© Reuters. Nearly empty trading floor seen as preparations are made for return to trading on the NYSE in New YorkBy Stephen Culp
NEW YORK (Reuters) – US stock indices traded mixed and in a narrow range on Wednesday as investors absorbed mixed quarterly results, stimulus negotiations in Washington and tensions between the United States and China.
The Dow Blue-chip, the S&P 500, ranged between positive and negative territory and lasted slightly higher. The Nasdaq fell, pressured by a 1.6% drop in Amazon.com shares (NASDAQ :).
The S&P 500 remains a positive territory so far this year, almost 1%. The Nasdaq has gained more than 18% since January 1, while the Dow continues to drop almost 6%.
“Investors are still trying to decide which way to go,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “There is so much uncertainty out there.”
The latest figures showed more than 1,000 deaths in the United States from COVID-19 on Tuesday, bringing the total deaths to nearly 142,000. Experts warned that the number will increase further due to the increase in new infections.
Democrats and Republicans in Congress were divided on details of a new stimulus package expected to cost $ 1 trillion or more, less than two weeks before extended benefits for millions of unemployed Americans expire.
“Talking about a big stimulus package is sending nervousness through the market because of the bloat deficit,” added Ghriskey. “On the other hand, the stimulus package benefits the economy and we all know that this economy needs help during this pandemic.”
Tense relations between Washington and Beijing further deteriorated after the White House abruptly closed a Chinese consulate in Houston, a move that China called “unprecedented.”
On the economic front, existing home sales rose a record 20.7% in June, according to the National Association of Realtors.
The Philadelphia SE Home Index () was up 2.2%, easily outperforming the overall market.
The Dow Jones Industrial Average () increased 48.2 points, or 0.18%, to 26,888.6, the S&P 500 () gained 5.14 points, or 0.16%, to 3,262.44 and the Nasdaq Composite () fell 18.92 points, or 0.18%, to 10,661.45.
Seven of the top 11 sectors in the S&P 500 are trading higher, with utilities () enjoying the highest profit percentage.
The second-quarter earnings season is in full swing, with 75 S&P 500 components reporting results. Of these, 77.3% have passed the consensus, according to Refinitiv data.
But expectations have set a low bar. Analysts now see total second-quarter earnings for the S&P 500 drop 41.2% yoy, by Refinitiv.
Pfizer Inc (N 🙂 gained 4.5% after drug maker and German biotech firm BioNTech SE (F 🙂 announced that the United States government would pay $ 1.95 billion for 100 million doses of its COVID-19 candidate vaccine.
Hospital operator HCA Healthcare Inc (N 🙂 reported better-than-expected quarterly revenue, causing its shares to jump 11.4%.
Snap Inc (N 🙂 Shares sank 7.0% after posting a net loss of $ 326 million and forecast fewer users than expected in the current quarter.
Shares of United Airlines Holdings Inc (O 🙂 fell 3.2% after the company reported an adjusted net loss of $ 2.6 billion in the April-June quarter.
Market participants are now seeking quarterly results from Microsoft Corp (O 🙂 and Tesla Inc (O :), both due after the closing bell.
Progressing problems outnumbered declining problems on the New York Stock Exchange by a ratio of 1.16 to 1; on Nasdaq, a 1.45 to 1 ratio favored declines.
The S&P 500 posted 38 new 52-week highs and 1 new low; The Nasdaq Composite recorded 75 new highs and 10 new lows.
