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Major Dow Futures traded lower early Monday morning as the market prepares for pre-Election Day trading. Dow Jones Industrial Average plunged 180 points while S&P and NASDAQ also experienced negative trading values.
The poor futures performance came amid the record-high coronavirus cases in the country. Last Friday and Saturday, U.S. new Covid-19 cases surged 83,000 with outbreaks in the continental states like Alabama, Arkansas, California, Florida, Louisiana, Nevada, Mississippi, New Mexico, North Carolina, South Carolina, Texas, and Tennessee.
The new coronavirus records surpassed previous data at around 77,300 new cases in July, based on the gathered data by John Hopkins University.
Meanwhile, Mark Meadows, White House chief of staff, said that the government wouldn’t control the pandemic in the middle of the rise in new coronavirus cases. Just recently, several of Vice President Mike Pence’s staff tested positive for Covid-19; however, his office released updates that he has no plans to go on quarantine.
It is the final week of October and the last week before November 3. Top futures stocks have experienced moderate gains in October, with NASDAQ and S&P 500 surging above 3%.
Among the stocks showing their best performance this week are Apple, Amazon.com, Facebook, Goggle, Shopify, AMD, ServiceNow, and Twilio. Included in the IBD leaderboard are Tesla, Adobe, Microsoft, and Salesforce.
Included in the long-term IBD leaders are Adobe, Salesforce, and Microsoft. These massive tech companies have maintained their 10-week averages and experts say that the 10-week line is the best time to invest in long-term IBD leaders. However, investors must still exercise caution and wait for these stocks to gather more strength.
Tesla has also landed support as it nears its 10-week line. And with sell signals not too far from happening, the electric car manufacturer’s news cycle may slow down longer. The Dow Jones futures plunged 0.6% compared to fair value. NASDAQ 100 futures plummeted 0.5% while S&P 500 futures also sank 0.65%.
Another factor causing pressure in the market is the stalled stimulus package. House Speaker Nancy Pelosi said that President Donald Trump is to blame for the absence of a stimulus deal. Treasury Secretary Steven Mnuchin has been in talks with Speaker Pelosi, and he mentioned that the government had provided alternatives, but Pelosi would disagree on a compromise.