In this news, we discuss the S&P ends choppy session lower as U.S. stimulus talks drag on.
(Reuters) – The top three Wall Street averages closed lower on Wednesday after a volatile trading session, with investors worried about whether tough negotiations in Washington would result in a deal for a new U.S. coronavirus stimulus package .
White House Chief of Staff Mark Meadows said that while there are a number of differences between the White House and Congressional Democrats, Republican President Donald Trump was “ready to look into” looking for an agreement.
Before entering talks in the afternoon with Treasury Secretary Steven Mnuchin, United States House Speaker Nancy Pelosi said there was still a chance for a deal despite resistance from the Senate Republicans, although she acknowledged that this might not pass until the election.
“As long as she continues to swing the carrot out there, there is still a chance that something can be done, investors remain bullish,” said Michael James, managing director of equities at Wedbush Securities in Los Angeles. .
“You’d rather have longer exposure than too much cash if a deal is made. It’s a big if.
James said investors were hopeful that a deal could be reached on Thursday. “Everyone is going to be sitting on pins and needles waiting for the next headline by the end of tomorrow’s trading day.”
The Dow Jones Industrial Average fell 97.97 points, or 0.35%, to 28,210.82, the S&P 500 fell 7.56 points, or 0.22%, to 3,435.56 and the Nasdaq Composite fell by 31.80 points, or 0.28%, to 11,484.69.
After the closing bell, Pelosi spokesman Drew Hammill said today’s session “brings us closer to being able to put pen to paper to draft legislation.”
Instead of investing money in the broader market, Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut, said investors chose stocks by looking at the financial results of the third trimester.
Of the top 11 industrial sectors, nine closed lower, with energy leading the percentage declines. Communication services were the biggest winner.
Shares of Snapchat messaging app owner Snap Inc rose 28% after beating user growth and revenue forecasts as more people signed up to chat with friends and their families during the COVID-19 pandemic.
The news has helped boost other social media businesses with Facebook Inc, up 4% and Twitter Inc. up 8% in the communications services index. Small social media company Pinterest Inc also gained nearly 9%.
Netflix Inc, which fell almost 7% after launching frequent flyer club profits from the market, dampened the mood, however. The video streaming service missed expectations for subscriber growth as competition increased and live sports returned to television.
Of the 84 S&P 500 companies that released third-quarter results, 85.7% exceeded earnings expectations, according to data from IBES Refinitiv.
Investors also have their eyes on the next election. Trump and Democratic challenger Joe Biden will face off in their second and final debate Thursday night.
Shares of electric car maker Tesla Inc were up 4% after the closing bell following the release of quarterly results. Tesla has beaten analysts’ estimates for third quarter revenue by making record vehicle deliveries, overcoming disruption caused by the COVID-19 pandemic.
Falling issues outnumbered those that rose on the NYSE by a 1.87 to 1 ratio; on the Nasdaq, a ratio of 1.69 to 1 helped the declines.
The S&P 500 posted 19 new 52-week highs and no new lows; the Nasdaq Composite recorded 55 new highs and 36 new lows.
On the US stock exchanges, 8.84 billion shares changed hands against 9.14 billion on average for the last 20 sessions.
Additional reports from Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Shounak Dasgupta and David Gregorio
Original © Thomson Reuters
Originally posted 2020-10-21 15:06:11.