Dow tumbles 400 points on rising COVID-19 cases, stimulus limbo


Stocks tumbled on Monday, as traders expressed concerns on whether U.S. lawmakers would pass another fiscal stimulus bill to support the economy and as Europe put additional restrictions in place to fight the COVID-19 pandemic.

The Dow Jones Industrial Average dropped over 400 points or 1.5%, while the S&P 500 and Nasdaq Composite sank 1.1% and 0.5%, respectively.

Investors are also preparing for the busiest week for S&P 500 earnings, with over one-third of companies reporting, including Amazon, Caterpillar and Exxon Mobil to name a few.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 27952.42 -383.15 -1.35%
I:COMP NASDAQ COMPOSITE INDEX 11526.482495 -21.80 -0.19%
SP500 S&P 500 3434.84 -30.55 -0.88%

On the stimulus front, over the weekend, Speaker of the House Nancy Pelosi and White House chief of staff Mark Meadows both accused the other side of moving the goalposts. Pelosi, however, added an agreement “could happen” this week.

STOCKS END MIXED AS ASTRAZENECA RESTARTS COVID-19 TRIALS, J&J TO FOLLOW

European indices were also sagging on Monday, as the Italian government said it would close bars and restaurants at 6 p.m., while gyms and movie theaters were being shut to fight off the second wave of COVID-19 infections. Separately, Spain said it would introduce a curfew, starting at 11 p.m.

The German DAX fell 2.7%, while the French CAC 40 dropped 1.2% and the U.K. FTSE 100 declined 0.6%.

On Sunday, the U.S. reported 60,789 new cases of coronavirus, down from the prior few days, but still rising. Deaths in the U.S. topped 225,000, the most of any country, according to data compiled by Johns Hopkins University.

EARNINGS, ECON ON TAP

Ticker Security Last Change Change %
HAS HASBRO INC. 83.56 -8.44 -9.17%
TWLO TWILIO INC 308.61 +2.28 +0.74%
NXPI NXP SEMICONDUCTORS N.V. 134.61 -2.57 -1.87%

New home sales for September unexpectedly declined, coming in at 959,000, versus the prior reading of 994,000. Economists surveyed by Refinitiv had expected sales to climb to 1.025 million.

However, earnings season will kick into high gear, with Twilio Inc. and NXP Semiconductor all set to share results.

Hasbro Inc. shares were falling despite the toy and games company posting better-than-expected revenue.

Ticker Security Last Change Change %
SAP SAP SE 117.22 -32.52 -21.72%

SAP shares plummeted after the European business software maker lowered its outlook for 2020, noting the coronavirus pandemic has pushed back investments by its customers.

Ticker Security Last Change Change %
DNKN DUNKIN BRANDS GROUP 103.16 +14.37 +16.18%

Shares of Dunkin’ Brands soared after the company held talks to sell itself to Inspire Brands, FOX Business confirmed. The deal was first reported by The New York Times.

Ticker Security Last Change Change %
BABA ALIBABA GROUP HOLDING LTD 311.10 +1.16 +0.37%

Ant Group, the Chinse financial technology company, said it would raise $34.5 billion in a dual-listed initial public offering in Hong Kong and China, the largest IPO of all time. Chinese e-commerce giant Alibaba owns roughly one-third of Ant Group, according to filings.

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West Texas Intermediate crude oil moved below the $40 a barrel level, declining 2% to $39.02, while gold traded at $1,904.70 an ounce.

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