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Dow Deepens Losses as Pelosi Signals Work Still to Be Done Ahead of Deadline

Published 10/19/2020, 01:42 PM
Updated 10/19/2020, 03:04 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – The Dow fell Monday, as U.S. House Speaker Nancy Pelosi reportedly signaled that a deal was not imminent, denting hopes of a deal somewhat with just a day to go until the Tuesday deadline imposed by the house speaker. 

The Dow Jones Industrial Average fell 1.37%, or 391 points. The S&P 500 was down 1.56%, while the Nasdaq Composite slipped 1.46%.

As talks between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi got underway, Pelosi reportedly said that negotiators are still trying to reach consensus on a deal. Both sides had previously touted optimism they can get a deal over the line before the U.S. election.

White House Spokeswoman Alyssa Farah said Monday that the White House was "cautiously optimistic" Pelosi may be moving toward making a deal on the new stimulus package.

The White House's $1.8 trillion deal is short of the $2.2 trillion package proposed by the Democrats. Senate Republicans, meanwhile, will vote on a narrower $500 billion bill on Tuesday.

The selling in the broader market was led by tech as investors seemingly continue to ditch growth. Netflix kicks off earnings for FAANG stocks on Tuesday.

Ahead its quarterly earnings report, Netflix (NASDAQ:NFLX) rose more than 1%, despite some on Wall Street expressing concern the streaming giant's pace of content creation may struggle to keep up with demand, leading to a slowdown in subscriber growth.

"The extraordinary level of consumption of Netflix content multiplied by its large subscriber base suggests to us that some meaningful percentage of subscribers will 'finish' Netflix before a large quantity of new content can be produced," Wedbush said in a note.

Other mega-cap tech names were also lower. Facebook (NASDAQ:FB) Apple (NASDAQ:AAPL) Amazon.com (NASDAQ:AMZN) (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) traded in the red.

Financials started the week on a sour note, led by Intercontinental Exchange (NYSE:ICE), JPMorgan Chase (NYSE:JPM), and  State Street (NYSE:STT) with the latter down more than 3%.

Goldman Sachs Group (NYSE:GS), turned negative after rising intraday after Credit Suisse (SIX:CSGN) lifted its price target on the stock to $262 from $255.

In other news, AMC Entertainment  (NYSE:AMC) jumped 14% after New York Gov. Andrew Cuomo said theatres in most of New York, but excluding New York City, could reopen on Oct. 23. The cash-strapped theatre chain has warned it could run of cash by year-end of the first quarter of 2021 as delays to blockbuster movies and reduced box office sales owing to the impact of the pandemic.

Sentiment was also weighed down by signs infections across the U.S. are gathering pace, with nearly 70,000 new cases recorded Friday, the highest one-day rise since July.

On the economic front, housing activity shows no sign of slowing after the National Association of Home Builders/Wells Fargo Housing Market Index rose two points to 85 in October.

Latest comments

Work. you call that work. just stop dicking around and help the people.
this is exactly what socialist bureaucrats are about... this is what you will get the next 4 yrs if you elect them, promises that never materialize and many more taxes...
well the senate seems not to be faster and even further away from reality.
Nancy Pelosi could care less about America otherwise she'd of accepted the stimulas package the republicans are offering which is very fair. I totally agree with Eddie Glass whose response is #3 from mine. Blue states going to ******because of democrat policies, and want the federal government to pick up the tab for decades of failed democrat leadership under the guise of a "covid relief bill"... sorry pelosi, not going to work. vote these democrat luna.tics  out. Current unemployment rates: Blue states 10.5%, red states 6.6%.
you could not have said it better
Market M A N I P U L A T I O N.  Love the face of the guy on the article tho, he looks worried, trying to cause more panic.
There was actually a time not too many years ago, Boys and Girls, when instead of stimulus checks, 0% interest rates, and the Fed’s non-stop printing of money, the US stock markets improved because of hard work, sweat, risk-taking, and Yankee ingenuity within corporate America. As you can see from the markets’ performances today, those days are long gone. The naive folks running Wall Street today, coupled with the many uneducated investors who populate this board, have turned the once strong and growing US free-enterprise system into a parody of its former self. And if you don’t believe me, just look at all the “thumbs down” votes this post will get. They will come from the very people who no longer possess the attributes that once drove this country to financial greatness.
I dont even think Hades will want her when she dies.. Too evil for even their standards.
GO TRUMP END THE DEMOCRAT COMMUNISTS
Both sides could care less. Only action will come if market tanks.
manipulators
Pelosi is a *** Make America homeless like SF. Shame on you.
very high level comments here ... : )
A lot of americans rely on the stomulus. Disgusting how politicians abuse the negotiations for their own favor
Pelosi should go away. She's a disgusting criminal.
Woh what a trap. stimulus & vaccine hope🤣
never ending covid hoax story .
Come on people you are not HOPING hard enough.  Now start hoping like you really mean it!!!!
The more you test the more you find. Even when most folks have almost no symptoms.
Agreed.. even i tested positive and i was assympotomatic. Media trying to scare people to make news out of it.
Exactly. Which is why the death rate has remained the same and in some places even declined.
who is next president ...A- TrumpB- Biden
Trump As Biden is loser
Hahahah, what happened to the stimulus and vaccine hopes we had 4 hours ago? Trash writers full of it
I Agree with you. They are full of *******..
Bull, bear, a bit of both or neither, you've just said something that everyone here will agree on......even the writers themselves.
A resuscitated patient who achieves a stable condition on full life support can’t really be called recovered.
amir
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