Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Wall Street closes down on soaring virus cases, U.S. stimulus worries

10/26/2020 | 03:30pm EST
FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City

NEW YORK (Reuters) - U.S. stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.

The United States, Russia and France set daily records for coronavirus infections. The number of hospitalized Americans with COVID-19 jumped to a two-month high.

Travel-related stocks, vulnerable to COVID-19 related curbs, fell sharply. The S&P 1500 airlines index fell about 5.6% while cruise line operators Carnival Corp fell 8.66% and Royal Caribbean Cruises Ltd slid 9.65%, the biggest decliner among S&P500 companies.

"Fears about COVID-19 resurgence and the continued failure to reach a fiscal policy package between Republicans and Democrats has investors unnerved," said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

"Those are the two biggest drivers of today's decline."

The energy index tracked a more than 3% fall in oil prices, falling 3.47%. The economically sensitive industrials and financials also posted steep declines among S&P sectors. [O/R]

The big price moves came as trading volume was less than the daily October average.

"From our clients' perspective, the uncertainty is causing them to stay on the sidelines. So you're seeing a lack of buyers, generally speaking," said King Lip, chief strategist at Baker Avenue Asset Management in San Francisco.

U.S. House of Representatives Speaker Nancy Pelosi spoke with Treasury Secretary Steven Mnuchin about COVID-19 relief legislation. She remains optimistic an agreement can be reached before the election, a Pelosi spokesman said.

Wall Street's fear gauge hit its highest in more than seven weeks as uncertainty grew over the Nov. 3 election. Some 60 million Americans have voted in a record-breaking early turnout as Trump and Democratic challenger Joe Biden entered their final week of campaigning.

The week marks one of the busiest of the third-quarter earnings season that will see results from mega-cap U.S. tech firms including Apple Inc, Amazon.com Inc, Google-parent Alphabet Inc and Facebook Inc.

The tech sector is among the only three sectors apart from healthcare and consumer staples expected to post an increase in profit from a year earlier.

Of the 139 companies in the S&P 500 that have reported earnings so far, 83.5% have beaten Wall Street expectations, according to Refinitiv data.

The Dow Jones Industrial Average fell 650.19 points, or 2.29%, to 27,685.38. The S&P 500 lost 64.42 points, or 1.86%, to 3,400.97 and the Nasdaq Composite dropped 189.35 points, or 1.64%, to 11,358.94.

Volume on U.S. exchanges was 8.72 billion shares, lower than the 20-day average of 8.9 billion shares.

Software company Oracle Corp fell 4.02% after German rival SAP abandoned medium-term profitability targets and warned of a longer-than-expected recovery time from the pandemic hit.

Hasbro Inc tumbled 9.35% as quarterly adjusted revenue fell due to coronavirus-led delays in production of movies and TV shows.

Companies deemed stay-at-home winners including Amazon.com Inc, Zoom Video Communications Inc and video game companies Activision Blizzard Inc and Take-Two Interactive Software Inc rose, bucking the downtrend.

Declining issues outnumbered advancing ones on the NYSE by a 6.23-to-1 ratio; on Nasdaq, a 4.52-to-1 ratio favored decliners.

The S&P 500 posted four new 52-week highs and two new lows; the Nasdaq Composite recorded 28 new highs and 52 new lows.

(Additional reporting by Lewis Krauskopf in New York and Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Arun Koyyur and David Gregorio)

By Herbert Lash


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ACTIVISION BLIZZARD, INC. 1.71% 79.48 Delayed Quote.33.76%
ALPHABET INC. -1.83% 1754.4 Delayed Quote.30.99%
APPLE INC. 2.11% 119.05 Delayed Quote.58.81%
CARNIVAL CORPORATION & PLC -7.41% 19.98 Delayed Quote.-57.54%
DJ INDUSTRIAL -0.91% 29638.64 Delayed Quote.4.81%
FACEBOOK INC -0.30% 276.97 Delayed Quote.34.94%
HASBRO, INC. 0.77% 93.03 Delayed Quote.-11.91%
LONDON BRENT OIL -0.27% 47.7 Delayed Quote.-27.73%
NASDAQ 100 0.08% 12268.316447 Delayed Quote.40.37%
NASDAQ COMP. -0.06% 12198.737037 Delayed Quote.36.03%
ORACLE CORPORATION -0.07% 57.72 Delayed Quote.8.95%
ROYAL CARIBBEAN CRUISES LTD -3.28% 78.81 Delayed Quote.-40.97%
S&P 500 -0.46% 3621.63 Delayed Quote.12.10%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.17% 76.35501 Delayed Quote.22.40%
WTI -0.53% 45.155 Delayed Quote.-26.73%
ZOOM VIDEO COMMUNICATIONS, INC. 1.43% 478.36 Delayed Quote.603.06%
Latest news "Economy & Forex"
03:11aUK house prices jump by most in nearly six years - Nationwide
RE
03:10aIndia's Nov diesel sales down 7% y/y, petrol up 5% - preliminary data
RE
03:09aRupee hits 1-1/2-month high; RBI liquidity stance eyed
RE
03:05aARCADIA COLLAPSE 'TRAGIC' BUT MANAGEMENT ERRED : UK's Gove
RE
03:05aCEFS WEBINAR ON IMPLEMENTING THE CLIMATE LAW : video from the event
PU
03:02aCybersecurity, pharma coordination are big post-pandemic structural themes - LGIM
RE
03:01aChina urges U.S. to correct mistake on Venezuela-related sanctions
RE
02:58aLONDON STOCK EXCHANGE : S&P Global to buy IHS Markit for $44 billion, expanding data empire
RE
02:56aBrexit is still stuck as EU is being unfair, UK says
RE
02:56aTunisian central bank keeps key rate unchanged at 6.25%
RE
Latest news "Economy & Forex"