Stocks fell on Wednesday, giving back an earlier gain, after comments from Treasury Secretary Steven Mnuchin dampened expectations of a deal being reached on new coronavirus aid.
The Dow Jones Industrial Average dropped 98.39 points to greet noon Wednesday at 28,581.42.
The S&P 500 fell 14.97 points to 3,496.96.
The NASDAQ jettisoned 66.86 points to 11,797.03.
Mnuchin said around midday that getting a deal done before the election would be difficult, adding that both sides were still far apart on certain issues. He also noted, however, that Democrats and Republicans are making progress in some areas.
His comments came after the White House recently proposed $1.8 trillion for an aid package, which House Speaker Nancy Pelosi said “falls significantly short” of what is needed. On Tuesday, Senate Majority Leader Mitch McConnell said that the Senate will vote on a limited stimulus bill later this month, which will be “targeted relief for American workers, including new funding” for Paycheck Protection Program small business loans.
The major averages were higher earlier in the day as traders pored through another batch of corporate earnings.
Goldman Sachs reported quarterly earnings that were much better than expected. The company’s results were driven in large part by strong bond-trading revenue. However, Goldman shares were down slightly. UnitedHealth reported better-than-expected earnings and revenue for the previous quarter, but the stock fell more than 2%.
Bank of America’s earnings topped analyst expectations but the bank’s revenue missed the mark, sending the stock down 2%. Wells Fargo shares dipped more than 4% as the bank’s third-quarter earnings missed expectations. The bank said its bottom line was impacted by the current low interest rate environment.
Despite Tuesday’s dip, stocks are higher for October, with the Dow up more than 3% while the S&P 500 has advanced 4%, and the NASDAQ has gained more than 6%.
Bond and gold prices were not available at press time.
Oil prices were up 67 cents at $40.87 U.S. a barrel.