© Reuters. FILE PHOTO: A view of the exterior of the Nasdaq marketplace in Manhattan, New York
By Chuck Mikolajczak
NEW YORK (Reuters) – U.S. stocks pulled back from their early highs on Monday, which included a Nasdaq high in the afternoon, as concerns about the timing and size of fiscal stimulus drove optimism about the start of a week of reports slowed down by mega-cap companies.
Investors turned to the U.S. Senate, which is seeking the passage of the COVID-19 bill ahead of the impeachment process of former President Donald Trump in early February.
Officials in President Joe Biden's administration are trying to address Republicans' concerns that his $ 1.9 trillion pandemic aid proposal was too expensive.
"We're trying to calibrate not just the amount, but also the timing of new impulses, and the two can hardly be analyzed side by side," said Art Hogan, chief market strategist at National Securities in New York.
"If you look at the market reaction after the elections, part of the ramp that we saw that was pretty significant was due to likely impulses and timing that is sooner rather than later. Now we need to reset our thinking . "
That fell by 101.65 points or 0.33% to 30,895.33, the profit by 7.02 points or 0.18% to 3,848.49 and the additional by 68.59 points or 0.51% to 13,611.66 .
After the Nasdaq rose 1.4% to an intraday record, it gave back a good portion of its profits, including the so-called "stay-at-home" winners Microsoft Corp. (NASDAQ :), Facebook Inc. (NASDAQ 🙂 and Apple Inc (NASDAQ 🙂 rise after bullish results from Netflix Inc (NASDAQ 🙂 last week.
Microsoft, whose earnings are slated for Tuesday, rose 1.25% as Wedbush raised its price target on the software company's stock on expectations of further growth in its cloud business in 2021.
The S&P 500 sectors with large-cap growth stocks hit record highs at the start of the session, including technology, consumer discretionary and communications services.
Wall Street major indexes hit all-time highs last week in hopes of a more complete economic reopening and a smooth distribution of vaccines across the country, which is suffering from more than 175,000 new COVID-19 cases every day with millions unemployed.
On Monday before, the drug manufacturer Merck & Co had announced that it would stop developing its two COVID-19 vaccines. The shares of the drug manufacturer lost 0.11%.
Sectors that have performed well in hopes of an economic recovery, such as finance, energy and materials, declined Monday while defensive utilities, consumer staples and real estate outperformed.
Declining issues outperformed advancing issues on the NYSE by a ratio of 1.44 to 1; On Nasdaq, a ratio of 1.27 to 1 favored declines.
The S&P 500 posted 27 new 52-week highs and no new lows. The Nasdaq Composite made 302 new highs and 4 new lows.