The Fearless Girl statue faces the New York Stock Exchange, Tuesday, July 20, 2021. Stocks are off to a mixed start on Wall Street, Friday, Aug. 13 as gains for communications and health care companies are checked by weakness in energy and other sectors. (AP Photo/Richard Drew)
By Damian J. Troise and Alex Veiga
Another wobbly day of trading on Wall Street gave way Friday to small gains and new highs for the S&P 500 and Dow Jones Industrial Average.
The two indexes wavered for much of the day before eking out their fourth straight gains. The benchmark S&P 500 rose 0.2% and notched its second-straight weekly increase. The Dow and the Nasdaq edged up less than 0.1%.
Stocks in the S&P 500 were nearly evenly split between winners and losers. Gains in technology, health care and household goods companies outweighed losses by banks, energy stocks and other sectors. Small-company stocks fell more than the broader market.
An economic report showing a big drop in consumer confidence last month due to the spreading delta variant of the coronavirus didn't keep the market from managing more records.
“The reality is the market is holding up pretty well," said Rob Haworth, senior portfolio manager at U.S. Bank Wealth Management. He noted that the consumer sentiment report is "something the market is looking through as temporary.”
The S&P 500 rose 7.17 points to 4,468. The Dow added 15.53 points to 35,515.38, and the Nasdaq picked up 6.64 points to 14,822.90.
The University of Michigan consumer sentiment index fell to 70.2 from its previous level of 81.2 in July. That was the largest drop in sentiment since April 2020, when the pandemic took its initial grip on the country.
The unexpectedly bad drop in the survey’s reading was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.
While the broader market indexes notched slight gains, concerns about the resurgent virus prompted some investors to shift money away from companies that could take a hit from people pulling back on spending for travel and other in-person services, said Jay Hatfield, CEO of Infrastructure Capital Advisors.
American Airlines fell 2.9%, while Las Vegas Sands slid 2%. And the Russell 2000 index of small companies fell 20.96 points, or 0.9%, to 2,223.11, another sign traders were worried about future economic growth.
Technology companies made some of the broadest gains. Chipmaker Advanced Micro Devices rose 3.8%, while eBay climbed 7.4% for the biggest gain in the S&P 500.
Healthcare companies also gained ground. Pfizer rose 2.6% and Regeneron Pharmaceuticals gained 2.8%. Moderna slipped 0.4% after U.S. regulators authorized a booster shot of their COVID-19 vaccines for people with weakened immune systems.
Disney rose 1.% after the company returned to a profit last quarter, helped by the reopening of its theme parks and more subscribers to its Disney+ service.
Bond yields fell, which weighed on banks. The yield on the 10-year Treasury dropped to 1.29% from 1.34% late Thursday. JPMorgan Chase lost 1.1%.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
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A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
