Equities New York Outlook: Further losses expected | 10/15/20

NEW YORK (awp international) – The US stock markets are likely to expand their previous day losses on Thursday opening. Stock marketers cited dwindling hopes of a quick agreement on a further corona stimulus package in the USA as well as significantly increasing Covid 19 infections in Europe and the USA as negative factors. Broker IG recently valued the Dow Jones Industrial 1.1 percent lower to 28 187 points, after it had already given way by 0.6 percent in the middle of the week.

Now, “the depressing knowledge is seeping through that the infection process around Covid-19 in the old world is about to get out of control”, noted market analyst Timo Emden from Emden Research. The US election campaign takes a back seat. With regard to the stuck game over the US economic stimulus package, market participants would still have to be patient. “In the meantime, the majority of investors do not expect further progress until after the US election and ultimately a big hit in the said cause. A ‘deal’ remains wishful thinking for the time being,” said Emden.

Fresh US economic data had little effect on pre-trading. Surprisingly, the mood in New York industrial companies clouded over significantly in October. The Empire State Index thus signals weaker industrial growth. The prices for goods imported into the USA fell again in September, although not quite as sharply as expected. For the year as a whole, prices have not risen since January. In contrast, the business climate in the Philadelphia region brightened surprisingly significantly in October. The indicator of the regional central bank (Philly Fed index) rose to its highest level since February.

A flourishing trading business in securities has given the US investment bank Morgan Stanley brilliant quarterly figures during the Corona crisis. In the three months to the end of September, net income rose 26 percent year-on-year. Income – total revenue – increased 16 percent. Investors let the share fall before the trading day by 1.2 percent, although the numbers were above expectations.

Burdens from the corona pandemic paralyzed the business of the US airline United Airlines in the third quarter. Accordingly, around 25 million dollars were lost every day. Overall, the quarter ended with a loss of 1.8 billion dollars (1.5 billion euros). In the previous year, the airline had earned $ 1.0 billion. Sales fell 78 percent to $ 2.5 billion. The results were therefore worse than expected on Wall Street. The share reacted before the market with a price discount of 1.2 percent.

In contrast, the shares of Walgreens Boots Alliance rose pre-market by 1.3 percent, because the fourth fiscal quarter was better than previously feared in the market despite a decline in profits. The US pharmaceutical wholesaler and pharmacy group expects only slight growth in the new financial year after a profit slump in the wake of the corona crisis. In the past 2019/2020 financial year (end of August), the surplus attributable to shareholders fell by 88.5 percent due to multi-billion dollar depreciation and high corporate restructuring costs. In contrast, sales increased by 2 percent./edh/men

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