The markets are headed for a weak start to the day, as all major indices are in the red, a continuation of a trend that started yesterday.
This is a reaction to declining hope that democrats and republicans are unlikely to an agreement with regards to an economic bailout for the economy. Talks are still ongoing between the two sides and yesterday Nancy Pelosi and treasury secretary Steven Mnuchin were still in talks trying to come up with a deal that would be agreeable to both sides.
According to a spokesperson for the house speaker, the differences that continue to put the two sides apart are still getting smaller, and focus has narrowed to health including on issues such as contact tracing and strategic testing for COVID-19. So far the two sides are yet to agree on the amounts. The Whitehouse is holding strong at $1.88 trillion, while the Democrats are rooting for a $2.2 trillion bailout plan.
With neither side yielding, trader’s hopes for a deal this week have been dashed and the same is likely to keep reflecting in the markets through the week. The uncertainty is added by the fact that the election is tight and it’s a race between two candidates with very different policy proposals. Then there is the element of COVID-19 that is likely to keep large parts of the economy closed for the better part of the year. Despite the pessimistic mood in the market at the moment, there are stocks that are doing quite well this morning. Some of the top performers ahead of markets are as below:
TuanChe Limited [NASDAQ: TC]
TuanChe Limited is a top performer this morning and is up by over 200%. This rally comes just two days after the company announced that it would change the ratio of its class A shares. The change which comes into effect today has a similar effect as a 1 to 4 reverse split on the company’s stock.
Ever-Glory International Group Inc [NASDAQ: EVK]
Ever-Glory International Group Inc is a top performer this morning and is up by about 135%. This is largely a momentum-driven move as there is no news related to the company at the moment.
Align Technologies Inc [NASDAQ: ALGN]
Align Technologies Inc is up by over 25% this morning. This follows the company’s release of strong Q3 result. The company announced that in Q3, total revenues rose by 20% compared to a similar quarter in the last financial year.
