US STOCKS-Wall Street drops as stimulus rally cools, Tesla at record high
(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window)
* Quadruple witching could push up volumes, volatility
* All three major indexes set for weekly gains
* Retail stocks gain on prospect of strong holiday demand
* Tesla rises in high-volume trade
* Indexes down: Dow 0.26%, S&P 0.29%, Nasdaq 0.07% (Updates to market open)
By Ambar Warrick and Shreyashi Sanyal
Dec 18 (Reuters) - Wall Street retreated from record highs on Friday as a coronavirus stimulus deal remained in focus ahead of a weekend deadline, while Tesla shares hit their highest in anticipation of their addition to the S&P 500 next week.
All the three major indexes hit a record high at the open, before retreating.
Markets are likely to see increased trading volumes in the day due to the expiration of stock index futures, stock index options, stock options and single stock futures at the end of trade, also known as quadruple witching.
Electric-car maker Tesla Inc TSLA.O rose 2% to a record high, seeing massive trading volumes as it becomes the most valuable company ever added to Wall Street's main benchmark index. market is a little bit skeptical because the stopwatch is on and time is running out, people want to see the deal actually inked," said Thomas Hayes, managing member at Great Hill Capital in New York.
Retail stocks such as Kohl's Corp (NYSE: KSS ) KSS.N and Macy's Inc (NYSE: M ) M.N rose more than 3% each after the National Retail Federation flagged the possibility of high pre-Christmas demand.
stimulus getting approved would be bullish for the retail sector ... the vast majority of that money will go right into holiday shopping, on expectations of receiving stimulus checks even if they come after Christmas," Hayes added.
At 9:58 a.m. ET, the Dow Jones Industrial Average .DJI was down 79.83 points, or 0.26%, at 30,223.54, the S&P 500 .SPX was down 10.86 points, or 0.29%, at 3,711.62. The Nasdaq Composite .IXIC was down 9.02 points, or 0.07%, at 12,755.73.
Bipartisan lawmakers said on Thursday the COVID-19 pandemic's worsening toll meant that failure to agree on new stimulus was no longer an option.
Dismal retail sales data and unemployment claims through the week were also seen as furthering the case for more stimulus.
The prospect of continued monetary and fiscal stimulus has helped stocks look past the economic impact of the pandemic, and set them up for strong annual gains, despite a rocky start to the year.
Wall Street indexes were set to end the week higher, with the Nasdaq .IXIC set to outperform its peers with a more than 3% gain on sustained buying into technology stocks.
Microsoft Corp MSFT.O shed 0.6% after the tech major said it found malicious software in its systems related to a massive hacking campaign disclosed by U.S. officials this week. Corp FDX.N fell 3.4% after the package delivery company declined to give an earnings forecast for 2021, even as its quarterly profit almost doubled. United Parcel Service Inc (NYSE: UPS )'s UPS.N shares also declined 1.1%.
Advancing issues outnumbered decliners for a 1.02-to-1 ratio on the NYSE and a 1.27-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and no new low, while the Nasdaq recorded 185 new highs and three new lows.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or