Archives of “August 26, 2020” day

rss

US election outcome poses potential downside risks to US equities

  
  Analysis
#  #  #  #  #  #  #  #
Via HSBC, beginning with where we are at:
  • latest national opinion polls show Senator Joe Biden maintaining a healthy lead over President Trump
  • although lower than the double-digit gap reached in late June
  • Biden’s strong polling performance has coincided with a period of high US unemployment as the country grapples with the Covid-19 pandemic and a period of heightened social tensions earlier this summer
But, that could change:
  • A number of factors could materially shift either candidate’s standing in the coming weeks. 
  • Positive for Trump would be developments that lead to a faster economic recovery. This may include the potential for the pandemic to subside or further progress to be made with treatments and/or vaccines. Congress passing a new stimulus package that includes an extension to the unemployment insurance top-up will also be considered important. 
  • Other factors complicate the picture. There is uncertainty about the impact of increased mail-in voting due to the pandemic. Meanwhile, the US Electoral College system places greater importance on ‘battleground states’ to the final result, making national polls a less useful predictor. In the majority of these states, Biden is forecast to do worse than at the national level.
For markets:
  • The outcome of the election poses some potential downside risks to US equity markets. 
  • These include the possibility of a divided government and “deadlock” over fiscal policy support, while Biden may implement higher corporate taxes. 
  • For the time being, we maintain our overweight view on US equities as the “swoosh” economic recovery remains in play.”

S&P and NASDAQ closed at record highs once again

  
Analysis, US Market
#  #  #  #  #  #  #  #

S&P index and NASDAQ go out near highs as well

The S&P and NASDAQ index are closing at record highs once again. The broader indexes also traded to new all time high prices today.  The Dow industrial average close lower her by Apple and Boeing.

The final numbers are showing:
  • S&P index rose 12.37 points or 0.36% to 3443.65. That was just off the all-time high price of 3444.21
  • Nasdaq index closed up 86.755 points or 0.76% at 11466.47. It’s new all time high price reached 11468.25
  • Dow industrial average fell -60.02 points or -0.21%to 28248.44. It’s high reached 28400.74 .
Salesforce after the close is reporting better-than-expected earnings on the top and bottom line.  EPS came in at $1.44 vs. $0.66 estimates. Revenues come in at $5.15 billion vs. an estimate for $4.9 billion. There shares are up over 7% in after-hours trading.
Salesforce was 1 of the 3 stocks added to the Dow industrial average (along with Honeywell and Amgen).  The 3 stocks replace Exxon Mobil (down -3.38%), Pfizer (-1.11%) and Raytheon (-1.5%).
Intuit it is also posting better-than-expected earnings on the top and bottom lines. There shares are up 4.52% in after-hours trading.
Go to top