Bulletin
Investor Alert

New York Markets Close in:

Market Snapshot Archives | Email alerts

Oct. 27, 2020, 4:31 p.m. EDT

Dow books back-to-back loss as Wall Street struggles to rebound from Monday selloff

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Industrial Average (DJIA)
  • X
    S&P 500 Index (SPX)
  • X
    NASDAQ Composite Index (COMP)

or Cancel Already have a watchlist? Log In

By William Watts and Sunny Oh

Stocks on Tuesday finished mostly lower, a day after their worst decline in more than a month, as rising COVID-19 cases underlined worries about economic activity and lawmakers abandoned efforts to reach an agreement on a new round of fiscal spending before the Nov. 3 elections.

The market’s softer tone came as investors also digested a barrage of earnings reports from the likes of Dow components 3M Co ., Merck & Co. and Caterpillar and news of a proposed $35 billion deal announcement between chip makers Advanced Micro Devices and Xilinx Inc.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.64% fell 221.19 points, or 0.8%, to end at 27,463.19, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.09% lost 10.29 points, or 0.3%, to finish at 3,390.68. The tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +1.19% bucked the softer tone, rising 72.41 points, or 0.6%, to end at 11,431.35.

The Dow on Monday fell 650.19 points, or 2.3%, to finish at 27,685.38, after dropping more than 900 points at its session low. The S&P 500 dropped 64.42 points, or 1.9%, to end at 3,400.97, while the Nasdaq Composite declined 189.34 points, or 1.6%, to close at 11,358.94. The Dow’s fall was its biggest one-day point and percentage drop since Sept. 3, while the S&P 500 suffered its biggest decline since Sept. 23.

Equity markets struggled to gain traction Tuesday despite upbeat corporate earnings reports and merger news, against the backdrop of rising coronavirus cases globally and the negligible chance of a fresh fiscal aid package from lawmakers before the Nov. 3 presidential election.

Much like Monday, lingering concerns around the coronavirus trajectory saw shares of fast-growing companies outperform stocks associated with industries sensitive to growth expectations.

The global tally of confirmed cases of COVID-19 climbed above 43.5 million on Tuesday, according to  data aggregated by Johns Hopkins University , while the death toll rose to 1.16 million. The U.S. has the highest case total at 8.7 million. On top of that, the rise in the seven-day average of new cases in the U.S . reached an all-time high of 68,767.

“COVID case counts and hospitalizations continue to rise — these will continue to be closely watched as investors gauge the likelihood of more stringent mitigation measures and their ultimate impact on consumption and the economy,” said Yousef Abbasi, global market strategist at StoneX.

See : U.S. case tally marks seven-day record with more than 20 states seeing most new cases since start of the outbreak

The U.S. Senate broke for a recess before the elections after confirming Amy Coney Barrett as the 115th Supreme Court justice, filling the vacancy left by the death of Ruth Bader Ginsburg, but it appears unlikely that a fresh fiscal aid package can be voted on before the election.

Expectations also have fluctuated around prospects for a so-called blue wave, where Democrats win the presidency, a majority in the Senate and keep control of the House, which is viewed as a positive path toward a substantive and wide-ranging fiscal package.

Read : Don’t count on a ‘blue sweep’: Markets are starting to get jittery over the possibility of another divided government in Washington post-election

Former Vice President Joe Biden leads President Donald Trump by 7.8 percentage points , according to a recent average of polls from RealClearPolitics, while the Democratic challenger also leads Trump in key battleground states by 4.1 percentage points , potentially deciding the race for the Oval Office.

Corporate news was largely positive, as Advanced Micro Devices announced a merger with Xilinx , Exact Sciences said it would buy Thrive Earlier Detection Corp. and United Parcel Service Inc. /zigman2/quotes/201245396/composite UPS -1.51% said Tuesday it is planning to hire 50,000 seasonal workers this Friday at its annual “UPS Brown Friday” hiring blitz. 

Pharmaceutical companies Merck, Eli Lilly and Pfizer reported mixed earnings, as total returns for big drug companies have lagged behind those for the S&P 500 index this year. Sales of therapies unrelated to COVID-19 have suffered as patients stayed away from hospitals and pharmacies.

In U.S. economic reports, durable-goods orders rose a stronger-than-expected 1.9% in September . The Case-Shiller national home price index saw a 5.2% year-over-year gain for the 20 city index in August, up from revised 4.1% in July. The Conference Board’s index of consumer confidence dipped to 100.3 this month from a pandemic high of 101.3 in September. The decline was slightly bigger than Wall Street expected.

The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +9.34% was down 2.3 basis points to 0.778%, booking its third straight drop.

The pan-European Stoxx 600 Europe index /zigman2/quotes/210599654/delayed XX:SXXP +0.65% fell 1% and London’s FTSE 100 stock index /zigman2/quotes/210598409/delayed UK:UKX +1.89% lost 1.1%.

Oil futures were buoyed as Tropical Storm Zeta moved toward the Gulf Coast, with the U.S. benchmark gaining $1.01 per barrel, or 2.6%, to $39.57 a barrel. Gold edged higher, with the December contract /zigman2/quotes/210039572/delayed GCZ20 +2.13% tacking on $6.20, or 0.3%, to settle at $1,911.90 an ounce on Comex.

The ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY -0.66% , a measure of the currency against a basket of six major rivals, was down 0.1%.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
29,827.20
+188.56 +0.64%
Volume: 335.21M
Dec. 1, 2020 3:48p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,661.11
+39.48 +1.09%
Volume: 2.06B
Dec. 1, 2020 3:48p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
12,343.49
+144.75 +1.19%
Volume: 5.48M
Dec. 1, 2020 3:48p
loading...
/zigman2/quotes/201245396/composite
US : U.S.: NYSE
$ 168.49
-2.58 -1.51%
Volume: 4.02M
Dec. 1, 2020 3:48p
P/E Ratio
31.94
Dividend Yield
2.40%
Market Cap
$147.87 billion
Rev. per Employee
$149,327
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.92
+0.08 +9.34%
Volume: 0.00
Dec. 1, 2020 3:48p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
391.90
+2.54 +0.65%
Volume: 0.00
Dec. 1, 2020 5:52p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,384.73
+118.54 +1.89%
Volume: 808,908
Dec. 1, 2020 4:55p
loading...
/zigman2/quotes/210039572/delayed
US : U.S.: Nymex
$ 1,813.60
+37.90 +2.13%
Volume: 1,186
Dec. 1, 2020 3:20p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
91.26
-0.61 -0.66%
Volume: 0.00
Dec. 1, 2020 3:38p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.