Wall Street feverish at the opening with the intensification of the pandemic

US markets fall further; Nasdaq falls>1.6%, Dow cracks>700 pts, S&P down
October 27, 2020
Treasury Yields Slide On Risk-Off Sentiment — Market Talk
October 27, 2020

Wall Street feverish at the opening with the intensification of the pandemic

The New York Stock Exchange was moving in the red on Monday, worrying about recent records for the number of new coronavirus infections in the United States and Europe and scrutinizing negotiations on a US stimulus plan.

Its flagship index, the Dow Jones Industrial Average, fell 1.41% to 27,936.94 points around 13:55 GMT.

The Nasdaq, with strong technological coloring, lost 0.16% to 11,530.32 points.

The extended S&P 500 index dropped 0.90% to 3,434.15 points.

Tossed about in the wake of difficult negotiations on a possible economic support plan for the Americans, Wall Street had retreated last week: from Monday to Friday, the Dow Jones had lost 0.95%, the Nasdaq had given up 1.05% and the S&P 500 had dropped 0.53%.

“The market faces a wall of concerns: it is the combination of the coronavirus, talks on the + stimulus + (economic support plan) and the elections,” summed up Peter Cardillo, chief economist for Spartan Capital Securities.

“The failure of any announcement on an economic stimulus plan and the acceleration of the coronavirus epidemic are weighing on investor morale,” added Cardillo at the start of an otherwise busy week in financial results. ‘companies.

The Covid-19 epidemic has indeed progressed last weekend, France and the United States surpassing their records of additional cases. Many European countries have imposed new measures to limit the spread of the virus.

On the subject of aid measures in the United States, Larry Kudlow, principal economic adviser to Donald Trump, assured Monday morning that negotiations between the White House and the Democrats “have slowed down but are not over”.

On the corporate side, after Microsoft on Tuesday, Apple, Alphabet (parent company of Google), Amazon and Facebook will simultaneously unveil Thursday, after the close of New York, their turnover and profits from July to September.

Results from Boeing, Ford, General Electric and Caterpillar are also expected this week. “With such a busy schedule of results, people may forget the historic event that will take place in just eight days,” said JJ Kinahan of TD Ameritrade, referring to the US presidential election on November 3. “But this will probably not be the case”, admits the expert.

Among the values ​​of the day, Dunkin ‘Brands (+ 14.87%), parent company of Dunkin’ donut and coffee chains and Baskin-Robbins ice cream, took off after confirming that it was in negotiations to sell itself to the specialized company in the Inspire Brands restaurant. U.S. toy maker Hasbro (-8.36%) fell after mixed results in the third quarter, marked by strong sales of board games and struggles for its pandemic-stricken cartoon production house eOne.