Dow Jones Industrial Average
recovered from a midday dip into negative territory to close up on Thursday, at its highest level in a month. A number of incrementally positive factors helped lift the index.
The Dow climbed 122 points, or 0.4%. The S&P 500 closed up 0.8% and the
gained 0.5%. All three have closed up 8 of the past 11 trading days. Thursday was a particularly broad rally: All 11 sectors in the S&P 500 rose on the day.
There was reason for optimism on the Covid-19 vaccine and treatment front, with President Donald Trump touting
’ (ticker: REGN) antibody cocktail and the company saying it would seek emergency use authorization. And betting odds of a Democratic election victory in November ticked higher after Wednesday night’s vice-presidential debate, increasing the odds of a multi-trillion dollar fiscal stimulus bill should one party control Washington.
Initial jobless claims remain high, but continuing claims fell from a week ago and came in below economists’ consensus. Although the shift is slower pace than over the summer, the U.S. economy continues to recover. Technically minded traders noted that after a string of recent gains, the
just crossed above its 50-day moving average.
The Dow lost its morning gains shortly before noon, after House Speaker Nancy Pelosi said that she wouldn’t support a narrower stimulus bill including targeted aid for airlines. That reminded investors that it remains all or nothing for a fiscal and coronavirus relief package, with party leaders still far apart on its size and scope.
rose 1% in Tokyo and the
added 0.2% in Seoul, while the
eased by 0.2%. The Stoxx Europe 600 closed 0.8% higher, led by a 0.9% gain for the German
Tom Porcelli, chief U.S. economist at RBC Capital Markets, said a stimulus package in the area of $700 billion would likely be enough of an insurance policy through the end of the first quarter of 2021 against a deteriorating backdrop due to Covid.
The debate between Vice President Mike Pence and Democratic vice-presidential nominee Kamala Harris on Wednesday night was a more traditional clash than the first presidential debate, and widely perceived as not having changed the dynamic of the election.
(MS) shares gained 0.6% after the bank announced it was going to buy Eaton Vance (EV) in a $7 billion cash and stock deal. Shares of
soared 48.1%. The deal comes just after Morgan Stanley completed its acquisition of E*Trade Financial.
Regeneron Pharmaceuticals shares climbed 1.4% after Trump touted the company’s Covid-19 antibody treatment, which he took last week. Regeneron submitted a request for an emergency-use authorization to the U.S. Food and Drug Administration to make the experimental treatment more widely available.
(DPZ) shares slid 7% after management reported weaker-than-expected profits for the third quarter. The pizza chain has been helped by a surge in at-home dining but high pandemic-related costs weighed on the results.
(IBM) announced it will split its managed infrastructure arm into a new public company. Shares rose 6%, boosting the Dow.
(COST) reported 17% sales growth in September, as the retailer continues to flourish during the Covid-19 pandemic. Shares added 0.6%.