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Wall Street opens lower; investors grow cautious on outlook

The market remains focused on trillions of dollars of potential government aid that could be coming for the economy, as Democrats move forward with their stimulus package.

Topics
Wall Street | Coronavirus

AP | PTI 

Wall Street
FILE PHOTO: Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York. Reuters

Stocks were slightly lower in early trading on Friday, retreating from highs the market set the day before.

The market remains focused on trillions of dollars of potential government aid that could be coming for the economy, as Democrats move forward with their stimulus package.

The S&P 500 index was down less than 0.1 per cent as of 9:50 a.m. Eastern. The Dow Jones Industrial Average was down 0.1 per cent and the Nasdaq Composite fell 0.2 per cent. The Russell 2000 index of small companies was down 0.5 per cent.

Investors are hoping for a new round of US government aid as the economic recovery falters.

The latest US government report on jobless claims reaffirmed that employment remains a weak spot in the economy, even as vaccine distribution ramps up in the hopes of eventually ending the pandemic.

The University of Michigan survey of consumer sentiment came in well below expectations as well, a sign that consumers are wary to spend in the face of economic uncertainty.

Investors do not expect the market to move substantially higher in the near term until there's more clarity on the future of government stimulus and the direction of the US economy.

Democrats have decided to use a legislative process that does not require Republican support to pass the US D1.9 trillion package.

Mohawk Industries shares jumped nearly 10 per cent after the company posted stronger-than-expected quarterly earnings.

Bumble shares rose a further 6 per cent, extending big first-day gains Thursday on the company's initial public offering.

Most Asian were closed to mark the Lunar New Year.

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First Published: Fri, February 12 2021. 21:52 IST
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