Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Dow Falls as Mnuchin Pulls Emergency Lending Support

Published 11/20/2020, 01:17 PM
Updated 11/20/2020, 01:33 PM
© Reuters.

By Yasin Ebrahim

Investing.com - The Dow fell Friday as worries about the economic recovery continue to mount after U.S. Treasury Secretary Steven Mnuchin said emergency lending programs that had steadied the economy during the pandemic would not be renewed.

The Dow Jones Industrial Average fell 0.0.53%, or 155 points. The S&P 500 was down 0.27%, while the Nasdaq Composite rose 0.08 %.

Mnuchin said late Thursday he does not plan to extend several crucial emergency lending programs when they expire at the end of year, raising worries about the outlook for the recovery.

The treasury secretary said the programs "have clearly achieved their objectives," but analysts questioned the timing of the move as Covid-19 cases continue to surge.

"(D)epending on the depth and duration of the second-round resurgence and the subsequent policy response, the U.S. economy could slow significantly or potentially fall back into negative territory, creating a second-round recession," Stifel said in a note.

U.S. coronavirus cases reached another daily high Thursday with 185,759 new infections, according to Johns Hopkins University data.

Against the growing backdrop of worries about the recovery, industrials, energy, and financials slipped, dragging the broader market deeper into the red.

Financials were hurt by regional banks, with W. R. Berkley (NYSE:WRB), Citizens Financial Group (NYSE:CFG) and Regions Financial (NYSE:RF) down more than 2%. A slip in U.S. Treasury yields, with the United States 10-Year TIPS falling 2%, exacerbated weakness in banks.

Energy, meanwhile, shrugged off firmer oil prices, paced by a decline in Devon Energy (NYSE:DVN) and Marathon Oil (NYSE:MRO).

Elsewhere, stay-at-home stocks like Peloton Interactive (NASDAQ:PTON) and Zoom Video Communications (NASDAQ:ZM) rose, with the latter up more than 6% as investors bet that further restrictions will keep demand elevated.

On the vaccine front, Pfizer (NYSE:PFE) rose more than 1% after confirming it would apply on Friday for emergency use authorization for its Covid-19 vaccine. The U.S. Food and Drug Administration is expected to review the request in the coming weeks, and the vaccine, if approved, is expected to be rolled out before year-end.

In other news, Boeing (NYSE:BA) was down 1% even as reports suggested the 737 Max is nearing approval in Europe.  

Latest comments

Mitchell Neaffer’s profile....Hollidaysburg, PA (Altoona), only an Associates Degree, and a very low value home.....typical uneducated, impoverished Trumper from a state easily carried by Landslide Joe...
No worries the new administration will give all the necessary handouts. These guys are yesterday's news. No one will be sad to see these guys leave the political scene
The crapublicans have forgotten what it's like to live in the real world with bills and not much money.
if you're going to make a slight toward the Republicans at least try to be clever with the name calling
The stimulus ends 12/3/20 anyways lol. A new bill will have to be passed for 2021 stimulus. Doesn't look likely especially since Trump admin is delaying transition so they continue their cover up and document shredding hahahaha 😆
12/31/20
yes
This is nothing more than the Trump administration trashing this country even more than it did over the past 46 months. Historians will have the final say....just as Nero fiddled while Rome burned, Donny piddled while the USA went down in flames. Donny will forever be known as the absolute worst POTUS the world has ever seen. Hope you’re happy with your legacy, Donny, and the same goes for your enabler thugs...the uneducated, obese, diabetic Trumper base, Pompeo, Pence, Rudy The Hair Dye Guy Giuliani, Larry The Fable Guy Kudlow, Yellow Brick Road Munchkin Man, Kellyanne, Kayleigh, Mark Covid Meadows, Ben Needs Brain Surgery Carson, Lindsey Any Man Will Do Graham, Ted My Father Did In JFK Cruz, most Republican governors, Senators, & House members, and all the Trump kids, legitimate and otherwise.
So does the woman who’s dancing with you...
move
Mitchell Neaffer In no particular order: ineffective trade tariffs & then giving farmers $50 billion as their markets dried up, calling members of the US military losers & suckers, mocking everyone but himself & his family, kissing up to dictators, backing out of several international agreements making the US’s word absolutely worthless, backing Israeli PM Bibi, who is even more crooked than Donny, holding superspreader gatherings in the WH causing dozens of people to contract the virus, having no plan to fight the virus, except encouraging his base to inject themselves with Lysol, undermining institutions such as....NATO, WHO, the US election process, the US constituition, just to name a few...., cheating on his wife, calling out federal troops to put down a peaceful protest allowed by the Ist Amendment, mocking McCain on the same day he died, abandoning DACA, locking children in cages, building a wall that Mexico never paid for, & tax breaks only for top 1%.
thought the law creating this lending support end 12/31. I guess you prefer him just breaking the written congressional law...as opposed to the congress doing something to keep it funded.
Mnuchin has been juicing the markets big time during the pandemic. Now that he knows he's finished ,its time to make the phony economy look the way is should have looked years ago.
How boring it must be to be a bear these days. What will the bears do once vaccines become available and the recovery extends to all sectors of the economy
 Maybe  some of the bears will look beyond the hype of vaccines getting us back to normal ,when they realize normal is nothing more than a managed economy. An economy that without stimulus ,deficit spending and credit as a means for growth ,is nothing more than  an economic sideshow. Dow 30k anyone ?..... am i supposed to be impressed ?
At this point they are just trying to f. things up for Biden.  Poor USA.
NO worries. You pick a senile old SOB who did nothing for 47 years and when he falls flat on his face you can blame Trump just like that poser Obama spent 8 years of the most lackluster recovery blaming Bush. You reap what you sow.
I guess a 16 hour old story constitutes a big red "Breaking News" banner 4.5 hours into the trading day. What a joke.
This is old the news just said something else
Don't worry poor old "all time high" Wall St will be back with their hands out begging for other stimulus because they are sooo down and out and in the gutter
Why Yesterday's News is showing at Headlines
Why Yesterday's News is showing at Headlines??
looks like we will be paying on our school loans again!
Trump and his minions trying so hard to destroy the economy before Biden takes over. How can you do that at this time now that states are locking down again?
you wont see Biden tax hikes for more than a year, at which point unless you make over 400k/year it should be status quo for ya. if you make more than that...good on ya, but you'll pay more.
you won't see Biden tax hikes for more than a year, at which point unless you make over 400k/year it should be status quo for ya. if you make more than that...good on ya, but you'll pay more.
That is riddiculous. By the way there is nothing left. Trump destroyed it all
looks like we will be paying on our school loans again 😔
Why worry? Biden is going to take care of all of our problems right?
but wouldn;t steps like this make things harder for economy to recover ? with rampant covid spread means certainly even if business are open, folks (or at least reduced percentage) would not like to venture out and shop and dine out. in such times small business needs all the help they can get.
To much good news with IPO , FCEL , NANO DIMENSIONS, PALANTIR TECH. , JUMIA , CLOUDMD ,
What's the good news with FCEL? Been looking for it for days
This happened yesterday but go ahead and flash a breaking news banner.  What a joke.
🤣🤣🤣🤣🤣🤣
Lol 0.4% is hardly a “fall”. And this is pretty major event as far as news stories go
Boeing walking dead......
olup
The ********is his problem !!!!!
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.