US Stocks Close Higher on Tech Giants 06/14 16:08
Technology companies helped lift stocks higher on Wall Street, nudging the
S&P 500 to its third straight all-time high, even as other parts of the market
(AP) -- Technology companies helped lift stocks higher on Wall Street,
nudging the S&P 500 to its third straight all-time high, even as other parts of
the market faltered.
A burst of buying in the final 10 minutes of trading sent the benchmark
index 0.2% higher. The S&P 500 had been down 0.3% earlier amid another bout of
choppy trading as Wall Street awaits the latest take from the Federal Reserve
Investors are trying to gauge the strength of the economic recovery and
whether emerging signs of inflation will be transitory, as the central bank
believes. The Fed delivers its interest rate policy update Wednesday afternoon.
"Most of this is just positioning in front of the Fed later this week," said
Willie Delwiche, investment strategist at All Star Charts. Investors are
"trying to get a sense of not just what the Fed is going to say in terms of
announcements, but what they expect in terms of the path of monetary policy and
the economy going forward."
The S&P 500 added 7.71 points to 4,255.15. The index has notched a weekly
gain three weeks in a row. The Dow Jones Industrial Average fell 85.85 points,
or 0.2%, to 34,393.75. The Nasdaq rose 104.72 points, or 0.7%, to 14,174.14.
Small-company stocks fell. The Russell 2000 index lost 9.66 points, or 0.4%,
Among the tech sector winners Nonday were Apple, which rose 2.5%, and Adobe,
which gained 2.9%. Several large communications companies also made gains.
Facebook rose 1.7% and Netflix gained 2.3%. Those gains offset a broad decline
in financial, industrial and materials stocks, among others. JPMorgan dropped
Wall Street is trying to gauge the strength of the economic recovery, the
impact rising inflation is having on its trajectory, and the Fed's next move.
Investors have been worried that the Fed could ease up on bond purchases and
other stimulus measures as the economy recovers. No policy changes are expected
immediately, but comments on a shift in policy could jostle an already skittish
Fed officials have maintained that any rise in inflation will be temporary
as the economy recovers.
"There's still this debate on inflation and, notwithstanding what the Fed
does and whether yields move down, there's still some upward pricing pressure,"
said Tom Martin, senior portfolio manager with Globalt Investments.
A boost in demand for goods has helped fuel a rise in the cost of everything
from food to cars and household goods. Shipping costs are also rising and
adding to the increase in prices. The uncertainty over inflation has been
fueling much of the back-and-forth in the market between stocks that are
considered safer value holdings versus those with more potential for sharp
"As you go into the summer and you have uncertainty about inflation, the fed
and the stimulus, you'll kind of see people neutralizing bets," Martin said.
Lordstown Motors sank 18.8% after the CEO and CFO resigned as problems mount
for the startup electric truck maker.
Novavax gave up an early gain, dropping 0.9%. The vaccine maker said its
COVID-19 shot was highly effective against the disease and also protected
against variants in a large study in the U.S. and Mexico. The company is facing
raw-material shortages, though, and plans to seek authorization for the shots
by the end of September.
Bond prices fell, sending yields mostly higher. The yield on the 10-year
Treasury note rose to 1.50% from 1.46% late Friday.
"You don't get a message from the bond market that it's worried either about
persistent inflation or about the Fed doing something dramatic in terms of not
being the buyer of bonds that it has been in recent quarters," Delwiche said.
European markets were mostly higher. Several markets in Asia were closed for