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US stocks opened higher on Thursday (8). The Dow Jones Industrial Average rose more than 100 points or 0.4%, IBM (IBM-US) led the gains with more than 8% gains, the Nasdaq index rose 0.6% and the S&P 500 index rose 0.5% and rates rose 0.9%.
On the news of the bailout negotiation, the Speaker of the United States House of Representatives, Nancy Pelosi, had a phone call with the United States Secretary of the Treasury, Steven Mnuchin, on Wednesday night (7) to discuss the US $ 25 billion assistance measures for the aviation industry. Pelosi spokesman Drew Hammill said May Mnuchin agreed to continue discussions on Thursday (8).
In response to the Trump-backed $ 1,200 ransom check bill, Pelosi believes this measure is not enough to meet the challenges of the epidemic.
With the US election less than a month away, Trump immediately voiced his opposition to the presidential debating committee’s announcement that the second debate will take place remotely, saying that the virtual debate is a waste of time and that he will not participate. .
In terms of economic data, the Bureau of Statistics of the Department of Labor published unemployment data for last week on Thursday (8). As of the week of October 3, the number of people filing for unemployment benefits for the first time in the United States was 840,000, which was slightly lower than the previous value. It has fallen to around 800,000 for 6 consecutive weeks and recovery progress has stalled.
At 21 o’clock on Thursday (8) Taipei time:
- The Dow Jones index was up 110.70 points, or 0.39%, to 28,414.16 points temporarily.
- Nasdaq rose 70.46 points, or 0.62%, to 11,435.06 points temporarily
- S&P 500 rose 17.30 points or 0.51%, temporarily at 3,436.75 points
- Commissions and media rose 21.24 points 0.91% to 2501.08 points temporarily
- TSMC ADR increased 1.14% to $ 87.91 per share
- Yield on 10-year US Treasuries fell to 0.774%
- New York light crude rose 2.60% to $ 40.99 a barrel
- Brent crude rose 2.62% to US $ 43.09 a barrel
- Gold rose 0.62% to $ 1,902.50 an ounce
- The US dollar index rose 0.13% to 93.80 points.
Focus actions:
IBM (IBM-US) was up 8.54% in early trading to $ 134.67.
IBM announced on Thursday (8) that it will spin off its IT infrastructure services department to focus on highly profitable cloud computing services. To offset the slowdown in software sales and seasonal demand for mainframe servers, IBM has The business focus is on cloud computing.
The spin-off operation is expected to be completed by the end of 2021. IBM CEO Arvind Krishna said that after the spin-off, the two companies will focus more on their own businesses and take advantage of new opportunities to achieve growth.
Eaton Vance (EV-US) was up 47.04% to $ 60.20 in early trading.
Morgan Stanley (MS-US) announced that it will acquire the business of asset management company Eaton Vance for almost $ 7 billion in cash and shares, representing a 38% premium over Eaton Vance’s closing price on Wednesday (7). Each share will receive $ 28.25 in cash and 0.5833 Morgan Stanley shares.
According to Morgan Stanley, this acquisition means that it will manage approximately US $ 125 million in assets and total revenue is estimated to exceed US $ 5 billion.
Regeneron Pharmaceuticals (REGN-US) was up 3.15% in early trading to $ 610.31.
Regeneron said on Wednesday evening (7) that he had submitted an emergency authorization request (USA) for a possible new corona vaccine to the United States Food and Drug Administration (FDA). US President Trump received antibody cocktail therapy from Regeneron last week.
Daily key economic data:
- The United States reported 840,000 unemployment benefits for the first time last week (3/10), and an expected 820,000. The previous value was increased from 837,000 to 849,000
- The United States reported last week (9/26) 10.969 million renewed unemployment benefits, which is expected to be 11.4 million. The previous value increased from 11,767 million to 11,979 million
Wall Street Analysis:
Girard Chief Investment Officer Tim Chubb said: “The market relies heavily on the news of the stimulus measures and tries to predict what may happen. It also gives people a better understanding of the results of the stimulus measures. elections and the meaning of stimulus measures “.
Julian Emanuel, head of equity and derivatives strategy at BTIG, said that due to the lack of stimulus measures, the market is quite fragile and the S&P 500 index may drop to test the 200-day moving average of 3,113 points, around 7% below 3,360 points at the close of the day on Tuesday. .
UBS (UBS) expects a 75% chance of Joe Biden’s victory, which could lead to a weaker US dollar and selling pressure on US Treasuries.
Nancy Davis, founder and portfolio manager at Quadratic Capital, said: “While there are uncertainties in negotiating the bailout plan, no matter who wins the election, we are likely to get more stimulus measures. Given the uncertainty, I think investors They should. It is very important to have a diversified investment portfolio. “
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