Wall Street Close: Benchmarks mixed as investors reminded COVID-19 is still a present danger

• Dow Jones Industrial Average lost 86.11 points, or 0.31%, to 27,844.91.
• The S&P 500 SPX added 9.14 points, or 0.27%, to 3,381.99.
• The Nasdaq Composite put on 110.42 points, or 1%, to 11,129.73.

On Wall Street, benchmarks were mixed as the second-quarter earnings start to wrap up ahead of Wednesday’s Federal Reserve minutes from its latest policy meeting.

Tightening economic restrictions in Italy after a resurgence of coronavirus cases among young people weighed on European stocks which hamstringed the US indexes despite

further financial stimulus in China.

Consequently, the Dow Jones Industrial Average DJI fell 86.11 points, or 0.31%, to 27,844.91, the S&P 500 SPX gained 9.14 points, or 0.27%, to 3,381.99 and the Nasdaq Composite IXIC added 110.42 points, or 1%, to 11,129.73.

Chinese blue chips 399300 had made gains of 2.35% as the People’s Bank of China provided additional medium-term loans to the financial system.

There had also been news that Beijing had granted a patent for a CanSino Biologics 6185 COVID-19 vaccine candidate, Ad5-nCOV which lifted risk appetite. 

However, a stark reminder that the world is still in the grip of the coronavirus came from cases in Italy have doubling over the past two weeks, prompting the nation to reimpose restrictions on bars and nightclubs.

Also, Sino-American relations remain a risk. Over the weekend, the US President Donald Trump said he could exert pressure on more Chinese companies such as technology major Alibaba BABA after he moved to ban TikTok. Nevertheless, the Nasdaq Composite set record highs on Monday.

As for data,  the US Empire Manufacturing Index crumbled and arrived much weaker than expected (3.7 versus 15.0).

Overall, the index points to very modest expansion, with new orders and shipments both retracing,

analysts at ANZ Bank explained, also noting that one bright spot in the US economy is the housing market, which has been buoyed by super-low interest rates.

NAHB housing market index (a survey of home builder confidence) was stronger than expected, and has returned to previous highs. 

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