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On Thursday (8), the president of the United States, Trump, declared that the negotiations on a new stimulus plan are moving forward. The number of first-time jobless claims in the United States has fallen for the second week in a row, and US stocks have collectively opened in early trading.
During the intraday session, the Speaker of the US House of Representatives, Pelosi, presented the condition that without a comprehensive (large-scale) stimulus bill, there would be no separate airline stock bailout case, Airline stocks fell in response and the Dow Jones Index once turned black.
Fortunately, the Organization of the Petroleum Exporting Countries (OPEC) said the worst of the crude oil market is over, energy stocks led earnings, finance and industry also performed well. All four major indices simultaneously closed in the red, the Dow Jones was up more than 100 points, and rates were up more than 1%.
The electoral situation in the United States became more intense on Thursday. US President Trump refused to participate in next week’s virtual election debate. Trump’s campaign team also stated in the latest statement that it would be postponed for a week as requested by Biden’s team. The team flatly refused, and Biden will respond to voter questions on October 15 in lieu of having a debate with Trump.
The U.S. Congressional Budget Office (CBO) estimates that the U.S. government’s budget deficit reached a record $ 3.1 trillion in the just-ended 2020 budget year, which was estimates that it represents 15.2% of gross domestic product (GDP) since 1945. The largest deficit.
The global epidemic of new corona pneumonia (COVID-19) continues to spread. Before the deadline, according to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 36.2 million and the number of deaths has exceeded 1.05 million . The United States has confirmed more than 7.55 million cases and the cumulative number of deaths has exceeded 212,000.
On Thursday (8) the performance of the four main US stock indices:
- The Dow Jones index rose 122.05 points, or 0.43%, to close at 28,425.51 points.
- The S&P 500 Index rose 27.38 points, or 0.80%, to close at 3,446.83 points.
- The Nasdaq index rose 56.38 points, or 0.50%, to close at 11,420.98 points.
- The Philadelphia Semiconductor Index rose 27.32 points, or 1.17%, to close at 2,356.16 points.
The big five tech giants got mixed up. Apple (AAPL-US) fell 0.096%; Microsoft (MSFT-US) rose 0.36%; Amazon (AMZN-US) fell 0.16%; Alphabet (GOOGL-US) was up 1.66%; Facebook (FB-US) was up 2.19%.
The constituent shares of Dow Jones closed higher. Amgen (AMGN-US) fell 6.82%; IBM (IBM-US) was up 5.98%; American Express (AXP-US) rose 3.02%; Dow Chemical (DOW-US) was up 2.24%; Goldman Sachs (GS-US) rose 2.15%; Boeing (BA-US) was up 2.06%.
Fei’s semi-constituent shares were led by ON Semiconductor. ON Semiconductor (ON-US) was up 11.52%; AMD (AMD-US) fell 0.21%; Micron (MU-US) was up 3.08%; Intel (INTC-US) rose 1.33%; NVIDIA (NVDA-US) fell 0.90%; Qualcomm (QCOM-US) fell 0.56%; the material (AMAT-US) rose 2.42%; Broadcom (AVGO-US) was up 1.80%.
Taiwan ADR shares collectively closed higher. UMC ADR (UMC-US) was up 3.15%; TSMC ADR (TSM-US) was up 1.02%; ASE ADR (ASX-US) rose 3.34%; Chunghwa Telecom ADR (CHT-US) was up 0.08%.
Featured Stock News
Activist investor Starboard Value took a stake in ON-US (ON-US) and presented a bullish view, encouraging ON-US’s share price to rise 11.52%.
NXP (NXPI-US) rose 0.92% After the market, the company raised its forecast for this quarter and its share price rose more than 5%. NXP said that all terminal markets, especially the automotive and mobile terminal markets, have substantially improved their demand, and it plans to release its latest financial report on October 26.
IBM (IBM-US) was up 5.98%. The company announced Thursday that it would spin off its IT infrastructure services division to focus on highly profitable cloud computing services.
Tesla (TSLA-US) rose 0.15% to $ 425.92 a share and closed in the red for two consecutive trading days. US investment bank New Street Research raised its price target to $ 578. Additionally, Tesla will release its latest after-market earnings report on October 21.
Zoom (ZM-US) fell 0.43%, despite previous investment bank Stifel raising its price target from $ 300 to $ 350, saying its share price has a large profit margin.
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
Art Hogan, chief market strategist at New York State Securities, said it’s clear that the prospect of more fiscal stimulus will bring market momentum.
Raymond James analyst Ed Mills said this is today’s question, why have we received Trump’s tweets in the last 24 hours, the market close reaction on Tuesday, and today’s rally.
Ed Mills mentioned that some investors believe that no matter who wins the White House as a result of the elections, before the deadline to fund the government on December 11, the probability of an agreement between the two parties increases enormously.
Ed Mills said another party said this is a clear signal from the market. Now they are waiting for the complete victory of the Democratic Party, which will bring the biggest rescue package. However, this may not be fully implemented until February or March next year.
A poll released by Reuters / Ipsos on Wednesday showed Biden received 49% and 48% support in Florida and Arizona, leading 45% and 46% from Trump.
Art Hogan, chief market strategist at New York State Securities, explained that investors are also beginning to digest Biden’s expectations of winning the election on November 3. In fact, the main reason the US stock market has started to heat up is the Democratic Party’s expectation of a complete victory. If this is decisive Win, then there will be no controversial election results.
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