US Stocks Market Overview – Stocks Rise as Political Risks FadePMI services come out in line with expectations
US stocks moved higher on Monday as concerns about President Trump’s COVID-19 health dissipated. The communication has been mixed, with several doctors and confidants telling the press different stories. President Trump’s press secretary announced on Monday that she has COVID-19 which means there will be little information coming from anyone other than the President. US PMI Service was slightly lower but in line with expectations shows that this sector of the US economy is continuing to grow.
All sectors in the S&P 500 index were higher on Monday, driven up by Energy shares, while real estate was the worst-performing sector. Two tropical storms are forming in the Gulf of Mexico which buoyed both crude oil and natural gas prices which helped drive energy shares. US yields moved higher on Friday, which helped buoy the financial sector but weighed on real estate. Regeneron Pharmaceuticals shares rose after the White House said that President Trump received an eight-gram dose of Regeneron’s antibody-drug cocktail as a precautionary measure. The Internal Revenue Service is investigating National Rifle Association CEO Wayne LaPierre for possible criminal tax fraud related to his taxes.
US Services PMI Rises
The September US Services Purchasing Managers’ Index conducted by Markit came in at 54.6 percent, down 0.4 from the final August estimate of 55.0. The consensus was for 54.6 percent. New orders for services grew at an increased rate in September, putting additional pressure on operating capacity and fuelling another robust rise in employment.
Cineworld is Closing US and UK Locations
Cineworld has decided that the movie chain will close its U.S. and U.K. locations because there are not enough blockbuster movies being released to attract attendees during the pandemic. The parent of Regal Cinemas will temporarily shutter its more than 500 U.S. theaters as well as its 127 Cineworld and Picturehouse locations in the U.K.