Wall Street retreats after four-day winning streak as J&J vaccine worries weigh

Johnson & Johnson raised its annual profit forecast, but its shares dropped 1.2 per cent as it suspended clinical trials. — Reuters pic

NEW YORK, Oct 13 — Wall Street’s main indexes fell today after a four-day winning streak as a pause in Johnson & Johnson’s Covid-19 vaccine trials spurred concerns about a full economic rebound from the coronavirus-led downturn.

Johnson & Johnson raised its annual profit forecast, but its shares dropped 1.2 per cent as it suspended clinical trials following an unexplained illness in a study participant, possibly delaying one of the most closely watched efforts to contain the global pandemic.

Some of the worst-hit companies due to the pandemic – cruise line operators Carnival Corp, Norwegian Cruise Line Holdings and hotel operator Wynn Resorts Ltd – were among the top losers on the S&P 500.

“It reminds those betting on a vaccine that it’s probably not as clear cut that it’s just on the horizon as the administration makes it to be,” said Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Adding to the negative tone, US House Speaker Nancy Pelosi rejected President Donald Trump’s latest offer on Covid-19 stimulus, in the latest sign that a bipartisan deal on coronavirus relief remains unlikely ahead of the November election.

Hopes of more US fiscal stimulus and a rally in technology heavyweights led stocks higher yesterday, bringing the benchmark S&P 500 and the tech-heavy Nasdaq within 2 per cent of their record highs hit in September after a pullback last month.

Apple Inc gave up early gains to fall 1.9 per cent ahead of a virtual event starting 1 p.m. ET (1700 GMT) where it is widely expected to unveil four new iPhones.

Shares of Amazon.com Inc, which have already surged

Read More Here...

Bookmark the permalink.

Comments are closed.