Wall Street retreats after four-day winning streak as J&J vaccine worries weigh

In this news, we discuss the Wall Street retreats after four-day winning streak as J&J vaccine worries weigh.

(Reuters) – Major Wall Street indices fell on Tuesday after a four-day winning streak as a hiatus in Johnson & Johnson’s COVID-19 vaccine trials raised concerns about a full economic rebound following to the recession caused by the coronavirus.

Johnson & Johnson raised its annual profit forecast, but its shares fell 1.2% as it suspended clinical trials following an unexplained illness in a study participant, possibly delaying the one of the most watched efforts to contain the global pandemic.

Some of the companies hardest hit by the pandemic – cruise line operators Carnival Corp, Norwegian Cruise Line Holdings and hotel operator Wynn Resorts Ltd – were among the biggest losers in the S&P 500.

“It reminds those betting on a vaccine that it’s probably not as clear as it looms on the horizon as the administration wants,” said Rick Meckler, partner at Cherry Lane Investments, an office of family investment in New Vernon, New Jersey.

Adding to the negative tone, U.S. House of Commons Speaker Nancy Pelosi rejected President Donald Trump’s latest offer on the COVID-19 stimulus, in the latest sign that a bipartisan coronavirus relief deal remains unlikely ahead of the election November.

Hopes for more fiscal stimulus in the United States and a rally of the tech heavyweights drove stocks higher on Monday, bringing the benchmark S&P 500 and the highly tech Nasdaq down to less than 2 % of their record highs reached in September after a decline last month.

Apple Inc ditched the early gains to drop 1.9% ahead of a virtual event starting at 1 p.m. ET (5 p.m. GMT) where it is widely expected to unveil four new iPhones.

Shares of Amazon.com Inc, which have already jumped 86% this year, added 0.2% as it began 48 hours of “Prime Day” promotions in an early start to the shopping season. celebrations.

Kicking off the third quarter earnings season, JPMorgan Chase & Co and Citigroup topped analysts’ estimates for quarterly earnings due to a surge in trading revenue. However, their shares fell by 0.3% and 1.6% respectively.

Bank stocks fell 0.6%. The index significantly underperformed the market as a whole in 2020, and analysts expect sector profits to take years to fully recover as interest rates remain near record lows.

Overall, analysts expect third-quarter S&P 500 earnings to slide 20.7% from a year earlier, less than a 31% drop in the previous quarter.

At 9:54 a.m. ET, the Dow Jones Industrial Average was down 109.40 points, or 0.38%, to 28,728.12, the S&P 500 was down 12.27 points, or 0.35%, to 3,521.95, and the Nasdaq Composite was down 30.51 points, or 0.26%, to 11,845.75.

Walt Disney Co jumped 3.5% as it restructured its media and entertainment business to accelerate the growth of Disney + and other streaming services.

The world’s largest asset manager, BlackRock Inc, rose 3.7% after reporting better-than-expected quarterly profit as the recovery in global financial markets boosted asset values ​​and attracted more investor funds .

The declining issues outnumbered the proponents for a 2.54 to 1 ratio on the NYSE and a 1.98 to 1 ratio on the Nasdaq.

The S&P Index recorded 23 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and six new lows.

Report by Medha Singh in Bengalurua and Shivani Kumaresan; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty

Original © Thomson Reuters

Originally posted 2020-10-13 07:46:11.

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