NEW YORK (dpa-AFX) – The US stock markets are likely to start trading on Thursday with price gains. The broker IG recently valued the Dow Jones Industrial 0.6 percent higher to 28,483 points. Market analyst Timo Emden from Emden Research said investors ticked off the disappointment after the talks about another corona stimulus package had stopped.
“With regard to the US aid package, the motto is still: ‘Postponed is not canceled’.” In view of a possible year-end rally, long-term investors could use the recent setback as an opportunity to re-enter. Last but not least, the prospect of a long phase of low interest rates creates only a few alternatives to shares, Emden noted.
Donald Trump eased his stance, at least on the point of propping up the country’s airlines, which had threatened tens of thousands of job cuts. “And the president of the central bank in the US state of Minneapolis does not consider 2.2 or 2.4, but 3.5 trillion US dollars to be a good size of the new economic stimulus package,” said analyst Jochen Stanzl of CMC Markets.
“This is not only far above the demands of the Democrats, but the expenditures for this one package would be even higher than the total debt of the US government in the current year, which would double in one fell swoop. Anyway, the stock exchanges are happy about such news, “said Stanzl.
Among the individual values, the IBM shares with a pre-market price gain of more than 10 percent are the focus of interest. The IT group focuses entirely on lucrative cloud businesses. Therefore, the division around network services for companies is to be split off and brought to the stock exchange as an independent company. The shareholders of IBM should then receive the shares in the new company. The separation should be completed by the end of 2021.
The investment bank Morgan Stanley wants to take over the asset manager Eaton Vance for around 7 billion US dollars. The shares of Eaton Vance gain more than 45 percent after the news. Morgan Stanley’s paper, however, fell 2.9 percent.
The consequences of the corona pandemic at the world’s largest fast food company McDonald’s are continuing to decline. In the third quarter, like-for-like sales worldwide fell by only 2.2 percent compared to the previous year. In the USA they even rose by 4.6 percent, while international business was still weak. In the second quarter, like-for-like sales in branches worldwide had slumped by almost a quarter. The group’s shares rose 0.4 in pre-market US trading.
Eli Lilly and Co. (LLY) announced an agreement with the Bill & Melinda Gates Foundation to deliver a potential Covid-19 antibody therapy to poor countries. The agreement makes it easier for countries to access future Lilly therapeutic antibodies, which are being developed for the prevention and treatment of Covid-19. Lilly stocks went up 2 percent before the IPO.
Regeneron Pharmaceuticals rose 4 percent in pre-market trading after filing an application with the U.S. FDA for emergency approval for its Covid-19 research treatment REGN-COV2. If the experimental antibody treatment is approved, the US government is committed to making the therapy available to all US citizens free of charge./edh/zb
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