Wall Street closes lower on vaccine delay, dampened stimulus hopes
By Stephen Culp NEW YORK (Reuters) - Wall Street lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway. While all three major stock indexes closed in the red, Microsoft Corp and Amazon.com helped the mitigate the tech-heavy Nasdaq's loss.
By Stephen Culp
NEW YORK (Reuters) - Wall Street lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway.
While all three major stock indexes closed in the red, Microsoft Corp
Johnson & Johnson
Late in the session, rival Eli Lilly & Co
"We have this recent spike in coronavirus cases coinciding with big drug companies halting vaccine trials," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. "That's making the market nervous and in response, you're seeing the lockdown stocks moving higher."
Hopes for the passage of a new coronavirus relief package faded as U.S. 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.
Meanwhile, millions of Americans struggle to make ends meet nearly two-and-a-half months after emergency unemployment assistance expired.
"(Washington is) playing with the market's emotions and individuals' financial futures," SlateStone Wealth's Pavlik added. "As this continues, the market is looking past what they're saying because it truly believes stimulus will come some time after the election."
JPMorgan Chase & Co
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, along with the broader S&P Banking index <.SPXBK> lost ground.
Unofficially, the Dow Jones Industrial Average <.DJI> fell 158.04 points, or 0.55%, to 28,679.48, the S&P 500 <.SPX> lost 22.51 points, or 0.64%, to 3,511.71 and the Nasdaq Composite <.IXIC> 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
Shares of Delta Air Lines Inc
Planemaker Boeing Co
(Reporting by Stephen Culp; Editing by Marguerita Choy)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
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