Posted on 10/26/2020 8:30:47 AM PDT by Yo-Yo
Stocks decline sharply as coronavirus infections surge and stimulus negotiations remain at a stalemate.
Stocks declined sharply Monday to kick off a week heavy with earnings from U.S. tech giants as coronavirus infections surged, stimulus negotiations remained at a stalemate and investors prepared for the presidential election just more than a week away.
The Dow Jones Industrial Average dropped 721 points, or 2.55%, to 27,613, the S&P 500 tumbled 2.15% and the Nasdaq slumped 1.73%.
Stocks closed mostly higher Friday but the S&P 500 fell 0.5% for the week, its first weekly loss in four, after negotiations between the White House and House Democrats on more economic aid for the struggling U.S. economy didn't make much headway. The Dow declined 1% for the week and the Nasdaq fell 1.1%.
House Speaker Nancy Pelosi said Sunday the House could pass a relief package this week but "that's up to (Senate Majority Leader) Mitch (McConnell) as to whether it would happen in the Senate and go to the president's desk, which is our hope and prayer."
Pelosi said she sent the White House a list of remaining concerns she had on Friday and hopes to have answers on Monday.
White House economic adviser Larry Kudlow told CNBC Monday that while stimulus talks had slowed down they were still ongoing.
Meanwhile, coronavirus infections in the U.S. hit a single-day record of 85,000 on Saturday. Deaths in the U.S. have passed 225,200, according to Johns Hopkins University.
The World Health Organization’s director general, Dr. Tedros Adhanom Ghebreyesus, said the northern hemisphere faces a “dangerous moment” as Covid-19 cases have surged.
"As the market braces for a pretty action-packed week ahead, the ground may seem a bit shaky as the (S&P 500) broke a three-week winning streak, Covid cases are ramping up, and stimulus relief is still a big question mark," said Chris Larkin, a managing director at E*Trade. "But for some perspective, all in all, October hasn’t totally lived up to its notoriously volatile reputation, so far. And with the election about a week away, November could take the cake when it comes to volatility depending on timing of the outcome."
Apple, Amazon, Microsoft, Alphabet, Facebook and AMD are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.
Data from Refinitiv said third-quarter earnings will fall 16.7% from last year to a share-weighted total of $287.8 billion, before contracting by around 12.4% during the fourth quarter. Of the 135 companies reporting so far this quarter, 83.7% have beaten Wall Street forecasts, well ahead of the typical pace of about 70%.
Dunkin' Brands (DNKN) - Get Report confirmed it was in talks to be acquired by Inspire Brands, which is owned by private-equity firm Roark Capital.
I apologize but my Spidy senses are going up. Anyone not think this is also being influenced by rich Democrats, including Soros, to try to stop Trump momentum? Just because your paranoid, doesn’t mean you’re wrong!
So I covered the short positions I took on Friday too early. But my covered puts are way up.
So much corruption...timed to hurt Trump in the election. Probably big tech liberals and Soros with mass selloffs to send the trajectory downward and scare middle income investors.
As I said last week, I was getting out of stock positions until the election. Bitcoin should do very well, as it did in 2016. But until after Nov 3rd, this is too dangerous of an environment to depend on stocks. Don’t “panic sell” today if you didn’t already, however.
Ah, just as desired by the Dems.
It’s a nothing burger.
I’m a little over 50% cash, and my wife is 75% cash. I’ve been waiting for another major drop.
time to take some profit and hang on the sidelines until the election is decided.
I bet a bunch of wall street insiders are snapping up certain pharmaceutical stocks while the price is low.
Charlatans
Don’t forget that it’s Nancy Pelosi who is blocking the stimulus. Trump has got to focus on this.
I know it’s too expensive, etc. but we’ve got to bite the bullet and go with Trump’s plan, because we can see now that Pelosi is trying to blame the GOP for what she is actually doing (even most of the Dems were ready to vote in favor of it).
Profit taking . . .
I look like a genius going to cash Oct 16.
The tech stocks make up a major part of the indexes, and if they are threatened by the 230 review, they might have a short term drop.
I knew they would do this before the election, which is why I put all money in GOV bonds last month.
Peter Parker would say his “Spidey Senses are Tingling”.
YES this is the last ditch effort to paint the DARK WINTER by all forces opposed to Trump.
I think it will BACKFIRE BIGLY. I am voting IN PERSON on 11/3. EVERY Conservative/Republican I know is doing the same. IF THIS COVID FEAR “PORN” impacts any turnout it will be the “Beta CUCK” Democrat Male and the “WEAR a MASK” in your car Female.
Only a fool votes based on the stock market.
Trump should’ve demanded that McConnell pass stimulus checks for the unemployed. McConnell wants Trump to lose
Right on cue.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.