Stock market: New York closes its schools, Wall Street turns red

(Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange ended lower on Wednesday after a trend reversal when New York City announced the upcoming closure of its schools due to the resurgence of COVID-19.

The clues

In Toronto, the S&P/TSX ended the day with a decline of 58 points, or 0.34%, to 16,889 points.

On Wall Street, the composite index S&P 500 lost 41 points, or 1.16%, to 3,567 points.

The index saw the Dow Jones dropped 344 points, or 1.16%, to 29,438 points.

The Nasdaq fell 97 points, or 0.82%, to 11,801 points.

The context

On Tuesday, the Dow Jones lost 0.56%, the S&P 500 0.48% and the Nasdaq fell 0.21%.

New York’s place, which was modestly well oriented in the morning, slipped into the red as soon as the mayor of New York announced the closure of the city’s public schools on Thursday.

“We have reached the threshold of 3% test positivity: unfortunately, this means that schools will be closed as of Thursday, November 19 as a precaution,” tweeted Mayor Bill de Blasio.

“It has been negative for the market,” Gregori Volokhine of Meeschaert Financial Services immediately noted.

“The markets have in mind now that it will be a difficult period, this second wave, but they also have in mind that almost every two or three days we wake up with positive news about a vaccine,” he said. he explains.

“Sooner or later things will get really better at the level of the epidemic and that will limit the abrupt movements”, he believes.

Art Hogan of National Securities, also stressed that this decline of Wall Street was “modest in view of its very high level”. Monday the Dow Jones had broken a record.

In the morning, the stock market had reacted well to the news that the vaccine from the laboratories Pfizer (whose share took 0.75%) and BioNTech (+ 4.04%) was 95% effective in preventing COVID-19, according to full results from their clinical trial.

This level similar to that of Modern (-4.57%) increases the chances that at least one vaccine will be able to start being injected in Americans before the end of the year.

For Boeing, the surge was short-lived. The title of the aircraft manufacturer, which was up during the session after the authorization granted Wednesday by the United States Aviation Agency (FAA) to the 737 MAX to fly again, nevertheless ended down (-3.36%) .

The plane has been grounded for almost two years following two accidents that killed 346 people in a five-month interval.

“After a first reaction of enthusiasm, investors realized that Boeing was going to end up with 400 MAX on the arms which were built but which are not yet in firm orders (…) while the airlines are bloodless” , underlined the expert from Meeschaert.

In supermarkets, Target gained 2.36% after better than expected results, boosted by online orders delivered to store doors.

In the bond market, the yield on US 10-year debt rose a little to 0.8701% from 0.8570% the day before.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.