Text size
A face mask and debate program are left on the floor following the conclusion of the first presidential debate on Sept. 29, 2020, at Case Western University and Cleveland Clinic, in Cleveland, Ohio.
AP
U.S. stock futures and European equities were under pressure on Wednesday, as investors struggled to make sense of a fiery U.S. presidential debate, and analysts tried to determine whether that caustic exchange will move the needle on the November election.
Futures for the
Dow Jones Industrial Average
were down 195 points, or 0.7%. S&P 500 futures were off by 0.5% and Nasdaq Composite futures slid 0.7%.
In U.S. economic data, private sector payrolls increased by 749,000 in September, according to an ADP report. Revised second-quarter gross domestic product data showed a decline of 31.4%, compared with an earlier reading of a decline of 31.7%.
Amid choppy trading, the
Stoxx Europe 600 index
was last down 0.2%. The index was poised for a gain of just 0.3% in the quarter, but around a 1.4% drop for September, the biggest monthly drop since March, according to Dow Jones Market data.
Some analysts attributed the futures drop to the perception that Democratic candidate Joe Biden might have cemented his poll gains over President Donald Trump. A Biden win has been perceived as a negative for Wall Street, on the view he would introduce higher corporate and capital-gains taxes.
Trump and Biden argued and spoke over each other during the closely watched debate, but failed to debate on key policy points.
“The concern for Democrat Biden’s camp ahead of the debate was fluency on the night. He passed that test, but not with flying colors,” said Stephen Innes, global chief market strategist at AxiCorp, in a note to clients.
“But the extent to which the debate matters for markets is whether ‘undecideds’ are swayed either way. Polls in the coming days could provide more color on any movement,” added Innes. Investors remain concerned that a contested election result could drag on for weeks
Elsewhere, Asian markets finished mixed. Data showed China’s economic recovery continuing to gather steam, following its coronavirus outbreak earlier in the year. A survey of Chinese manufacturers showed economic activity increasing, while the official manufacturing PMI climbed as well.
Walt Disney
(ticker: DIS) shares fell 1.7% after the company announced late Tuesday that it was laying off 28,000 workers due to the impact of the coronavirus pandemic. The company closed its theme parks earlier this year and all but Disneyland in California have reopened—albeit at reduced capacity.
Micron Technology
(MU) shares slid 3.8% despite reporting financial results that came in ahead of analyst expectations. Investors instead worried that the company said it expected profit margins to be pressured in the early part of 2021.
Regeneron Pharmaceuticals
(REGN) shares climbed 2.3% after it said its experimental COVID-19 antibody cocktail reduced the viral load and improved symptoms in non-hospitalized COVID-19 patients.
Moderna
(MRNA) shares advanced 3.8% after announcing its experimental Covid-19 vaccine showed signs of working in older adults.
In the U.K., oil major
Royal Dutch Shell
announced it would eliminate up to 9,000 jobs by the end of 2022, as it expects to book charges of between $1.0 billion and $1.5 billion in the third quarter.
And deal news for the betting industry came as
Caesars Entertainmen
t said it had agreed a 272 pence per share deal for
William Hill,
which values the U.K. betting company at $3.37 billion (£2.9 billion). Caesars shares climbed in premarket trading, while William Hill shares were unchanged.
Write to Barbara Kollmeyer at [email protected] and Carleton English at [email protected]