(For a Reuters live blog on US, UK and European stock markets, click LIVE / or type LIVE / in a news box.)
* Disney drops out after a strong run-up to results
* PayPal extends the rise as the brokerage is optimistic after investor day
* Energy supplies fall as oil prices fall amid fears of demand
* Indices: Flat Dow, S&P up 0.17%, Nasdaq up 0.16% (add quote, details; update prices)
Feb 12 (Reuters) – The S&P 500 fell higher on Friday, recovering from early weakness as financial and material stocks gained ground as investors waited for signs of progress on the next round of fiscal support.
Value stocks outperformed large-cap growth stocks as investors preferred names likely to benefit from a reopened economy.
Major stock indices opened lower, under pressure from heavyweights Apple Inc, Tesla Inc and Amazon.com Inc. The major averages are still on their way to their second consecutive weekly profit.
Lipper’s data on Thursday showed that US equity funds raised $ 22.9 billion in the week to Wednesday, the largest weekly inflows since March 2008.
The US stock markets are closed on Monday due to the holiday of the presidents.
“Most of these sell-offs have proven they are only taking some profit to see the market come back from a short-term sell-off,” said Rick Meckler, partner at Cherry Lane Investments, a family-owned investment firm in New Vernon, New Jersey.
“Low interest rates, incentives and improvement in viruses give investors more confidence to stay in the market and buy more.”
A sharp decline in the number of new COVID-19 cases and hospitalizations in recent weeks has also driven the markets to historic highs. However, many analysts have warned of a short-term relapse due to the risks of new coronavirus variants and possible bumps in vaccine distribution.
The latest data showed that US consumer sentiment fell unexpectedly in early February as households continued to worry about the economy despite expectations for additional fiscal stimulus.
A Reuters survey found that the U.S. economy is expected to reach pre-COVID-19 levels within a year as the proposed $ 1.9 trillion fiscal package boosts economic activity, but it is likely to take more than a year before unemployment falls to the level of early 2020.
US President Joe Biden will meet with a bipartisan group of mayors and governors on Friday as he continues to push for approval of the massive emergency plan.
Economically linked bank stocks rose by about 1.3%, while energy, materials and industry and services also rose between 0.7% and 0.8%.
The small cap index is expected to rise for the fifth week of six full weeks this year.
At 11:55 a.m. ET, the Dow Jones Industrial Average fell 5.54 points, or 0.02%, to 31,425.16, the S&P 500 gained 6.81 points, or 0.17%, to 3,923.19 and the Nasdaq Composite rose 22.48 points, or 0.16%, to 14,048.25.
PayPal Holdings Inc was up about 3.8% as several brokers raised price targets for the stock the day after the day the payment company’s investors called.
Walt Disney Co reported a surprising quarterly profit. However, its shares fell 1.5% from a record high after running more than 13% to results in the past two weeks.
Dating apps operator Bumble Inc won 13%, a day after a great debut, its stock surged more than 75%.
Tilray Inc and Aphria Inc gained 4% and 6% after almost half the value in the previous session.
Early issues were in the minority with a 1.3-to-1 ratio on the NYSE and a 1.4-to-1 ratio on the Nasdaq.
The S&P 500 recorded 47 new highs in 52 weeks and not a new low, while the Nasdaq recorded 307 new highs and 22 new lows. (Reported by Medha Singh in Bengaluru; edited by Maju Samuel)