© Reuters. FILE PHOTO: The New York Stock Exchange opens during COVID-19
By Herbert Lash
NEW YORK (Reuters) – US stocks fell Thursday after US President Joe Biden said China was ready to “eat our lunch,” a warning that raised concerns about a market hoping for more Incentives, strong profits and an improvement near record highs floated outlook on the pandemic.
An increase of 1.7% in PayPal Holdings Inc. (NASDAQ 🙂 helped information technology gain 0.5%, the only sector on the Nasdaq, and gain while all other sectors fell.
Biden told a group of U.S. Senators in a meeting to discuss the need to upgrade U.S. infrastructure that the United States must improve its game in the face of the challenge from China.
The warning of China and the Democrats’ plans to raise the minimum wage from $ 1.9 trillion to $ 15 in a stimulus package indicated that headwinds could build, said Ed Moya, senior market analyst at OANDA in New York .
“Markets are getting a little nervous about the relationship between the West and China,” said Moya.
Biden’s first call late Wednesday to China’s President Xi Jinping “has re-surfaced all of the difficulties we will face this year in addition to the pandemic,” he said.
Also, the Democrats don’t agree as much as they are on the minimum wage, he said. “That lengthens stimulus talks.”
Mastercard (NYSE 🙂 soared after the credit card company announced it would offer support for some cryptocurrencies on its network this year, joining a number of major ticket companies who have pledged similar support.
The Bank of New York Mellon (NYSE 🙂 rose about 1.0% after forming a new entity designed to help customers hold, transfer, and spend digital assets. It rose over 8% to an all-time high of $ 48,481.
The number of Americans filing new claims for unemployment benefits last week was 793,000, down from 812,000 the previous week, but well below the record 6.867 million reported in March last year when the pandemic hit the United States.
Wall Street major indices have hit record highs recently in terms of the prospect of a $ 1.9 trillion relief bill set to boost the U.S. economy while a largely better-than-expected earnings season also boosted investor sentiment has strengthened.
Analysts now expect S&P 500 company earnings to rise 3% in the fourth quarter, compared to a 10.3% decline forecast in early January according to Refinitiv data.
“There’s room for the market to breathe, but usually there’s some kind of catalyst that gets this going,” said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta.
At 2:29 p.m. ET, the S&P 500 fell 107.87 points, or 0.34%, to 31,329.93, the S&P 500 fell 7.03 points, or 0.18%, to 3,902.85, and the decrease was 8, 75 points or 0.06% to 13,963.79.
The tech sector and semiconductors hit record highs while business-linked energy and industrial companies faded into the background after being in the spotlight this year.
US-listed stocks of cannabis companies such as Tilray (NASDAQ 🙂 and Aphria (NASDAQ 🙂 returned 42% and 20% respectively, after the sector caught the attention of Reddit-inspired retail investors this week.
Walt Disney (NYSE 🙂 Co was almost unchanged ahead of its results after the market closed.
Pinterest (NYSE 🙂 Inc rose 7.1% according to a report Microsoft Corp. (NASDAQ 🙂 has contacted the image sharing company in the past few months about a possible buyout. However, according to the report, the negotiations were not currently active.
Declining issues outperformed advancing issues on the NYSE by a ratio of 1.46 to 1; On Nasdaq, a ratio of 1.61 to 1 favored declines.
The S&P 500 posted 38 new 52-week highs and no new lows. The Nasdaq Composite made 265 new highs and seven new lows.