Wall street goes to the red after a login with slight increases after the results of large banks such as Goldman sachs Y Bank of America. The red turn occurs after a reality bath with the stimuli. They will not arrive before the elections According to Steven Mnuchin, Secretary of the Treasury. Investors are also on the lookout for negative news about the development of a vaccine against Covid-19.
"Right now, having a closed deal and implementing it before the elections will be difficult," Mnuchin said. The months-long negotiations are still far from reaching common ground. "The positions in the negotiation are still far from each other", has qualified.
In the business field, today he has Goldman sachs publish your results. Has declared a earnings per share (EPS) of $ 9.68 in the third quarter of the year, well above the 5.57 dollars anticipated by the consensus. Its shares are up 1% at the pre-opening of Wall Street. The income they have risen almost 30%, to 10.78 billion dollars, above the 9.4 billion anticipated. Its net profit has been 3,620 million dollars.
Y Bank of America reduced its third-quarter revenue by 10.8%, to reach a turnover of 20,340 million of dollars, when the market consensus expected that they would stand at 20.8 billion.
Despite the decline in sales, it achieved increase your earnings per share (EPS) to $ 0.51 versus $ 0.49 expected by the experts. Even so, the entity's shares are suffering and are left around 2% in the pre-opening of Wall Street.
He also presented his figures this Wednesday Wells fargo, which has achieved a profit lower than expected (1,720 million dollars, or 42 cents per share), although with the income it has exceeded all expectations, despite the decline of 14% to 18,860 million. The result, their shares fall on Wall Street.
The American Pharmacist Eli lilly has suspended trials with its experimental antibody therapy against Covid-19 due to fears about its safety, days after the US president, Donald trump, will praise the treatment and the company will request emergency approval for its use.
For their part, Democrats and Republicans continue with their 'tug of war' in the negotiations to approve a new stimulus plan valued between 1.5 and 2 trillion dollars. Although they continue to negotiate, experts anticipate that it will be very difficult to reach an agreement before the elections.
"Recovery from pre-pandemic economic levels will be long and tortuous, depending on how the virus evolves, if new growth stimuli materialize and progress is made in the vaccine ", they argue from Rent 4 when assessing the new forecasts of the International Monetary Fund (IMF), which revised upwards, to -4.4%, its forecast of a fall in gross domestic product (GDP) worldwide in 2020, although the rebound in 2021 worsened to 5.2%.
Global GDP will not regain its pre-pandemic level until the end of 2021 (+ 0.6% vs the end of 2019) but with almost all growth coming exclusively from China. The rest of the countries, including the US, will have to wait at least until 2022 to recover the pre-Covid levels, highlights Renta 4.
In this context, the IMF asked that the stimuli be maintained as long as necessary, and in his estimates he assumed that the ultra-expansive monetary policy will continue until 2025. Direct fiscal support already amounts to 6 trillion dollars globally.
In other markets, the West Texas oil, a reference for the American market, falls 0.6% to $ 39.95, while the euro it depreciates 0.1% and changes to $ 1.1734. Finally, the profitability of the 10-year American bond it drops to 0.71%.
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