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US STOCKS-Nasdaq closes at record high as growth names get a lift

Published 12/08/2020, 05:00 AM
Updated 12/08/2020, 05:10 AM
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Apple, Facebook, boost Nasdaq
* Intel drops on report of Apple prepping new Mac chips
* Energy sector lags

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, Dec 7 (Reuters) - The Nasdaq closed at a record
high on Monday after investors moved into mega-cap growth stocks
even as a new round of COVID-19 restrictions underscored the
continuing economic impact of the pandemic on the United States.
The tech-heavy Nasdaq .IXIC advanced to close at a record,
as several of its largest constituents, including Apple AAPL.O
and Facebook Inc FB.O , rose. Still, a decline in names such as
Alphabet GOOGL.O and Microsoft MSFT.O kept major averages in
check.
Large cap growth stocks .RLG , which had underperformed
value stocks .RLV in recent weeks as investors looked to names
likely to benefit from a reopened economy, edged up while value
lost ground.
Authorities in California, the most populous state in the
country, on Monday compelled much of its residents to close shop
and stay at home the day after it reported a record 30,000-plus
new coronavirus cases. Recent economic data indicating the economy has slowed as
previous fiscal stimulus has dried up has highlighted the need
for a new congressional relief package, with Friday eyed as a
possible deadline when a funding measure for the government
expires.
"It is just kind of a waiting game, we are waiting to see if
there is going to be any stimulus attached to this funding
bill," said Ross Mayfield, investment strategy analyst at Baird.
"Even though we know the vaccine is imminent, it is kind of
this weird period where we are waiting on emergency use approval
and possible rollout by the end of the week," said Mayfield.
Unofficially, the Dow Jones Industrial Average .DJI fell
149.59 points, or 0.5%, to 30,068.67, the S&P 500 .SPX lost
6.4 points, or 0.17%, to 3,692.72 and the Nasdaq Composite
.IXIC added 56.02 points, or 0.45%, to 12,520.25.
Weighing heavily on value names were energy stocks, as the
S&P 500 energy index .SPNY was the worst performing among the
11 major sectors as oil prices slipped. The sector had been the
best performer this quarter, climbing nearly 30%. Investors are closely tracking developments on the passage
of a long-awaited coronavirus relief bill, after months of
deadlocked negotiations between Republicans and Democrats.
The U.S. Congress is likely to consider a one-week stopgap
funding bill to provide more time for lawmakers to reach
agreements in talks aimed at delivering COVID-19 relief and an
overarching spending bill to avoid a government shutdown,
Democratic aides said on Monday. Promising vaccine updates from major drugmakers have raised
investor hopes for an economic recovery next year and have eased
worries over a surge in U.S. infections, powering Wall Street's
main indexes to record highs recently.
Wall Street followed a more cautious move in global stocks
earlier in the session after Washington imposed financial
sanctions and a travel ban on some Chinese officials over their
alleged role in Beijing's disqualification of elected opposition
legislators in Hong Kong last month. But with President-elect Joe Biden due to take office on
Jan. 20, analysts see fresh stimulus and a vaccine rollout as a
more pressing concern in the near term.
Intel Corp INTC.O fell and was the biggest drag on the S&P
500 after Bloomberg News reported Apple was planning a series of
new Mac processors for introduction as early as 2021 that are
aimed at outperforming Intel's fastest processors.

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