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By Alex
Eule | Wednesday, October 28 It
Gets Worse. Covid-19 cases are
mounting, and Europe is imposing
new lockdowns. That combination led to the sharpest selloff on
Wall Street since June, with the Dow
Jones Industrial Average down 943 points, or 3.4% and the S&P
500 down
3.5%. It was the 15th day this year that the Dow has posted a loss of 3% or
more, the highest figure since 1933. (To be fair, the Dow has also risen 3% or
more 12 times in 2020.) Tech stocks,
the one-time hideout, aren't doing much to help markets. The Nasdaq
Composite finished the day down 3.7%. Microsoft fell
5% despite a relatively strong earnings
report last night. That continues investors' relatively muted
response to third-quarter earnings season. One positive
sign tonight: Shares of Pinterest soared 30% in late trading after the
company reported a surge in
revenue for the latest quarter. That follows Snap's strong
report last week, and it's another good indicator for online advertising. Facebook, Alphabet,
and Twitter are
scheduled to report after the market closes tomorrow, along with Apple and Amazon.com. A series of
blowout results could still manage to turn the market around. Tech, after
all, led the market out of its last abyss. You can find all of Barron's earnings coverage here. After a
period of overlooking the negatives, are investors now being too
pessimistic? The stimulus has been delayed, at the very least, but Covid
treatments are making progress. Investment managers at UBS see the pullback
as a buying opportunity. "Progress
toward a vaccine and continued stimulus means that investors use this
period of volatility to plan their market entry," Mark
Haefele, chief investment officer
at UBS Global Wealth Management, wrote to clients today. "So we
believe investors should seek to put further Covid-19-related restrictions
in perspective and see market setbacks as an opportunity to build
exposure in the winners from the next leg up." |
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DJIA: -3.43% to 26,519.95 The Hot
Stock: Automatic Data
Processing +6.2% Best Sector:
Real Estate -2.2% |
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