US stocks mixed after historic rebound to record high

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Inventories were mixed after closing at a record high for the first time since the start of the pandemic. Treasury bills have climbed.The S&P 500 was little changed, with investors assessing retailer earnings and the latest stimulus talks ahead of Federal Reserve meeting minutes. Target Corp. surged as sales beat analysts’ estimates, allaying fears demand would wane after consumers passed their relief checks. Lowe’s Cos. Gained strong summer sales, while TJX Cos. Fell on disappointing results. Momenta Pharmaceuticals Inc. exploded when Johnson & Johnson agreed to acquire the company for approximately US $ 6.5 billion.

After the rush to buy that sent U.S. stocks up more than 50% in five months, there is a growing debate about whether momentum can be sustained amid high valuations and uncertainties about the additional government assistance. High-frequency economic indicators and corporate earnings have improved, reinforcing optimism for recovery from a pandemic-induced recession amid ultra-easy monetary policy and massive stimulus measures.

“The largesse of the Fed means that there are trillions of dollars in excess liquidity seeking returns above the near-zero or even negative rates offered by fixed income,” wrote Win Thin, global head of foreign exchange strategy at Brown Brothers Harriman & Co. in New York. “A lot of it goes into stocks.”

Democratic and Republican leaders are hinting that they are looking for a way to revive stalled negotiations over the next round of pandemic relief for the US economy, even as the two sides remain far from any agreement. The Trump administration sees a possibility for Republicans and Democrats to agree on a smaller pandemic relief cycle totaling US $ 500 billion, which would omit the biggest points of disagreement, a senior said on Tuesday evening. American official.

Spurred on by the S&P 500 skyrocketing to a record Tuesday, the market cap of global equities is at an all-time high of US $ 89.7 trillion. Risk assets have rallied since March, as unprecedented stimulus and gains in tech stocks offset concerns over U.S.-China trade tensions and rising coronavirus cases.



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