NEW YORK – Travel-related shares were under pressure yesterday due to worries about a new strain of Covid-19, and US stocks mostly fell despite a congressional agreement on a new pandemic relief package.
More than two dozen countries, from India to Argentina, suspended flights from Britain due to a fast-spreading variant of the coronavirus.
Worries about the British outbreak highlight “the familiar concern about the virus’ effect on the economy”, and “travel-related stocks are taking it on the chin”, said TD Ameritrade’s J.J. Kinahan in a note.
The Dow Jones Industrial Average added 0.1% to finish the day at 30,216.45.
But, the broad-based S&P 50 fell 0.4% to 3,694.92, while the tech-rich Nasdaq Composite Index dipped 0.1% to 12,742.52.
Travel-related shares were broadly lower, with Expedia, Marriott International and United Airlines all off more than 1%.
Fears about the new Covid-19 strain blunted the boost from the deal hammered out by US legislators on a US$900 billion (RM3.65 billion) relief package after months of wrangling between Democrats and Republicans.
The package will include a new but smaller round of pandemic relief payments.
US Treasury Secretary Steven Mnuchin said the US$600 cheques will go out as early as next week.
Several leading banks were higher after the Federal Reserve on Friday approved share repurchases with some limitations. JPMorgan Chase and Bank of America both gained more than 3%.
Dow member Nike also rose, surging 4.9% after reporting better-than-expected results on Friday afternoon after the market close based on strong direct-to-consumer sales.
But, Tesla dropped 6.5% after its long-awaited addition to the prestigious S&P 500 index. Shares had rallied aggressively leading into the shift, which took effect yesterday. – AFP, December 22, 2020
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