Stocks stage late comeback but still end day lower

The economy is still down 11.5 million jobs since Covid-19 hit. The unemployment rate fell to 8.4%. CNN's Christine Romans reports.

Posted: Sep 6, 2020 8:01 AM
Updated: Sep 6, 2020 8:01 AM

Stocks fell Friday, despite a solid August jobs report. The Dow lost nearly 160 points in a topsy-turvy session. After initially opening higher, the index was down as much 628 points before roaring back. It was even briefly back in positive territory in the final hour of trading.

The S&P 500 fell 0.8% and the tech-heavy Nasdaq Composite dropped 1.3% -- but both indexes also ended Friday well off their lows of the day.

The market sell-off accelerated for a bit Friday morning following a report from the Financial Times saying that Japanese investing giant SoftBank had made a massive bet on risky derivatives tied to big tech stocks, amounting to billions of dollars that could have fueled the Nasdaq rally.

Investors were selling even though the US economy added 1.4 million jobs in August, which was in line with expectations, but it was down from the 1.7 million jobs added in July and 4.8 million in June. Every person who can go back to work is a win for the recovery from the coronavirus-fueled joblessness crisis, but America is still down 11.5 million jobs from February.

Shares of Tesla, which has been one of the market's biggest winners in 2020, remained volatile. The stock finished Friday with a 3% gain after dipping 6% earlier in the day.

Tesla has fallen sharply this week since splitting its stock to lower its share price. Shares are more than 15% below their all-time high.

Friday's failed attempt at a market rebound follows Thursday's massive drop for stocks, which was led by big sell-offs in red hot techs such as Apple, Amazon and Microsoft.

"The market had been so narrowly led that a drop like this was bound to happen." said Scott Clemons, chief investment strategist at Brown Brothers Harriman.

The Dow slid more than 800 points Thursday, the worst day for stocks since June. That pullback came just one day after the S&P 500 and Nasdaq both hit new all-time highs and is a sign that market volatility may be back.

There are growing concerns about the possibility that the White House and Congress may not be able to agree on a new package of stimulus for consumers and businesses that have been hit hard by the Covid-19 pandemic.

Without a significant new round of payments for people who are out of work, the market slide could accelerate further. Businesses may also feel less comfortable hiring people back.

"There have been encouraging signs in the job numbers lately but you have to wonder about the expiration of stimulus and inability of Washington to do more. There could be further declines around the corner if this is not rectified," said John Pataky, executive vice president and chief banking officer with TIAA Bank.

It also appears that investors have simply decided to rotate out of riskier tech stocks, which have helped lead the broader market higher for the past few years, and into more cyclical companies.

To that end, financial giants American Express, JPMorgan Chase, Goldman Sachs and Travelers were Dow leaders Friday.

Financial firms might also be benefiting from the fact that the Federal Reserve is likely to keep interest rates near zero for the foreseeable future.

Fed chair Jerome Powell said as much in a speech last week. Low rates could fuel another boom in home buying as well as mortgage refinancing.

Big dividend payers Caterpillar and Coca-Cola -- as well as new Dow components Honeywell and Amgen -- also held up relatively well. The stocks all ended the day higher.

Software company Salesforce, another new Dow member, was the biggest loser Friday, falling nearly 4%. Visa, Home Depot and IBM were also among the bigger Dow laggards.

It has been a whirlwind week for stocks. The Dow lost about 2% over the past five days, while the S&P 500 and Nasdaq fell 2.3% and 3.3% respectively.

Investors will have to sit tight until Tuesday to see if Wall Street can get back on track, as the US stock market is closed Monday for Labor Day.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 261167

Reported Deaths: 5713
CountyCasesDeaths
DeSoto17561191
Hinds16687329
Harrison14050202
Rankin11102217
Jackson10729188
Lee9014143
Madison8495168
Jones6607114
Forrest6135122
Lauderdale6067192
Lowndes5490120
Lafayette511794
Lamar499865
Washington4904125
Bolivar4087109
Oktibbeha403581
Panola380981
Pontotoc374757
Monroe3651106
Warren3649103
Union353263
Marshall352069
Neshoba3464154
Pearl River3422105
Leflore3090109
Lincoln304287
Sunflower290373
Hancock288461
Tate279062
Alcorn270754
Pike268180
Itawamba266662
Scott256048
Yazoo253756
Prentiss251153
Copiah247649
Tippah247550
Coahoma245954
Simpson241471
Leake236167
Grenada222471
Marion220273
Covington219072
Adams212370
Wayne208432
Winston205870
George203539
Newton197346
Attala196461
Tishomingo193861
Chickasaw188444
Jasper177838
Holmes171368
Clay164237
Tallahatchie155635
Stone149525
Clarke144762
Calhoun139922
Smith127725
Yalobusha121134
Walthall114037
Greene112929
Noxubee112225
Montgomery111236
Carroll106422
Lawrence105617
Perry104031
Amite100826
Webster95424
Tunica88221
Claiborne87825
Jefferson Davis87727
Benton84823
Humphreys84224
Kemper80020
Quitman7049
Franklin69617
Choctaw62513
Wilkinson59625
Jefferson56520
Sharkey44817
Issaquena1606
Unassigned00

Alabama Coronavirus Cases

Cases: 436087

Reported Deaths: 6486
CountyCasesDeaths
Jefferson63969994
Mobile31211565
Madison27851208
Tuscaloosa21233271
Montgomery19698326
Shelby19093130
Baldwin16981188
Lee13036105
Morgan12526134
Etowah11987179
Calhoun11441206
Marshall10357123
Houston8886158
Limestone827876
Cullman8203108
Elmore8120104
DeKalb7828103
Lauderdale7798103
St. Clair7763125
Talladega6394111
Walker6002177
Jackson594644
Colbert545276
Blount543986
Autauga532761
Coffee456762
Dale406883
Franklin372448
Russell349212
Chilton342873
Covington336068
Escambia330144
Dallas312096
Tallapoosa3120107
Chambers301170
Clarke293336
Pike261131
Marion251558
Lawrence250752
Winston232742
Bibb221248
Geneva208746
Marengo206529
Pickens199031
Hale182742
Barbour179337
Fayette177029
Butler172459
Cherokee164330
Henry158224
Monroe151320
Randolph144336
Washington140127
Clay129146
Crenshaw122944
Macon120937
Cleburne120724
Lamar119721
Lowndes113736
Wilcox106622
Bullock102228
Perry99118
Conecuh96821
Sumter90026
Greene76823
Coosa63215
Choctaw51724
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