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Stocks sank after President Trump scrapped stimulus talks while blasting House Speaker Nancy Pelosi’s $2.4 trillion ask which is well above the $1.6 trillion Mnuchin was pushing for.

Stocks sink as Trump scraps COVID stimulus talks, blasts Pelosi-oil and gas 360

Source: Fox Business

The Dow Jones Industrial Average fell nearly 400 points or 1.3%, while the S&P 500 dropped and Nasdaq Composite dropped 1.4% and 1.5% respectively.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 27772.76 -375.88 -1.34%
I:COMP NASDAQ COMPOSITE INDEX 11154.603642 -177.88 -1.57%
SP500 S&P 500 3360.95 -47.68 -1.40%

 

The move curbs an effort by Federal Reserve Chairman Jerome Powell, who reiterated the need for more stimulus earlier today while warning of major risks to the economy without it.

“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” he said during remarks before the National Association of Business Economists.

Ticker Security Last Change Change %
XLY CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF 147.44 -2.75 -1.83%
XLU UTILITIES SELECT SECTOR SPDR ETF 61.95 +0.53 +0.86%

 

Consumer Discretionary stocks led a broad drop in the S&P 500 with the exception of utilities considered a defensive measure for investors.

Trump jumped back into work after being discharged from Walter Reed Medical Center after having contracted COVID-19. The president will continue his treatment for the virus at the White House, his doctors said.

Regeneron remains in focus after Trump used its experimental treatment of its COVID-19 vaccine and he noted today he is “feeling great” in a Tweet.

Ticker Security Last Change Change %
REGN REGENERON PHARMACEUTICALS INC. 581.64 -23.44 -3.87%

ECONOMIC NEWS

On the economic front, the U.S. trade balance was wider than expected, at $67.1 billion for August. Economists were looking for a $66.2 billion deficit, up from a prior reading of $63.6 billion.

And the closely watched JOLTS job openings figures came in at 6.4 million, slightly less than the 6.5 million estimate, however, July was revised up to 6.7 million.

EARNINGS SEASON KICKS OFF

Ticker Security Last Change Change %
PAYX PAYCHEX INC. 79.43 -2.02 -2.48%
LEVI LEVI STRAUSS & CO. 14.74 -0.27 -1.82%

 

The third-quarter earnings season is set to begin on Tuesday, with Paychex, Inc. and clothing manufacturer Levi Strauss & Co. reporting results.

Paychex, which reports prior to the market open, is expected to earn 55 cents a share for its most recent quarter. San Francisco-based Levi Strauss reports after the market closes, with traders looking for earnings of 22 cents a share.

Ticker Security Last Change Change %
GOOGL ALPHABET INC. 1,451.02 -31.81 -2.15%
MSFT MICROSOFT CORP. 205.91 -4.47 -2.12%

CORPORATE NEWS

Alphabet’s Google unit announced it would rename its Microsoft Office competitor from G Suite to Google Workplace, along with new pricing tiers to better compete in the marketplace.

Ticker Security Last Change Change %
AAPL APPLE INC. 113.16 -3.34 -2.87%
SONO SONOS INC 14.54 -1.09 -7.00%
LOGI LOGITECH INTERNATIONAL S.A. 75.83 -4.94 -6.12%

 

Ahead of an expected launch for its new iPhone, speaker and headphones, Apple Inc. has stopped selling rival products in its retail stores, impacting brands such as Bose Corp., Sonos Inc. and Logitech International SA, Bloomberg reported.

Ticker Security Last Change Change %
T AT&T INC. 28.70 +0.04 +0.12%

AT&T’s Warner Bros. movie division shuffled many of its upcoming movies, moving “Dune” to Oct. 1, 2021, and “The Batman” to 2022, Deadline reported.

The news comes after Cineworld, parent company of Regal, announced plans to suspend over 500  theatres in the U.S. starting Oct. 8, citing “challenging theatrical landscape” tied to COVID-19.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 28.41 +0.47 +1.70%
GLD SPDR GOLD SHARES TRUST – EUR ACC 177.26 -2.16 -1.20%

 

Oil moved above $40 per barrel, while gold was little changed at $1,917.30 an ounce.


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