Börse Express – New York Equities Outlook: Dow expected to stabilize after the previous slide

After the very weak start to the week, the US stock exchanges should stabilize for the time being on Tuesday. Just under an hour before the start, broker IG assessed the Dow Jones Industrial
with 0.27 percent up to 27,761 points. The day before, the New York benchmark index slipped by more than two percent due to the boiling corona worries and fell well below 28,000 points to a low for almost a month.

“A week before the US presidential election returns to the markets a little more calm,” said analyst Ricardo Evangelista of the broker ActivTraders. In Europe, too, the stock exchanges that started the week in deep red were able to stabilize somewhat on Tuesday, even if the pandemic situation continues to worsen. After falling to a low since mid-June, the Eurozone leading index EuroStoxx was able to significantly reduce its initially clear losses.

Evangelista now expects the volatility on the stock exchanges to subside until a result for the future occupation in the White House becomes apparent. In view of the pandemic, the China conflict and increasing polarization, he attaches even greater weight than usual to the elections this year. Effects are likely to be felt in several market-sensitive areas, including the dispute over a new stimulus package.

The corporate reporting season was much talked about on Tuesday, especially in the pharmaceutical sector. The stocks of industry giant Pfizer developed rather unspectacularly after a not unexpectedly weak quarter and a narrow outlook with a pre-trading minus of 0.4 percent.

More movement was possible at Merck & Co and Eli Lilly
, albeit with different signs. Merck convinced its investors with a raised profit forecast, the shares gained 1.6 percent before the IPO. Eli Lilly, on the other hand, came under pressure by 4.3 percent. On the market it was said here that the earnings trend in the third quarter fell short of expectations.

Furthermore 3M waited with its numbers for the third quarter. A decrease of 1.2 percent shows that investors were initially not satisfied with a renewed increase in sales. The numbers showed that the conglomerate listed in the Dow is slowly coming out of the corona crisis. Above all, the demand for health and safety products provided him with a tailwind.

Caterpillar was meanwhile in the Dow a negative number candidate with a pre-market two percent discount. The corona crisis brought the construction machinery manufacturer again severe business losses in the third quarter. The bottom line was that he earned $ 668 million, less than half what he was a year ago.

Aside from corporate reports, AMD did
Headlines with the proposed acquisition of the Nasdaq chip company Xilinx , whose shares rose nearly 16 percent to $ 132.70 in the pre-trading period. The AMD papers also recently made it into the plus with just under one percent. The processor manufacturer wants to take 35 billion US dollars in hand for the transaction. The price per Xilinx paper is said to be $ 143, so the price before the market was only able to approximate this partially.

Otherwise, the company Catabasis Pharmaceuticals was responsible for small caps with a pre-market price slump of 65 percent caused a stir. It had a devastating effect there that an important drug study in the third stage failed to meet the hoped-for endpoints./tih/fba

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0217 2020-10-27/13:39

Copyright dpa-AFX Wirtschaftsnachrichten GmbH. All rights reserved. Redistribution, republication or permanent storage without the express prior consent of dpa-AFX is not permitted.

– .