The first presidential debate took place last night between Donald Trump and Joe Biden. It was a bitter, chaotic and abusive debate.
Presidential Debate: Trump vs. Biden
The global stock market has become even more concerned after this debate, and investors are largely ignoring all other key fundamentals, such as a worsening coronovirus situation in Europe and strong economic numbers outside China.
US futures rose more during the debate as investors saw Joe Biden show his strong position against Donald Trump, but Dow Jones took the full U-turn after the debate as investors believe that if Trump was in the election If lost, the transition of power is not smooth.
The presidential debate sparked market concerns that Trump would not readily accept his defeat. This is not only the biggest risk to the rally of the US stock market, but we are seeing the global stock market today booming.
Stock market today
In Asia, the stock market closed in the negative zone. The Shanghai index declined by 0.20%. The Nikkei stock index also went down by 1.50%, while the Korean Kospi climbed 0.86%. Hong Kong’s HSI index rose 1.02%.
The condition of coronovirus in Europe is continuously deteriorating as new cases are increasing. The total global number of Kovid-19 cases now tops 33 million, and the virus has claimed approximately 1.006 million lives. The US is still the worst country in terms of coronovirus deaths and virus cases, while India ranks third.
Dow Jones & S&P 500: Market Width
The market breadth of the Dow Jones caught the pace of yesterday. 63% of Dow Jones shares traded above their 200-day moving average yesterday.
The S&P 500 stock bread also lost more momentum. 57% of shares trade above yesterday’s 200-day moving average. This is a change of -6% from the day before.
Dow jones futures today
The Dow Jones futures is trading 150 points lower due to the US presidential election debate. Traders and investors will pay full attention to the upcoming ADP Non-Agricultural Employment Change Number. The forecast is for 650K, against the previous reading of 428K.
This data sets the tone for Friday’s most important US economic readings, the US Jobs Report. If we see an improvement in ADP employment numbers, this is likely to push Dow Jones futures further and divert investor attention from last night’s presidential debate.
Should you buy or sell stocks?
The Dow Jones Industrial Average Futures have failed to go above the 50-day simple moving average, a technical level considered to be influential among traders, on a daily timeframe.
The Dow Jones is marching back toward the 100-day SMA, and expects the Dow price to remain above this critical level. If the Dow Jones price falls below the 100-day SMA, it could mean more sellouts for the coronavirus stock market rally.
S&P 500 futures, a broader representation of the US equity market, are also trading sharply lower. Traders are worried that the S&P 500 is also failing to show any signs of strength, but the bulls are keeping their hopes alive as the S&P 500 price is trading above 100 and 200-day SMAs on daily deadlines .
Stock to Watch: Tesla
Tesla’s stock has taken some serious blows in the past few weeks, and investors are waiting for some good news to push the stock higher. The good news could be in the form of new vehicle delivery, which the company expects to announce in the coming days.
Shell today announced massive job cuts. The company will cut 7,000 to 9,000 jobs by the end of 2022. The company expects to save $ 2.0B to $ 2.05B in annual costs by 2022.
The CEO of Shell believes that the company will end up with fewer than ten refineries as Shell is still environmentally friendly. Due to the low oil price, the company’s gross refining margin has been largely squeezed.
Stock market rally
The S&P 500 stock index declined marginally yesterday, and the index fell 0.48%. The energy sector lowered the index, and 10 out of 11 sectors closed lower.
The Dow index continued its losing streak yesterday and the Dow shares declined 0.48% in the index. 4 shares of the Dow Jones Index increased in value and 26 shares of the Dow Index declined.
NASDAQ Composite, a tech-savvy index, declined 0.37% yesterday.
S&P 500 Leaders and Laggards: Paycom Software, Apache
Paycom Software stock delivered the biggest gain, climbing 4.447%. Apache stock was the biggest drag; It fell to 7.58%. The S&P 500 stock index is up 8.3% during the quarter.
Dow Jones Leaders & Laggards: Nike
Nike’s stock gained 1.63%, and was the largest mover for the Dow, while Travelers’ stock dropped 2.52%, the biggest drag for the Dow Jones Industrial Average Index.