Stocks extend weekly advance after economic data
Stocks climbed, led by technology companies, after economic data bolstered optimism that a recovery from a pandemic-induced recession is on track. Treasuries and the dollar rose.
The S&P 500 notched its fourth straight weekly rally - the longest winning streak this year. A sense of calm has prevailed amid light volume: It's been 21 sessions since the benchmark gauge posted a decline of more than 1%. Apple Inc. jumped ahead of the record date of a 4-for-1 stock split on Monday. Deere & Co., the largest maker of agricultural machinery, surged after boosting its outlook. Homebuilders soared after data showed sales of previously owned homes increased the most on record in July.
Governments around the world are still walking a tightrope between easing coronavirus lockdowns to revive economic growth, and controlling any resurgence of Covid-19. Florida's positive-test rate stabilized, cases and deaths fell in Arizona while and New York reported the fewest number of hospitalized patients since March 16. Meanwhile, Europe is grappling with a spike of infections, with little appetite among top officials to resort to stringent restrictions that helped control the spread earlier this year.
"We had a couple months where the virus was scary and confusing. And then we had our initial economic rebound," said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. "Now investors are looking at the marketplace and saying, 'What will the recovery look like?'"
It's no secret that technology shares have powered the remarkable recovery for U.S. equities since the depths of the pandemic. Big-tech firms like Amazon, Microsoft Corp. and Apple -- which registered a $2 trillion valuation this week -- have been a key reason for the rapid rebound in stocks. In the case of the S&P 500, which surged to a record earlier in the week, tech represents 26% of the benchmark's market capitalization; for the Nasdaq, it's a hefty 39%.
These are some of the main moves in markets:
- - -
- The S&P 500 advanced 0.4% as of 4 p.m. Eastern time.
- The Stoxx Europe 600 Index fell 0.2%.
- The MSCI Asia Pacific Index gained 0.8%.
- - -
- The Bloomberg Dollar Spot Index climbed 0.3%.
- The euro dipped 0.6% to $1.1792.
- The Japanese yen was little changed at 105.84 per dollar.
- - -
- The yield on 10-year Treasuries decreased two basis points to 0.63%.
- Germany's 10-year yield fell one basis point to -0.51%.
- Britain's 10-year yield dipped two basis points to 0.206%.
- - -
- The Bloomberg Commodity Index decreased 0.5%.
- West Texas Intermediate crude dipped 1.3% to $42.26 a barrel.
- Gold weakened 0.4% to $1,939.04 an ounce.