Fed should do ‘nothing’: Mohamed El-Erian
Allianz chief economic adviser Mohamed El-Erian discusses his outlook for the Fed and the economic recovery and a European banking mega deal.
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The Dow Jones Industrial Average gained 86 points, or 0.31%, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite were 0.34% and 0.24%, respectively.
The Federal Reserve is widely expected to keep interest rates and policy on hold as it continues to monitor the U.S. economy’s rebound from the sharpest slowdown of the post-World War II era.
Looking at stocks, mega-cap tech stocks that have driven the market, including Apple Inc., Amazon Inc. and Tesla Inc. traded mixed.
A CFIUS decision on Oracle Inc.’s ȁC;trusted tech partnership” with Chinese-owned social media app TikTok is imminent.
Nikola Corp. shares were lower for the fourth time in five days as investors continued to digest a report from short-seller Hindenburg Research that accused the electric-truck maker of fraud. Nikola, which has called the claims “false and deceptive” is under investigation from the U.S. Securities and Exchange Commission.
Eli Lily reported its COVID-19 antibody treatment’s mid-stage trial reduced the hospitalization rate for patients diagnosed with mild or moderate cases.
A law firm hired by the Eastman Kodak Co.’s board of directors said securities transactions made by CEO Jim Continenza upon learning about a $765 million government loan to aid a pivot into producing generic drug ingredients did not violate internal policies. The situation remains under investigation by the U.S. regulators and Congress.
Dow component Boeing Co. made a number of missteps in the certification of the 737 Max aircraft that lead to two deadly crashes, according to an 18-month long investigation conducted by a U.S. House panel.
Looking at earnings, FedEx Corp.’s quarterly profit rose 60% from a year ago to $4.87 a share, boosted by a surge in online shopping due to COVID-19. The parcel delivery service said it will raise shipping rates by 4.9% to 5.9%, beginning in January.
Looking at commodities, West Texas Intermediate crude oil climbed 87 cents to $39.15 a barrel and RBOB gasoline jumped 1.35 cents to $1.1516 a gallon as investors priced in the possibility the slow-moving Hurricane Sally could cause flooding and keep refineries idled. Meanwhile, gold rallied $8.20 to $1,974.40 an ounce.
U.S. Treasurys were little changed with the yield on the 10-year note holding near 0.675%.
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European markets were quiet with France’s CAC up 0.12%, Germany’s DAX unchanged and Britain’s FTSE off 0.12%.
In Asia, Japan’s Nikkei edged up 0.09% as Yoshihide Suga was elected the country’s prime minister. Elsewhere in the region, Hong Kong’s Hang Seng slipped 0.03% and China’s Shanghai Composite shed 0.36%.
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