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By Alex Eule
| Thursday, September 10 Now What? So much for
that comeback. The major indexes all fell today for the fourth time in
five sessions. The S&P 500, which
finished the day down 1.8%, is off nearly 7% over that five-day span. We
can blame lawmakers' inability to pass a new stimulus deal, stubbornly high
jobless claims, or worries about Covid-19 vaccines. But the most likely
explanation for stocks' weakness is the simplest: After a torrid
summer, investors are welcoming the fall by taking profits. A rough week
hasn't changed stocks' remarkable run in the face of the pandemic and
unemployment that's still hovering around 8%. For the year, the S&P 500
is up 3.4%. And if you bought stocks in late March, you've seen a 50%
return. This
morning, the Labor Department said that 884,000 Americans had filed
first-time claims for unemployment, slightly above economists' forecast. Carleton
English notes on
Barrons.com that jobless claims during the last recession topped
out at 665,000. Carleton quotes one strategist who says the latest numbers
are "consistent with stabilization but not improvement per se." The job
figures put more focus on Capitol Hill's next move just
as the Senate failed to pass a $300 million aid package, leaving any
additional stimulus package from Washington in serious doubt.
Combine that with the end of earnings season and no big changes expected
from the Federal Reserve during its meeting next week, and investors are
left without much to look forward to. |
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DJIA: -1.45% to 27,534.58 The Hot
Stock: Tapestry +8.4% Best Sector:
Materials -0.9% |
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