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Markets Tumble on "No Relief Package" Tweet

Mark Vickery
·3 mins read

Market indexes slogged forward most of the morning this Tuesday, finally looking to have gained some traction after the noon hour aheads of what was supposed to be renewed talks between House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin this afternoon. Then, a Tweet from a presumably resting President Trump as he continues his recovery from his Covid-19 infection pulled the plug on the enterprise: “I have instructed my representatives to stop negotiating until after the election…” Markets took the cue and plummeted into the red.

The Nasdaq fell furthest, -1.57% or -177.88 points; the S&P 500 -1.40%, -47.68 points, was next; the Dow was close behind, -1.34% or -375.80 points; and the Russell 2000 outperformed the field again, -0.3% or -4.67%. President Trump has indicated that he’ll be ushering in a “major” new Stimulus Package sometime after the election. As recently as this morning, Fed Chair Jerome Powell was openly clamoring for new congressional relief now, saying that even if the amounts allotted are more than necessary, they will not go to waste. “Too little support would lead to a weak recovery,” the Fed Chair said.

Ten of the 11 major sectors finished the day lower, including Consumer Discretionary, which dropped by more than 2%. Airline stocks were down — American AAL was -4.5% on the day — while Amazon AMZN fell 3% on the day. Only Utilities managed to close higher, on seasonal colder weather conditions which will bolster usage of natural gas heating through the winter months.

Levi Strauss & Co. LEVI is up more than 10% in late trading today on its Q3 earnings report after the closing bell. A loss of 8 cents per share on the bottom line was more than 3x better than the -27 cents in the Zacks consensus. Revenues of $1.06 billion also posted a major positive surprise above the $766.84 million expected. Digital Sales rose 52% year over year, with Women’s apparel up to 37% on total revenues (50% remains the company’s goal). LEVI has not missed on earnings since its IPO in early 2019, with a trailing 4-quater average beat of more than 10%. For more on LEVI’s earnings, click here.

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