On the evening of the 19th, Beijing time, US stocks opened higher on Monday, led by technology stocks. The improved outlook for fiscal stimulus helped the market temporarily overcome fears of a surge in coronavirus cases. Pelosi said she was happy to launch a new stimulus package as soon as possible, but set a 48-hour time limit for talks. Trump hinted at a bigger stimulus package.
Technology stocks such as Netflix (NFLX), Apple Inc (AAPL) and Amazon.Com Inc led the gains.
On the earnings side, Halliburton lost money for the fourth quarter in a row, indicating that the oil industry is still in trouble. After the set, IBM, Logitech will announce the financial results.
Today (October 19) marks the 33rd anniversary of Black Monday in 1987: on October 19, 1987, global stock markets plummeted under the leadership of the Dow, sparking panic in financial markets and the recession that followed in the late 1980s.
The outlook for fiscal stimulus is improving. Trump hinted at a bigger stimulus.
Speeches by US government officials and members of Congress over the weekend boosted optimism about the passage of anti-epidemic fiscal stimulus measures ahead of the November 3 election.
In comments to reporters in Nevada on Sunday, US President Donald Trump said he wanted to pass a "larger number" than House Speaker Nancy Pelosi called for a plan. Trump said in an interview with the media: "whether it is 1.8 trillion, 2 trillion or 2.2 trillion, I am willing to provide a larger number of stimulus right away."
Earlier this month, Democrats in the House of Representatives voted to approve a $2.2 trillion aid package.
Trump's comments suggest that he will support a proposal that is larger than the $1.8 trillion plan he finally proposed last week. Republican congressmen will support his plan. But some people doubt the feasibility of Trump's plan.
Pelosi said she was happy to launch a new stimulus package as soon as possible, but she set a Tuesday deadline for reaching a stimulus deal with the Trump administration before the election.
Pelosi said on Sunday that there are still differences between Congress and the Trump administration on reaching a broad epidemic relief plan. While she was happy that the legislation might be passed before election day, she admitted that an agreement would have to be completed within the next 48 hours.
Pelosi and Finance Minister Mnuchin will discuss a stimulus deal of about $2 trillion again on Monday with a view to bridging their differences. Pelosi gave the White House a 48-hour deadline to complete the coronavirus stimulus deal, Pelosi's top aide tweeted Saturday night.
The White House has previously proposed a $1.8 trillion stimulus package. Pelosi rejected the offer and insisted on her proposed $2.2 trillion bailout and stimulus package. But Republicans who control the Senate are reluctant to pass another massive bailout bill.
Mitch McConnell, the Republican leader in the US Senate, said at the weekend that the Senate would vote on Wednesday on a $300 billion bailout bill that covers only a handful of measures and excludes plans demanded by Democrats to allocate funds to state and local governments.
U.S. Treasury spokesman Monica Crowley tweeted that Pelosi continued talks with U.S. Treasury Secretary Mnuchin, the main negotiator of the fiscal stimulus package, over the weekend and will speak again on Monday.
Drew Hammill, a spokesman for Pelosi, said that during the weekend talks, "despite some encouraging news in terms of virus testing, much remains to be done to ensure that comprehensive virus testing programs and other measures, including contact tracking, are in place to address the disproportionate impact of the virus on communities of color."
Jim Reid, a strategist at Deutsche Bank, said the current news "brings some hope to the bumpy market in recent weeks".
"it seems that the market is actually optimistic about the stimulus bill, whether it's tax cuts under Trump or spending increases under Biden," said Ben Emons, general manager of Medley Global Advisors.
The global epidemic situation is grim. The total number of cases has exceeded 40 million.
As the two parties in Congress continue to wrestle over the fiscal stimulus package, the market is aware of the severe global coronavirus epidemic. According to Johns Hopkins University, the total number of cases worldwide has exceeded 40 million, an increase of more than 400000 in a single day for the first time.
Data from Johns Hopkins University also showed that more than 57000 new cases were reported in the United States on Saturday, an improvement from the 69000 reported last Friday (the highest number of one-day confirmed cases since late July). But it still means that the number of new confirmed cases per day exceeds 50, 000 for five consecutive days. The southern and Midwestern states of the United States accounted for the highest number of new cases.
In terms of vaccine research, the vaccine developed by AstraZeneca PLC and Oxford University is undergoing phase III clinical trials, which means the vaccine will be available on a large scale as early as December.
Pfizer Inc said on Friday that it may apply for emergency use authorization for the coronavirus vaccine next month.
On the overseas economic data side, China announced on Monday that GDP grew by 4.9% in the third quarter from a year earlier, which was lower than the expected 5.2%, but significantly higher than the 3.2% in the second quarter. China's GDP contracted by 6.8% in the first quarter, and today's figures mean that China has become the first major economy to return to growth.
Focus stocks
Hertz, a car rental company, received a $1.65 billion DIP financing commitment, up more than 140 per cent in the previous session.
Tesla, Inc. is said to have exported Chinese-made Model 3 to Europe. It is rumored that the Model 3 turned out of control and hit someone, and Tesla, Inc. said he had been involved in the investigation.
Halliburton, the world's second-largest oil field service provider, lost money for the fourth consecutive quarter due to plummeting demand and falling oil prices. Halliburton's total revenue fell 46.4 per cent to $2.98 billion in the third quarter, below market expectations of $3.09 billion, with North America, which accounts for half of revenue, down 66.6 per cent to $984 million. The net loss was $17 million, compared with a profit of $295 million in the same period last year.
Pfizer Inc may apply for authorization for emergency use of coronavirus vaccine next month. Pfizer Inc is expected to apply for emergency use authorization for its COVID-19 vaccine in the United States in late November, the company said on Friday. If the application is successful, it means that the vaccine could be available in the United States by the end of this year.
ConocoPhillips announced that he would buy all shares of Kangqiao Resources Company at a price of 9.7 billion US dollars.
Nokia was chosen by the National Aeronautics and Space Administration (NASA) to build its first cellular network on the moon.
Gilead Sciences Inc said he was discussing the treatment of Redcivir with Turkey.
Barclays raised its target price for Starbucks Corp from $94 to $101 and its target price for AMD from $75 to $85.
Mizuho raised the price of Gaotong from $105 to $145.