Weekly Analyst Update — November 2nd

Sofie Hendrick
Nov 2 · 3 min read
Image for post
Image for post

Wall Street Posts Worst Week Since March

  • The upcoming election in the US, alongside a spike in COVID-19 cases, profit-taking on earnings from some key players and uncertainty surrounding a stimulus package all led to a massive selloff in US markets.
  • As a result, Wall Street marked its worst week since March.
  • The DJ30 tumbled 6.47% this week, the SPX500 fell 5.64% and the NASDAQ100 ended the week 5.51% lower.
Image for post
Image for post
Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

US GDP Data Beats Estimates

  • Q3 GDP figures in the US came out better than expected, showing a growth of 33.1% as opposed to the 32% predicted by analysts.
  • The gain came after a 31.4% plunge in the Q2, which was the worst ever in history.
  • The previous post-World War II record was the 16.7% burst in the first quarter of 1950.

Earnings Season Continues

  • Amazon smashed analyst’s predictions, however, the company sold-off after hours in a “buy the rumour, sell the news” reaction.
  • Facebook, Google and Apple (albeit slightly) beat analyst’s expectations.
  • In the Eurozone, Royal Dutch Shell gained nearly 4% after having raised its dividend, beating earnings estimates for Q3, and ASM International gained 7.93%, after upgrading the guidance for the fourth quarter.
  • Carrefour had a great Q3, despite poor market reaction, and GE was impressive as well, gaining almost 5% on Wednesday when the DJ30 closed down by around 3%.

Bitcoin Briefly Crosses the $14K Mark

  • For the first time in more than two years, Bitcoin crossed $14,000 on Saturday, before correcting.
  • PayPal’s announcement last week that it will accept Bitcoin served as a catalyst, and now another catalyst may be needed to take the price higher.
  • Given the rising number of coronavirus cases around the world, this catalyst could be the proposed fiscal stimulus package in the US, and more importantly, its size and how it is funded.
Image for post
Image for post
Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

Lagarde Signals Policy Change

  • European markets bounced on Thursday after Christine Lagarde announced that the ECB’s Governing Council is ready to introduce substantial changes to the current monetary policy.
  • The ECB President clearly stated that the NextGeneration Recovery Fund would have a decisive impact on the recovery of the European economy.
  • Investors associated the two statements with the possibility that the ECB could finance, more or less directly, a bigger stake of the Recovery Fund.

The Week Ahead

  • US Presidential Election (Tuesday)
  • BOE rate decision and FOMC statement (Thursday)
  • US NFP Report and other job data (Friday)

Written by a team of experienced financial analysts at eToro.

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store