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Nasdaq Bags Another Record High as Big Tech Cuts Losses Into Close

imageStock Markets9 hours ago (Aug 04, 2020 04:06PM ET)

(C) Reuters.

By Yasin Ebrahim – The Nasdaq notched another record high Tuesday, as big tech cut some losses into the close, though uncertainty over the progress of talks concerning the next coronavirus stimulus package weighed on sentiment.

The Dow Jones Industrial Average rose 0.62%, or 164 points. The S&P 500 rose 0.36%, while the Nasdaq Composite added 0.35.%.

Contradictory remarks on the progress of the virus aid bill from lawmakers on both sides of the political aisle did little to help sentiment on risk.

Senate Minority Leader Chuck Schumer suggested that lawmakers were inching closer to a deal, while U.S. Treasury Secretary Steven Mnuchin reportedly said that there had been no progress in a week. House Speaker Nancy Pelosi, meanwhile, said she doesn’t think there will be a deal this week, cooling hopes that relief would arrive sooner rather than later.

The talks have been held up by a disagreement over the size of unemployment support, which was set at $600 a week in March.

“Lawmakers on both sides of the aisle agree on sending $1,200 in direct stimulus payments to most Americans, but cannot agree on the amount of extended federal unemployment benefits, which expired on July 31, Democrats want to preserve the $600 amount, while Republicans want to reduce it to $200,” Stifel said in a note.

Still, some sectors tied to the progress of the economy like energy and real estate helped the broader market end the day above the flatline.

Energy climbed more than 2%, led by Williams Companies (NYSE:WMB), Devon Energy (NYSE:DVN) and Marathon Oil (NYSE:MRO).

Tech, however, appeared to run out of steam as Apple (NASDAQ:AAPL) gave up some gains after denying reports that it was weighing a move to acquire TikTok.

Amazon (NASDAQ:AMZN) inched higher, while Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT) traded in the red.

On the earnings front, investors digested mixed quarterly results.

Take-Two Interactive Software (NASDAQ:TTWO) raised its full-year guidance after reporting second-quarter results that topped Wall Street estimates on both the top and bottom lines, sending its shares 5.9% higher.

Virgin Galactic (NYSE:SPCE) nosedived 13.8% after reporting a wider than expected quarterly loss. The company also detailed plans to raise about $460 million, through the sale of about 20.5 million shares.

Nasdaq Bags Another Record High as Big Tech Cuts Losses Into Close

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