· S&P 500 and Nasdaq end higher, buoyed by energy and consumer staples as Wall Street wrestles with rising coronavirus cases
The S&P 500 and Nasdaq Composite eked out slight gains Thursday on the back of energy and consumer staples stocks, but the Dow closed lower for a second straight session, as investors digested a weekly report on the labor market in the U.S. and contended with signs of rising cases and hospitalizations of COVID-19 in several states.
The Dow Jones Industrial Average US:DJIA finished off 39.51 points, or 0.2%, lower at 26,080.10, as a decline in financials American Express US:AXP and Goldman Sachs US:GS pressured the blue-chip index lower. The benchmark finished well off its low of 25m848.53. Meanwhile, the S&P 500 index US:SPX picked up 1.85 points, or less than 0.1%, to close at 3,115.34, after sinking to an intraday low at 3,093.51
The Nasdaq Composite Index US:COMP rose 32.52 points, or 0.3%, at 9,943.05.
On Thursday, Investors digested a report on U.S. weekly jobless benefit claims showing 1.5 million new applications were made in the most recent week, pushing the total during the coronavirus pandemic above 48 million. The most recent reading was higher than the consensus forecast of 1.3 million new claims.
In a separate report, the Philadelphia Fed said manufacturing activity in the region was much stronger than had been anticipated. Its June reading rose solidly to 27.5 from -43.1 in May.
· Dow futures rise more than 100 points as Wall Street tries to end the week on a high note
U.S. stock futures rose on Thursday night following a muted session in which traders grappled with disappointing unemployment data and rising coronavirus cases.
Dow Jones Industrial Average futures gained 170 points, or 0.7%. S&P 500 and Nasdaq-100 futures climbed 0.5% and 0.4%, respectively.
· European stocks finish off session lows; Bank of England expands bond buying; Wirecard down 60%
European stocks closed lower on Thursday afternoon after the Bank of England expanded its bond-buying program and held interest rates steady at 0.1%.
The pan-European Stoxx 600 finished off session lows but fell 0.6% amid a choppy session. Banks and basic resources dropped around 1.2% to lead losses while chemicals stocks bucked the downward trend to add 0.7%.
The Bank of England on Thursday added another £100 billion to its quantitative easing program in a bid to shore up the U.K. economy amid the fallout from the coronavirus crisis, taking the total value of its Asset Purchase Facility (APF) to £745 billion. Analysts attributed the negative market reaction to investors having hoped for a larger boost.
In terms of individual share price action, German payments company Wirecard plummeted around 60% after again delaying the publication of its 2019 financial report. The company claimed it needed more time to work with auditor EY to address alleged balance sheet inconsistencies.
· Asia Pacific stocks mixed as investors monitor coronavirus situation
Stocks in Asia Pacific were mixed in Friday morning trade as investors continued to monitor the situation surrounding a recent uptick in coronavirus cases in some countries.
Japan’s Nikkei 225 gained 0.18% while the Topix index shed 0.39%. Over in South Korea, the Kospi fell 0.75%.
Shares in Australia saw gains, with the S&P/ASX 200 up 0.39%.
Overall, the MSCI Asia ex-Japan index traded 0.14% lower.
Investor focus on Friday likely remained on developments surrounding the resurgence of coronavirus in some places, with four states in the U.S. reporting record spikes in cases.
Meanwhile, a Chinese health expert said Thursday that a recent virus outbreak in Beijing is under control. The Chinese capital saw a jump in infections after more than 50 days without domestically transmitted Covid-19 cases.
Reference: CNBC, Reuters, Market Watch
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