The Markets are Still Falling, and That’s Not All – Financial News Summary for Friday, October 30, 2020

The Election Could Affect the Market in More Ways Than You Think
News, Stock Market, Trader Talk
Business Credit Cards

All three markets in New York saw a drop today, with the NASDAQ actually beating out the Dow Jones in their drop for the first time. The Dow Jones closed down 0.59% at 26,501. The NASDAQ closed down 2.45% at 10,911.59 and the S&P 500 closed down 1.21% at 3,269.96. STOXX Europe actually increased today, coming in up 0.30% at 342.77.

The Fed is facing an important Committee meeting in the next week where they are expected to make decisions regarding inflation and just what’s going to happen for the market. There’s no telling just what could be the outcome even after single quarter growth records have been beaten and the housing market seems to be on the upswing.

“I just don’t see the benefits of waiting until December,” said Aneta Markowska, chief financial economist at Jefferies. “A lot has changed in the past two weeks. Almost all the worries they flagged in September have materialized or are in the process of materializing. So they don’t have the luxury of time anymore.”

 

Exxon Mobil reported their third quarter of losses in a row just today, which likely comes as no surprise to most considering the current pandemic situation. With lower demand for oil, it’s no wonder the company is down, though $680 million in losses over the third quarter is definitely a large amount. They lost only slightly more than the estimates at $46.2 billion compared to an estimate of $46.01 billion. Still, the company remains optimistic.

“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” Chairman and CEO Darren Woods said. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”

 

The election could play a big role in what happens in the market, but not just because of who wins and who loses. It’s also about whether we get a strong and definite answer on or at least close to election day.

“If there’s no clear winner, it will be negative for risk assets…The market is really worried about not having clarity after the election. They’re worried about it dragging out four weeks as the results are contested,” said Ian Lyngen, head of U.S. rates strategy at BMO. “The overall landscape is not a political one. It’s that we’re in a pandemic, and we don’t want an uncertain election outcome that leaves the country concerned about leadership.”

 

West Texas Intermediate saw another drop today, coming in down 1.22% to finish at $35.67 per barrel. Gold prices, on the other hand, increased today by $11.61 to close at $1,886.38 per ounce. The treasury yield is also back on a slight upward trajectory. The 10 year yield closed at 0.88 while the 30 year yield closed at 1.65.

close

Subscribe to our free daily news summary:
Call Put Strike Insights

close

Subscribe to our free daily news summary:
Call Put Strike Insights

Products You May Like

Articles You May Like

StocksForYou Stock: The Ultimate Stock Recommendation Service for High Growth Stocks
Choosing The Best Credit Card for your Spending Habits

Leave a Reply

Your email address will not be published. Required fields are marked *