The Dow Jones Industrial Average closed at 28,494.20 on Thursday with a loss of 19.80 points or -0.07%. The S&P 500 closed at 3,483.34 for a loss of 5.33 points or -0.15%. The Nasdaq Composite closed at 11,713.87 for a loss of 54.86 points or -0.47%. The VIX Volatility Index was higher at 26.95 with a gain of 0.55 points or 2.08%.
Thursday's market movers
The major U.S. indexes closed lower for a third day. Investors were watching coronavirus cases and resurgence reports with fears of a second wave affecting the economy. Nearly half of U.S. states reported more than 1,000 new cases. Across the globe, Germany reported a record number of new cases with new restrictions in Berlin. London will also impose a new level of caution with high-alert restrictions beginning Friday.
Morgan Stanley (MS, Financial) released earnings from the big banks. Revenue of $11.7 billion increased 16.7% year over year and beat estimates by $1.09 billion. Third-quarter GAAP earnings of $1.66 per share beat estimates by 40 cents and non-GAAP earnings of $1.59 beat estimates by 31 cents.
In other news:
- The biotech sector led losses for the day.
- Kamala Harris canceled campaign travel through the end of the week due to a coronavirus case.
- Trump and Biden will be doing separate town hall televised events this evening on separate channels.
- Dow Jones component Walgreens (WBA, Financial) reported earnings and gained 4.82% for the day. Revenue of $34.75 billion increased 2.4% year over year and beat estimates by $390 million. Fourth-quarter GAAP earnings of 43 cents missed estimates by 28 cents and non-GAAP earnings of $1.02 beat estimates by 6 cents.
- Charles Schwab (SCHW, Financial) reported earnings and gained 5.15%. Third-quarter revenue was $2.45 billion and GAAP earnings were 48 cents per share.
Across the board, the following stocks reported leading losses and gains:
- Alexandria Advantage Warranty Co. (AAWC, Financial) +15.00%
- Zoom Video Communications (ZM, Financial) +5.33%
- Alcoa (AA, Financial) -5.38%
- Vertex Pharmaceuticals (VRTX, Financial) -20.70%
Economic reports affecting market trading included the following:
- Export and import prices were released. Export prices increased 0.6% in September and decreased 1.8% year over year. Import prices increased 0.3% in September and decreased 1.1% year over year.
- 898,000 Americans filed for jobless claims, up from the previous week's 845,000. Continuing jobless claims were 10.018 million, down from 11.183 million.
- The New York Empire State Manufacturing Index decreased to 10.50 in October from 17.
- The Philadelphia Fed Manufacturing Index increased to 32.3 in October from 15.
- Crude oil inventory decreased by 5.0 million barrels, according to the EIA's Weekly Petroleum Status Report.
- The Treasury held auctions for four-week bills at a rate of 0.090% and eight-week bills at a rate of 0.095%.
- Freddie Mac released its weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 2.81%, down from 2.87%. The 15-year fixed-rate mortgage averaged 2.35%, down from 2.37%.
Small-cap stocks
In small caps, the Russell 2000 closed at 1,638.88 for a gain of 17.23 points or 1.06%. The S&P 600 closed at 929.57 for a gain of 12.22 points or 1.33%. The Dow Jones U.S. Small-Cap Growth Index closed at 11,601.23 for a gain of 67.55 points or 0.59%. The Dow Jones U.S. Small-Cap Value Index closed at 7,362.67 for a gain of 102.55 points or 1.41%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,002.82 for a gain of 18.54 points or 0.93%; the S&P 100 at 1,610.76 for a loss of 4.56 points or -0.28%; the Nasdaq 100 at 11,898.57 for a loss of 86.79 points or -0.72%; the Russell 3000 at 2,051.99 for a loss of 1.26 points or -0.061%; the Russell 1000 at 1,947.58 for a loss of 2.54 points or -0.13%; the Wilshire 5000 at 35,801.86 for a loss of 25.41 points or -0.071%; and the Dow Jones U.S. Select Dividend Index at 618.66 for a gain of 3.85 points or 0.63%.
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