Wild Week on Wall Street Sends Stocks Lower

The Nasdaq logged its worst day since the March selloff on Thursday

Assistant Editor
Sep 4, 2020 at 11:43 AM
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This week, the S&P 500 (SPX) and Nasdaq Composite (IXIC) expanded on their rallies, starting off by notching their best August performances since 1984 and 1986, respectively. Continuing into the week, both indexes notched more fresh record closing highsthanks to historic stock splits from Tesla (TSLA) and Apple (AAPL). Looking at the Dow Jones Industrial Average (DJI), the index came into Monday with high hopes as well, though it ended the day lower thanks to the 10-year treasure yieldHowever, the next session saw the blue-chip index secure another win as promising U.S. economic data trickled in.

Rounding out the middle of the week, added more gains, with the SPX and IXIC notching yet another set of record closes thanks to vaccine optimism. A major tech selloff on Thursday pummeled stocks, with both the Dow and S&P 500 marking their worst day since June 11, and the Nasdaq eking out its worst session since March 16. For Friday's trading the pullback continued, with all indexes eyeing a daily and weekly loss.

Stocks Tied to Lockdowns Make Headlines

As unease continues to engulf the nation due to the ongoing coronavirus pandemic, stay-at-home staple Netflix (NFLX) saw a surge in weekly options trading. Meanwhile, it's no secret that the airline sector has suffered its fair share, and United Airlines (UAL) wasn't exempt. The company announced it would eliminate its ticket exchange fees in an attempt to rally customers back to rollback on the historic slump. Meanwhile, retail name Macy's (M) boasted a surge in online sales.

Tommy Hilfiger Parent Earns Slew of Bull Notes

The earnings docket has been relatively quiet of late, though some notable companies are laying down impressive reports. Specifically, Microsoft (MSFT) rival Zoom Video (ZM) surged to an all-time high, after the company reported second-quarter earnings and revenue that bested Wall Street's forecasts. Additionally, Guess? (GES) stepped into the earnings confessional and surprised analysts. Lastly, Tommy Hilfiger parent PVH (PVH) posted an impressive quarterly report, in turn enjoying a slew of bull notes.

Holiday-Shortened Week Packed With Economic Updates

Though the second week of September will be a holiday-shortened one, that doesn't mean it will be any less busy. There will be some earnings stragglers, an inflation update, another fresh round of weekly jobless claims, and a job vacancies survey to unpack over the Labor Day week. Keep an eye on the retail sector, with several high-profile names to step into the earnings confessional, including GameStop (GME), Chewy (CHWY) and Kroger (KR). 

Meanwhile, be sure to check out our deep dive into both the 25 best stocks to buy and 25 worst stocks to buy for the month of September. Further, this drug stock looks like the perfect pick for the upcoming holiday week.


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