Wall Street opens in fall because of the second wave of the pandemic

The new wave of the Covid-19 pandemic is causing a drop in oil prices for delivery in December. West Texas crude oil falls more than 5%. On Wall Street, the pandemic also wreaks havoc on corporate earnings. At Mastercard, UPS and Microsoft react negatively to the numbers.

Brendan McDermid / Reuters

Stock exchanges on Wall Street open lower due to the 2nd wave of Covid-19. The Dow Jones loses 1,64% to 27.011,92 points; the S&P 500 decreased 1,70% to 3.332,90 points; and the Nasdaq 100 fell 2,06% to 11.359,48 points.

Ramiro Loureiro, Market analyst at Millennium investment banking, highlights the positive reactions to the accounts of Tupperware Brands, First Solar, General Electric and Garmin.

Mastercard, UPS and Microsoft react negatively to the numbers. At Mastercard, the adjusted result and revenues are below expectations. Adjusted earnings for the third quarter were $ 3 per share, below the $ 1,60 estimated by analysts. Quarterly revenues, on the other hand, contracted 1,65% year-on-year to 14,1 billion dollars below the estimated 3,84 billion.

The operating margin for the period was 54,9%, exceeding the consensus of analysts (52,2%).

United Parcel Service (UPS) in turn exceeded quarterly earnings expectations, helped by an increase in home deliveries due to the Covid-19 pandemic. Average daily volumes in the United States increased by 13,8% thanks to the continued strengthening of demand from individuals.

Delivery volumes grew 13,8% in the United States with the increase in online purchases. In the international market, the volume grew 12%.

UPS's net profit was $ 2 billion in the quarter, 11,8% above the same period in 2019, or 10,7% on an adjusted basis.

At the macroeconomic level, it was revealed that wholesalers in the USA reduced stocks in September, while in retail there was an increase higher than expected. The preliminary figure for September shows a sequential decrease of 0,1%, when an increase of 0,4% was expected. In retail, there was an increase of 1,6%, higher than expected (0,5%).

Oil continues the downward trend due to restrictions in numerous countries to halt the second wave of the covid-19 pandemic, especially in the United States and Europe.

WTI crude for December delivery is down 5,59% to $ 37,36.

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