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Nasdaq ends at record high as Wall Street rises with tech shares

(Reuters) – U.S stocks rose on Wednesday and the Nasdaq hit a record closing high, supported by technology shares as early signs of an economic rebound offset concern about further lockdowns due to a jump in coronavirus cases across the country.

Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) provided the biggest boosts to the Dow and S&P 500, with the S&P 500 technology index .SPLRCT up 1.6% and leading sector gains. The Nasdaq outpaced the other two major indexes, ending 1.4% higher, led by Amazon.com (AMZN.O), its fourth record closing high this month.

The number of confirmed U.S. coronavirus cases surpassed 3 million, affecting nearly one of every 100 Americans. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections.

Investors have been weighing a string of upbeat economic data including record job additions and a rebound in the service sector in June, against the surge in U.S. coronavirus cases recently, but the S&P 500 is still up more than 40% from its March closing low.

“The market continues to ignore the potential consequences of these spikes in new coronavirus cases,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“It’s overbought,” he said. “While I don’t expect this market to crash… I think investors at this juncture are playing with fire,” he said, noting the rise in safe-haven gold prices. XAU= [GOL/]

Adding to the optimistic tone late in the session, St. Louis Federal Reserve Bank President James Bullard told CNBC in an interview that U.S. unemployment will likely decline to below 8% “maybe even 7%” by the end of the year.

The Dow Jones Industrial Average .DJI rose 177.1 points, or 0.68%, to 26,067.28, the S&P 500 .SPX gained 24.62 points, or 0.78%, to 3,169.94 and the Nasdaq Composite .IXIC added 148.61 points, or 1.44%, to 10,492.50.

Markets also appeared to be in a wait-and-watch mode before the beginning of the second-quarter earnings season, which kicks off next week with reports from the big Wall Street banks.

Quarterly earnings for S&P 500 companies are expected to decline nearly 44% year-on-year, the steepest drop since the 2008 financial crisis, according to IBES data from Refinitiv.

Biogen Inc (BIIB.O) jumped 4.4% after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy, aducanumab.

Allstate Corp (ALL.N) shares fell 4.8% as the U.S. insurer said it would buy National General Holdings Corp (NGHC.O) for about $4 billion, scaling up its auto insurance business. National General shares surged 65.8%.

Advancing issues outnumbered declining ones on the NYSE by a 1.48-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 99 new highs and 18 new lows.

Volume on U.S. exchanges was 10.40 billion shares, compared with the 12.4 billion average for the full session over the last 20 trading days.

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Business

Wall Street inches up with tech shares, though jump in virus cases a concern

(Reuters) – U.S stocks were slightly higher in choppy trading on Wednesday, supported by technology shares as early signs of an economic rebound offset concern about further lockdowns due to a jump in coronavirus cases across the country.

Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) provided the biggest boost to all three indexes. The technology index .SPLRCT rose 0.9%.

The number of confirmed U.S. cases surpassed 3 million, affecting nearly one of every 100 Americans. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections.

Investors have been weighing a string of upbeat economic data including record job additions and a rebound in the service sector in June, against the surge in U.S. coronavirus cases recently, but the S&P 500 is still up about 40% from its March closing low.

There still seems to be a focus on the reopenings rather than the increase in cases, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“But there are warning signs out there… While I don’t expect this market to crash, it’s overbought, and I think investors at this juncture are playing with fire,” he said, noting the rise in safe-haven gold prices.

Markets also appeared to be in a wait-and-watch mode before the beginning of the second-quarter earnings season, which kicks off next week with reports from the big Wall Street banks.

Quarterly earnings for S&P 500 companies are expected to decline nearly 44% year-on-year, the steepest drop since the 2008 financial crisis, according to IBES data from Refinitiv.

The Dow Jones Industrial Average .DJI rose 22.94 points, or 0.09%, to 25,913.12, the S&P 500 .SPX gained 6.11 points, or 0.19%, to 3,151.43 and the Nasdaq Composite .IXIC added 82.88 points, or 0.8%, to 10,426.77.

Biogen Inc (BIIB.O) jumped 4.2% after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy, aducanumab.

Allstate Corp (ALL.N) shares slipped as the U.S. insurer said it would buy National General Holdings Corp (NGHC.O) for about $4 billion, scaling up its auto insurance business. National General shares surged 65.1%.

Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.

The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq Composite recorded 92 new highs and 18 new lows.

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Business

Wall Street climbs as hopes of economic revival overshadow jump in virus cases

(Reuters) – Wall Street’s major indexes edged higher in choppy trading on Wednesday, supported by technology shares as early signs of an economic rebound overrode fears of another lockdown due to a jump in coronavirus cases across the country.

Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) provided the biggest boost to all three indexes. The technology index .SPLRCT rose 1.1%, the most among the 11 major S&P sectors.

“People are debating whether or not the low in the economy has actually been reached so they’re sticking with growth stocks and that’s technology,” said Robert Pavlik, senior portfolio manager at SlateStone Wealth LLC in New York.

Safe-haven gold rose nearly 1% as the number of confirmed U.S. cases surpassed 3 million, affecting nearly one of every 100 Americans. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections.

The S&P 500 has been in a tight trading range since early June after it rose more than 45% from its March lows as investors weighed a string of upbeat economic data including record job additions and a rebound in the service sector in June, against a domestic surge in coronavirus cases.

Markets also appeared to be in a wait-and-watch mode before the beginning of the second-quarter earnings season, which kicks off next week with reports from the big Wall Street banks.

Quarterly earnings for S&P 500 companies are expected to decline about 44% year-on-year, the steepest drop since the 2008 financial crisis, according to IBES Refinitiv data.

“Wall Street is looking ahead to 2021 earnings and pretty much ignoring 2020,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

At 12:34 p.m. ET, the Dow Jones Industrial Average .DJI was up 38.21 points, or 0.15%, at 25,928.39, the S&P 500 .SPX was up 9.53 points, or 0.30%, at 3,154.85. The Nasdaq Composite .IXIC was up 96.05 points, or 0.93%, at 10,439.94.

Biogen Inc (BIIB.O) jumped 5.2% after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy, aducanumab.

Allstate Corp (ALL.N) slipped 3.7% as the U.S. insurer said it would buy National General Holdings Corp (NGHC.O) for about $4 billion, scaling up its auto insurance business. National General shares surged 64.6%.

Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and no new low, while the Nasdaq recorded 84 new highs and 16 new lows.

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Business

Wall Street rises on rebound hopes despite jump in virus cases

(Reuters) – Technology shares boosted Wall Street’s main indexes on Wednesday as early signs of an economic rebound offset fears of another lockdown due to a jump in coronavirus cases across the country.

Safe-haven gold rose more than 1% as the number of confirmed U.S. cases surpassed 3 million, affecting nearly one of every 100 Americans. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections.

“We expect the tug of war between better economic data and concerns over rising COVID-19 cases to continue through the month unless we get better daily virus numbers, and/or news on a vaccine,” said Art Hogan, chief market strategist at National Securities in New York.

The Nasdaq notched an intraday record high on Tuesday but all the three main stock indexes finished lower as investors booked profits following a strong run on the back of upbeat economic data over the last few days.

Bolstering hopes of a post-pandemic rebound, analysts said any setback in business activity due to the recent surge in infections would be short term, leaving their long-term forecasts for economic growth unchanged.

Markets also appeared to be in a wait-and-watch mode before the beginning of the second-quarter earnings season, which kicks off next week with reports from the big Wall Street banks.

Quarterly earnings for S&P 500 companies are expected to plunge about 43% year-on-year, according to IBES Refinitiv data.

“Wall Street is looking ahead to 2021 earnings and pretty much ignoring 2020,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

Technology sectors .SPLRCT firmed 1.2%, the most among the 11 major S&P sectors.

At 10:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 121.80 points, or 0.47%, at 26,011.98, the S&P 500 .SPX was up 18.26 points, or 0.58%, at 3,163.58. The Nasdaq Composite .IXIC was up 114.52 points, or 1.11%, at 10,458.41.

Biogen Inc (BIIB.O) jumped 5% after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy, aducanumab.

Allstate Corp (ALL.N) slipped 3.2% as the U.S. insurer said it would buy National General Holdings Corp (NGHC.O) for about $4 billion, scaling up its auto insurance business. National General shares surged 64.6%.

Levi Strauss & Co (LEVI.N) fell 6.4% as the denim apparel maker cautioned its business would be hit in the second half of the year, even as its sales have been improving at its reopened stores.

Advancing issues outnumbered decliners for a 1.46-to-1 ratio on the NYSE and a 1.40-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and no new low, while the Nasdaq recorded 78 new highs and 13 new lows.

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Business

Wall Street rises on rebound hopes despite jump in virus cases

(Reuters) – Technology shares boosted Wall Street’s main indexes on Wednesday as early signs of an economic rebound offset fears of another lockdown due to a jump in coronavirus cases across the country.

Safe-haven gold rose more than 1% as the number of confirmed U.S. cases surpassed 3 million, affecting nearly one of every 100 Americans. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections.

“We expect the tug of war between better economic data and concerns over rising COVID-19 cases to continue through the month unless we get better daily virus numbers, and/or news on a vaccine,” said Art Hogan, chief market strategist at National Securities in New York.

The Nasdaq notched an intraday record high on Tuesday but all the three main stock indexes finished lower as investors booked profits following a strong run on the back of upbeat economic data over the last few days.

Bolstering hopes of a post-pandemic rebound, analysts said any setback in business activity due to the recent surge in infections would be short term, leaving their long-term forecasts for economic growth unchanged.

Markets also appeared to be in a wait-and-watch mode before the beginning of the second-quarter earnings season, which kicks off next week with reports from the big Wall Street banks.

Quarterly earnings for S&P 500 companies are expected to plunge about 43% year-on-year, according to IBES Refinitiv data.

“Wall Street is looking ahead to 2021 earnings and pretty much ignoring 2020,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

Technology sectors .SPLRCT firmed 1.2%, the most among the 11 major S&P sectors.

At 10:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 121.80 points, or 0.47%, at 26,011.98, the S&P 500 .SPX was up 18.26 points, or 0.58%, at 3,163.58. The Nasdaq Composite .IXIC was up 114.52 points, or 1.11%, at 10,458.41.

Biogen Inc (BIIB.O) jumped 5% after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy, aducanumab.

Allstate Corp (ALL.N) slipped 3.2% as the U.S. insurer said it would buy National General Holdings Corp (NGHC.O) for about $4 billion, scaling up its auto insurance business. National General shares surged 64.6%.

Levi Strauss & Co (LEVI.N) fell 6.4% as the denim apparel maker cautioned its business would be hit in the second half of the year, even as its sales have been improving at its reopened stores.

Advancing issues outnumbered decliners for a 1.46-to-1 ratio on the NYSE and a 1.40-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and no new low, while the Nasdaq recorded 78 new highs and 13 new lows.

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Business

Fed policymakers worry growth plateauing, pledge more support

(Reuters) – A surge in coronavirus cases that threatens to pinch consumer spending and job gains just as some stimulus programs are due to expire has Federal Reserve policymakers worried, with at least one pledging more support ahead from the U.S. central bank.

“We have a lot of accommodation in place; there’s more that we can do, there’s more that we will do,” Fed Vice Chair Richard Clarida told CNN International on Tuesday.

There is “no limit” to the amount of bond buying the Fed can do, he said, adding that the Fed could also ease policy further with forward guidance and will keep its lending backstops in place as long as needed.

While evidence of an economic rebound in May and June was “very welcome,” Clarida said, the Fed is following the course of the virus closely as it will determine the course of the economy.

Business owners are “nervous again,” Ralph Bostic, president of the Atlanta Federal Reserve Bank, said in webcast remarks to the Tennessee Business Roundtable. “There is a real sense this might go on longer than we have planned for.”

The next three to six weeks could prove critical in the pace of an economic recovery that Bostic suggested may plateau sooner and at a lower pace than has been expected.

At an event sponsored by the National Association of Business Economists, San Francisco Fed President Mary Daly sounded a similar tone.

After large swathes of the U.S. economy reopened and trillions of dollars in fiscal stimulus passed by Congress in March began to reach the unemployed and hard-hit businesses, the economy created 7.5 million jobs in May and June.

Those gains mean the labor market is “in better shape than I thought it might be – but it’s nowhere close to where we need to be,” Daly said. U.S. firms today employ 14.7 million fewer people than in February, government data show, and unemployment, at 11.1%, is higher than it was in any downturn since the Great Depression.

“I am assuming that we’ll level off at some level that’s not where we want to be,” Daly said, noting the “untenable” position of state and local governments, which will need to cut staff as tax revenue declines and spending on safety net services increases.

With the virus still circulating, there’s a limit to how much people will want to risk their health eating out or undertaking other potentially risky economic activity, she and others said.

“We saw reopening in May and activity started to come back pretty well,” Cleveland Fed President Loretta Mester said in a CNBC interview. “Now over the past week or so there’s been some leveling off and I think it’s probably due to an increase in cases, not only in Ohio, but across the country.”

Florida, Texas and California are among roughly two dozen states that have experienced an alarming rise in infections in the past two weeks, and their governors have forced some businesses to shut down again to quell the spread.

A Fed survey released on Tuesday morning showed Americans may be hunkering down for a longer-than-expected fight against the virus and its economic fallout.

The poll of 1,869 people, which took place between June 3 and 12 as the first signs emerged of a newly growing coronavirus caseload, showed 46% of respondents think it will take more than a year for conditions to return to normal. That is up from 35% in an April survey.

At the end of July, some of the government programs to support businesses and families during the pandemic will expire, including a $600-a-week addition to unemployment benefits that has shored up spending among low-income households particularly.

“Individuals need more help and I think state and local governments need more help,” Cleveland Fed’s Mester said, adding that her forecast, which anticipates a “long recovery phase,” assumes Congress will deliver more such fiscal aid.

Related Coverage

  • Fed's Clarida says there is more the Fed can and will do
  • Fed's Mester says full recovery a long way off, more fiscal help needed

If not, Richmond Fed President Thomas Barkin said on Tuesday, the economy faces “some very real risks” as some businesses and households struggle to pay bills and repay debt.

Bostic agreed.

“It is pretty clear this is going to go on beyond the expiration of relief efforts,” Bostic said, adding that as that becomes clear, elected officials might “strongly consider doing more.”

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Wall Street drops after strong rally as COVID-19 cases mount

(Reuters) – U.S. stocks fell on Tuesday, adding to losses into the close, as investors took profits a day after the S&P 500 logged its longest streak of gains this year and as new U.S. coronavirus cases rose further.

Large parts of the United States reported tens of thousands of new coronavirus infections. New York expanded its travel quarantine for visitors from three more states, while Florida’s greater Miami area rolled back its reopening.

“It’s a little bit of a pullback after a significant five-day move in the market coupled with the normal concerns about the virus and (Cleveland Federal Reserve Bank President Loretta) Mester talking about a long road to recovery,” said Michael Antonelli, market strategist at Baird in Milwaukee.

Mester said during an interview with CNBC that a resurgence in coronavirus cases across the country is making consumers more cautious, and more fiscal stimulus is needed to help the economy recover fully from the crisis.

U.S. stocks have risen recently, with the S&P 500 registering a fifth straight session of gains on Monday, despite rising new coronavirus cases in the United States as a slew of upbeat data for June bolstered views that an economic recovery is under way.

The Nasdaq claimed another record intraday high and held gains for a good part of the session before ending the day lower.

The Dow Jones Industrial Average .DJI fell 396.85 points, or 1.51%, to 25,890.18, the S&P 500 .SPX lost 34.4 points, or 1.08%, to 3,145.32 and the Nasdaq Composite .IXIC dropped 89.76 points, or 0.86%, to 10,343.89.

“It’s healthy to have some pullbacks. Even a more dramatic pullback would be good, just because I think there’s a lot of uncertainty and it’s kind of advanced on a wall of worry here,” said Alan Lancz, president, Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio.

“There’s probably more profit-taking and volatility in store on the down side after the incredible rebound from the March lows,” he said.

The S&P 500 is still up more than 40% from its March closing low.

Walmart Inc (WMT.N) gained 6.8% after a report that the retailer is close to launching its membership program, a direct competitor for Amazon.com’s (AMZN.O) Prime service. Amazon shares slipped 1.3%.

Novavax Inc (NVAX.O) jumped 31.6% as the U.S. government awarded $1.6 billion to the drugmaker to cover testing, commercialization and manufacturing of a potential coronavirus vaccine in the country.

Earlier Tuesday, the S&P 500 e-minis EScv1 triggered a “golden cross” pattern, when the 50-day moving average crossed above the 200-day moving average, which could portend more gains for stocks in the short term.

Declining issues outnumbered advancing ones on the NYSE by a 2.73-to-1 ratio; on Nasdaq, a 2.63-to-1 ratio favored decliners.

The S&P 500 posted 32 new 52-week highs and no new lows; the Nasdaq Composite recorded 83 new highs and 15 new lows.

Volume on U.S. exchanges was 10.44 billion shares, compared with the 12.58 billion average for the full session over the last 20 trading days.

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World News

Marriage of convenience: what Mexico's leftist leader gets out of Trump

MEXICO CITY (Reuters) – When Mexico’s leader enters the White House to meet President Donald Trump on Wednesday, he will do so not only as a hostage to the whims of his U.S. counterpart, but also as partner in an unlikely alliance that has benefited both men.

Once vowing to stand up to Trump, President Andres Manuel Lopez Obrador has yielded repeatedly on the American leader’s major concerns: migration, border security and trade.

Yet at the same time, Trump has given the Mexican leftist leeway to pursue a disruptive nationalist oil vision.

Lopez Obrador has clawed back more state control of energy policy, and is trying to renegotiate billions of dollars in contracts agreed under his predecessor with a slew of powerful foreign investors, Americans among them.

There has been little objection from the White House, where Lopez Obrador will meet Trump for the first time.

Provided his priorities are met, “it’s all the same to Trump what Lopez Obrador does in the rest of Mexico,” said Sergio Alcocer, a former Mexican deputy foreign minister.

There is pressure from the U.S. private sector to have Trump raise concerns with Lopez Obrador about his government’s energy policy, a former senior U.S. official said.

However, Trump, who aggressively sought to discourage U.S. investment abroad during his 2015-16 “America First” election campaign, has yet to go after Mexico on the issue.

That will not have been lost on Lopez Obrador, said Alcocer.

Critics of the summit, including some U.S. Democrats, see the meeting as a bid by Trump to win over American voters of Mexican descent ahead of his November re-election bid.

A Democratic administration under Trump’s opponent Joe Biden may be less indulgent toward Lopez Obrador on his energy agenda, which has threatened investments in renewable power generation, a key issue for many on the left of the U.S. political spectrum.

The summit was conceived to celebrate the start of a new three-nation North American trade deal that took effect on July 1, although Canada’s Prime Minister Justin Trudeau opted out.

The meeting will likely see Washington commit to providing medical supplies to Mexico like test kits and access to any U.S. coronavirus vaccine, according to officials from both nations.

Some on the Mexican side are nervous about how respectfully Trump will behave toward his guest as he gears up for the final stretch of his re-election campaign – and whether anything of substance will transpire.

“If nothing comes out of the meeting, it will look like he just went up to help Trump electorally,” said a Mexican official, speaking on condition of anonymity.

HISTORY

An avid history buff, Lopez Obrador frequently alludes to how Mexico’s fortunes have fared under the influence of the United States. He has been careful to avoid upsetting Trump since assuming the Mexican presidency in December 2018.

It was not always so.

When Trump entered the White House in 2017, Lopez Obrador likened the American to Adolf Hitler for his attitude toward migrants. Campaigning a year later, after Mexico had endured a torrid time from Trump over trade and migration, Lopez Obrador vowed to put him “in his place” if elected.

Still, when Trump in 2019 threatened to slap tariffs on Mexican goods if Lopez Obrador did not reinforce his borders and curb migration from Central America, the latter quickly deployed thousands of troops and cut the flow of people.

That has earned Lopez Obrador derision from opponents.

“I can’t remember us ever having a relationship of such subordination as we have now with Trump,” said opposition Senator Clemente Castaneda of the Citizens’ Movement party.

But a recent poll showed most Mexicans support Lopez Obrador’s Trump meeting, which he has pitched as a matter of necessity as Mexico seeks to revive its economy from the coronavirus pandemic. Despite failing to lift growth and reduce violence, the Mexican president remains fairly popular.

Dominating the news with daily press conferences, he has helped polarize the political landscape, pouring scorn on adversaries, bristling against curbs on his power and slamming critical media in a way that has drawn comparisons to Trump.

But old tensions could still arise.

Although apprehensions of migrants at the U.S. southern border are way down on 2019, they increased slightly in May and the proportion of Mexicans among them has risen sharply.

And with the U.S. election tight, it would “not appear to be very clever” for Trump to ignore the oil industry, a traditional base of Republican support, said Alcocer.

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Business

Wall Street dips after five-day run on fears over virus surge

(Reuters) – Wall Street’s major indexes slipped on Tuesday following the benchmark S&P 500’s longest streak of gains this year as investors worried about the tens of thousands of new coronavirus cases nationwide.

Florida’s greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening, while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for an eighth straight day.

Energy stocks .SPNY dropped 2% on worries over fuel demand while travel-related stocks, which were among the hardest hit during lockdowns, also fell. The S&P 1500 airlines index .SPLCOMAIR shed 4.2%.

The conundrum of growing cases and rising stock prices indicated that the liquidity from monetary stimulus is overriding fears over the immediate impact of coronavirus on the economy, said Ryan Giannotto, director of research at GraniteShares ETFs in New York.

U.S. stocks have climbed despite an alarming rise in coronavirus cases as a surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway.

The benchmark S&P 500 and blue-chip Dow Industrials .DJI have risen about 45% from their March lows and are now about 6% and 11% from their record levels hit in February. The Nasdaq .IXIC reclaimed its record high last month.

The S&P 500 e-minis EScv1 triggered a “golden cross” pattern, when the 50-day moving average crosses above the 200-day moving average, which could portend more gains for stocks in the short term.

At 10:00 a.m. ET, the Dow Jones Industrial Average was down 208.12 points, or 0.79%, at 26,078.91, the S&P 500 was down 11.52 points, or 0.36%, at 3,168.20, and the Nasdaq Composite was down 6.22 points, or 0.06%, at 10,427.43.

Gains for technology .SPLRCT and communications services .SPLRCS stocks capped declines on the S&P 500.

Novavax Inc (NVAX.O) jumped 30.6% as the U.S. government awarded $1.6 billion to the drugmaker to cover testing, commercialization and manufacturing of a potential coronavirus vaccine in the United States.

Royal Caribbean Group (RCL.N) and Norwegian Cruise Line Holdings Ltd (NCLH.N) dropped 3.2% and 3.4% each, even as they announced a joint task force to help develop safety standards for restarting their businesses.

Declining issues outnumbered advancers for a 3.77-to-1 ratio on the NYSE and a 2.91-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 46 new highs and nine new lows.

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Business

Wall Street headed lower after five-day run on fears over virus surge

(Reuters) – Wall Street’s main indexes looked set to open lower on Tuesday following the benchmark S&P 500’s longest streak of gains this year as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide.

Florida’s greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.

Energy stocks including Occidental Petroleum Corp (OXY.N) and Concho Resources (CXO.N) dropped about 2% on worries over fuel demand. [O/R]

It looks like it will be a slight retracement of Monday and Thursday’s impressive gains, said Ryan Giannotto, director of research at GraniteShares ETFs in New York.

U.S. stocks have climbed despite an alarming rise in coronavirus cases as a surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway.

The benchmark S&P 500 .SPX and Nasdaq wrapped up five straight sessions of gains on Monday, with the latter closing at a record level.

The conundrum of growing cases and rising stock prices indicates that the liquidity from monetary stimulus is overriding fears over the immediate impact of coronavirus on the economy, Giannotto said.

At 8:10 a.m. ET, Dow e-minis 1YMcv1 were down 205 points, or 0.78%. S&P 500 e-minis EScv1 were down 20.5 points, or 0.65% and Nasdaq 100 e-minis NQcv1 were down 33 points, or 0.31%.

Novavax Inc (NVAX.O) jumped 33.8% as the U.S. government awarded $1.6 billion to the drugmaker to cover testing, commercialization and manufacturing of a potential coronavirus vaccine in the United States.

Travel-related stocks, which were among the hardest hit during lockdowns, fell. United Airlines Holdings Inc (UAL.O) and American Airlines Group Inc (AAL.O) were down 2.6% and 2.3%, respectively.

Royal Caribbean Group (RCL.N) and Norwegian Cruise Line Holdings Ltd (NCLH.N) also dropped about 1% each, even as they announced a joint task force to help develop safety standards for restarting their businesses.

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