NYSE fall on vac­cine de­lay, damp­ened stim­u­lus hopes

Business World - - World Business/World Markets -

NEW YORK — Wall Street lost ground on Tues­day, with halted COVID-19 vac­cine tri­als and an elu­sive US stim­u­lus agree­ment weigh­ing on sen­ti­ment as third quar­ter earn­ings sea­son got un­der­way.

While all three ma­jor stock in­dexes closed in the red, a gain Mi­crosoft Corp. shares helped the mit­i­gate the tech­heavy Nas­daq’s loss.

John­son & John­son an­nounced on Mon­day it was paus­ing clin­i­cal tri­als of a COVID-19 (coro­n­avirus dis­ease 2019) vac­cine can­di­date due to an un­ex­plained ill­ness in a study par­tic­i­pant. The de­lay weighed on the com­pany’s shares, even af­ter its beat-and-raise earn­ings report. Its shares lost 2.3%.

Late in the ses­sion, ri­val Eli Lilly & Co. said it was also halt­ing its coro­n­avirus an­ti­body trial be­cause of safety con­cerns, send­ing its shares down 2.9%.

Hopes for the pas­sage of a new coro­n­avirus re­lief package faded as US House Speaker Nancy Pelosi re­jected the $1.8 tril­lion coro­n­avirus re­lief pro­posal from the White House, say­ing it “falls sig­nif­i­cantly short of what this pan­demic and deep re­ces­sion de­mand.”

Se­nate Ma­jor­ity Leader Mitch McCon­nell said the Repub­li­can-led Se­nate would vote on a tar­geted pared-down stim­u­lus package on Mon­day.

“(Wash­ing­ton is) play­ing with the mar­ket’s emo­tions and in­di­vid­u­als’ fi­nan­cial fu­tures,” SlateS­tone Wealth’s Robert Pav­lik said. “As this con­tin­ues, the mar­ket is look­ing past what they’re say­ing be­cause it truly be­lieves stim­u­lus will come some time af­ter the elec­tion.”

Although JPMor­gan hand­ily beat con­sen­sus profit es­ti­mates, gain­ing from a boom in its trad­ing busi­ness, its peer Cit­i­group, while also beat­ing ex­pec­ta­tions, was slammed by low in­ter­est rates and a slow­down in loan de­mand. Their shares dropped 1.6% and 4.8%, re­spec­tively. The broader S&P Bank­ing in­dex lost 2.7%. Ap­ple, Inc. un­veiled the lat­est in­car­na­tion of its flag­ship gad­get, the iPhone 12 with 5G con­nec­tiv­ity. Its shares were down 2.7%.

The Dow Jones In­dus­trial Av­er­age fell 157.71 points, or 0.55%, to 28,679.81, the S&P 500 lost 22.29 points, or 0.63%, to 3,511.93 and the Nas­daq Com­pos­ite dropped 12.36 points, or 0.1%, to 11,863.90.

Third-quar­ter re­port­ing sea­son has left the start­ing gate, and an­a­lysts now see S&P 500 earn­ings, in ag­gre­gate, fall­ing by 19.6% year-on-year, ac­cord­ing to Refini­tiv.

Other earn­ings on tap this week in­clude Bank of Amer­ica Corp., Gold­man Sachs Group, Inc., Wells Fargo & Co., Unit­ed­Health Group and United Air­lines Hold­ings, Inc. ex­pected on Wed­nes­day, with Mor­gan Stan­ley and Honey­well In­ter­na­tional, Inc. due on Thurs­day.

Shares of Delta Air Lines, Inc. dropped 2.7% af­ter the com­mer­cial car­rier re­ported a 76% plunge in quar­terly rev­enue and an­nounced it has de­layed a tar­geted halt to its cash bleed.

Plane­maker Boe­ing Co. re­ported or­der can­ce­la­tions for its grounded 737 MAX air­craft and said de­liv­er­ies were less than half the num­ber as the same month a year ago. Its stock, was down 3.1% was the heav­i­est drag on the Dow.

De­clin­ing is­sues out­num­bered ad­vanc­ing ones on the New York Stock Ex­change (NYSE) by a 2.00-to-1 ra­tio; on Nas­daq, a 1.50-to-1 ra­tio fa­vored de­clin­ers. The S&P 500 posted 39 new 52-week highs and one new low; the Nas­daq Com­pos­ite recorded 123 new highs and 14 new lows.

Vol­ume on US ex­changes was 8.50 bil­lion shares, com­pared with the 9.72 bil­lion av­er­age over the last 20 trad­ing days. —

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