US markets set to open little changed ahead of latest election debate between Donald Trump and Joe Biden

US markets set to open little changed ahead of latest election debate between Donald Trump and Joe Biden

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US benchmarks are set to open little changed on Thursday ahead of tonight’s election debate between President Donald Trump and Democratic Party challenger, Joe Biden, and with a big batch of corporate earnings to digest once again. Spread betting quotes indicate the S&P 500 is set to open little changed while the Dow Jones Industrials Average is expected to dip 17 points to 28,194. But the Nasdaq Composite is seen opening 204 points higher at 11,688 helped by results from electric car maker Tesla Inc (NASDAQ:TSLA) last night showing record revenue which beat analyst expectations. As well as the presidential election debate to look forward to, traders can also continue to experience the world’s most boring spectator sport, the negotiations over the US fiscal stimulus package. “The back and forth between the Democrats and the Republicans seems to be never-ending and traders are getting sick of the negotiations dragging on. The mood is a little downbeat because all the while that US politicians are squabbling, the health crisis is getting worse. “Traders are not cutting and running from equity markets because there is a view that some sort of a package will be agreed upon eventually, the US economy needs assistance but there isn’t much hope that it will be achieved soon,” said CMC’s David Madden. Meanwhile, alarm bells have been set jangling by accusations that Iran and Russia have attempted to interfere with the US election. “As the US election draws closer, the warning that Russia and Iran have attempted to interfere with the US election serves as a reminder that there is still a range of scenarios that could play out come November 3,” said Saxo Bank’s Eleanor Creagh. “Another potential complication in the offing is the rising COVID-19 case count, which continues to trend higher. According to Bloomberg, New Jersey recorded its highest case count since July, along with 10 other states, including Wisconsin, Iowa, Nebraska and Ohio. Hospitalisations and ICU cases have also risen, although the silver lining, deaths are yet to follow suit,” she noted. On the macroeconomic stage, several US economic releases are scheduled, including the latest weekly jobless claims figures, existing-home sales data and the Conference Board’s leading index for September. Five things to watch on Thursday: Tesla Inc posted its fifth consecutive quarterly profit on record revenue after-hours on Wednesday, beating analysts’ estimates thanks to an increase in vehicle deliveries. The firm’s revenue rose to $8.77 billion, up from $6.30 billion a year earlier above consensus expectations for $8.36 billion. Coca-Cola Co beat quarterly revenue expectations as the world’s largest soda maker benefited from the partial reopening of theaters and restaurants shut for months by the coronavirus (COVID-19) pandemic, with organic sales down 6% for the three months ended September 25, 2020, an improvement from a 26% fall in the second quarter. American Airlines Group Inc has reported a third straight quarterly loss impacted by a slump in travel globally due to the coronavirus (COVID-19) pandemic, with the group’s third-quarter cash burn rate at about $44 million per day, compared with about $58 million a day in the second quarter. AT&T Inc said the coronavirus pandemic had taken a heavy toll on its media business, but stronger than expected gains in new phone subscribers, due to offers for its HBO Max streaming service for free on certain phone plans, helped it beat quarterly revenue expectations. Total revenue was $42.3 billion during the third quarter ended September 30, exceeding the average analyst expectation of $41.59 billion. Goldman Sachs Group Inc this week will agree to pay more than $2 billion to settle US charges over its role in Malaysia’s 1MDB corruption scandal, lifting a dark cloud that has hung over the bank for years.

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