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Home / Business / After Wall Street’s worst sell-off in months, the Dow Jones Index gained 100 points

After Wall Street’s worst sell-off in months, the Dow Jones Index gained 100 points



On October 28, 2020, a trader takes a vacation outside the New York Stock Exchange in Manhattan, New York City.

Carlo Allegri | Reuters

After the worst day in months, US stock market futures rose slightly on Wednesday night.

Futures linked to the Dow Jones Industrial Average rose about 1

12 points, or 0.4%. The S&P 500 and Nasdaq 100 both gained about 0.5%.

After the sharp sell-off in Wednesday’s trading extended Wall Street’s decline, futures prices rose. The Dow fell for the fourth consecutive trading day, falling 934 points, or 3.4%, the biggest drop since June 11. The S&P 500 index was also the worst day since June 11, and fell 3.5% for the third consecutive trading day.

After the strong performance of the Nasdaq Composite Index rose slightly in the previous trading day, the decline was slightly larger, at 3.7%, its worst performance since September 8.

The sell-off reflects the downturn in the European market, as the increase in Covid cases on the continent has stimulated the leaders of Germany and France to announce new economic restrictions next month. Former U.S. Food and Drug Administration Director Scott Gottlieb told CNBC that the situation in the United States is three to four weeks behind Europe.

Mark Luschini, chief investment officer of Janney Capital Management, said that he believes this pullback will prove to be a buying opportunity because some stocks that benefit from economic recovery (such as financials, raw materials and small caps) have suffered less losses than the broader market

He said: “This does not mean that investors are indicating growth domestically or globally.”

Luschini still said that a key level he observed on the S&P 500 is the 200-day moving average, which is about 3,130 points, which is about 4.3% lower than the closing price of the index on Wednesday.

Testing this level” will help define it as a natural callback that is likely to occur, whether it is driven by elections, coronavirus, Sino-US trade talks or other factors, in my mind it is only healthy in the background of long-term gatherings. Next retracement, or if this requires more evil features,” Luschini said.

While the market is falling, investors are also preparing for a large number of corporate profits on Thursday. Moderna, Yum Brands, and Comcast, the parent companies of NBCUniversal and CNBC, plan to report before the close.

This afternoon will bring the quarterly results of many of the world’s largest technology companies, including Amazon, Apple, Facebook and Google’s parent company Alphabet. The combined market value of these companies exceeds $5 trillion.

Bob Doll, Nuveen’s chief equity strategist, said on the “closing bell” that the failure to exceed expectations in the first half of the fiscal quarter to boost the market is worrying.

“The other thing that bothers me is that many companies’ earnings are much worse than expected. Stocks initially rose and then fell. Too many stocks fell but brought good earnings results. The market is just tired Need to rest,” said Wawa.

Facebook and Twitter stocks also announced their results on Thursday afternoon. After the social media stock Pinterest reported strong growth in revenue and monthly active users, the stock rose in extended trading. In after-hours trading, Pinterest’s stock price soared 28%.

Thursday will also focus on the third-quarter gross domestic product of the United States. Economists surveyed by Dow Jones expect an annual growth rate of 32%, but even a historic leap will bring the economy far below the level before the Covid-19 pandemic, and there are signs that the pace of recovery It has slowed down in recent months.

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