We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed lower on Tuesday due to uncertainty on second round of coronavirus-aid package. Moreover, negative developments on COVID-19 treatment fronts also dented market participant's confidence. All the three major stock indexes ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 157.71 points to close at 28,679.81, reversing a 4-day winning streak. Notably, 23 components of the 30-stock index ended in the red while 7 finished in green.
Moreover, the tech-laden Nasdaq Composite finished at 11,863.90, dropping 0.1% due to the weak performance by large-cap technology stocks. The tech-heavy index has declined after four successive days.
Meanwhile, the S&P 500 dipped 0.6% to end at 3,511.93, ending the 4-day winning run. The Financials Select Sector SPDR (XLF), the Real Estate Select Sector SPDR (XLRE) and the Energy Select Sector SPDR (XLE) tumbled 1.9%, 1.7% and 1.6%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in negative zone and one in the green.
The fear-gauge CBOE Volatility Index (VIX) was up 4% to 26.07. A total of 8.5 billion shares were traded on Tuesday, lower than the last 20-session average of 9.72 billion. Decliners outnumbered advancers on the NYSE by a 2-to-1 ratio. On Nasdaq, a 1.50-to-1 ratio favored declining issues.
Uncertainty on Fresh Fiscal Stimulus
U.S. Congress is yet to reach an amicable solution regarding the size and scope of a second round of coronavirus-aid package. The Democrats have settled for $2.2 trillion stimulus while the White House approved only $1.8 trillion.
It is not clear whether a deal will arrive before the U.S. presidential election scheduled on Nov 3, though House speaker Nancy Pelosi said she is still hopeful for a deal. Meanwhile, the Republic-controlled Senate leader Mitch McConnell said he will release a separate stimulus proposal worth just $500 billion. President Donald Trump has already rejected this proposal.
Lack of Good News on COVID-19 Treatment
The year 2020 is likely to remain coronavirus-stricken as the availability of a vaccine by this year-end looks unlikely. On Oct 13, the U.S. FDA has paused the late-stage clinical trials of Eli Lilly and Co.'s (LLY - Free Report) leading monoclonal antibody treatment for the coronavirus over potential safety concerns.
On Oct 12, Johnson & Johnson (JNJ - Free Report) announced that the company has halted clinical trials of its late-stage vaccine for the treatment of COVID-19 after a participant reported an “adverse event” a day before. The company's data and safety monitoring board will investigate the unexplained illness in details.
Last month, AstraZeneca plc (AZN - Free Report) halted late-stage clinical trials of its coronavirus vaccine on safety concerns. The company was conducting clinical trials in association with Oxford University. However, the clinical trial has restarted in the U.K.
The Department of Labor reported that consumer price index (CPI) rose 0.2% in September, in line with the consensus estimate. CPI rose 0.4% in August. September's data is the lowest in four months. Year over year, CPI grew 1.4% compared with 1.3% in August.
The core CPI (excluding volatile food and energy items) rose 0.2% in September, in line with the consensus estimate. The core CPI rose 0.4% in August. September's data is the lowest in four months. Year over year, the core CPI grew 1.7%, remained flat sequentially.
Have You Seen Zacks’ 2020 Election Stock Report?
he upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Shutterstock
Stock Market News for Oct 14, 2020
Wall Street closed lower on Tuesday due to uncertainty on second round of coronavirus-aid package. Moreover, negative developments on COVID-19 treatment fronts also dented market participant's confidence. All the three major stock indexes ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 157.71 points to close at 28,679.81, reversing a 4-day winning streak. Notably, 23 components of the 30-stock index ended in the red while 7 finished in green.
Moreover, the tech-laden Nasdaq Composite finished at 11,863.90, dropping 0.1% due to the weak performance by large-cap technology stocks. The tech-heavy index has declined after four successive days.
Meanwhile, the S&P 500 dipped 0.6% to end at 3,511.93, ending the 4-day winning run. The Financials Select Sector SPDR (XLF), the Real Estate Select Sector SPDR (XLRE) and the Energy Select Sector SPDR (XLE) tumbled 1.9%, 1.7% and 1.6%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in negative zone and one in the green.
The fear-gauge CBOE Volatility Index (VIX) was up 4% to 26.07. A total of 8.5 billion shares were traded on Tuesday, lower than the last 20-session average of 9.72 billion. Decliners outnumbered advancers on the NYSE by a 2-to-1 ratio. On Nasdaq, a 1.50-to-1 ratio favored declining issues.
Uncertainty on Fresh Fiscal Stimulus
U.S. Congress is yet to reach an amicable solution regarding the size and scope of a second round of coronavirus-aid package. The Democrats have settled for $2.2 trillion stimulus while the White House approved only $1.8 trillion.
It is not clear whether a deal will arrive before the U.S. presidential election scheduled on Nov 3, though House speaker Nancy Pelosi said she is still hopeful for a deal. Meanwhile, the Republic-controlled Senate leader Mitch McConnell said he will release a separate stimulus proposal worth just $500 billion. President Donald Trump has already rejected this proposal.
Lack of Good News on COVID-19 Treatment
The year 2020 is likely to remain coronavirus-stricken as the availability of a vaccine by this year-end looks unlikely. On Oct 13, the U.S. FDA has paused the late-stage clinical trials of Eli Lilly and Co.'s (LLY - Free Report) leading monoclonal antibody treatment for the coronavirus over potential safety concerns.
On Oct 12, Johnson & Johnson (JNJ - Free Report) announced that the company has halted clinical trials of its late-stage vaccine for the treatment of COVID-19 after a participant reported an “adverse event” a day before. The company's data and safety monitoring board will investigate the unexplained illness in details.
Last month, AstraZeneca plc (AZN - Free Report) halted late-stage clinical trials of its coronavirus vaccine on safety concerns. The company was conducting clinical trials in association with Oxford University. However, the clinical trial has restarted in the U.K.
Each of these three stocks carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that consumer price index (CPI) rose 0.2% in September, in line with the consensus estimate. CPI rose 0.4% in August. September's data is the lowest in four months. Year over year, CPI grew 1.4% compared with 1.3% in August.
The core CPI (excluding volatile food and energy items) rose 0.2% in September, in line with the consensus estimate. The core CPI rose 0.4% in August. September's data is the lowest in four months. Year over year, the core CPI grew 1.7%, remained flat sequentially.
Have You Seen Zacks’ 2020 Election Stock Report?
he upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>