Wednesday, October 21, 2020 – U.S. equities are poised for a muted open on Wednesday, as investors digest a slew of earnings reports and continue to monitor progress on a fiscal stimulus bill. The Dow and S&P 500 are both little changed, while the Nasdaq 100 is down 0.1% in pre-market action. Yesterday, stocks and longer-dated Treasury yields rose after House Speaker Nancy Pelosi expressed optimism after reportedly narrowing differences during discussions with Treasury Secretary Steven Mnuchin. However, the two sides were unable to reach an agreement before yesterday’s self-impose deadline, but the White House and Democrats will continue talks this week.

In earnings, Netflix is sliding 5.4% after the streaming giant’s earnings and subscriber growth metric both fell short of analysts’ projections. Meanwhile, social media company Snap is surging 21.3% after reporting a surprise profit in the third quarter and exceeding Wall Street’s estimates for daily active users.

Today’s lone economic update showed MBA mortgage applications dipped 0.6% in the week ending October 16. In central bank news, the Federal Reserve will release its Beige Book at 2pm ET. A slew of Fed speakers may also garner attention, with six different officials scheduled to give remarks today. Treasuries are weakening, with the yield on the 10-year Treasury trading above 0.80% for the first time since June.

Overnight in Asia, China’s Shanghai Composite fell 0.1%, while Hong Kong’s Hang Seng Index rose 0.8%. Across the pond, the Euro STOXX 600 is retreating 0.9%. The FTSE 100 is falling 1.2% with Prime Mister Boris Johnson suggesting regional COVID-19 related lockdowns.

Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. ©2019 Wells Fargo Clearing Services, LLC. All rights reserved. CAR# 1018-02987, 0819-00261.

Brought to you by Benjamin J. Chuckrow

Benjamin J. Chuckrow
Senior Vice President – Branch Manager
Wells Fargo Advisors
37 Henry Street, Suite 201
Saratoga Springs, NY 12866
Office 518-581-5049
Fax 518-581-5055
Cell 518-316-3848
ben.chuckrow@wfadvisors.com
www.chuckrow.wfadv.com

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.