Stocks Fall Thursday as Talks Fail, Jobless Claims Rise

  • U.S. stocks rose rapidly in late trading, and technology stocks performed poorly.
  • U.S. stocks adjusted continuously, and the Nasdaq fell 0.5%.
  • Citi raised the target price of NIO by 82.4%.

On Thursday, the US stock markets fell for the third consecutive day, but the decline was significantly narrowed towards the end of the trading session. The European region tightened lockdown measures to control the coronavirus pandemic to suppress market sentiment.

US Jobless statistics chart.

Investors paid close attention to the progress of congressional fiscal stimulus negotiations. As of the close, the Dow fell 19.80 points, or 0.07%, to 28,494.20, the Nasdaq fell 0.47%, to 11,713.87, and the S&P 500 fell 0.15% to 3,483.34.

According to data from the US Department of Labor, the number of initial claims for unemployment benefits last week was 898,000, the highest level since August 22.

This indicates that the resurgence of the epidemic in many parts of the United States has once again damaged the employment environment, and the labor market is still difficult to return to the level at the beginning of this year.

Michael Arone, chief investment strategist at State Street Global, pointed out that the labor market has performed well after the economic restart, making up for more than half of the jobless jobs since March. However, the latest data indicate that future economic recovery will be more difficult.

News of the congressional stimulus negotiations triggered market volatility. House Speaker Rep. Nancy Pelosi (D-CA) told many Democrats on Thursday that the two parties would finalize a stimulus package agreement without waiting until January next year.

Speaker Pelosi said that if an agreement cannot be reached quickly with the White House, House Democrats will resolve related rescue needs. After the news came out, US stocks moved higher in late trading, and the Dow once regained lost ground. Earlier in the day, U.S. President Donald Trump stated that he would support a stimulus case larger than $1.8 trillion, and accused Speaker Pelosi of obstructing an agreement.

U.S. Treasury Secretary Steven Mnuchin revealed that the Trump administration will accept the Democrats’ request for virus testing during stimulus package negotiations, which may remove a major obstacle to reaching a comprehensive agreement.

In an interview with CNBC, Sec. Mnuchin said that it is difficult to reach an agreement on the new coronavirus bill before the election, but he does not want to rule out this possibility. President Trump is determined to work on a larger-scale stimulus plan.

Lyse Ausenbaugh, global market strategist at JPMorgan Chase Private Bank, said that so far, the extra savings have helped the unemployed survive the loss of unemployment benefits. However, this situation will not last forever, especially when the unemployment rate is high. This indeed reflects the need for the government to provide support to the economy.

Morgan Stanley’s financial report showed that its third-quarter revenue increased by 17% to $11.7 billion.

In terms of individual stocks, Morgan Stanley’s financial report showed that its third-quarter revenue increased by 17% to $11.7 billion, and is expected to be $10.6 billion.

EPS increased by 30.7% year-on-year to $1.66. The market expected $1.28 and the stock price rose 1.3%. In addition, JP Morgan Chase, Citigroup and Bank of America rose more than 1%.

The performance of technology stocks was sluggish due to increased market regulatory concerns. Facebook fell 1.9%, Amazon fell 0.8%, Alphabet and Microsoft fell 0.5%, and Apple fell 0.4%.

United Airlines fell 3.8%, the company’s third-quarter revenue and profit were less than expected, and it is expected that demand will not return to 2019 levels in at least two years.

The energy sector bottomed out and rebounded, with Exxon Mobil and Chevron rising 0.9% and 0.8% respectively. Citigroup raised the target price of NIO by 82.4% from $18.10 to $33.20. Weilai’s share price opened low and went high and closed up 5.91% to $28.07.

Only $1/click

Submit Your Ad Here

Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

Leave a Reply