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*Airlines, hotels fall due to fear of pandemic containment
* GE unexpectedly made a profit, with positive cash flow
*Boeing quarterly performance decline
*Indices fell: Dow Jones index fell 3.1%, S&P 2.9%, Nasdaq index 3% (add comments, details; update prices)
Written by Medha Singh and Shivani Kumaresan
Reuters, October 28-The S&P 500 and Dow Jones Indexes hit their lowest levels since late September on Wednesday as the surge in coronavirus cases in the US and Europe shattered hopes for a rapid global economic recovery.
Stocks of hotels, airlines and other companies sensitive to COVID-1
There are new records of cases and hospitalizations in the Midwestern United States, and concerns about the national lockdown in France and tightening restrictions in Germany have reduced investors’ risk appetite.
Art Hogan, chief market strategist at National Securities in New York, said: “Whether it is the continuation of the pandemic or the third wave of new cases, this is the biggest concern.”
“Unless we get through this pandemic, it is hard for investors to imagine a better economic opportunity.”
Before the November 3 general election, with the intensifying pandemic and the failure to reach an agreement on a new round of US fiscal stimulus, the blue-chip Dow Jones and S&P 500 indexes are expected to regain their October gains.
The election lasted only six days, and Wall Street’s fear index soared to its highest level since July 15. At the same time, there was concern that the winner’s votes might not be announced on the night of November 3 due to the delay in calculating the mass mailings.
According to a Reuters/Ipsos poll, democracy challenger Biden leads President Donald Trump by 10 percentage points across the country, but the competition in swing states is more intense, which will determine the winner.
Hogan said: “The uncertainty of not knowing where we are going is making investors aside and waiting for the election results.
The losses were widespread, with technology stocks accounting for the largest share.
Large technology companies that will announce results on Thursday, including Apple, Alphabet, Amazon, and Facebook, have fallen between 2.8% and 4.8%, the biggest drop in the S&P 500.
At 10:52 am Eastern Time, the Dow Jones Industrial Average fell 841.00 points, or 3.06%, to 26,622.19, the S&P 500 fell 100.22 points, or 2.95%, to 3,290.61, and the Nasdaq Composite Index fell 348.70 points, or 3.05. % To 11,082.65.
According to data from Refinitiv, about 84% of the 170 S&P 500 companies that have reported third-quarter earnings so far exceeded expectations. The average profit is expected to drop 16.4% from the same period last year.
Microsoft’s quarterly results exceeded analysts’ expectations, thanks to a pandemic-driven shift from home and online learning. However, its share price has fallen about 4% after rising 35% so far this year.
Boeing (Boeing) fell 3.8% after the company lost money for the fourth consecutive quarter.
General Electric Co (General Electric Co) was on the bright spot. The company posted surprising quarterly profits and positive cash flow, thanks to cost reductions and improvements in its power and renewable energy businesses. The company’s stock price rose 8%.
Declining stocks on the New York Stock Exchange led the Nasdaq market by 14 to 1, and decliners surpassed the leading stocks.
The Standard & Poor’s Index did not hit a 52-week high and 7 new lows, while the Nasdaq hit 7 new highs and 106 new lows. (Reporting by Medha Singh and Shivani Kumaresan in Bangalore; Editing by Anil D’Silva and Arun Koyyur)