Wall Street opens up, on hopes of stimulus measures
October 13, 2020
Will the delay in Stimulus package affect the U.S market? | Peter Cardillo speaks to ET Now
October 16, 2020The New York Stock Exchange ended in the red on Tuesday after several large listed companies published their third quarter results, in a market doubting that a reliable vaccine against the coronavirus would be available soon.
Its flagship index, the Dow Jones Industrial Average, lost 0.55% to 28,679.81 points.
The Nasdaq, with strong technological coloring, yielded 0.10% to 11,683.90 points and the extended S&P 500 index fell 0.63% to 3,511.93 points.
The major New York indices remained on four sessions of increase.
JPMorgan Chase (-1.62%) and Citigroup (-4.80%) kicked off the earnings season on Wall Street, reporting better than expected results thanks to healthy brokerage businesses and lower provisions. important than expected.
But the bosses of the two American banks also pleaded for new aid to face the consequences of the coronavirus pandemic.
A member of the Dow Jones, Johnson & Johnson (-2.29%) also reported better-than-expected results in the third quarter, where the company saw the turnover of its pharmaceutical products division rise by 5% in annual rhythm.
But the title of the pharmaceutical group was weighted down by the announcement of the suspension of its clinical trial of a vaccine against Covid-19, one of the participants having fallen ill.
Eli Lilly (-2.85%) for his part announced Tuesday to take a break in his clinical trial of his experimental treatment with antibodies against Covid-19 for non-detailed security reasons.
“The fact that two large pharmaceutical companies are suspending their trials has weighed on the market,” observes Peter Cardillo of Spartan Capital Securities.
“Any kind of delay is unfortunate for a stock market which chomps at the bit in the hope that a safe and effective remedy will soon be marketed”, says Patrick O’Hare of Briefing.com.
Apple (-2.65%), the most expensive company on Wall Street, saw its title drop despite the announcement of its new line of iPhones with super-fast connection speed, which all will be able to use. 5G networks.
These new products were widely anticipated by the market and the action of the firm at the apple had risen sharply Monday on Wall Street.
Among the other values of the day, the asset manager BlackRock (+ 3.91%) rose sharply, boosted by the improvement in the financial markets in the third quarter, which allowed it to benefit from an influx of investments.
Delta (-1.72%) fell after suffering a heavy loss of 5.4 billion dollars in the third quarter, the company being affected by the sharp slowdown in global air traffic with the pandemic.
Disney (+ 3.19%) appreciated after announcing on Monday a major reorganization of its media and entertainment divisions in order to focus on its streaming platforms Disney +, Hulu, ESPN + and the future international service Star.
Amazon (+ 0.02%), which launched its “Prime Day”, offering its customers promotions on many products on Tuesday and Wednesday, has gained some ground.
