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* US Senator Manchin opposes $ 2,000 direct checks – report
* Non-farm payroll falls in December
* Tesla’s market capitalization reaches $ 800 billion for the first time
* Indices: Dow fell 0.5%, S&P fell 0.2%, Nasdaq rose 0.3% (add comment, details; Update prices)
By Devik Jain and Medha Singh
Jan. 8 (Reuters) – The S&P 500 retreated slightly from a record high on Friday after a report that US Democratic Senator Joe Manchin opposed larger direct checks, throwing cold water at possible additional stimulus payments.
Manchin, a moderate Democrat from West Virginia, told the Washington Post in an interview that he “absolutely did not” support a new round of payments, despite requests from Democratic leaders for $ 2,000 checks.
Earlier in the day, the S&P 500 and Nasdaq reached historic records, as hopes for more fiscal aid eclipsed data showing the economy cut jobs for the first time in eight months in December.
“Part of the reason the market has recovered in the past few days is the expectation of more stimulus, not just in the short term, but also in the long term,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
“The position that Manchin is taking is against the short-term stimulus, but that could have an impact in the long run as well. The Senate is almost democratic. Manchin could certainly take the other route.”
Positive data from the COVID-19 vaccine and expectations of a larger fiscal package and spending on infrastructure under a Democratic-led US Congress raised the S&P 500 above 3,800 points for the first time and set all three key indices on the way to weekly gains.
Seven of the 11 main S&P sectors fell, with the financial, materials and industrial sectors linked to the economy, which outperformed their peers and reached record levels this week, falling more than 1%.
Market participants ignored a report that Democratic congressmen plan to present impeachment articles against President Donald Trump on Monday after a violent crowd of Trump supporters invaded the U.S. Capitol.
At 2:03 pm Eastern Time, the Dow Jones Industrial Average fell 150.64 points, or 0.49%, to 30,890.49, and the S&P 500 lost 5.63 points, or 0.15%, to 3,798, 16.
The Nasdaq Composite gained 36.49 points, or 0.28%, to 13,103.96, helped by gains at Tesla Inc and Baidu Inc.
Electric car maker Tesla jumped 6%, bringing its market capitalization to more than $ 800 billion for the first time.
Baidu’s US listed shares gained about 13% from plans to form a company to make smart electric vehicles, according to two sources familiar with the matter.
The decline in issues has outpaced the advanced ones to a 1.5 to 1 ratio on the NYSE and a 1.6 to 1 ratio on the Nasdaq.
The S&P 500 recorded 83 new 52-week highs and no new lows, while the Nasdaq recorded 543 new highs and 25 new lows. (Reporting by Devik Jain and Medha Singh in Bengaluru; Additional reporting by Herbert Lash in New York; Editing by Maju Samuel and Shounak Dasgupta)