US: S&P 500, Nasdaq end at records as Dow retreats

[NEW YORK] The S&P 500 on Tuesday notched its first closing record since February, joining the Nasdaq in scaling historic heights and underscoring the recovery from March lows amid the coronavirus.

The broad-based S&P 500 finished with a gain of 0.2 per cent at 3,389.78, eclipsing the prior all-time high by three points.

The Nasdaq jumped 0.7 per cent to end at 11,210.84, while the Dow Jones Industrial Average fell 0.2 per cent to 27,778.07.

The results came after good housing data and strong earnings from big-box retailers Walmart and Home Depot, two essential stores that were allowed to sell goods throughout the pandemic.

Despite strength in some sectors, many analysts caution that the market is largely detached from the real state of the US economy.

Following the spring coronavirus closures - which prompted a major fall in stocks in March - the economy shown some signs of recovery, boosted by government aid spending.

But unemployment remains high, there have been numerous bankruptcies and layoffs amid major slowdowns in the tourism, retail and energy sectors.

Market watchers credit the stock rally to loose monetary policy and a series of massive fiscal spending packages.

However, Washington policymakers have hit a stalemate on new pandemic aid.

Among individual names, Walmart shed 0.7 per cent despite reporting a nearly 80 per cent jump in second-quarter profits to US$6.5 billion.

The giant retailer said it saw consumer spending begin to fade in July as stimulus spending ran out.

Amazon surged 4.1 per cent as it announced plans to hire 3,500 new employees as part of an expansion of its technology hubs and corporate offices across the United States.

Kohl's plunged 14.5 per cent as it reported a big drop in profits and warned the coronavirus crisis "will continue to impact our business in the near-term."

AFP