S&P 500 ends up slightly, tech-related shares underperform value
NEW YORK (REUTERS) - The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower on Monday (Aug 10) as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a US fiscal support Bill.. Read more at straitstimes.com.
The Nasdaq, which has been hitting record highs, was dragged lower by Microsoft, Amazon and Facebook. Value stocks, which tend to outperform growth coming out of a recession, have gotten a lift in recent days.The Russell 1000 value index rose 0.9% on Monday, while the Russell 1000 growth index fell 0.5%.
"Part of the reason the S&P 500 has been held back is we're starting to see yet another rotation to value and away from growth," said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago."That tends to hold back the S&P because it's so dominated by big tech."
Similar rotations in recent years have not lasted long, he said, and, at this point,"I'm looking at this more as a correction of growth than it is people abandoning stocks."Bets on a potential coronavirus vaccine, historic fiscal and monetary support, and more recently, a better-than-expected second-quarter earnings season have brought the S&P 500 close to its February record closing high.
The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27,791.44, the S&P 500 gained 9.19 points, or 0.27%, to 3,360.47 and the Nasdaq Composite dropped 42.63 points, or 0.39%, to 10,968.36.Providing some support, US President Donald Trump signed executive orders that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week.
US Treasury Secretary Steven Mnuchin, in an interview with CNBC on Monday, said the Trump administration and Congress could reach an agreement as soon as this week if Democrats are"reasonable."Energy and industrials, among the worst performers this year, gained, while technology and communication services fell.
Among individual movers, Eastman Kodak Co sank 27.9% after its $765-million loan agreement with the US government to produce pharmaceutical ingredients was put on hold due to"recent allegations of wrongdoing."Microsoft Corp fell 2% as sources said its bid to carve out parts of TikTok from its Chinese owner ByteDance will be a technically complex endeavour.
Advancing issues outnumbered declining ones on the NYSE by a 2.45-to-1 ratio; on Nasdaq, a 1.56-to-1 ratio favored advancers.The S&P 500 posted 40 new 52-week highs and no new lows; the Nasdaq Composite recorded 103 new highs and 11 new lows. Read more: The Straits Times »
S&P 500 end up slightly, tech-related shares underperform valueThe S&P 500 and the Nasdaq fell on Monday as investors rotated out of heavyweight technology stocks and moved into lagging growth-linked sectors ...
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