Wall Street snaps a four-day winning streak with the Dow closing 150 points down as vaccines are delayed and hopes of a stimulus package fade
Wall Street snapped a four-day winning streak on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway.
While all three major stock indexes closed in the red, Microsoft and Amazon helped the mitigate the tech-heavy Nasdaq's loss.
At the closing bell, the Dow Jones Industrial Average fell 157.71 points, or 0.55 percent, to 28,679.48. The S&P 500 lost 22.29 points, or 0.63 percent, and the Nasdaq Composite dropped 12.36 points, or 0.1 percent.
Johnson & Johnson announced on Monday it was pausing clinical trials of a COVID-19 vaccine candidate due to an unexplained illness in a study participant. The delay weighed on the company's shares, even after its beat-and-raise earnings report.
Late in Tuesday's session, rival Eli Lilly & Co said it was also halting its coronavirus antibody trial because of safety concerns.
'We have this recent spike in coronavirus cases coinciding with big drug companies halting vaccine trials,' said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
纽约Slatstone Wealth LLC首席投资策略师罗伯特·帕夫利克(Robert Pavlik)说，最近冠状病毒病例的激增恰逢大型制药公司停止疫苗试验。
'That's making the market nervous and in response, you're seeing the lockdown stocks moving higher,' he said.
Hopes for the passage of a new coronavirus relief package faded as U.S. House Speaker Nancy Pelosi rejected the $1.8 trillion coronavirus relief proposal from the White House, saying it 'falls significantly short of what this pandemic and deep recession demand.'
Senate Majority Leader Mitch McConnell said the Republican-led Senate would vote on a targeted pared-down stimulus package on Monday.
Meanwhile, millions of Americans struggle to make ends meet nearly two-and-a-half months after emergency unemployment assistance expired.
'(Washington is) playing with the market's emotions and individuals' financial futures,' SlateStone Wealth's Pavlik added. 'As this continues, the market is looking past what they're saying because it truly believes stimulus will come some time after the election.'
JPMorgan Chase and Citigroup were the first two major U.S. banks to report third-quarter results.
Although JPMorgan handily beat consensus profit estimates, gaining from a boom in its trading business, its peer Citigroup, while also beating expectations, was slammed by low interest rates and a slowdown in loan demand. Their shares, along with the broader S&P Banking index lost ground.
Apple shares slid after unveiling the latest incarnation of its flagship gadget, the iPhone 12 with 5G connectivity.
The third-quarter reporting season has left the starting gate, and analysts now see S&P 500 earnings, in aggregate, falling by 19.6 percent year-on-year, according to Refinitiv.
Other earnings on tap this week include Bank of America, Goldman Sachs, Wells Fargo, UnitedHealth Group and United Airlines Holdings expected on Wednesday, with Morgan Stanley and Honeywell International due on Thursday.
本周其他可能公布的财报包括美国银行(Bank Of America)、高盛(Goldman Sachs)、富国银行(Wells Fargo)、UnitedHealth Group和联合航空控股(United Airlines Holdings)，预计周三将公布财报，摩根士丹利(Morgan Stanley)和霍尼韦尔国际(Honey。
Shares of Delta Air Lines dropped after the commercial carrier reported a 76 percent plunge in quarterly revenue and announced it has delayed a targeted halt to its cash bleed.
达美航空公司(Delta Air Lines)股价下跌，此前这家商业航空公司公布季度收入暴跌76%，并宣布推迟有针对性地停止现金流失。
Planemaker Boeing reported order cancellations for its grounded 737 MAX aircraft and said deliveries were less than half the number as the same month a year ago. The stock was the heaviest drag on the Dow.