DJIA : Tumble off

(Thu, 15 Oct 2020). The Dow Jones tumbled more than 0.5% on Wednesday, as U.S. equity markets extended their selloff for a second straight day.

The Dow Jones tumbled 0.5% on Wednesday. Investors are concerned about the state of stimulus talks, while vaccine and election concerns simmer in the background. Dow heavyweight UnitedHealth fell sharply despite impressive earnings. The Dow Jones slipped for a second straight day on Wednesday, as Wall Street frets about the state of stimulus talks. Despite blockbuster earnings, UnitedHealth tumbled 2.5%, while Goldman Sachs surprised investors with incredible trading revenue once again.


Dow Jones Falls as Bears Remain in Control

All three major U.S. stock market indices came under pressure Wednesday. The Nasdaq was the weakest, falling 0.9%, while the S&P 500 and Dow Jones declined around 0.5%. U.S. economic data were slim on Wednesday, with producer price inflation coming in slightly above September forecasts.

Wall Street is now principally focused on three things: stimulus, vaccines, and a straightforward election result in November.

The first of these factors is looking less positive, as aid talks have ground to a halt in Congress. Treasury Secretary Stephen Mnuchin warned investors that a major stimulus package is unlikely to pass before the election as both sides remain far apart. Jerome Powell and the Federal Reserve have been explicit about their belief that fiscal stimulus is required to avoid a major slowdown in the U.S. economy.

Vaccine news has also been less positive following a couple of high-profile setbacks. The United Kingdom’s top health official believes a coronavirus vaccine is likely only to be around 50% effective. Finally, election polling continues to pour in, and Joe Biden still holds a strong lead. Dow bulls have enjoyed evidence that the former vice president could win by a significant margin and avoid a contested election.


Dow 30: UnitedHealth Falls After Earnings, Goldman Sachs Soars

The Dow 30 struggled in a mixed day of trade, with UnitedHealth tumbling 2.5% despite beating earnings forecasts and raising profit targets. Goldman Sachs performed better after its earnings report showed spectacular trading revenue despite concerns about the low interest rate environment.

Apple stock remained under pressure, losing 0.5% as Tuesday’s iPhone 12 unveil continued to weigh. Disney stock was one of the weakest in the Dow Jones, declining 2.7% after Elizabeth Warren penned a letter to Bob Iger criticizing the mass layoffs.








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