NEW YORK (dpa-AFX) – After the very weak start to the week, the US stock exchanges are likely to stabilize on Tuesday for the time being. Just under an hour before the start, the broker IG estimated the Dow Jones Industrial with 0.27 percent plus 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 shares of the industry giant Pfizer performed rather unspectacularly after a not unexpectedly weak quarter and a narrow outlook with a pre-market minus of 0.4 percent.
There was more movement at Merck & Co and Eli Lilly, albeit with different omens. 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 came up with its figures 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.
Meanwhile, Caterpillar was a negative number candidate in the Dow at a pre-IPO 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 the company reports, AMD made headlines with the planned takeover of the Nasdaq chip company Xilinx, whose shares rose by almost 16 percent to US $ 132.70. 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 caused a stir in the small caps segment with a pre-market price slump of 65 percent. It had a devastating effect there that an important drug study in the third stage failed to meet the hoped-for endpoints./tih/fba
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