2/2 © Reuters. FILE PHOTO: Masked traders work, on the first day of in-person trading since closing during the coronavirus disease (COVID-19) outbreak on the floor of the New York Stock Exchange in New York 2/2
By Herbert Lash NEW YORK (Reuters) – The and Nasdaq traded sideways on Friday in a tight range, with investors buying energy, finance and materials stocks and selling high tech stocks as they await advances in new fiscal aid from Washington to stimulate growth. market. to new highs. S & P’s energy, finance and materials sectors rose on expectations that they will benefit from a reopened economy. Heavyweights Apple Inc (NASDAQ :), Tesla (NASDAQ 🙂 Inc and Microsoft Corp (NASDAQ :), each on the downside, held the major indices behind as they headed for the second straight week of gains. Value and cyclicals outperform in an environment of rising interest rates and higher growth, which the US economy is about to enter, said Thomas Hayes, president and managing member of hedge fund Great Hill Capital LLC in New York. “We are underestimating the lag effect of all the money in the system as more and more vaccines are delivered and more of the country reopens” due to business closures, he said. “We are continuing this rotation that would be consistent with the new business cycle and as (bond) yields rise, value and cyclicals will lead,” Hayes said. A sharp drop in new COVID-19 cases and hospitalizations in recent weeks have helped propel markets to new highs, although there could be a short-term pullback due to new variants of the coronavirus and potential drawbacks to distributions of vaccines. The latest data showed that US consumer confidence unexpectedly fell in early February as households remained concerned about the economy despite expectations of additional fiscal stimulus. A Reuters poll showed the U.S. economy is expected to reach pre-COVID-19 levels within a year as the $ 1.9 trillion tax bill helps fuel economic activity, But it will likely take more than a year for employment to fully recover. United States President Joe Biden has approached a bipartisan group of local officials seeking support for his $ 1.9 trillion coronavirus relief plan to help millions of unemployed workers and to help schools reopen. Lipper data late Thursday showed that US equity funds attracted $ 22.9 billion in the week through Wednesday, the largest weekly influx since March 2008. US equity markets will close on Monday due to the Memorial Day holiday. U.S. Presidents At 2:15 p.m. ET, it fell 62.79 points, or 0.2%, to 31,367.91, the S&P 500 lost 0.79 points, or 0.02%, to 3.915 .59 and the added 0.82 points, or 0.01%, to 14,026.59. The small-cap index was set to rise for the fifth week of the full six weeks this year. PayPal Holdings Inc (NASDAQ 🙂 was up about 4.2% as several brokerages raised share price targets a day after the payment company’s investor call of the day. Walt Disney (NYSE 🙂 Co reported a surprise quarterly profit. However, its shares fell 1.8% from an all-time high after a more than 13% rise in results over the past two weeks. Dating app operator Bumble Inc gained 14%, a day after a stellar debut sent its shares soaring more than 75%. Cannabis company Aphria (NASDAQ 🙂 Inc gained 7% after nearly halving its value in the previous session. Forward issues outnumbered declining ones on the NYSE by 1.07 to 1; on Nasdaq, a 1.06-to-1 ratio favored those advancing. The S&P 500 posted 48 new 52-week highs and no new lows; the Nasdaq Composite recorded 233 new highs and 13 new lows.