Stocks New York Outlook: Stable expected – Snap convinced, Netflix disappointed | 10/21/20

NEW YORK (dpa-AFX) – After a weak start to the week and a moderate recovery on Tuesday, the US stock exchanges should be stable in the middle of the week. Three quarters of an hour before the start, the broker IG assessed the Dow Jones Industrial (Dow Jones 30 Industrial) with 0.03 percent plus to 28,317 points. The topics are still the same: In addition to a few mixed quarterly reports, the focus is still on negotiations between the US government and the Democrats on another economic stimulus package. In addition, the corona infection numbers in the USA remain a risk factor for the stock market.

The experts at Index-Radar also see chart-technical risks for the Dow. More sales in the direction of 28,000 points or even up to 27,100 points are to be expected. “Upward swings, on the other hand, are likely to expire between 28,900 and 29,000,” wrote chart technology analyst Andreas Büchler.

Among the individual stocks, the shares of Snap stood out above all with a plus of 22 percent. The growth of the Snapchat photo app amid the corona pandemic made a big impression on investors. Numerous analysts then raised their price targets, including JPMorgan, Credit Suisse and Barclays.

Netflix (Netflix), however, disappointed. After the corona-related subscription boom in the first half of the year, the number of customers for online video services declined sharply in the third quarter. Netflix missed its own forecast and remained far below the analysts’ expectations. The increasing competition in the streaming business is troubling the market leader. The share fell by 5.4 percent before the IPO. Since the beginning of the year, however, the price has already risen by a little more than 60 percent.

In comparison, the stock of Texas Instruments (TI) showed little activity before the trading day. The US chip company expects more sales for the current quarter than analysts currently have on the slip. This was received positively and numerous analysts also raised their price target for TI, but after the record high about a week ago, the air is now apparently thinner. The share recently fell by 0.6 percent.

The pharmaceutical company Abbott Laboratories and the biotech company Biogen also presented figures. While Abbott returned to strong growth due to the high demand for corona tests, Biogen lowered its financial outlook for 2020. Generics made tough competition for the multiple sclerosis drug Tecfidera in the third quarter. Before trading started, Abbott gained 1 percent and Biogen lost 1 percent. The car manufacturer Tesla is expected with quarterly figures this evening after the stock market closes.

Takeover issues are also in view: The Spanish electricity company Iberdrola (Iberdrola SA) wants to take over the US energy company PNM Resources, which gave the US share a pre-trading boost of a little more than 9 percent. NVIDIA, meanwhile, lost 0.5 percent. According to insiders, the planned takeover of the chip designer ARM by the graphics card specialist has met with considerable opposition from Chinese technology companies./ck/jha/

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