![](https://image.cnbcfm.com/api/v1/image/106759215-1603484604134-aa_img_10_57_27_767655_1000-1603484334077.jpg?v=1603484639)
The Dow Jones Industrial Average fell slightly on Friday to end a downbeat week as investors weighed the potential for additional fiscal stimulus.
The 30-stock average slid 28.09 points, or 0.1%, to 28,335.57 as Intel shares struggled. The S&P 500 gained 0.3% to close at 3,465.39 and the Nasdaq Composite closed 0.4% higher at 11,548.28.
“I think everyone is in wait-and-see mode,” said Mike Katz, partner at Seven Points Capital. “There’s a lot of back and forth on stimulus and every headline makes the market move a little bit, but there’s no follow-through because we don’t have a clear picture on that front.”
The Dow and S&P 500 snapped a three-week winning streak and the Nasdaq posted its first weekly loss in five weeks. The S&P 500 lost 0.5% for the week. The Dow and Nasdaq dipped 0.95% and 1.1%, respectively.
Treasury Secretary Steven Mnuchin said Friday that House Speaker Nancy Pelosi, D-Calif., is “still dug in” on a number of issues regarding fiscal stimulus. He added: “If she wants to compromise, there will be a deal. But we’ve made lots of progress in lots of areas, but there’s still some significant areas that we’re working through.”
President Donald Trump also said Friday that he does not want the aid deal to bail out Democratic states. The major averages fell to their session lows on those remarks.
Traders have been keeping an eye on Washington in recent weeks as they gauge the prospects for new coronavirus aid to be pushed through. Several market experts and economists, including Federal Reserve Chairman Jerome Powell, think it is imperative that lawmakers reach a deal on another stimulus package.
“Governmental powers are still trying to put together another economic relief package,” said Jim Paulsen, chief investment strategist at The Leuthold Group. “However, despite the July expiration of unemployment benefits provided by the CARES Act, here, two-and-a-half months later, U.S. economic momentum is remarkably healthy.”
Intel shares fell 10.6% following the release of mixed quarterly numbers for the chipmaker. The company’s earnings were in line with analyst expectations, but revenue from its data center business fell short of analyst estimates.
It was a tough week for the tech sector, falling more than 2%, amid concerns that a Democratic sweep on Nov. 3 could put pressure on the high-flying stock group.
“We see a Democratic sweep as having the most uncertainty and tail risk for [the] large-cap internet sector,” Bank of America analysts said in a note. Specifically, the analysts think a “Blue Wave” could lead to higher taxes and tougher regulation for tech companies.
— CNBC’s Yun Li contributed reporting.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
from WordPress https://ift.tt/3ooyT1Q
via IFTTT
0 Comments