The majority of US investors have accessed again. The hope of a new stimulus package is still on the table. In addition, the polls suggest that there will be a clear result in the election in a few weeks.
After the rally of the previous day in the wake of new hopes that an economic stimulus package could come about in the USA, Wall Street is moving upwards. But the momentum slackened significantly. Of the Dow Jones Index gained 0.4 percent to 28,426 points. The broader one S&P 500 rose by 0.8 percent. The technology-based Nasdaq composite climbed 0.5 percent.
The weekly labor market data showed how much business and consumers could use fiscal support from the state: The initial jobless claims have fallen, but not as much as hoped. "These data are by and large still high. They have stabilized over the past few months, but they are not really going back either," said Commerzbank economist Peter Dixon. The data are likely to increase the pressure on politicians to launch an economic stimulus package before the election.
After all, US Treasury Secretary Steven Mnuchin and House spokeswoman Nancy Pelosi have resumed talks on a slimmed-down package the day before. However, Pelosi has already rejected a special package only for the aviation industry that was brought into play by the Republican side. "It's all about economic aid: we see the markets move with optimism as some kind of package is being put together," said market strategist Esty Dwek of Natixis Investment Managers.
However, participants also see the polls on the presidential elections as a supporting factor of recent times. The lead of challenger Joe Biden is so great that worries about an unclear result fade into the background.
The technology giant caused a bang IBM, titles rose 6 percent. Retailers identified two good pieces of news: the first figures for the third quarter were positive. At IBM, the service and cloud business met the high expectations of Wall Street. An "in-house price rocket" also represents the announcement that the company will be split into two parts. "That could raise ratings massively," said one trader. The US group wants to spin off its Managed Infrastructure Services division from the Global Technology division into a stock corporation.
McDonald's increased like-for-like sales in the third quarter and is now increasing the quarterly dividend. The stock was 0.3 percent in the red, after having gained 75 percent since the March low.
The Dow Jones index remained weak mainly because of the Amgen share back, which lost 6.8 percent. A heart product developed jointly with Cytokinetics only achieved the primary goal in a phase 3 study, but disappointed with the secondary goal. The effect is only minimal and does not help the affected patients to extend their lives.
Regeneron Pharmaceuticals climbed 1.4 percent. According to US President Trump, it was an experimental drug from the pharmaceutical company that helped him a lot with his coronavirus infection. The company itself has applied for accelerated approval in the US. Eli Lilly increased by 1.2 percent. Trump also found words of praise for this pharmaceutical company.
The course of the medical technician specializing in spinal diseases Alphatec Holdings made a jump of 37 percent upwards. The company has announced a sales increase for the third quarter of over 40 percent. Game stop rose 44 percent after the company announced a multi-year partnership with Microsoft.
Despite the optimism in the stock market, US bonds also rose. The bond prices were supported by the weak labor market data. In addition, the day before the US Federal Reserve had raised the hurdle for an interest rate hike in its meeting minutes.
Oil prices rose: US light oil of the variety WTI 3.4 percent to $ 41.29 per barrel and European reference oil of the variety Brent also by 3.4 percent to $ 43.40. The oil cartel Opec spoke of a long-term resilient demand. The competition from renewable energies will not be as dramatic as some observers would like. According to Opec, demand will continue to rise until 2045. The peak of demand will not be reached in the next 20 years. It was also supported by reports that Saudi Arabia might be ready to abandon plans to expand production early next year.
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