Dow Jones Stands Out With + 1.6%
Following ‘rumors’ giving Joe Biden wide winner in Florida, election would mean a massive stimulus plan of $ 2.200 billion.
The S & P500 gained this Monday + 1.23% to 3.310 and ends close to its opening levels, the Dow Jones stands out with + 1.6% (0.6% better than the opening, and its best performance since October 7), the Nasdaq is content with + 0.4% but posted -0.4% 2 hours from the close after more than 1.5% shortly after the opening.
The Russel-2000 posted the best performance with almost + 2% at closing.
The increase of the day is also quite ‘daring’ on the eve of a presidential election in the United States, the results of which could be contested by Donald Trump (even if Florida escapes him) who announces that he is considering all the hypotheses and intends to use of all the legal tools at its disposal in the event of a suspicion of fraud (in particular it wishes to ban the inclusion of bulletins arriving after November 3, particularly in North Carolina).
The scenario of a victory for Democratic candidate Joe Biden – who has strengthened his lead in the polls in recent weeks – remains the scenario favored by the markets, but the crucial question is the ‘sincerity’ of the ballot in the ‘swing states ‘(these states which decide the fate of the elections) where the scores could appear tight, which could push Donald Trump to demand recounts, or arbitration of the Supreme Court (which is now all given to him, at 6 against 3) .
And Wall Street is hoping that whoever wins, he wins both Houses (the Senate is held by Republicans).
A victory for Joe Biden would be less favorable to ‘GAFAM’ but more to industrialists and ‘green’ values.
The Nasdaq avoided the red zone thanks to New Corp and Tesla + 3.2%, Exelon + 2.7%, KLA + 2.6%.
The ‘composite’ was weighed down by Twitter -4.6%, Netease -2.8%, Incyte -2.5%, Workday and Comcast -2%, Western Digital -1.9%, Micron -1.3% … and 1 hour after the closing, Paypal plunged 6.5% on ‘cautious’ forecasts and clearly lower than expectations (in question, the unpredictable fallout of Covid-19, restricted consumption in Europe).
The giants Apple, Microsoft and Alphabet ended up almost unchanged.
The rise in oil prices (+ 3.7% to $ 37.15) thanks to the Russian proposal to extend production quota cuts until early 2021 has boosted Nal Oilwell + 8.5%, Technip + 7.8% , Apache + 7.1%, Diamondbak + 6.7%, Halliburton and Marathon + 6.1%, Occidental, Devon and Conoco + 5.7%, Schlumberger + 4.3%, Chevron + 3.9%.
Dow Jones Stands Out - /10