced in March to avert a credit crisis.

On the economic front, investors continued to digest further evidence the U.S. economy is in crisis as core inflation, which excludes food and energy, recorded consecutive month-on-month declines for only the second time in the series' 63-year history. The last time was 1982, ING said.

In deal news. meanwhile, Grubhub (NYSE:GRUB) surged more than 30% on reports that Uber Technologies (NYSE:UBER) had tabled an offer for the company, The company issued a statement that did not confirm talks, but said it was always look at ways to increase shareholder value.

Stocks - Dow Falls as Tech Runs out of Steam; Fauci Warns on Reopening too Soon
 

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Comments (19)
John S Danish
John S Danish May 12, 2020 4:11PM ET
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dr.fauci has been wrong on every projection, should be fired
john richards
john richards May 12, 2020 4:01PM ET
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They missed the greatest rally in Wall St history. Don't expect sudden clarity from the always wrong every time on everything leftist.
Thom Miller
Thom Miller May 12, 2020 4:00PM ET
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Trump’s the one who’s been wrong about this the whole time, not Faucci. Let me count the ways....only 15 cases and they’ll be 0 soon, the virus is nothing more than a Democratic hoax, this medication will be a game-changer (until it killed a dozen people) — a game-changer alright, banned flights from China on 1/31 (yes, after 400,000 Chinese had already entered the US during January), and who can forget injecting people with disinfectant and putting a flashlight up their kazoo. All in the name of “science.” Yikes!
steven gitt
steven gitt May 12, 2020 4:00PM ET
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title correction: Stocks change in price up or down from day before
Lucke Black
Lucke Black May 12, 2020 3:57PM ET
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Fauci has only vaccine on his mind. The way how they achieve their end game. Everyone scared and accepting vaccine There are information on web, corona virus was research in US till 2017 then outsourced to China with grant 3.7 Millions. Do your reseach ;-) and of course is not going to be presented to US public by mainstream media.
Francesco Lucchesi
Francesco Lucchesi May 12, 2020 3:16PM ET
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imagine trump's fury lol
steven gitt
steven gitt May 12, 2020 3:16PM ET
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trump is a billionaire who is president of the united states, his approval numbers are higher than obama's his first term even with the stock market tanking. the person he is running against literally has dementia and an active r*pe allegation. i doubt he is furious, as most americans agree with him that the country should be re-opened like the rest of the world and this is ridiculous at this point.
TimAi Day
TimAi Day May 12, 2020 3:12PM ET
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Fauci is out of his mind. Vaccine is a year away and there is no guarantee about side effect if they rush vaccines. He should push for more masks, more public sanitized.
TimAi Day
TimAi Day May 12, 2020 3:10PM ET
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Fauci should push for more masks to the puvlic. Wearing masks reduce the spread.
BB Services
BB Services May 12, 2020 3:10PM ET
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can you even spell?
TimAi Day
TimAi Day May 12, 2020 3:10PM ET
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BB Services not on a tiny iphone
John Patrick
John Patrick May 12, 2020 3:09PM ET
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What I've learned in the past few months is that the DOW is just a line that the FED and Wall St move up and down at will. Its not correlated with the frozen Economy, plunging GDP, millions of job losses and a tsunami of bankruptcies. Why do investors even bother with it, it measures nothing but stimulus and greed??
Clinton Powell
Clinton Powell May 12, 2020 2:55PM ET
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Fauci, great scientistoh yea
James Marshall
James Marshall May 12, 2020 2:33PM ET
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Fauci needs to swim to the middle of the ocean. all of his projections have been wrong. how many people are going to get screwed over they shut down again
Tre Hsi
Tre Hsi May 12, 2020 2:33PM ET
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"Fauci needs to swim to the middle of the ocean. all of his projections have been wrong."  ---- so by that definition you are calling the same for Trump right?  you do remember all his predictions about this media hoax being totally under control right?
TimAi Day
TimAi Day May 12, 2020 2:33PM ET
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I dont blame on projections. I blame him on small minded. He only knows shutdown, vaccines and drugs. We cant have those 3 now. He needs to “Get out of the box” thinking.
James Marshall
James Marshall May 12, 2020 2:33PM ET
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they all can. however, Trump was intentionally led down the wrong path, he start to deviate after he realized what they were telling him was wrong.
maga king
maga king May 12, 2020 2:26PM ET
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cdc is rigged ad well. remember they used to recommend against masks, now suddenly reversed course. how much has 3M/big pharma bribed you?
Geese Dude
Geese Dude May 12, 2020 2:26PM ET
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yeah but Asian countries wore them regardless and fared much better as we know. don't blame cdc, blame "leaders" like trump
TimAi Day
TimAi Day May 12, 2020 2:26PM ET
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All masks avail , sell to the public are from China.
Jozef Drozd
Jozef Drozd May 12, 2020 2:14PM ET
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Fauci should test the vaccine on himself and his family first !
Matthew Carter
Matthew Carter May 12, 2020 2:14PM ET
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he would but it would probably be a fake.
Tre Hsi
Tre Hsi May 12, 2020 2:14PM ET
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maybe Trump should test that anti malarial drug he kept pushing for no reason, or of course there is still that Lysol injection he can try out on his SS robot of son in law
Jozef Drozd
Jozef Drozd May 12, 2020 2:14PM ET
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Tre Hsi the drug does work along with antibiotic ! French doctor cures people like that .
Jozef Drozd
Jozef Drozd May 12, 2020 2:14PM ET
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Randall Wagner
Randall Wagner May 12, 2020 2:13PM ET
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Not only that he is in league with China and the Who.
Tre Hsi
Tre Hsi May 12, 2020 2:13PM ET
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yes, it's obvious, just looked at all his tweets about how China and WHO did a wonderful job managing the virus......wait, you are talking about Trump, right?
Kilo Byte
Kilo Byte May 12, 2020 2:13PM ET
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I won't consider it "falling" until it dips below 23k and stays there.
maga king
maga king May 12, 2020 2:06PM ET
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arrest fauci! and bill gates too!
Luther Ward
Luther Ward May 12, 2020 2:06PM ET
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Agreed!
Kilo Byte
Kilo Byte May 12, 2020 2:06PM ET
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Why hasn't Trump reliege him yet?  Shame on him!
Kilo Byte
Kilo Byte May 12, 2020 2:06PM ET
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Relieved*
Tre Hsi
Tre Hsi May 12, 2020 2:06PM ET
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so it's Fauci's fault is that it?  is he the president?
SH Parker
SH Parker May 12, 2020 2:00PM ET
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Go Trump! Restart USA. Go home Fauci! Restart you research.
Mary Miller
Mary Miller May 12, 2020 2:00PM ET
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Be sure & go out without a mask. Gather in crowds. Then come back & see how lucky you feel when you are in an ICU on a vent. Fortunately we frontline heathcsregivers give stupid reckless people the same excellent care we give careful considerate people that do not endanger others. You are risking your life & the lives of others. Its like comparing a drunk driver without a seat belt driving among safe drivers. You will get us all killed.
DrFunkenstein hayson
DrFunkenstein hayson May 12, 2020 1:56PM ET
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Dr. Anthony Fauci appeared before a US Senate Committee today to warn Senators against opening the country after the coronavirus outbreak. Opening too soon - before a vaccine - will bring needless death and suffering, he said. No mention of the needless death and suffering caused by the lockdown itself - cancer treatments cancelled, surgeries cancelled, Depression-level economic collapse, depression, suicide, abuse. How long must we continue listening to this "expert" who has gotten everything wrong thus far?
Matthew Carter
Matthew Carter May 12, 2020 1:56PM ET
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he's an expert of deceit. does take much looking to begin seeing the corruption this man has been involved in. just look back to the 80's. he's a wolf in sheeps clothing.
Tre Hsi
Tre Hsi May 12, 2020 1:56PM ET
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if Trump thinks Fauci gave bad advices he should replace him, otherwise Trump is responsible for his govt's policies (as much as he is pointing fingers at everyone else)....
Sun Moon
Sun Moon May 12, 2020 1:33PM ET
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Be honest. "Doomsayer Fauci Tanks Market"
 
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