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Shouty Old Men, ADP & GDP, Big Job Cuts; What's up in Markets on Wednesday

Published 09/30/2020, 06:18 AM
Updated 09/30/2020, 06:23 AM
© Reuters

© Reuters

By Geoffrey Smith 

Investing.com -- A chaotic and largely meaningless presidential ‘debate’, strong economic data in China and Europe, a revision to U.S. 2Q GDP – and Disney and Shell (LON:RDSa) cut thousands of jobs. Here’s what you need to know in financial markets on Wednesday, September 30th.

1. Two shouty old men

Two old men shouted at each other for a couple of hours in an effort to settle the question of who is better suited to lead the free world and the world’s largest economy.

By common consent, President Donald Trump did not succeed in pressuring his opponent Joe Biden into the kind of gaffes and brain freezes that he has made so much of on social media in recent weeks, despite interrupting him 73 times (according to CBS’s count).

Biden also failed to land any knock-out blows but, given his lead in the polls, is the likelier of the two to be satisfied with an event in which they merely cancelled each other out.

Investors learned nothing new about either candidate’s agenda, except inasmuch as Trump again stoked doubts about his willingness to accept defeat, appearing at one stage to instruct right-wing militias to “stand by” to dispute the result.

2. Big job cuts at Disney, Shell

Companies are getting more urgent and more ambitious with their cost-cutting plans as North America and Europe get ready for a full winter of Covid-19.

Walt Disney (NYSE:DIS) said it will cut 28,000 jobs from its theme park, retail and cruise operations – many of them part-time – while Anglo-Dutch oil major Royal Dutch Shell  (NYSE:RDSa) said it will cut up to 9,000 jobs, or 11% of its workforce, to make it fit for a sustained period of low oil prices and a possible long-term decline in demand for oil and gas.

Walt Disney shares fell 2.4% in premarket trading, while Shell stock eked out a modest gain of 0.3%, marginally outperforming the broader market in Europe.

3 Stocks set to open lower; GDP, ADP eyed

U.S. stocks are set to open lower after a poor advertisement for American democracy reminded investors that electoral risk isn’t something reserved for emerging markets, while Disney’s job cuts pointed to tougher times ahead for the labor market.

By 6:25 AM ET (1025 GMT), Dow Jones Futures were down 231 points, or 0.8%, while S&P 500 Futures  were also down 0.7% and NASDAQ Futures were down 0.8%.

Investors are likely to take their cues later from the revision to second-quarter GDP figures, and from ADP’s monthly survey of private payrolls. In addition, there will be the market debut of cybersecurity firm Palantir, which set a reference price of $7.25 for its stock, valuing it at some $16 billion.

4. Lagarde hints ECB will follow Fed

Christine Lagarde signaled that the European Central Bank may follow the Federal Reserve in a formal commitment to let inflation run above its traditional 2% target when it concludes its review of its monetary policy strategy next year.

Lagarde’s comments came against the backdrop of some better-than-expected high-frequency data: German retail sales rose 3.1% in August and July’s figures were also revised up. French consumer spending also outperformed expectations with a 2.3% rise in August., while German jobless numbers fell modestly, in line with expectations. The euro fell 0.2% to $1.1709.

Purchasing manager data from China earlier had shown a recovery still intact, but flattening out after a sharp rebound through the summer. 

5. Oil slides ahead of stockpile data

Crude oil prices were again testing two-week lows as stock markets responded gloomily to the election debate, on the perception that a disputed result to the election may spin out the usual uncertainty that weighs on markets every four years.

By 6:25 AM ET, U.S. crude futures were down 1.2% at $38.84 a barrel, while Brent, the international benchmark, was down 1.3% at $41.01 a barrel.

Prices had failed to get much of a lift from the American Petroleum Institute’s assessment that U.S. crude stocks fell by 831,000 barrels last week, rather than the 1.4 million barrel rise that was expected. Government data are due, as usual, at 10:30 AM ET.

Latest comments

It was Donald" Dr. Strange Love" Trump vs. "Sleepy" Joe Bidden. Coming to the WWE real soon.
i like that belinda awsome yep
i like that belinda awsome yep
i like that belinda awsome yep
why did Biden make a m u s l i m reference when he's catholic?
Trump’s most egregious comment last night was when he endorsed the Proud Boys, who preach the demise of Jews, Blacks, Muslims, women, and anyone else who is not a white male protestant.
and he thinks he can maintain order...
Order is defined by actions, not speech.  Its a free speech country!  Trump is free to make an ****of himself multiple times.
I know you pay a lot of taxes but that's why I carefully phrased my question to only include income taxes. please answer only the narrow question I have asked deliberately to try to get you.
he paints Trump into a corner and gives Biden all kinds of openings to redeem himself. what a fraud Wallace is
   Yeah,  After all he's a Fox News guy...you'd think he'd be biased like your used to....what a surprise!
Trump if you are pro-economic growth (this is a proven commodity), Biden if you are stuck in Social Justice and Global warming dogma.  It really is that simple.  Don't get hung up on personality, remember you have one too, and many people don't care for your either.
"Trump if you are pro-economic growth (this is a proven commodity), Biden if you are stuck in Social Justice and Global warming dogma.  It really is that simple."  -- here is a simple fact for you, under Obama/Biden stock markets nearly tripled, under Clinton/Gore stock markets nearly doubled.  Oh both presidencies had 8 straight years of economic growth............under Trump last quarter's GDP was what, -32%?
trump once again showed the nation he doesn't have what it takes to lead. Acting like a petulant 13 year old, all trump accomplished was to stain the debate with continual lies, obvious deceptions, and never ending interruptions creating his signature chaos and the dysfunctional manner he uses to address every issue facing our nation. The market is reacting to the continued exposure of an uncontrolled deadly pandemic and will keep doing so until there is evidence of actions taken to reign in the spread and control the risks and uncertainty associated with trumps failed leadership in resolving the problems the pandemic places on our economy and our nation.
Finding out from President Trump that he feels the outcome of the election could take months to determine is certainly a possible reason explaining why the market is down.  He said, "this is not going to end well" and he said it is "a mess."  Who knew it is likely we won't know who won for another two months and who thinks that is market positive?  So far it looks like bad news for the economy - maybe an issue that brings more violence...  The market will do what it will, but a delayed-election-outcome realization ought to cause the VIX to rise a bit.  JMO
Trump the (warped) thinking man's choice!
I quit watching after 10 minutes of shouting at each other. Trump should have prepared for the debate. Over confidence lead to defeat or failure.
Anything is better than voting Democrat!
"...appearing at one stage to instruct right-wing militias to “stand by” to dispute the result." This democrat talking point is an extension of the Charlotte lie. The under-lying premise (emphasis on -lying) is that Trump supports radicals on the right. That's patently false. When Trump stated that there are good people on both side, he was pointing out, however in-artfully, that protestors for and against taking down monuments both had arguments worth discussing. Trump did not then nor does he accept violence from either side (radicals)  . . . these groups tend to show up to these public disagreements and use them to foment disunity to wit: Portland, Seattle, etc . . .  Let's try not to conjoin radicals (right-wing militias) with constitutional originalists for political points! The politicians tend to do this very well!
like Bidens lie that antifa is just an "idea" LOL
Will you shut up man?
Biden didn't attend a black college. When asked about that lie he just laughed.
.. "stand by" this POS thinks he's a dictator. America is screwed. It's all downhill from here, bye, bye democracy.
Guess that means you won't be renewing your green card.  Sorry to see you go.
"Two old men shouted at each other for a couple of hours...."  -- just go watch the movie "Grumpy Old Men", it's also about 2 old grandpa yelling at each other, but far funnier
will you pack the Supreme Court....Biden ..um um um
No words. 45 was hysterical. joe sleepy but more presidential. both cannot make one.
Ask yourself: is America “great again” after 4 years of trump?
is that his new slogan, "Make American Great Again, Again"?
yes. Home sales are booming, companies are hiring, the stock market and my 401 k is hitting all time highs. The virus is winding down and non Democratic states are reopening. Thank you President Trump.
 With Trump its a journey......a very loooong journey,
Name one police union who backs you...Biden um um um
so you care about union endorsements now do you?
LE support is all yiu need to know
I care about law and order. Not defunding/ re imagining police. And antifa is not an "idea" its a violent left wing extremist bent on overthrowing the government.
Biden looked presidential and crushed Trump. I never heard him shout. Trump seemed deranged and tried to shout out Biden as he did Hilliary. He failed. Maybe you watched a different debate.
he was also interrupting and arguing with the moderator repeatedly, as even the moderator from FoxNew couldn't stand his antics
because the moderator is a liberal himself and wanted to help sleepy Joe as much as possible.
Terrible debate . I feel more fearful now that trump will not concede if he loses and the country will collapse . Threatening to have barret look at the ballots was creepy as was telling the proud boys to stand by. I dont know whether to buy stock or prepper gear.
It was a debate 2 minutes is way too short. But they debated Lol
This is amazing I posted 2 x a ling unbiased rundown and it was moderated and not displayed
* long
USD still appreciaiting?..more sell
It was a *****Show.
Trump for US president 2020
Trump the more honest more experience. Biden just a lier without concepts.
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