Dow down over 200 points tech stocks buck the trend, hurricane hits US oil up nearly 3%

  • U.S. stocks are up and down, with the S&P 500 losing 3400 points
  • Crude rebounding, Gulf of Mexico oil and gas production severely impacted by tropical storms

*Microsoft beats earnings expectations, up nearly 1% after hours

U.S. stocks were up and down on Tuesday, with a continued rise in confirmed cases of new coronary pneumonia dampening investor sentiment and technology stocks bucking the trend. At the close of trading, the Dow fell 222.19 points, or 0.80%, to 27463.19 points, the Nasdaq rose 0.64% to 11,431.25 points, the S&P 500 index fell 0.30% to 3390.68 points, the first time in the past three weeks to miss the 3400-point barrier.

Market Overview

The US epidemic control situation continues to tighten, with a record 69,967 new confirmed cases per day over the past week, according to Johns Hopkins University, and hospital admissions up at least 5% in 36 states across the US.

However, the timing of a new fiscal stimulus package is likely to be after the election, and while House Speaker Pelosi has reiterated her desire to reach an agreement on a bailout bill with U.S. Treasury Secretary Mnuchin before the election, key differences between the two sides remain. On Monday, U.S. Senate Majority Leader Mitch McConnell decided that the Senate would adjourn after confirming Amy Coney Barrett as a federal Supreme Court justice, a recess that will last until Nov. 9. The U.S. media that this marks the end of the three-month fiscal stimulus negotiations, the U.S. election before the launch of the economic stimulus plan hopes are slim.

In terms of data, the U.S. consumer confidence index in October fell slightly to 100.3, less than market expectations. Franco (Lynn Franco), head of the economic indicators of the consultative council, said that the decline in consumer confidence is mainly due to the impact of the short-term employment outlook is sluggish. Americans expect the economy to find it difficult to gain more momentum at the end of the year, especially with the current epidemic spreading rapidly and unemployment still high.

The U.S. manufacturing sector continues to recover, with the Commerce Department saying that orders for durable goods rose 1.9% in September from August, better than market expectations and the fifth consecutive month of growth, the latest sign that the manufacturing sector is recovering from supply chain disruptions and shutdowns hit by the epidemic.

On the individual stock front, the airline industry, which is closely tied to the opening of the economy, suffered a sell-off, with American Airlines down 4.8 percent and United and Delta down more than 3 percent.

Machinery giant Caterpillar fell 3.2%, the company’s third-quarter revenue fell 23% year-on-year to $ 9.9 billion, mainly due to reduced end-user demand for equipment and services, adjusted earnings per share EPS $1.34, the market expected $1.17.

AMD fell 4.2% and the company announced it was acquiring Xilinx in a $35 billion all-stock deal, valuing Xilinx at about $143 per share. The deal is expected to close in 2021, and the merger will result in AMD shareholders owning 74% of the new company and Xilinx shareholders owning 24% of the company.

Pfizer Pharmaceuticals fell 1.3%, with the company’s third-quarter revenue down 4% to $12.131 billion versus market expectations of $12.31 billion and EPS of $0.72 versus market expectations of $0.69, with Pfizer lowering its full-year guidance due to the uncertainty surrounding the epidemic.

Tech stocks gained traction, with Facebook and Amazon up more than 2 percent, Apple up 1.4 percent and Google up 0.9 percent, Vital Knowledge founder Adam Crisafulli wrote in a report, as investors’ concerns about the near-term macroeconomic outlook increased and growth and momentum stocks gained renewed interest.

Popular Chinese stocks rose, Vipshop rose 7.3 percent, more than 3.9 percent, iQiyi rose 3.8 percent, Alibaba rose 3.4 percent, Jingdong rose 2.0 percent, in the new energy vehicle sector, Celeste rose 9.3 percent, Xiaopeng car rose 1.4 percent, ideal car rose 0.7 percent.

Microsoft’s earnings report exceeded expectations

Microsoft announced its third-quarter results after hours, beating market expectations and rising nearly 1% after hours.

The results show that last quarter, the company revenue of $ 37.2 billion, an increase of 12%, the market expected $ 35.720 billion, net profit of $ 13.9 billion, the market expected $ 11.916 billion, adjusted earnings per share EPS 1.82 U.S. dollars, the market expected 1.55 U.S. dollars. By item, smart cloud revenue increased 20% year-over-year to $12.99 billion, productivity and business process division revenue increased 11% year-over-year to $12.32 billion, and other personal computing revenue was $11.85 billion.

Microsoft CFO Amy Hood said market demand for Microsoft’s cloud products drove a strong start to the fiscal year, with the company’s commercial cloud revenue up 31 percent year-over-year to $15.2 billion, with Azure cloud product revenue up 48 percent.

Global sales of electronic entertainment devices have increased in recent months due to the epidemic, and Microsoft will launch its latest Xbox game console next month. Microsoft reported a 65% increase in Xbox-related revenue last quarter, and the release of the new Xbox is expected to further drive demand in the market.

Other markets

International oil prices rebounded, the Gulf of Mexico crude oil exploration by the weather boosted market sentiment. wti crude oil near-month contract rose 2.6%, at $ 39.57 / barrel, Brent crude oil near-month contract rose 1.4%, at $ 41.03 / barrel.

The U.S. Bureau of Safety and Environmental Enforcement (BSEE) said that in the hurricane “Zeta Zeta” coming, the U.S. Gulf of Mexico closed 914,811,000 barrels per day of oil production capacity, accounting for 49.45% of the total capacity, while the closure of 1.5 billion cubic feet of natural gas production capacity, accounting for 55.35% of the total capacity.

International gold prices were modestly higher, with the COMEX gold December contract up $6.20, or 0.3%, at $1,911.90 an ounce.

European stocks opened higher and lower, with the pan-European Stoxx 600 down 0.95% at 352.58, the UK’s FTSE 100 down 1.09% at 5728.99, Germany’s DAX 30 down 0.93% at 12063.57 and France’s CAC 40 down 1.77% at 4730.66.

The outbreak has worsened in Europe, with two-thirds of France now under a previously announced curfew, German Chancellor Angela Merkel warning that the country is on the verge of losing control of the virus, and the Spanish government once again declaring a national state of emergency that could last up to six months.