Stocks waver as market looks to end August in the green
Stocks were wavering between small gains and losses in midday trading Thursday as the market looks to close out August solidly in the green
TOKYO — Stocks were wavering between small gains and losses in midday trading Thursday, as the market looks to close out August solidly in the green.
The S&P 500 index was up 0.1% as of 11:25 a.m. Eastern after being down slightly most of the morning. The Dow Jones Industrial Average was up 0.1% and the Nasdaq composite was down 0.2%.
Despite the declines, the market is on pace to close out August on a positive note. The S&P 500 is up 3% in August, while the Nasdaq is up 3.9%. The benchmark S&P 500 is on track for its seventh straight monthly gain, which would be the longest such streak since early 2018.
The market has been lifted by a number of factors this month. Corporate earnings came in much better than expected, giving investors confidence to pay premium prices for an already lofty market. Also the Federal Reserve has made it clear that it believes inflation will be temporary and any pullback of financial support from the central bank would be gradual.
Energy prices declined for a second day, as fears of widespread devastation to U.S. oil and gas production in the Gulf of Mexico after Hurricane Ida appeared be overblown. Oil prices were down 0.5%, with similar declines in natural gas prices.
The latest economic data showed once again the impact the delta variant of the coronavirus is having on the economy. Consumer confidence in August fell sharply to a reading of 113.8 compared to a reading of 125.1 in July. Economists has been expecting a reading of 124.0. Most of the decline was tied to the spread of the virus in the past month, which has inundated hospitals with patients and deaths are climbing again.
Investors’ eyes will be turning to key economic data later this week, when the Labor Department releases its August jobs report on Friday. Economists are expecting that U.S. employers created 750,000 jobs last month, according to FactSet, with the unemployment rate dropping to 5.2%.
The bond market was quiet, with the 10-year Treasury note trading at a yield of 1.30%. That’s up from 1.28% the day before.
