S&P 500 posts modest gains, winning streak at risk

Marco Green
July 8, 2020

July 7 (Reuters) - Wall Street's major indexes slipped on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors anxious about the tens of thousands of new coronavirus cases nationwide.

"Investors are more focused on what the other side of this pandemic looks like, as opposed to the short-term risks of shutdowns", said Matt Lindholm, managing director - investment strategies at CAZ Investments in Houston.

The ISM's non-manufacturing activity index jumped to 57.1 in June, nearly returning to pre-pandemic levels, but a recent surge in Covid-19 cases in the United States has threatened the emerging recovery.

Florida's greater Miami area became the latest US coronavirus hot spot to roll back its reopening, while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for an eighth straight day.

USA stocks mixed on Tuesday, rally at risk.

Futures for the Dow Jones Industrial Average surged more than 1.5%, or 300 points, at 9:00 a.m. ET, while S&P 500 futures grew 1.3%, or more than 40 points.

Information Technology is the leading sector, up 0.8%, with Microsoft, up 1.5%, and Apple more than 1% higher.

Among individual stocks, Tesla Inc gained 5.8 percent in premarket trading, building on a four-day rally, after J.P. Morgan bumped up its price target for the electric carmaker's stock following its better-than-expected quarterly deliveries.

Declining issues outnumbered advancers for a 3.77-to-1 ratio on the NYSE and a 2.91-to-1 ratio on the Nasdaq.

The commentary came amid a surge in new coronavirus infections both globally and in the United States: On Saturday, the World Health Organization recorded an all-time high of 212,326 confirmed COVID-19 cases over a 24-hour span.

Other reports by Click Lancashire

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