Wednesday, September 30, 2020

Third Quarter In The Books

By Nicholas Jasinski |  Wednesday, September 30

Progress. Investors who were disheartened by last night's presidential debate may have been pleasantly surprised by some bipartisan rumblings on the fiscal stimulus front today. House Speaker Nancy Pelosi said she was "hopeful" about a deal, while Treasury Secretary Steven Mnuchin promised to give it "one more serious try."

Pelosi and Mnuchin failed to come to an agreement today, but both said they would continue to speak in the coming days. There likely remains a wide gap between Democrats and Republicans regarding the size and scope of a coronavirus relief and fiscal stimulus package, but today represented marginal progress nonetheless.

The S&P 500 ended the third quarter with a 0.8% gain, while the Dow Jones Industrial Average added 1.2%, and the Nasdaq Composite rose 0.7%. The indexes are up 8.5%, 7.6%, and 11%, respectively, over the past three months.

The market also saw a pair of direct listings today. Data mining firm Palantir made its debut at $10 a share, above its $7.25 "reference price" from last night. The stock closed at $9.73, giving the company a valuation of roughly $22 billion. Eric Savitz spoke with Palantir's COO Shaym Sankar today.

Cloud-based project management software company Asana likewise traded well above its reference price of $21. The stock opened at $27 and rose to $29.96 by the close. That makes it worth about $4.6 billion. Eric covered Asana's direct listing today as well.

After the bell, the Federal Reserve said it would extend by at least another quarter limits on dividends and share repurchases for banks with more than $100 billion in assets. The capital-return restrictions have been in place since June, and are designed to ensure that banks are sufficiently capitalized to handle potential loan losses.

The extension wasn't entirely surprising to investors, Carleton English wrote this evening, but still makes it hard to love big bank stocks. Read the rest of her report here.

No comments:

Post a Comment