New York Equities End: Slight minus – stimulus package in limbo | 10/21/20

NEW YORK (awp international) – Investors on Wall Street became a bit more cautious again on Wednesday. After the weak start to the week and a moderate recovery on Tuesday, the most important stock indices finally slipped back slightly in the middle of the week.

The Dow Jones Industrial closed 0.35 percent lower at 28,210.82 points. The experts at Index-Radar also see chart-technical risks for the US leading index. More sales in the direction of 28,000 points or even up to 27,100 points are to be expected. “Upward swings, on the other hand, are likely to expire between 28,900 and 29,000,” wrote chart technology analyst Andreas Büchler.

The market-wide S&P 500 was down 0.22 percent to 3435.56 points and the technology-heavy Nasdaq 100 was down 0.11 percent at 11,665.37 points.

The market-defining topic continues to be the negotiations between Republicans and Democrats about new financial aid in the corona pandemic. Although the market is bullish, the news has been mixed recently. Nancy Pelosi, spokeswoman for the Democrats in the House of Representatives, has recently been rather confident. On the other hand, the Republican majority leader in the Senate, Mitch McConnell, warned against agreeing to an agreement before the presidential election.

In addition, the corona infection numbers in the USA remain a risk factor for the stock market. So far, however, the US economy has continued to recover from the slump in the Corona crisis, according to the US Federal Reserve. Economic activity has increased in all districts, according to the Fed’s economic report

Among the individual stocks, the shares of Snap stood out with a plus of a good 28 percent; in the meantime, the shares had reached a record high. The growth of the Snapchat photo app amid the corona pandemic made a big impression on investors. Numerous analysts then raised their price targets, including JPMorgan, Credit Suisse and Barclays.

Netflix, however, disappointed. After the corona-related subscription boom in the first half of the year, the number of customers for online video services declined sharply in the third quarter. Netflix missed its own forecast and remained far below the analysts’ expectations. The increasing competition in the streaming business is troubling the market leader. The papers slumped at the bottom of the Nasdaq 100 by around seven percent. However, the price has already risen sharply since the beginning of the year.

Texas Instruments’ shares fell more than three percent. The chip company is expecting more sales for the current quarter than analysts currently have on the list, but after the record high about a week ago, the positive news was no longer enough for further price increases.

At the top of the Dow, Travelers shares continued their rally the day before, rising around six percent. The non-life insurer had already convinced investors on Tuesday with a doubled quarterly profit.

The euro was recently quoted at 1.1858 US dollars. The prospect that a hard break between the European Union and Great Britain could be avoided by the end of the year supported the common currency. The European Central Bank had set the reference rate at 1.1852 (Tuesday: 1.1810) dollars. The dollar thus cost 0.8437 (0.8467) euros.

On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) fell 0.18 percent to 138.52 points. The yield on ten-year bonds rose to 0.819 percent./la/he

— By Lutz Alexander, dpa-AFX —

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