NEW YORK (dpa-AFX) – On Tuesday, the US stock exchanges should initially recover moderately from their weak start to the week. One hour before the start, broker IG rated the Dow Jones Industrial 0.4 percent higher at 28,306 points, after the leading index had finally slipped 1.4 percent the day before. The topics remain the same: Investors are looking forward to the approaching presidential elections to set the course for an economic stimulus package that is still hoped for. Meanwhile, the number of infections with the corona virus continues to ramp up in the USA.
Much is currently revolving on the US stock exchanges to new economic stimulus measures, which Democrats and Republicans in Washington are still fighting. The deadline for rapprochement with the US government, previously set by the Democratic spokeswoman for the House of Representatives, Nancy Pelosi, is due to expire on Tuesday. “The math is simple: if they don’t agree today, the much-needed aid package will likely be delayed until after the elections,” commented analyst Ricardo Evangelista of ActivTrades.
In the pandemic, however, hope for a vaccine soon rises: According to statements at an event by the “Wall Street Journal”, the CEO of the pharmaceutical company Moderna expects with a bit of luck a US emergency approval for a vaccine against Covid-19 in December. The prerequisite for this are positive interim results in November. The company’s shares advanced 2.7 percent before the IPO.
On the corporate side, Intel is making headlines with the billion dollar sale of its flash memory division to the South Korean Hynix group, which pays a total of nine billion US dollars. According to JPMorgan analyst Harlan Sur, this will have a positive effect on the margins and free cash flow of the US chip company. He believes investors will welcome the move away from this market. Before the trading day, the shares rose moderately by 0.4 percent.
The reporting season among the Dow stocks is picking up speed again after a break on Monday. At IBM, flourishing business with cloud services initially did not hide the fact that the IT veteran continued to lose control in sales in the third quarter. Due to the continued increased uncertainty in times of pandemics, the group again did not provide an annual outlook. Before the trading session, the shares fell by 3.4 percent.
It looked better pre-trading at Procter & Gamble and Travelers, with increases of up to 2.8 percent for the respective papers. Thanks in part to the demand for hygiene products, Procter revenues rose in the first quarter of the financial year, and so the US group increased its sales and profit targets for the full year.
The insurer Travelers meanwhile convinced investors with a doubled quarterly profit, although this was also related to special charges in the same period of the previous year. In the third quarter, the group was even able to dissolve loss reserves from previous years, which cushioned the increased burdens from natural disasters./tih/fba
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