Wall Street trading was mainly in negative territory on Thursday, November 12, and ended with a fall in the key indexes. The worsening of the situation with the spread of COVID-19 against the backdrop of vague statistics was shot down by positive sentiment after the presidential election.
The number of initial applications for unemployment insurance for the week decreased by 48,000 to 709,000, according to data from the U.S. Labor Department, and this is the fourth weekly decline in a row. Yet the number is more than three times higher than the pre-crisis level and benefits continue to be enjoyed by more than 21 million people in the US.
Jerome Powell, Fed president, said the U.S. economic outlook remains unclear and did not have hope. And when Donald Trump loses the presidency, he refuses to discuss a new round of financial assistance for the economy.
Doctors are reporting a new spike in the country’s coronavirus cases. Since November 4, the number of cases detected has surpassed 100,000 a day with new records added every day. There are growing fears that lockdowns will have to be introduced by at least some states before the vaccine starts to reach the health system.
This isn’t as simple as it apparently looks because in Thursday session shares of Pfizer Inc (PFE), which had recently launched its highly successful vaccine, dropped 2.47 percent. At the same time, the shares of other pharmaceutical company Moderna Inc (MRNA) increased by 6.5% after the company stated that adequate data had been available for the first interim review of the third phase of its COVID-19 vaccine trials.
The Dow Jones Industrial Average dropped 317.46 points, or 1.08 percent, to 29,080 at the end of trading. The Standard & Poor’s general market index dropped to 3,537.01 after losing 35.65 points, or 1.00 percent. The NASDAQ Composite Index of high-tech companies fell to 1,1709.59 by 76.84 points, or 0.65%.
The number of stocks that dropped on the NYSE in price was 3.8 times greater than the number that closed in the positive, 2287 vs. 602, while the price of 67 shares remained largely unchanged. Just 4 stocks have raised their value as part of the DJIA including UnitedHealth Group Incorporated (UNH) up +0.77%, Johnson & Johnson (JNJ) up +0.34%, Walmart Inc (WMT) up +0.17% and The Procter & Gamble Company (PG) up +0.06%. And giants like Intel Corporation (INTC) (-3.02 percent), The Boeing Company (BA) (-2.98 percent), International Business Machines Corporation (IBM) (-2.30 percent), McDonald’s Corporation (MCD) (-2.27 percent) and Dow Inc (DOW) (-2.24 percent) forced the index down.