Stimulus Talks in US Stocks

US stocks traded narrowly as the Wednesday closed, as investors assessed prospects through a quarterly stimulus bill and the health of major US businesses through their quarterly report.

The S&P 500, which had risen between profit and loss, was down 0.2% in New York around 4 pm, while the Dow Jones Industrial Average fell 99 points, or 0.4%. The Tech-Heavy Nasdaq Composite Index broke 0.3%.

Treasury yields boosted its climb, yielding a 10-year note to its highest level since June. The 10-year recently produced 0.801% from 0.016% Tuesday.

Most investors have recently focused on any development of a possible stimulus package in Washington. Democratic negotiators and the White House have said they will proceed with talks on the next coronovirus-relief package, which will set a separate deadline to conclude the agreement proposed by House Speaker Nancy Pelosi on Tuesday. Mrs Pelosi indicated that progress had taken place after her conversation with Treasury Secretary Steven Menuchin.

The two sides did not conclusively establish whether a deal would be possible before Election Day, although White House Chief Mark Meadows said Mrs Pelosi and the administration are trying to secure an agreement before the weekend. Any deal is likely to face deep opposition from Senate Republicans, especially if the proposed spending package reaches $ 2 trillion.

Seema Shah, chief strategist at Principal Global Investors, said, “What we’re seeing at the moment is the market business in these headlines, but a pre-election stimulus deal is not possible.” “We can hear as much as we want from Pelosi and Mnuchin about the progress talks, but some senators have simply said that they will not support any package.”

Investors are also filing third quarter earnings reports to find out how businesses are causing the economic downturn.

Richard Bernstein Advisors LLC Chief Investment Officer Dan Suzuki said the company’s economic growth continues to improve with recent economic data.

Both Congress and the Federal Reserve are spending trillions of dollars in the economy to fight the economic damage caused by coronoviruses. The WSJ explains where the incentive money is coming from. Photo Illustration: Carlos Waters / WSJ

“Where we are happening is sorted at the intersection of that big tug-of-war,” said Mr. Suzuki. “On one hand the epidemic has negative effects on you, and excitement is losing momentum at the same time.”

He told clients that there are some low-risk sectors to invest in at the moment, including the transport sector and healthcare.

Among recent earnings reports, Snap shares jumped 29% after growing more than half its revenue, significantly exceeding analysts’ expectations. Shares of other social-media companies also gained momentum.

Netflix shares fell 5.4%, with the company saying that subscriber growth slowed in the third quarter, highlighting the fresh challenges from competitors to emphasize its own streaming services.

Sweden’s telecommunications company Ericsson saw an 11% increase in its New York-listed shares, followed by profits in the third quarter that beat analysts’ views.

After the markets, Tesla, Chipotle Mexican Grill,

And Whirlpool are slated to release their earnings reports.

Andrew Miz, Wichita’s chief investment officer, Kan., Investment advisor 6 Meridian, said it’s important to look through short-term news on companies as the earnings season continues.

“The companies that are doing very well now because of the work-at-home trend are not the ones that will succeed in 2021,” Mr. Miz said.

Like other money managers and investors, he is advising clients to focus on 2021 and to remain positive, yet realistic, about the long-term effects of coronaviruses.

Meanwhile, many in the market are focused on the November 3 elections. The market has started to panic before the elections, being careful of placing large bets in many elections.

Kiran Ganesh, global head of investment communications at UBS Global, said that after the 2016 election, many investors did not want to make a strong call ahead of the vote and were opting for areas that were likely to be safe. Money management.

“You might be surprised,” he said, “that there is little rational reason for building a strong position on one of the events we’ve learned in recent years.” “Keep politics out of the portfolio.”

Overseas, the Pan-Continental Stakes Europe 600 fell by 1.3%.

Tesla shares rose nearly 1% as investors prepared for the company’s earnings report on Wednesday.


Lintao Zhang / Getty Images

In Asia, markets were pleased with signs of progress in stimulus negotiations. During trading, Japan’s Nikkei 225 index climbed 0.3% and the Hang Seng index climbed 0.8%.

In commodity markets, oil prices are low. International benchmark Brent crude fell 1.1% to $ 42.69 a barrel. Gold ticked 0.7% higher.

Write Will Horner at [email protected]

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