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* Applied Materials Inc is increasing with strong outlook for Q4
* Retail sales increase 1.2% in July vs 7.5% profit in June
* CureVac shares nearly triples Nasdaq debut
* Indices: Dow up 0.15%, S&P up 0.12%, Nasdaq flat (Updates until noon)
By Ambar Warrick and Medha Singh
Aug 14 (Reuters) – Wall Street trading plunged on Friday when doubts arose about a new US stimulus bill, while the S&P 500 was at record highs, as some domestic data showed the economy still bad was from the COVID-19 pandemic.
Aggressive incentives have helped jump the top three U.S. stock indices from a coronavirus-driven crash in March, and the S&P 500 briefly traded above its February 19 record close for a second straight day on Thursday.
Although the benchmark index for a third straight week was set to rise, it has struggled to peak all its time as the prospects for more fiscal aid decline with the First Chamber and Second Chamber in recession and no fresh talks plan.
“A lot of the economic data points that we’re going to see in the next 2-3 months will definitely hang in the balance,” said David Wagner, portfolio manager and analyst at Aptus Capital Advisors in Cincinnati, Ohio.
Data on Friday showed that U.S. retail sales have increased less than last month and could continue to slow due to spiraling COVID-19 cases and a reduction in controls for unemployment benefits.
Individual readings showed that U.S. factory production increased more than expected in July, but remained below pre-pandemic levels, while consumer sentiment was for the most part in the first half of August.
“We still have a long way to go (in terms of economic recovery) and income support is the way to drive consumers through. If we get strong retail sales data over the next two months, given the lack of recent government action, it should be very positive, ”added Wagner of Aptus Capital.
Uncertainty over the timing of a stimulus deal has sent sentiment in recent sessions, with the upcoming US presidential election expected to add another layer of caution.
At 12:42 pm ET, the Dow Jones Industrial Average was 40.89 points, or 0.15%, at 27,937.61 and the S&P 500 was 4.06 points, or 0.12%, at 3,377.49. The Nasdaq Composite was down 5.80 points, or 0.05%, at 11,036.70.
Technology, which through the pandemic is the sector with the best performance, led decline among the 11 major S&P indices, while financial and industrial companies performed.
Shares of German biotechnology company CureVac BV nearly outperformed in their Nasdaq debut, marking the first stock market debut of a company developing a potential vaccine for the new coronavirus.
Applied Materials Inc gained 4.4% after fourth-quarter revenue exceeded analysts’ estimates after a slump in demand for chip equipment and services.
Foreshadowing issues, the decliners are larger than a 1.13-to-1 ratio on the NYSE. Declining issues have proponents having less than a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new highs of 52 weeks and no new lows, while the Nasdaq recorded 39 new highs and seven new lows. (Report by Ambar Warrick and Medha Singh in Bengaluru; Edited by Arun Koyyur and Uttaresh.V)
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