Phone: 419-542-6287  Thursday, May 28, 2020  
 
Weather |  Futures |  Market News |  Headline News |  Portfolio |  Charts |  Options |  Futures Markets 
 Home
 Administrator login
 Cash Prices
 USDA Reports
 Calendar
 County LDP Rates
 Corn LDP Rates
 Soybean LDP Rates
 Ohio State University Extension
 Feedback
 Lime Spreader
 VRT
 Contact Us
 Bulletin Board
 Patron Access
 
 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Wall Street's Rally Ends               05/28 15:58

   Wall Street's rally ran out of fuel in the last hour of trading on Thursday, 
and the market fell to its first loss in four days amid worries about rising 
U.S.-China tensions.

   (AP) -- Wall Street's rally ran out of fuel in the last hour of trading on 
Thursday, and the market fell to its first loss in four days amid worries about 
rising U.S.-China tensions.

   The S&P 500 had been climbing for much of the day and was up as much as 1.1% 
at one point. But it all disappeared after President Donald Trump said he'll 
hold a news conference about China on Friday. That raised immediate worries 
among investors about possibly worsening relations between the world's largest 
economies, which had signed a deal earlier this year to at least pause their 
trade war.

   "The concerns are that this escalates over the course of the summer," said 
Quincy Krosby, chief market strategist at Prudential Financial. "It's like 
lighting a match."

   The S&P 500 ended the day down 6.40, or 0.2%, at 3,029.73. The Dow Jones 
Industrial Average swung from a gain of 210 points to a loss of 147.63 by the 
close of trading, down 0.6% to 25,400.64. The Nasdaq composite fell 43.37, or 
0.5%, to 9,368.99.

   U.S. and Chinese officials have been trading harsh rhetoric recently on 
everything from Hong Kong to the response to the coronavirus outbreak. 
Investors are worried that it could lead to another punishing round of 
escalating tariffs between the two countries, which would only further damage a 
global economy punished by a severe recession due to the pandemic.

   Energy producers and banks fell to some of Thursday's sharpest losses.

   Twitter also lost 4.4%. Trump signed an executive order late Thursday to 
study whether new regulations can be put on social media companies. He has been 
railing against Twitter after it applied fact checks to two of his tweets.

   Earlier in the day, the S&P 500 seemed to be rolling toward its fourth 
straight gain, which would have been its longest winning streak since before 
the market began to sell off in February.

   Gains for health care stocks helped the S&P 500 at one point climb back 
within 10% of its record high. Johnson & Johnson rose 1.4%, Pfizer gained 2.1% 
and Eli Lilly added 3.4%.

   Dollar Tree jumped 11.6% for the largest gain in the S&P 500 after the 
retailer reported stronger revenue and earnings for its latest quarter than 
Wall Street expected. In an encouraging sign, executives also said recent 
trends have been improving for purchases of discretionary items, such as 
kitchenware and toys, instead of just essentials for hunkering down.

   Even with Thursday's loss, the S&P 500 is still on pace for its third weekly 
gain of at least 2.5% in the last four weeks. Following their breathtaking drop 
of nearly 34% in February and much of March, stocks began recovering after the 
Federal Reserve and Capitol Hill pledged unprecedented amounts of aid for the 
economy.

   More recently, the market has pushed higher as investors move into stocks 
that would benefit most from a reopening economy. Governments around the 
country and around the world are slowly lifting restrictions meant to corral 
the outbreak, which has investors hoping the worst of the recession has already 
passed, or will soon.

   Some analysts warn the rally has been overdone. The stock market has 
rebounded very quickly after hitting a bottom in late March, when the economy 
may take much longer to heal and recover. That could be setting investors up 
for disappointment in the future.

   "I don't know why investors are so confident," said Mike Zigmont, head of 
trading and research at Harvest Volatility Management. "The damage has been so 
great that some businesses that otherwise would have survived, they will fail."

   Hotels, airlines and related industries are not going to get back to their 
2019 levels anytime soon, he said. When tourists do return, it will not be in 
the same numbers.

   "It's unreasonable to expect us to regain jobs as fast as we lost them," he 
said.

   Longer-term Treasury yields rose Thursday after a government report showed 
that the number of workers filing for unemployment benefits dipped for the 
eighth straight week, though the number remains incredibly high.

   Perhaps more importantly for the market, the number of continuing claims for 
unemployment fell to 21.1 million from 24.9 million. It's the first decline 
since the number of layoffs exploded in March. If it continues, economists said 
it could be a sign that more people are going back to work as states begin 
their reopenings.

   The yield on the 10-year Treasury rose to 0.70% from 0.67% late Wednesday. 
It tends to move with optimism about the economy's strength and inflation.

   European stock markets mostly rose, while Asian markets were mixed.

   A barrel of U.S. crude oil for delivery in July rose 90 cents to settle at 
$33.71. Brent crude, the international standard, rose 55 cents to $35.29 per 
barrel.

 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN