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S&P 500 ends down slightly after flirting with record levels again

Published 08/13/2020, 06:39 AM
Updated 08/13/2020, 05:10 PM
© Reuters. A man walks a dog in the shade past the New York Stock Exchange (NYSE) during hot weather in New York

© Reuters. A man walks a dog in the shade past the New York Stock Exchange (NYSE) during hot weather in New York

By Caroline Valetkevitch

(Reuters) - The S&P 500 ended slightly lower on Thursday after briefly trading above its record closing high level for a second day, and the Dow also fell in the wake of a disappointing forecast from Cisco Systems Inc (O:CSCO).

The benchmark S&P 500 rose as high as 3,387.24 during the session, just above its record high closing level of 3,386.15 from Feb. 19. The record came just before investors sold shares in anticipation of what proved to be the biggest slump in the U.S. economy since the Great Depression. The index's intraday record high of 3,393.52 was also set on Feb. 19.

An 11.2% slump in shares of Cisco Systems weighed on the Dow and S&P 500 after the company forecast first-quarter revenue and profit below estimates.

Concern about corporate earnings has continued despite a mostly stronger-than-expected second-quarter profit season.

"The outlook for earnings in the next few quarters seems to be getting watered down by a lot of big companies," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

"It's making for a sluggish market without a real catalyst to push it up and over the hurdle for good," he said, referring to the S&P 500's record.

Apple Inc (O:AAPL) shares rose 1.8%, helping to support the Nasdaq and limiting losses in the S&P 500.

Also limiting bearishness, jobless claims fell below 1 million for the first time since efforts to curb the COVID-19 outbreak in the United States began five months ago.

Wall Street has recovered most of the trillions in market capitalization lost during the start of the pandemic and the Nasdaq was the first of the three major indexes to hit a record high in June. The Dow remains below its February peak.

The Dow Jones Industrial Average (DJI) fell 80.12 points, or 0.29%, to 27,896.72, the S&P 500 (SPX) lost 6.92 points, or 0.20%, to 3,373.43 and the Nasdaq Composite (IXIC) added 30.27 points, or 0.27%, to 11,042.50.

Initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March. But the expiration of a $600 weekly jobless supplement at the end of July likely contributed to the decline.

Data last week showed the economy had regained only 9.3 million of the 22 million jobs lost between February and April, indicating a long road to reach pre-pandemic levels.

Investors continue to hold on to hopes Democrats and the White House can reach agreement on a stimulus package to help the economy recover. Unemployment benefits have been a sticking point in their talks.

The U.S. presidential election is expected to add another layer of uncertainty into markets, with roughly 12 weeks remaining until Election Day.

Among declining stocks, Tapestry Inc (N:TPR) fell 1.1% even as it beat quarterly sales estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.42-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.

The S&P 500 posted 15 new 52-week highs and no new lows; the Nasdaq Composite recorded 62 new highs and 18 new lows.

© Reuters. A man walks a dog in the shade past the New York Stock Exchange (NYSE) during hot weather in New York

Volume on U.S. exchanges was 8.70 billion shares, compared with the 10.2 billion average for the full session over the last 20 trading days.

Latest comments

So, the top 3% is what keeps markets above water.....money launderers must know that for sure.
No worries, another green day tomorrow. It will rise on "hopes for vaccine" or "recovery optimism" or whatever
I just fell from all-time-high on my head and now I am desperate to buy stonks.
1 more trillion plz
2 more tril. plz
“Like almost all of Apple’s bond sales, it will use the money to buy back stock and pay dividends, among other general corporate purposes, the person said. JPMorgan Chase & Co., Barclays Plc and Goldman Sachs Group Inc. are managing the offering.” So Apple, the $2T company with supposed buckets of cash on the sides is asking their landlords to defer rent, then using their employee wages, rent money and loans to buy their own stock back. Wow. Un-f-real.
So, Apple isn't entitled to the relief, but you are? Apple should just shut up, pay your bills, and accept this as...good moral conduct? Every productive citizen has the right to just compensation, including parasites like you. If you pay taxes, you are entitled to receive something in return. The government created this economic problem...the government YOU voted for and accept. Apple should consider any relief they take as payment for services rendered. Just as YOU should...
holy...who hurt you, man? This type of government behavior allows companies to spend all of their money and never keep a rainy day fund because the government will just bail them out. I get that for utility companies and banks, but Apple? It’s one of the most profitable companies on the planet and we use taxpayer money to prop it up? No, I draw the line there. This isn’t capitalism; it’s corporate socialism. You and I pay for it.
you are so out of it. Too much smokey smokey i assume.
5 stocks make up nearly 20% of the entire stock market valuation thanks to the fed devaluing currency and there being nothing to invest in so funds just dumping money in to the same few bubble stocks
yeap u are absolutely right. wall st decide when to burst so either u are in or u are out. i never own any apple stock in my life cos i dont believe in it. simple as that.
A company that only had a revenue of $50 billion has a $2 trillion market cap that uses slave labor in china? Meanwhile 7 digit unemployment and small businesses being obliterated  in US due to lockdowns. Absolutely disgusting.
*8 digit
Not sure about the slave labor charge...Apple claims to pay its Chinese workforce and I have no reason to doubt that. I'd say that you're taking this claim as fact without facts to support it. But this is beside the point...a distraction from the absolutely mindless argument that - somehow - Apple is responsible for US unemployment. Point to any region in the US, identify the economic drivers that support commerce and private enterprise and I'll point to a government policy or action that undermines or exploits it. Unemployment is cause by two things: 1) the choices individuals make, and 2) government interference in the markets. By far the biggest contributor to the percentage of people who cannot find work is #2.
foxconn pays 400usd a month for 12 hour work days and dormitory quarters. Look it up. They also have suicide nets around their buildings. These are facts.
Fake news
i dont own apple stock. but i think u are crazy already.
Why file when you can't survive on what you would get?
3370ish is the top for this rally. Will go down at least 15% in the weeks to come...
350 it is then.
3500 I mean
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