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* Market cools after huge Monday rally
* Pandemic tech winners retreat
* Investors ditch growth stocks in favor of value
* Dow up 0.6%, S&P down 0.2%, Nasdaq down 1%
(Updates to early afternoon)
By Medha Singh and Shivani Kumaresan
Nov 10 (Reuters) - The S&P 500 and the Nasdaq fell on
Tuesday as excitement over signs of a first successful
late-stage COVID-19 vaccine trial faded, while investors
continued to pull money out of some Big Tech companies that have
benefited most from the pandemic.
Amazon.com Inc AMZN.O , Facebook Inc FB.O and Microsoft
Corp MSFT.O , which have boomed during this year's
work-from-home shift and powered Wall Street to new highs,
extended Monday's losses and pulled the tech-heavy Nasdaq down
about 1.3%.
The tech .SPLRCT , communication services .SPLRCL and
consumer discretionary indexes .SPLRCD dropped sharply as
investors moved to sectors expected to benefit from a full
reopening of the economy, such as energy .SPNY , industrials
.SPLRCI and materials .SPLRCM .
"We are seeing a rotation away from growth areas, in
particular tech and communication services, mainly because
investors want to gravitate more toward the groups that have
been underperformers until now," said Sam Stovall, chief
investment strategist at CFRA Research.
Value-linked stocks .IVX , which tend to outperform coming
out of a recession, added 1%, while growth stocks .IGX fell
0.8%.
The main U.S. indexes hit new peaks on Monday as encouraging
data from a late-stage COVID-19 vaccine trial spurred bets of a
swift economic recovery next year. Democrat Joe Biden's
projected victory in the U.S. presidential election also added
to the market cheer.
"Although great news, it's just a plan and we need to see
some practical things around it like how (the vaccine) is going
to roll out, who's going to get it," said JJ Kinahan, chief
market strategist, TD Ameritrade in Chicago.
Biden hailed the progress on the vaccine, but urged caution
saying it would be "many more months" before widespread
vaccination is available. Meanwhile, daily new U.S. cases topped
100,000 for the sixth straight day. The apparent breakthrough in a coronavirus vaccine weakens
the case for another large U.S. fiscal stimulus bill, but relief
is still needed for struggling businesses, investors said.
Senate Majority Leader Mitch McConnell last week argued for
a smaller coronavirus stimulus package after data pointed to a
drop in U.S. unemployment rate in October. At 12:40 p.m. ET the S&P 500 .SPX lost 6.89 points or
0.19% to 3,543.61 and the Nasdaq Composite .IXIC lost 121.85
points or 1.04% to 11,591.93. The Dow Jones Industrial Average
.DJI rose 158.46 points or 0.55% to 29,316.43.
Amgen Inc AMGN.O gained 3.6% after its asthma drug, being
developed in collaboration with AstraZeneca AZN.L , met the
main goal of a late-stage study.
Ulta Beauty Inc ULTA.O topped gainers on the S&P 500,
climbing 7.7% after the cosmetics store chain signed a long-term
deal with Target Corp TGT.N to open its own stores at the big
box retailer's locations. Target gained about 2%. Apple Inc AAPL.O edged higher ahead of an event where it
is expected to unveil new Mac computers using its own in-house
processor chips.
Advancing issues outnumbered decliners for a 1.8-to-1 ratio
on the NYSE and a 1.5-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and no new low,
while the Nasdaq recorded 65 new highs and 20 new lows.
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5-yr performance gap between growth and value stocks https://tmsnrt.rs/3kjdIem
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