November 28, 2020

Wall Street opens in red and the Dow falls 1.18% weighed down by the financial sector



Wall Street opened in red this Friday and its main indicator, the Dow Jones Industrials, was down 1.18% weighed down especially by the financial sector, which reacted negatively to the stress tests of the Federal Reserve, and without losing sight of the increase in COVID-19 cases.

Half an hour after the start of operations on the New York Stock Exchange, the Dow Jones cut 303.93 points, up to 25,441 integers; the selective S&P 500 fell 0.80% or 24.67 points, to 3,059 points, and the Nasdaq composite index slipped 0.84% ​​or 83.79 points, to 9,933.21 points.

The New York parquet began the session on the downside, again concerned by the rise in cases of coronavirus in the US, which reached 2.4 million confirmed cases and more than 122,000 deaths on Thursday, according to Johns Hopkins University.

With an average of new daily cases above 30,000, investors are seeing plans to reopen in states such as Texas, North Carolina, Louisiana and Kansas, and how those that were once the epicenter of the pandemic, led by New York, They require quarantines for travelers from these outbreaks.

Wall Street also digested the grim results of the Federal Reserve’s stress tests, in which the institution considered that some banks could approach minimum capital levels due to the pandemic and required the largest entities to suspend their share buybacks and limit dividend payments.

The financial sector was sliding at this time 2.27%, dragged by names such as Goldman Sachs (-5.49%), JPMorgan (-3.84%), Bank of America (-3.84%) and Citigroup ( -3.13%).

Yesterday, the main banks had appreciated in reaction to the relaxation of the “Volcker rule” by federal regulators, which will allow entities to make venture capital investments more easily.

The energy sector (-1.74%), the communications sector (-1.6%) and the technology sector (-0.76%) also decreased, while the public service companies remained green (0.45). %) and essential goods (0.11%).

Among the 30 companies listed in the Dow Jones, the fall of the sportswear firm Nike stood out (-4.19%), which yesterday reported that its profit in fiscal year 2020, recently closed, fell 37% year-on-year due to the impact of the pandemic.

Also falling, in addition to the financial ones, were American Express (-2.90%), Boeing (-2.71%), Chevron (-1.84%) and Exxon Mobil (-1.62%), among others.

In other markets, Texas oil fell to $ 38.37 a barrel, gold fell to $ 1,757 an ounce, the yield on the 10-year Treasury note slipped to 0.663% and the dollar gained ground against the euro, with a change of 1,1208.

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