Wall Street slips as stimulus deadlock weighs

In this news, we discuss the Wall Street slips as stimulus deadlock weighs.

(Reuters) – Major Wall Street indices fell on Friday afternoon as investors worried about a deadlock in Washington over the new coronavirus aid bill, while exercising caution ahead of the presidential election of November 3.

The biggest weight on all three indices was a 10.5% drop by chipmaker Intel Corp after reporting declining margins, consumers buying cheaper laptops and pandemic-hit businesses and governments. having suppressed data center spending.

Uncertainty over the timing of the emergency legislature weighed on the major Wall Street indices, which were to cap a choppy week on the downside.

U.S. House of Representatives Speaker Nancy Pelosi said it was still possible to get another round of COVID-19 help ahead of the election, but it was up to President Donald Trump to take action, including talking to reluctant Senate Republicans if he wanted to.

Treasury Secretary Steven Mnuchin, meanwhile, said a deal was possible if Pelosi was willing to compromise.

“We’re kind of on hold at this point… we’re still waiting for something to come out of Washington,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“Our baseline scenario is that we don’t get a meaningful stimulus package before the election and probably not until the first quarter.”

Meanwhile, a record 50 million Americans voted, eclipsing the total early votes for the 2016 election. President Donald Trump and his Democratic rival Joe Biden debated for the last time on Thursday to persuade the few voters undecided remaining 11 days before their competition.

As the debate draws closer, Trump has followed former Vice President Biden in national polls, but the competition is much tighter in some battlefield states where the election is likely to be decided.

At 12:41 p.m. ET, the Dow Jones Industrial Average was down 148.98 points, or 0.53%, to 28,214.68, the S&P 500 was down 6.23 points, or 0.18%, at 3447.26. The Nasdaq Composite fell 34.27 points, or 0.30%, to 11,471.74.

The energy index fell 1%, the highest among 11 major S&P sectors.

The third-quarter earnings season continued, with about 84% of the 135 companies in the S&P 500 reporting so far beating quarterly profit estimates, according to data from Refinitiv.

Next week the focus will be on Big Results Tech Apple Inc companies, Facebook Inc, Amazon.com Inc and Google-parent Alphabet.

Gilead Sciences Inc rose 0.9% as its antiviral drug, remdesivir, became the first and only drug approved for the treatment of hospital patients for COVID-19 in the United States.

American Express Co fell 3.7% as it missed third-quarter profit estimates after customers spent less during COVID-19 economic downturn and put money aside for potential defaults.

Rising issues outnumbered declines by a 1.08 to 1 ratio on the NYSE. The declining issues outnumbered Advocates by a 1.07 to 1 ratio on the Nasdaq.

The S&P Index recorded 25 new 52-week highs and no new lows, while the Nasdaq recorded 50 new highs and 12 new lows.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Anil D’Silva and Maju Samuel

Original © Thomson Reuters

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