Day Traders Diary
The major averages closed lower after comments from Treasury Secretary Steven Mnuchin dampened expectations of a coronavirus stimulus deal being reached before the Nov. 3 presidential election.The Dow Jones Industrial Average was down 165 points or 0.6%. The S&P 500 closed down 23 points or 0.66% while the Nasdaq Composite slid 0.8% or 95 points.
Mnuchin said around midday that getting a deal done before the election would be difficult, adding that both sides were still far apart on certain issues. He also noted, however, that Democrats and Republicans are making progress in some areas.
Mnuchin's comments came after the White House recently proposed $1.8 trillion for an aid package, which House Speaker Nancy Pelosi said "falls significantly short" of what is needed. On Tuesday, Senate Majority Leader Mitch McConnell said that the Senate will vote on a limited stimulus bill later this month, which will be "targeted relief for American workers, including new funding" for Paycheck Protection Program small business loans.
Shares of Amazon slid more than 2% to lead most Big Tech lower. Facebook and Netflix were down 1.6% and 2.3%, respectively and Microsoft slid 0.9%. The major averages were higher earlier in the day as traders pored through another batch of corporate earnings.
On the earnings front, Goldman Sachs closed higher much better than expected numbers, Bank of America and Wells Fargo closed lower. UnitedHealth closed down 2% following better-than-expected earnings and revenue.
Stocks were coming off a downbeat session, snapping a four-day winning streak on Tuesday after Eli Lilly paused its trial of a coronavirus antibody treatment, news that followed Johnson & Johnson's earlier announcement that it halted its vaccine trial after an "adverse event" was reported.
Despite Tuesday's and Wednesday's declines, stocks are higher for October, with the Dow up 2.6% while the S&P 500 and Nasdaq have gained 3.7% and 5.4%, respectively.
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