MARKETS USA / Wall Street closes inconsistently with Corona hope | 16.10.20

From Florian Faust

NEW YORK (Dow Jones) – Spending consumers and hopes for a corona vaccine to be available soon gave Wall Street a boost on Friday. Investors were encouraged by strong retail sales data in September. And it could go on like this: the mood of US consumers brightened more than expected in October, as the index calculated by the University of Michigan showed. The fact that industrial production was disappointing was somewhat forgotten.

However, investors lost courage in the late business with rising new infections in some US states and the indices came back significantly from the daily highs. The Dow Jones index advanced 0.4 percent to 28,606 points, the S&P 500 saved a wafer-thin plus at the finish and the Nasdaq composite turned into the red shortly before the end and lost 0.4 percent. At the Nyse there were 1,310 (Thursday: 1,673) winners versus 1,723 (1,373) losers. 81 (77) titles closed unchanged. “In the midst of a stagnant job market, the surge in retail sales this month suggests the strength of consumers with the highest scores we’ve seen in three months is pretty robust,” said investment strategist Mike Loewengart of E-Trade Financial.

Pfizer and Biontech give hope

After Lilly and Johnson & Johnson had recently posted setbacks for their vaccines, a ray of hope came from the cooperation partners Pfizer and Biontech, who are apparently making good progress with their joint corona vaccine candidate. The application for approval for emergency use of the drug could be submitted in the USA by the end of November. The titles of the German Biontech gained 4.1 percent, Pfizer gained 3.8 percent.

Hewlett Packard Enterprise (HPE) turned 4 percent into the red. The provider of servers and network products had published a three-year plan with which the company wants to return to growth. As part of this, HPE had significantly raised its profit forecast for the fiscal year ending 2021. It was above the analyst consensus.

The service provider for the oil production industry Schlumberger had significantly lost sales in the third quarter as a result of the corona-related lower oil demand. The price fell 8.8 percent.

Poker a Navistar

In the struggle for the takeover by Traton, the US commercial vehicle manufacturer Navistar pushed the price up shortly before the end of the ultimatum. The group agreed to be taken over by the Volkswagen subsidiary, but at a price of 44.50 US dollars per share. Traton adjusted its own offer upwards accordingly. The titles shot up 22.9 percent to $ 43.52.

Del Taco restaurants slumped 21.3 percent. The business figures of the fast food chain were by and large as expected, but the share had already gained around 11 percent. In addition, dealers complained about the sales development. JB Hunt Transport Services fell 9.7 percent after submitting weak earnings metrics. Citizens Financial Group fell 4.6 percent, the result of the bank had been burdened by write-offs on loans.

Dollar weakens

On the foreign exchange market, the ICE dollar index lost 0.2 percent, while the euro settled again more clearly above the 1.17 mark. But the euro came back from its daily high of 1.1746. Council member Francois Villeroy de Galhau considered renewed intervention by the European Central Bank (ECB) to be conceivable in the event of a second corona lockdown.

The gold price dropped 0.4 percent to $ 1.90. The predominantly positive economic data and optimism on the stock market weighed on the precious metal. On a weekly basis, gold posted its first loss in three weeks. Waning hopes for an economic stimulus package in the US had the dollar appreciate 0.7 percent during the week and depressed the precious metal.

The oil price tended to hold its own. As before, concerns about demand slowed down the price because of the corona pandemic, which is once again more and more angry, especially in Europe. But there were also concerns on the supply side: traders feared that the oil cartel Opec could soften the subsidy cuts. The oil price was supported by the convincing consumption data from the USA. The barrel of the US WTI variety fell 0.2 percent to $ 40.88, while Brent North Sea oil fell by 0.5 percent to $ 42.93.

As with gold, the supposedly safe haven for bonds was avoided, and the yield on ten-year US government bonds climbed by 0.8 basis points to 0.74 percent. The quotes were primarily impacted by retail data.

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INDEX last +/-% absolute +/-% YTD

DJIA 28.606,31 0,39 112,11 0,24

S&P-500 3.483,81 0,01 0,47 7,83

Nasdaq-Comp. 11.671,56 -0,36 -42,32 30,08

Nasdaq-100 11.852,17 -0,39 -46,41 35,72

US bonds

Maturity Yield Bp to VT Yield VT +/- Bp YTD

2 years 0.14 0.0 0.14 -106.1

5 years 0.32 0.0 0.32 -160.7

7 years 0.52 0.2 0.52 -172.6

10 years 0.74 0.5 0.74 -170.4

30 years 1.53 1.1 1.52 -154.1

CURRENCY last +/-% Fri, 8:27 am Thu, 5:20 pm% YTD

EUR/USD 1,1716 +0,05% 1,1697 1,1698 +4,5%

EUR/JPY 123,48 +0,03% 123,15 123,15 +1,3%

EUR/CHF 1,0722 +0,14% 1,0707 1,0690 -1,2%

EUR/GBP 0,9065 -0,10% 0,9079 0,9052 +7,1%

USD/JPY 105,39 -0,04% 105,28 105,26 -3,1%

GBP/USD 1,2925 +0,16% 1,2884 1,2924 -2,5%

USD/CNH (Offshore) 6,6969 -0,24% 6,7157 6,7166 -3,9%

Bitcoin

BTC / USD 11,288.52 -1.90% 11,340.07 11,400.54 + 56.6%

ROHÖL last VT-Settl. +/-% +/- USD% YTD

WTI/Nymex 40,75 40,96 -0,5% -0,21 -28,3%

Brent/ICE 42,81 43,16 -0,8% -0,35 -30,1%

METALS last previous day +/-% +/- USD% YTD

Gold (Spot) 1.899,60 1.907,80 -0,4% -8,21 +25,2%

Silver (spot) 24.13 24.28 -0.6% -0.14 + 35.2%

Platinum (Spot) 866.00 868.50 -0.3% -2.50 -10.3%

Kupfer-Future 3,06 3,08 -0,7% -0,02 +8,3%

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Contact the author: florian.faust@wsj.com

DJG / DJN / flf

(END) Dow Jones Newswires

October 16, 2020 16:13 ET (20:13 GMT)

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