STOCKS TICK HIGHER IN NEW YORK BUT TREASURIES WOBBLE
Updated: Aug 6
US stock indexes drifted higher Tuesday as Wall Street’s big rally eased off the accelerator. The S&P 500 rose 11.90 points, or 0.4%, to 3,306.51 after flipping between small gains and losses throughout the day. It’s the mildest move for the index in two weeks, Stan Choe wrote for Associated Press (AP) late on August 4, 2020.
The Dow Jones Industrial Average climbed 164.07 points, or 0.6%, to 26,828.47, and the Nasdaq composite added 38.37, or 0.4%, to close at another record, 10,941.17. Stock indexes are hanging at or close to their record highs after clawing back all or most of their sell-off from earlier in the year, and the S&P 500 is within 2.4% of its all-time high set in February. But caution is still very prevalent across other markets: Gold rose to another record Tuesday, while Treasury yields sank as investors sought safety.
Within the stock market, energy companies had the biggest gains after the price of oil rose. But two in five S&P 500 stocks were lower following a mixed set of earnings reports. On the winning end was Take-Two Interactive Software, which rose 5.9%. The video-game maker reported a profit for the spring that was almost double year-ago levels as customers stuck at home played Grand Theft Auto and other games instead of going outside.
The Federal Reserve said last week that it will keep interest rates at their record low levels, as it continues to pump massive amounts of aid into the economy. Now, investors are waiting for Congress to do the same. The yield on the 10-year Treasury note fell to 0.50% from 0.56% late Monday. It tends to move with investors’ expectations for the economy and inflation. The bond market was much earlier than the stock market to signal the coming economic disaster from the coronavirus pandemic. It has also remained much more cautious through the pandemic than the stock market has.