Stock ETFs Slip on Dampened Stimulus Outlook

S&P Nasdaq extend record-setting rally on optimism over Biden stimulus plan

Stocks drifted to a mixed close on Wall Street Thursday as the earnings reporting season for US companies ramped into higher gear.

Markets appeared to be pausing after rallying for much of January, with money managers saying there was no clear catalyst for the decline. "Stock markets are really looking through the short-term outlook for the economy, which has worsened over recent days".

Investors are cautious of adding new positions ahead of the Federal Reserve's decision on monetary policy and earnings from major companies including Facebook, Apple and Tesla next week, he added.

Earning results so far have been better than expected, with the number of companies in the S&P 500 beating estimates so far hovering just below 90% as of early Thursday afternoon, according to FactSet. This has encouraged investors to seek out higher returns, including in overseas markets.

The yield on the 10-year Treasury rose to 1.10% from 1.07% late Tuesday.

Meanwhile, the coronavirus pandemic continues to loom large.

But other data showed the housing and manufacturing sectors as areas of strength to help buttress the economy.

New data showed existing home sales in December rose more than expected, capping a strong 2020 as Americans took advantage of low borrowing rates to buy homes amid the upheaval of the coronavirus.

The Russell 2000 index of smaller companies fell 19.20 points, or 0.9%, to 2,141.42.

Oil prices swooned 69 cents to $52.44U.S. a barrel. Mr. Conte is under pressure to strengthen parliamentary support for his government, a task that appears increasingly hard, raising the prospect of fresh elections in the spring.

"The market is underpinned by a great deal of momentum", said analyst Patrick O'Hare, noting that the Federal Reserve and the newly-installed Biden administration are intent on taking sufficient measures to boost the economy.

Cautiously optimistic comments from European Central Bank President Christine Lagarde about Europe's recovery also weighed on Italian bonds, analysts said.

It follows Netflix's blowout results on Wednesday that revitalised the "stay-at-home" beneficiaries, adding $262bn (€215.5bn) in overall market capitalisation to the FAANG group of stocks.

Mr. Andersen said he was closely watching outbreaks of coronavirus in China and Hong Kong, after many Asian economies rebounded quickly from the pandemic a year ago. In point of fact, the day's gains in the Wall Street were nearly entirely prodded by a growing optimism on Biden's $1.9 trillion pandemic stimulus proposal, while a raft of upbeat data had also supported the key indices.



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