Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Decrease by more than 300 points when COVID-19 cases jump, the stimulus remains suspended

Decrease by more than 300 points when COVID-19 cases jump, the stimulus remains suspended



Shares fell at the start of trading on Monday as the number of daily COVID-19 infections in the US reached a record late last week, and the final agreement on a new round of aid to the economy remained elusive.

The Dow Jones Industrial Average DJIA
fell 387.49 points, or 1.4%, to 27,948.08, while the S&P 500 SPX
fell 31.03 points, or 0.9%, to 3,434.36. Nasdaq Composite COMP
decreased by 27.90 points, or 0.2%, to 11,520.38.

The Dow fell 1% last week, ending on Friday at 28,335.57, while the S&P 500 reported a 0.5% weekly decline to the end of 3,465.39. The Nasdaq fell 1.1% for the week, closing Friday at 11,548.28. The weekly declines were the first of three weeks for the S&P 500 and Dow and the first of four weeks for the Nasdaq.

What drives the market?

COVID-1

9 infections continue to rise in the United States, while Europe has seen Spain and Italy impose stricter restrictions on activity in a bid to control the jump in new cases.

The United States saw 83,757 new cases of COVID-19 on Friday, exceeding the previous maximum of 77,632 observed on July 16, The Wall Street Journal reported, citing data collected by Johns Hopkins University.

“The growing number of viruses and the growing number in Europe are forcing investors to be cautious. They need to be careful, as any major jump will lead to a slowdown in the pace of economic recovery. But the tide will not last forever. We hope that the economic damage will be a slowdown in the pace of recovery, not a reversal, “said James Mayer, chief investment officer of Tower Bridge Advisors.

Several of Vice President Mike Pence’s best aides, including his chief of staff, tested positive for COVID-19 over the weekend. Pence, who tested negative, will remain on the campaign trail as he takes precautions, White House Chief of Staff Mark Meadows said Sunday.

Parliament Speaker Nancy Pelosi, of California, told CNN on Sunday that she was waiting for the “final yes” to a White House stimulus package. Talks between House Democrats and the Trump administration continued last week, but the final agreement remained elusive. On Sunday, Pelosi and Meadows accused the other side of “moving the goals” in the talks.

Investors are preparing for an influx of quarterly profits next week, including reports from more than a third of the S&P 500, including technology-related highlighters Facebook Inc. FB,,
Amazon.com Inc. AMZN,,
Apple Inc. AAPL,,
Microsoft Corp. MSFT
and a parent of Google Alphabet Inc. GOOG

GOOGL.

Read also: Are you ready for another Big Tech hearing / win?

This is a large part of the cohort of technology-related stocks, which have been the main drivers of the stock market’s recovery from its pandemic low “and their profit picture, as well as forward directions will be crucial for any further increase in indices, “said Boris Schlossberg, managing director of FX strategy at BK Asset Management, in a note.

“If high-tech enthusiasts fail to meet investor expectations, the market could be set to fall sharply, as investors will face the risk of blocking COVID, lack of fiscal stimulus and peak growth in WFH (work from home). ) stocks, ”he said.

Look: Stock market investors are preparing for the busiest week of profits in the last hour of October

Economically, home sales slowed unexpectedly in September, falling 3.5% to 959,000 a year.

The Chicago Fed’s national activity index for September reached 0.27, compared to 1.11 in August.

Which companies are in focus?
  • Shares of a toy manufacturer Hasbro Inc. HAS fell 8.8% even after third-quarter earnings and sales, which exceeded expectations and said they expected fourth-quarter deliveries to improve.

  • Dunkin ‘Brands Group Inc.
    DNA
    shares jumped 16% after the New York Times announced that the parent company of former Dunkin ‘Donuts and Baskin-Robbins was in talks to sell private shares backed by Inspire Brands.

  • Shares of Otis Worldwide Corp.
    OTIS
    fell more than 1% after the elevator and escalator installation company reported third-quarter profit and revenue that exceeded expectations and offered an optimistic outlook for the full year.

  • Shares of business software companies fell on Monday after the German-based software giant SAP SE SAP issued a profit and sales warning. Shares of Oracle, Salesforce.com and Microsoft Corp. slid after the opening bell.

  • Shares of HCA Healthcare Inc.
    HCA
    fell 3.5% after the hospital operator reported a third-quarter profit that it failed to expect.

What do other markets do?

Yield on 10-year treasure note BX: TMUBMUSD10Y
fell 3.3 basis points to 0.808%. Bond prices are moving in the opposite direction of yield.

Shanghai Composite CN: SHCOMP
fell 0.8%, while the Japanese Nikkei index 225 JP: NIK
decreased by 0.1%. The pan-European index Stoxx 600 Europe XX: SXXP
fell 1% while London’s FTSE 100 UK: UKX
threw 0.2%.

Oil futures were under pressure, as was US crude oil CRUDE OIL – ELECTRONIC
2.8% drop to $ 38.73 a barrel on the New York Mercantile Exchange Gold is slightly higher with the December contract GOLD
trades close to $ 1,909 an ounce.

The ICE index of the US dollar DXY,,
a measure of the currency against a basket of six major rivals rose 0.3%.


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