Final hours! Save up to 55% OFF InvestingProCLAIM SALE

S&P 500, Dow fall on J&J vaccine worries; tech gains prop up Nasdaq

Published 10/13/2020, 08:51 AM
Updated 10/13/2020, 02:11 PM
© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange, in New York City
DJI
-
C
-
DIS
-
JPM
-
WYNN
-
AAPL
-
AMZN
-
BLK
-
IXIC
-
CUK
-
NCLH
-

By Medha Singh and Shivani Kumaresan

(Reuters) - The Dow and the S&P 500 fell on Tuesday after a four-day winning streak as a pause in Johnson & Johnson's COVID-19 trial triggered concerns about the timing of a vaccine, although a rally in technology shares supported the Nasdaq.

Johnson & Johnson shed 2% as it said it would take "a few days" to review its halted clinical trial following an unexplained illness in a study participant, possibly delaying results on one of the most closely watched efforts to contain the global pandemic.

The S&P healthcare index slipped from a record high hit in the prior session and weighed on broader markets as vaccines are seen critical to stopping the pandemic, which has driven the economy to its worst recession in decades.

Some of the worst-hit companies due to the pandemic - cruise line operators Carnival (NYSE:CUK) Corp, Norwegian Cruise Line (NYSE:NCLH) Holdings and hotel operator Wynn Resorts (NASDAQ:WYNN) Ltd - fell between 3% and 7%.

The J&J news is "an excruciating reminder of the difficulties that the coronavirus has brought on the economy," said Eric Schiffer, chief executive officer of private equity firm Patriarch Organization.

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

Hopes of more U.S. fiscal aid and a rally in tech heavyweights led stocks higher on Monday, bringing the benchmark S&P 500 and the tech-heavy Nasdaq within 2% of their record highs hit in September after a pullback last month.

Apple Inc (NASDAQ:AAPL) slipped 1.1% ahead of a virtual event starting 1 p.m. ET (1700 GMT) where it is widely expected to unveil four new iPhone models.

Amazon.com Inc (NASDAQ:AMZN) shares, which have already surged 86% this year, added 1% as the company began 48 hours of promotions as part of "Prime Day" in an early start to the holiday shopping season.

Kicking off third-quarter earnings season, JPMorgan Chase (NYSE:JPM) & Co and Citigroup (NYSE:C) surpassed analyst estimates for quarterly profit on a surge in trading revenue.

However, Citi's results underscored deeper troubles in its consumer bank that struggled with a decline in customers and spending, sending its shares down 4%. JPMorgan was also down 1.1%, while the S&P 500 bank index shed 2%.

Overall, analysts expect third-quarter earnings for S&P 500 firms to slide 19.6% from a year earlier, smaller than a 31% tumble in the prior quarter.

At 12:28 p.m. ET, the Dow Jones Industrial Average was down 0.35% at 28,735.90 and the S&P 500 was down 0.31% at 3,523.23. The Nasdaq Composite was up 0.16% at 11,894.92.

Boeing (NYSE:BA) Co dropped 2% as it lost another three orders for its grounded 737 MAX jet in September and delivered half the number of aircraft from the same month a year earlier.

Declining issues outnumbered advancers for a 2.33-to-1 ratio on the NYSE and for a 1.64-to-1 ratio on the Nasdaq.

© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange, in New York City

The S&P index recorded 36 new 52-week highs and one new low, while the Nasdaq recorded 94 new highs and eight new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.