Equities New York Outlook: Dow expected firmer – but election outcome open | 04/11/20

NEW YORK (awp international) – Given the unclear election outcome in the US, share prices on Wall Street could fluctuate a lot in the middle of the week. The broker IG valued the Dow Jones Industrial after an interim phase of weakness one hour before the start of trading, 0.79 percent higher at 27,697 points.

Nobody speaks of the much-quoted “blue wave” that the market had been focusing on since the beginning of the week at the latest and that should carry the Democrats to the presidency and to the majority in Congress. In the duel between Republican President Donald Trump and his Democratic challenger Joe Biden, no decision has yet been made. The fact that Trump declared himself the winner despite the ongoing vote count and threatened to go to the US Supreme Court to stop another vote count because of the delay in the election results also caused irritation.

In the meantime, everything could stay the same in the politically divided Congress: While the Democrats may have defended their majority in the House of Representatives, their hopes of conquering the Senate were severely dampened. Because several Republican senators, who were considered to be shaky candidates, were able to defend their seats. This means that the future president could also encounter limits in the implementation of his political agenda – be it Trump or Biden.

The few company news in the shadow of the electoral crime meanwhile caused significant price movements. The shares of Uber and Lyft jumped 13 and 17 percent respectively early on the market after the Californians overturned a law in a referendum that granted their drivers the status of employees. The driving service brokers had announced that they would cease operations in the state, or at least limit them if it remained in force.

In the case of the semiconductor manufacturers AMD and Intel, shareholders were able to look forward to price premiums of around four and a half and two percent after their South Korean industry colleague Hynix reported a profit jump for the third quarter. At AMD, a new buy recommendation from the US investment bank Goldman Sachs supported, while their critical view of competitor Intel only slightly slowed down the willingness to buy ./gl/jha/

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