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US-STOCKS-MARKETS
US stocks recover from early swoon amid global growth angst
NEW YORK, Aug 8, 2019 (BSS/AFP) – Wall Street stocks finished little
changed on Wednesday following a choppy session as a plunge in treasury bond
yields early in the day underscored worries about a weakening global economy.
After a bruising start, US stocks gradually pushed higher throughout the
day while Treasury yields recovered from their lows. Two of the three major
indices finished in positive territory.
Decisions by Asian central banks to cut interest rates and weak German
data “reminded investors that economic growth in several other regions of the
world remain at risk as the US and China trade dispute drags on,” said CFRA
strategist Lindsey Bell in a note.
“While uncertainty is driving upside in defensive asset classes, we don’t
think stocks should be abandoned at this time. A near-term recession is
unlikely.”
The Dow Jones Industrial Average finished at 26,007.07, down 0.1 percent
but more than 560 points above its session low.
The broad-based S&P 500 added 0.1 percent at 2,883.98, while the tech-rich
Nasdaq Composite Index gained 0.4 percent to 7,862.83.
US stocks have been under pressure in August as optimism over a Federal
Reserve interest rate cut has been replaced by unease at US President Donald
Trump’s latest tariffs on China and China’s response, which has included
halting US agricultural purchases.
Banking shares were big losers as the weakening US interest rate outlook
crimps the profit outlook. JPMorgan Chase, Wells Fargo and Bank of America
all lost around two percent or more.
Disney also had a bad day, losing 4.9 percent after missing earnings
forecasts.
But CVS Health shot up 7.5 percent as the pharmacy chain lifted its profit
forecasts. The results also lifted rival Walgreens Boots Alliance, which
gained 2.0 percent.
BSS/AFP/HR/1040