Thursday, October 22, 2020

Stocks rally as dip buying intensifies after rout

Sep 26. 2020
Facebook Twitter

By Syndication Washington Post, Bloomberg · Rita Nazareth, Claire Ballentine

Stocks climbed as dip buyers appeared after the market slide, tempering a cloudy outlook for a U.S. stimulus package.

Tech companies led gains in the S&P 500, with the Nasdaq 100 jumping 2.3%. Real-estate, industrial and consumer-discretionary shares rose more than 1.4%, while energy producers almost erased losses. Boeing surged on a news report the top U.S. aviation regulator plans to test-fly the grounded 737 Max on Wednesday. Carnival and Royal Caribbean Cruises rallied after being upgraded at Barclays, which said the "worst is in the past" for cruise companies. The benchmark gauge still posted its fourth straight weekly drop -- the longest streak since August 2019. The dollar advanced.

Equities fell earlier Friday as a last-ditch attempt by Democrats and the White House to restart negotiations on new stimulus drew skepticism in Congress that a deal could be reached and written into law by the November election. There's a perception that the two sides still remain far apart on the size of a relief package. Amid mounting signs that the pace of recovery will ebb with an uptick in global coronavirus cases and lack of further government aid, investors have once again turned back to the companies flush with cash and tested in times of crisis.

"If I were to be unsure about a stimulus package, unsure about whether there will be a vaccine, there's no better thing than to hide out in the megacap tech stocks because they work in an economy-closed scenario," said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.

These are some of the main moves in markets:


- The S&P 500 increased 1.6% at 4 p.m. EDT.

- The Stoxx Europe 600 Index fell 0.1%.

- The MSCI Asia Pacific Index climbed 0.4%.


- The Bloomberg Dollar Spot Index increased 0.3%.

- The euro dipped 0.4% to $1.1625.

- The Japanese yen depreciated 0.2% to 105.61 per dollar.


- The yield on 10-year Treasurys decreased one basis point to 0.65%.

- Britain's 10-year yield fell three basis points to 0.189%.

- Germany's 10-year yield decreased three basis points to -0.53%.


- West Texas Intermediate crude dipped 0.5% to $40.12 a barrel.

- Gold depreciated 0.3% to $1,862.66 an ounce.

- Silver weakened 1% to $22.91 per ounce.

Facebook Twitter
More in Business
Editor’s Picks
Top News