NEW YORK (dpa-AFX) – On the day of the eagerly awaited elections in the US, Wall Street is likely to initially expand its recent profits. Around three quarters of an hour before the start on Tuesday, the trading house IG assessed the Dow Jones Industrial one and a half percent higher at 27,330 points. Stockbrokers named the hope for a clear situation after the election as the driving force. On Monday, the US benchmark index rose 1.6 percent in response to the largest weekly loss since the corona pandemic broke out in March.
According to analyst Michael Hewson from trading house CMC Markets UK, a clear election result in the US would be the ideal scenario for the markets. In view of the polls, that would be a so-called “blue wave” – that is, the conquest of both the presidential office and the Senate by the Democrats. Because then investors could hope for measures to stimulate the economy and investments in the first half of 2021. In this case, however, technology companies would have to adjust to stricter regulation of their businesses and higher corporate taxes.
The first polling stations have opened in the USA. President Donald Trump is behind his Democratic challenger Joe Biden in polls nationwide and in several swing states. His re-election is not excluded. Because of the electoral system, the candidate with the most votes from the population can also lose if he does not unite enough voters. Before the election, Trump did not promise whether he would accept the result.
Among the individual values, the focus is on Paypal. In the Corona crisis, the online payment service continues to benefit from the trend towards online shopping and its quarterly figures exceeded analysts’ expectations. Investors, however, cashed in in pre-market US trading in stocks that had already performed very well this year, so that stocks fell by more than five percent. JPMorgan bank analyst Tien-Tsin Huang wrote that weaknesses in the share price given the lack of an outlook for 2021 should be seen as a buying opportunity.
Nutrien is optimistic about further business growth. The bottom line, however, was that the fertilizer company made a loss due to high depreciation in the phosphate business. According to analyst Adam Samuelson of the bank Goldman Sachs, the adjusted operating result disappointed slightly because of the weaker business with nitrogen and phosphates. The shares of Nutrien were more than three percent lower before the market.
For the shares in Bristol-Myers Squibb, however, it went up by a good three percent before the market. The pharmaceutical company presented positive study data on a drug for the treatment of psoriasis./la/fba
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