Dow Ends Week Higher as Traders Overlook Lack of Deal Making on Capitol Hill
Investing.com
Published Aug 07, 2020 03:53PM ET
Updated Aug 07, 2020 04:11PM ET
By Yasin Ebrahim
Investing.com – Wall Street notched a weekly gain after hobbling to close just higher on Friday as investors weighed data showing the economic recovery remained intact against signs that lawmakers remain far apart on talks concerning the next wave of fiscal stimulus.
The Dow Jones Industrial Average fell 0.17%, or 46 points. The S&P 500 gained 0.06%, while the Nasdaq Composite fell 0.87%.
The US economy added a better-than-forecast 1.76 million jobs in July, reinforcing investor expectations that the labor market remains steady despite recent data including a weaker jobless claims report earlier this week suggesting otherwise.
While the bullish jobs report added credence to the economic recovery, stalled talks among lawmakers on the next virus relief package threatens to stifle growth and weighed on investor optimism.
House Speaker Nancy Pelosi reportedly said an offer to reduce the $3.4 trillion package by $1 trillion was rejected by the White House, marking a blow to hopes of lawmakers meeting a self-imposed Friday deadline to resolve key sticking points.
The slow pace of negotiations on Capitol Hill, rising U.S.- China trade tensions - in the wake of President Donald Trump's decision to target Chinese tech - also took a toll on growth stocks, with tech, in particular coming under pressure.
Trump on Thursday issued executive orders against Chinese tech firms TikTok and WeChat, which he claimed would curb the "threat" they pose to U.S. national security.
Facebook (NASDAQ:FB) sidestepped the broader market weakness, while the rest of the so-called Fab 5, floundered with Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) nursing losses for the day.
Energy also played its role in pressuring the broader market, falling 1% as oil prices ended the day in the red on worries that U.S.-China tensions could hurt the nascent recovery in crude demand.
On the earnings front, Uber Technologies (NYSE:UBER) slumped 5.2% following a wider-than-expected loss in the second quarter as its core ride sharing business saw bookings plummet 73% amid pandemic-led weakness.
T-Mobile US (NASDAQ:TMUS) popped 6.5% to hit new 52-week highs after the wireless provider delivered better-than-expected quarterly earnings and said it had usurped AT&T (NYSE:T) as the second biggest mobile carrier in the U.S.
Get The News You Want
Written By: Investing.com
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.