Weekly Analyst Update — October 12th

Sofie Hendrick
Oct 12 · 3 min read
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Wall Street Registers best week Since August

  • The DJ30, SPX500 and NASDAQ100 all closed higher on Friday.
  • For the DJ30, this was the best week since August, while the SPX500 and NASDAQ100 registered the best weekly gains since July.
  • The gains come during a very eventful week in the US.
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Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

Trump’s Health and Stimulus Talks Impact Markets

  • After contracting COVID-19, Trump was released from the hospital, saying he is feeling better.
  • On Tuesday, Trump surprised everyone when he announced that he is ordering to end stimulus negotiations with the Democrats
  • However, the next day Trump said he is favour of a rapid implementation of targeted measures, allocated in particular to households, airlines and SMEs.
  • Later, Treasury Secretary Steven Mnuchin told Democrat House Speaker Nancy Pelosi that Trump wants a comprehensive aid plan.

Airlines Lifted by Stimulus Hopes

  • Airline stocks were amongst the winners this week, as the current stimulus package entitles a $25 billion lifeline for them.
  • United Continental, American Airlines and Delta were all extremely volatile this week, but ended with noticeable gains.
  • In the UK, IAG and Rolls Royce both registered double-digit moves on Thursday, rising 25% and 10% respectively.

Oil Shows Recovery on Positive Outlook

  • The black gold rose for four consecutive sessions last week, before correcting on Friday.
  • On Thursday, OPEC said it expects global oil demand to exceed pre-pandemic levels in 2022 and grow steadily until the late 2030s, when it will begin to plateau.

Bitcoin Jumps Above $11K

  • The long-awaited milestone was finally breached on Friday, as Bitcoin surged past it and continued to climb over the weekend.
  • Square Inc. announced on Thursday that they have purchased approximately $50 million worth of Bitcoin, which may be one of the reasons for the recent uptick.
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Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

Big Banks to Kick off Earnings Season

  • JPMorgan, Citi, Wells Fargo and Bank of America will all released their earnings reports next week.
  • It has been a tough quarter for banks, with low rates and impending defaults. However, there has also been a swathe of IPOs which are a money-spinner. This could mean that low expectations may surprise to the upside.
  • The entire sector has rebounded for the past two weeks, as S&P500 banks climbed 8% over the period.

The Week Ahead

  • Banks in the US and Canada are closed today due to national holidays.
  • Retail sales reports to be released in the US on 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.

Sofie Hendrick

Written by

Employee at Delta Crypto Portfolio Tracker

Delta — Bitcoin & Crypto Portfolio Tracker

Delta — Keep track of Bitcoin & 7000+ other cryptocurrencies, manage your investments, get the latest coin price and more.

Sofie Hendrick

Written by

Employee at Delta Crypto Portfolio Tracker

Delta — Bitcoin & Crypto Portfolio Tracker

Delta — Keep track of Bitcoin & 7000+ other cryptocurrencies, manage your investments, get the latest coin price and more.

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