New York equities close: Sharp recovery on election day | 11/03/20

NEW YORK (awp international) – US stock markets continued their recovery on the day of the US presidential election after the sell-off of the previous week. A wave of optimism sloshed on Wall Street that the election outcome would not bring any major uncertainties, said a portfolio manager. Oil prices, which recorded the strongest rise in a month, provided positive impetus.

The Dow Jones Industrial closed on Tuesday 2.06 percent higher at 27,480.03 points, after having gained 1.6 percent at the start of the week. The market-wide S&P 500 gained 1.78 percent to 3369.16 points. The Nasdaq 100 advanced 1.76 percent to 11,279.91 points.

Stockbrokers justified the buying mood of investors with increased hopes that there would be a clear election result in the USA. The last polls before the election also gave the Democrat Joe Biden a head start. In view of the electoral system, however, forecasts are fraught with great uncertainty. Should Biden become president and the Democrats win a majority in the Senate, fiscal policy could become much looser and government investment could increase.

The most attractive sectors were financials and industrials, with gains of 2.2 and 2.9 percent respectively. Investors are betting that these sectors will have particularly good development prospects after the election, it said.

Among the individual stocks, the focus was on PayPal shares. 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 on the shares that had already performed very well this year, so that the shares plummeted by 4.2 percent and ranked at the bottom of the Nasdaq 100 index.

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 was also disappointing because of the weaker business with nitrogen and phosphates. Nutrien’s papers lost 7.7 percent.

The record IPO of the Chinese Alibaba subsidiary Ant Group planned for this Thursday will be postponed indefinitely. The debuts in Shanghai and Hong Kong have been suspended, Ant announced on Tuesday. The financial arm of the world’s largest Chinese online trading platform wanted to bring in around 34.5 billion US dollars with the IPO. The Alibaba papers sagged 8.1 percent.

For the shares of Bristol-Myers Squibb it went up by 2.9 percent. The pharmaceutical company presented positive study data on a drug for the treatment of psoriasis.

The euro stayed above the US $ 1.17 mark in US business and last cost US $ 1.1716. The European Central Bank (ECB) had set the reference rate on Tuesday afternoon at 1.1702 (Monday: 1.1652) dollars. The dollar had thus cost 0.8546 (0.8582) euros. On the bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.21 percent to 138.01 points. The yield on the ten-year bond rose to 0.90 percent./edh/he

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