Stocks Drop on Stimulus Deadlock as Banks Tumble: Markets Wrap

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(Bloomberg) — Stocks fell on speculation that recent gains have outpaced prospects for a quick end to the stalemate over fresh stimulus. Treasuries and the dollar climbed.



A pedestrian wearing a protective face mask is reflected in an electronic stock board outside a securities firm in Tokyo, Japan, on Thursday, Sept. 17, 2020. Japanese stocks were set for their fourth straight weekly gain, the longest winning streak since November, as investors moved back in following this week’s central bank rate decisions at home and in the U.S.


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A pedestrian wearing a protective face mask is reflected in an electronic stock board outside a securities firm in Tokyo, Japan, on Thursday, Sept. 17, 2020. Japanese stocks were set for their fourth straight weekly gain, the longest winning streak since November, as investors moved back in following this week’s central bank rate decisions at home and in the U.S.

Banks led losses in the S&P 500, with JPMorgan Chase & Co. and Citigroup Inc. sinking as investors worried that third-quarter earnings signaled just a pause in pain from soured loans. Eli Lilly & Co. tumbled after putting its government-sponsored antibody test on hold due to potential safety concerns, hours after Johnson & Johnson paused its Covid-19 vaccine trial. Tech shares outperformed as Amazon.com Inc.’s Prime Day sale kicked off. Apple Inc. unveiled its iPhone 12 line with 5G speeds, but the shares dropped, giving up part of Monday’s surge.

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Read: Profit Guidance Suggests S&P 500 Firms Overstated Lockdown Woes

Prospects for U.S. fiscal stimulus before Election Day dimmed on Tuesday, with House Speaker Nancy Pelosi demanding the Trump administration revamp its latest offer and Senate Republican leader Mitch McConnell pushing a smaller-scale strategy that she quickly rejected. His proposal to vote next week on just one provision appeared to stoke opposition even from President Donald Trump, who tweeted “Go big or go home!!”

“It’s been a rollercoaster ride in terms of communication from both sides,” said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. “There are still going to be significant pockets of stress in the economy,” and a fiscal package could help bridge the gap

Asian stocks set to rise as tech, stimulus hopes fuel global rally

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NEW YORK (Reuters) – Asian stocks were set to rise on Tuesday as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets.

Shares in Apple Inc surged 6.4% on Wall Street on Monday ahead of an expected debut of its latest iPhone on Tuesday, helping boost technology stocks, while Amazon rallied 4.8% ahead of its Prime Day shopping event this week.

CommSec Senior Economist Ryan Felsman said a COVID-19 resurgence in Europe and the United States is partly fueling the tech rally.

“Once again, there is a desire to hold the stay-at-home types of technology stocks…which will still generate profits and will be greatly oriented to a more challenging economic environment,” Felsman said.

On Wall Street, the Nasdaq Composite on Monday staged its biggest one-day rally in a month, jumping 2.56%. The Dow Jones Industrial Average rose 0.88% and the S&P 500 gained 1.64%.

The U.S. dollar was pinned near a three-week low and gold, another safe-haven asset, stayed below a three-week high, slapped by investor demand for risk. The U.S. bond market is closed on Monday for Columbus Day.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.11% higher.

Australian S&P/ASX 200 futures rose 1.05% in early trading. Hong Kong’s Hang Seng index futures rose 0.11%.

E-mini futures for the S&P 500 rose 0.01%.

FILE PHOTO: A worker wearing a protective mask walks as he cleans the floor past an electronic board displaying the stock market index at the Indonesia Stock Exchange (IDX),in Jakarta, Indonesia, September 8, 2020. REUTERS/Willy Kurniawan

The dollar index fell 0.078%, with the euro unchanged at $1.1813.

The pan-European STOXX 600 index rose 0.72% and MSCI’s gauge of stocks across the globe gained 0.01%.

Bets that more U.S. stimulus was in the offing

GLOBAL MARKETS-Asian stocks set to rise as tech, stimulus hopes fuel global rally

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By Suzanne Barlyn

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NEW YORK, Oct 12 (Reuters) – Asian stocks were set to rise on Tuesday as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets.

Shares in Apple Inc surged 6.4% on Wall Street on Monday ahead of an expected debut of its latest iPhone on Tuesday, helping boost technology stocks, while Amazon rallied 4.8% ahead of its Prime Day shopping event this week.

CommSec Senior Economist Ryan Felsman said a COVID-19 resurgence in Europe and the United States is partly fueling the tech rally.

“Once again, there is a desire to hold the stay-at-home types of technology stocks…which will still generate profits and will be greatly oriented to a more challenging economic environment,” Felsman said.

On Wall Street, the Nasdaq Composite on Monday staged its biggest one-day rally in a month, jumping 2.56%. The Dow Jones Industrial Average rose 0.88% and the S&P 500 gained 1.64%.

The U.S. dollar was pinned near a three-week low and gold, another safe-haven asset, stayed below a three-week high, slapped by investor demand for risk. The U.S. bond market is closed on Monday for Columbus Day.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.11% higher.

Australian S&P/ASX 200 futures rose 1.05% in early trading. Hong Kong’s Hang Seng index futures rose 0.11%.

E-mini futures for the S&P 500 rose 0.01%.

The dollar index fell 0.078%, with the euro unchanged at $1.1813.

The pan-European STOXX 600 index rose 0.72% and MSCI’s gauge of stocks across the globe gained 0.01%.

Bets that more U.S. stimulus was in the offing came despite signs that talks in Washington had stalled again, leading the Trump administration to call on Congress to pass a less ambitious coronavirus relief bill.

U.S. Senate Republicans

Dow gains 251 points as tech giants rally and stimulus hopes persist

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  • US stocks rose on Monday as Democrats and Republicans inched closer to a stimulus compromise.
  • Mega-cap companies including Apple and Amazon led indexes higher as investors rushed to the growth favorites.
  • President Trump urged Republicans to speed up Amy Coney Barrett’s confirmation to the Supreme Court so that they can pass a new stimulus bill before Election Day.
  • Investors also prepared for earnings season. Citigroup and JPMorgan are set to kick off reporting on Tuesday.
  • Oil futures sank as operations temporarily halted by Hurricane Delta resumed. West Texas Intermediate crude fell as much as 3.8%, to $39.04 per barrel.
  • Watch major indexes update live here.

US equities extended their rally into a new week as investors pushed tech giants higher.

Apple surged ahead of a Tuesday event widely expected to unveil the next generation of iPhones. Amazon climbed as it kicked off its Prime Day sale event. Other mega-caps including Alphabet and Microsoft also drove indexes’ gains.

Investors hoping for fresh government aid remained hopeful on the prospects of a near-term bill. The Trump administration raised its proposal to $1.8 trillion from $1.6 trillion on Friday, closing the gap with House Democrats’ $2.2 trillion bill.

The measure includes another round of stimulus checks and funding for the Paycheck Protection Program, but falls short of Democrats’ allocations for expanded unemployment benefits and state and local governments. 

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

Still, House Speaker Nancy Pelosi described the administration’s new offer as “one step forward, two steps back.” Pelosi and Treasury Secretary Steven Mnuchin are expected to continue negotiations throughout the week, though the odds of

Tech stocks extend Wall Street rally on stimulus hopes

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(Reuters) – Wall Street’s main indexes rose for a fourth straight session on Monday, helped by a tech boost and on optimism that Washington would reach a deal over more fiscal support, with investors also gearing up for the third-quarter corporate earnings season.

Apple Inc was a major support for the three main stock indexes with a 3.6% gain ahead of a special event on Tuesday, which most analysts believe will be used to unveil the new iPhone with 5G capabilities.

Amazon.com Inc climbed 3.5% ahead of its annual Prime Day shopping event on Oct. 13 and 14.

The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill as negotiations on a broader package ran into resistance.

“The widening lead for the Democrats lessens the likelihood of a disputed election result and increases the odds of a bigger stimulus package and infrastructure spending in 2021,” said Marc Chaikin, founder of Philadelphia-based investment research firm Chaikin Analytics.

A recent Reuters/Ipsos poll showed Americans were steadily losing confidence in President Donald Trump’s handling of the COVID-19 pandemic, with his net approval on the issue hitting a record low.

Growing expectations of a Democratic win in next month’s presidential election have also helped Wall Street’s main indexes climb to one-month highs as a victory for Democratic nominee Joe Biden could ease the trade war with China and resulting tariff pressures on the U.S. economy.

With the Oct. 15 presidential debate officially canceled, Trump plans to travel to key battleground states this week as his doctor declared he was no longer a transmission risk for the novel coronavirus.

Results from big U.S. banks will be in focus this week, with JPMorgan