Wall Street slips as investors wait for stimulus deal

In this news, we discuss the Wall Street slips as investors wait for stimulus deal.

(Reuters) – Major Wall Street indices plunged on Wednesday as investors waited for progress in ongoing negotiations related to the coronavirus stimulus package.

White House economic adviser Larry Kudlow said it was a “sunny and optimistic morning” in terms of negotiations on a relief bill with Democratic leaders in the House of Representatives.

Discussions between Treasury Secretary Steven Mnuchin and Democratic House Speaker Nancy Pelosi will continue on Wednesday. The Trump administration has offered $ 1.8 trillion in aid, while Democrats are pushing for $ 2.2 trillion.

Major US stock indices have traded in a tight range over the past week, with investors monitoring the progress of stimulus negotiations.

Wall Street’s fear gauge peaked a month earlier on Wednesday as the US election campaign enters its home stretch.

President Donald Trump and Democratic challenger Joe Biden will face off in their second and final debate Thursday night where Trump will attempt to change the course of a race Biden is leading, national polls show.

“The markets have rallied assuming a Democratic sweep. They believe that a massive stimulus package could be put in place by the Biden administration, ”said Bill McMahon, investment director of Active Equity Strategies at Charles Schwab Investment Management.

At 11:19 a.m. ET, the Dow Jones Industrial Average was down 81.54 points, or 0.29%, to 28,227.25, the S&P 500 was down 7.69 points, or 0.22%, to 3,435.43, and the Nasdaq Composite was down 31.46 points, or 0.27%, to 11,485.04.

Snap Inc jumped 34.1% after the owner of the Snapchat messaging app beat user growth and revenue forecast, as more people signed up to chat with their friends and family. family during the COVID-19 pandemic.

The results have boosted the actions of social media companies Facebook Inc and Twitter Inc, which grew 4.6% and 6.6%, while image-sharing company Pinterest Inc was up 10.3%.

Gains in Facebook and a 2.8% increase for parent company Google Alphabet Inc. pushed the communications services industry up 1.5%.

Netflix Inc launched Big Profits Tech club, and fell 6.4% after missing expectations of subscriber growth as streaming competition increased and live sports returned to television.

Of the 66 S&P 500 companies that released third-quarter results, 86.4% beat earnings expectations, according to data from IBES Refinitiv.

The US central bank’s “Beige Book” report, an overview of the economy gleaned from discussions with business contacts, is expected to be released at 2 p.m. ET (6 p.m. GMT).

The declining issues outnumbered the proponents for a 1.65 to 1 ratio on the NYSE and a 1.67 to 1 ratio on the Nasdaq.

The S&P Index recorded 19 new 52-week highs and no new lows, while the Nasdaq recorded 43 new highs and 19 new lows.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Edited by Shounak Dasgupta

Original © Thomson Reuters

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