Wall Street on the rise driven by new support measures

  •   09/10/2020 - 09h47
  •   HARMANT Adeline

During yesterday's session, the Wall Street stock market moved very strongly in the green following Donald Trump's announcement that he is now in favour of support measures for the airline industry and American households, whereas he had previously decided to interrupt budget negotiations.

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Wall Street on the rise driven by new support measures
Image copyright: krispdk - Flickr

U.S. indexes on the rise :

During the last session, the Dow Jones index gained 1.91% to 28,303.46 points, its best performance since July, while the Nasdaq gained 1.88% to 11,364.60 points and the S&P rose 1.74% to 3,419.44 points.

The New York stock exchange had nevertheless finished in the red the day before after Doland Trump's tweets announcing the end of discussions with the Democrats on the new plan to help households and businesses. Later in the evening he called on Congress to immediately pass new measures to extend aid to the aviation sector and small businesses. He also announced his agreement for $1,200 cheques for American households.

This decision is no doubt due to the fact that Donald Trump also saw the markets decline Tuesday night after his announcement, which prompted him to turn around immediately. However, questions remain as to whether Republicans and Democrats in Congress will be able to find common ground before the presidential election. Thus, the absence of a new budget support package before November could heavily penalise large listed companies and several US airlines.

 

Rising stocks on Wall Street:

The stocks that benefited the most from this announcement include United Airlines, up 4.30%, Delta Airlines, up 3.51%, and American Airlines, up 4.31%.

The cruise sector is not to be outdone with a 5.27% increase in the Carnival share, 4.53% for the Norwegian Cruise Line share and 2.78% for the Royal Carribbean share, which are highly dependent on the economic recovery.

The other values to follow are notably the Levi Strauss share which gains 5.09% thanks to a significant increase in sales since the beginning of the health crisis on jeans which now generate a quarter of the group's income as announced on Tuesday evening.

The Disney share also rose by 1.64%, while activist investor Dan Loeb called on Wednesday for the group to suspend dividend payments to its shareholders in order to further finance its streaming platforms in a still unstable context in the entertainment sector.

Finally, Eli Lilly shares also rose by 3.35% following Wednesday's announcement of the filing of an emergency application for approval of a synthetic antibody treatment against Covid-19, of the same category as the treatment administered to President Donald Trump last week.