Stocks Are Surging on Hopes for Another Stimulus Package -- Barrons.com
12:37 pm ET October 5, 2020 (Dow Jones) Print
By Teresa Rivas
Stocks are rising on Monday, as are positive Covid-19 tests at the White House. A widening lead by Democratic presidential candidate Joe Biden has some hoping that more stimulus and an uncontested election results could be ahead.
The Dow Jones Industrial Average is up 1.3%, the S&P 500 is 1.4% higher, and the Nasdaq Composite is gaining 1.7% at recent check.
Investors may be hoping that a wider lead for Biden suggests there will be less room for President Donald Trump's campaign to challenge the results, given that the he pointedly hadn't committed to accepting them in the past. (A contested election would likely put some strain on markets, many analysts say.)
Robert Teeter, a managing director of Silvercrest Asset Management, argues that the election is still a risk factor, and that "investors may be prudent to prepare for any disruptive outcome." That said, he doesn't think it will be the most important factor driving growth next year. "The most powerful influence will be the economic recovery's capacity to propel earnings growth in 2021 -- followed closely by low interest rates that will enable multiples to remain elevated."
As for individual stocks, DocuSign (DOCU) is up 5.2% following an upgrade from Morgan Stanley, given the prevalence of online signatures during Covid-19.
Starbucks stock (SBUX) is up 1.7% to $88.03 after Oppenheimer raised its price target and called it an "actionable buy."
Tesla stock (TSLA) is up 2.2% to $424.39 amid conflicting analyst opinion.
Walmart stock (WMT) is up 0.9% to $141.75, helped by a price target increase from Telsey Advisory Group, which praised its sale of a majority stake in Asda.
Write to Teresa Rivas at teresa.rivas@barrons.co
