- The Dow Jones lost 80 points on Friday.
- Stimulus talks have stalled as growing U.S. coronavirus cases threaten recovery.
- The losses in Intel stock weighed heavily on the Dow.
The Dow Jones slipped on Friday as Intel’s crash weighed on the index. Deadlocked business negotiations and growing coronavirus cases were additional concerns for the US stock market.
Dow Jones falls despite encouraging PMI data
Of the three major US stock market indices, the Dow Jones was the weakest as the Nasdaq and S&P 500 traded flat.
In the economic data, US PMIs were mixed as the essential services sector outperformed forecast and manufacturing declined slightly.
Looking ahead, Economists at ING are preparing for what they expect next week for outstanding third quarter GDP. Based on the loaded unemployment benefits, the investment bank expects a record high for the US economy:
The key data release will be third quarter GDP growth and we expect record growth of 34.5% on a year-on-year basis as consumer spending rallies due to catch-ups and household income support from the rise in unemployment benefits, which hit over 70%. recovered, the beneficiaries received a higher income than when they actually worked.
The question for the Dow bulls is whether this positive momentum can continue. With consumer spending still showing signs of plateauing, the fourth quarter is undoubtedly a source of great uncertainty for Wall Street. With The US coronavirus cases rose again and hit daily highs againThe risk of further bans increases.
Blocked business negotiations are another source of volatility. Although Nancy Pelosi and Steve Mnuchin seem to have made progress, recent headlines suggest that things are coming to a standstill again.
Check out the video below for the latest comments from Mnuchin:
The presidential debate leaves the stock market untouched
The final presidential debate closed yesterday evening and both candidates provided a decent overview of their policies in a more structured setting. Unfortunately for Trump, According to surveys, he needed a breakthrough achievementand this was not the case against an elusive but well rehearsed Joe Biden.
Check out the video below for an inside look at the debate.
A couple of Trump’s blows hit, especially when he cornered Biden over energy and fracking (a major consideration in Swing State Pennsylvania). Even so, Biden asserted himself and safely treated the president’s allegations as a front runner. After the event, the Stability in the Dow Jones clearly outlined the lack of revelations at night when The markets reacted far more strongly after the initial, more chaotic confrontation.
Dow 30 stocks: Intel collapses after profit
It was a relatively quiet day for the Dow 30, with the exception of Intel stock, which fell as much as 12% after earnings numbers were released. The good news for the Dow Jones was that Intel is only the 26th most heavily weighted stock in the index, so its struggles didn’t do too much damage.
Check out the video below to see Jim Cramer tackle Intel’s headwinds:
Coca-Cola was another Dow member with a recently released earnings report, falling just 0.2%, despite sales falling 9%.
American Express was down 3%, despite UnitedHealth, the Dow’s heaviest weighted stock, up 1%.