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US STOCKS-Dow and S&P dip, Nasdaq gains with stimulus eyed

Published 10/12/2020, 21:00
Updated 10/12/2020, 21:06
© Reuters.
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Mnuchin says COVID-19 relief talks making progress
* Airbnb shares open at $146 after $68 pricing
* U.S. FDA advisory panel meets on Pfizer's COVID-19 vaccine
* Dow down 0.39%, S&P 500 down 0.26%, Nasdaq up 0.35%

(Updates to mid-afternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, Dec 10 (Reuters) - The Dow and S&P 500 dipped
while the Nasdaq was modestly higher on Thursday as investors
looked for signs of progress in fiscal stimulus talks to
buttress the economy after labor market data showed a jump in
jobless claims.
Major averages opened lower on the heels of weekly initial
jobless claims data that spiked by 137,000 to a seasonally
adjusted 853,000, well above expectations for 725,000 and the
highest level since mid-September, underscoring the need for
fresh stimulus measures to support a flagging economy.
But stocks moved well off their earlier lows after U.S.
Treasury Secretary Steven Mnuchin said talks between Republican
and Democratic senators on COVID-19 relief were making "a lot of
progress" with more discussions expected in the day.
"We are in a bit of a trough, we've hit a valley right now
and it's all based on accelerating through this," said Phil
Blancato, CEO of Ladenburg Thalmann Asset Management in New
York.
"We need that announcement, without that announcement we are
going to have volatility through the end of the year, without a
doubt."

The Dow Jones Industrial Average .DJI fell 116.47 points,
or 0.39%, to 29,952.34, the S&P 500 .SPX lost 9.5 points, or
0.26%, to 3,663.32 and the Nasdaq Composite .IXIC added 43.15
points, or 0.35%, to 12,382.10.
Airbnb Inc 's ABNB.O shares opened at $146 in their debut,
far above the initial public offering (IPO) price of $68 apiece,
raising $3.5 billion for the home rental firm. The offering
comes on the heels of a blowout debut for Wednesday's high
profile IPO DoorDash DASH.N . The S&P energy index .SPNY hit a six-month high as Brent
crude prices surged above $50 a barrel for the first time since
early March. The group has surged about 35% this quarter, the
best performing of the 11 major S&P sectors, as investors have
looked to names that could benefit from an economic reopening.

The faltering labor market recovery and the recent surge in
COVID-19 infections have piled pressure on policymakers to come
up with another rescue package, as most of the government
financial aid for Americans and businesses has dried up.
The U.S. Senate was expected as early as Thursday to extend
government funding by one week to give lawmakers time to work
out a larger spending package and coronavirus relief, but House
Speaker Nancy Pelosi raised the possibility talks could drag on
through Christmas.
Also in focus was a meeting of outside advisers to the U.S.
Food and Drug Administration (FDA) later in the day, to decide
whether to recommend that the agency authorize Pfizer Inc's
PFE.N COVID-19 vaccine for emergency use. Some officials said vaccinations could begin as soon as this
weekend if the FDA consented.
Declining issues outnumbered advancing ones on the NYSE by a
1.08-to-1 ratio; on Nasdaq, a 1.16-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and no new lows; the
Nasdaq Composite recorded 122 new highs and 10 new lows.

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