US stock indices were trading higher on Thursday morning, and the Dow Jones index touched a record during the day, despite the report that showed weekly jobless claims claims rose to the highest level since last August as business closures were imposed again in some states to combat the Coronavirus pandemic. .
However, investors are focusing on the prospect of more financial aid from the government as President-elect Joe Biden is set to work out the details of more fiscal stimulus Thursday evening.
What do the main criteria do?
Dow Jones Industrial Average DJIA,
144 points, or 0.5%, rose to 31,203 points, touching a daily record of 31,223.78.
S&P 500 SPX Index,
It was trading 12 points, or 0.3%, up at 3,822.
Nasdaq Composite Index,
It rose 74 points, or 0.6%, at 13,203.
The Dow DJIA,
Decreased less than 0.1% Wednesday, before the House of Representatives vote To impeach President Donald Trump To incite the Capitol riots on January 6, while the S&P 500 SPX,
Nasdaq composite company,
Finished up slightly.
What is driving the market?
CNN reported that Biden, who is scheduled to speak in Wilmington, Delhi, is ready late Thursday. Outline of the spending package That would include more direct payments to American families and substantial state and local funding.
Hossein Sayed, chief market analyst at FXTM, said in a note that another round of large direct payments to households could be the hardest part of the package, as most Republicans and some Democrats in the Senate oppose “switching to too much sums.”
“On the other hand, choosing a small package will disappoint investors and lead to profit taking in the stock markets,” he said. “Finding the right balance won’t be easy.”
More federal spending comes as a report Weekly jobless claims claims in the US in early January were the highest since late AugustThe Labor Department reported Thursday that the population had risen to 181,000 to 965,000, as the COVID-19 pandemic triggered renewed lockdowns across the country. Economists have estimated, on average, that claims will be as high as 800,000.
The United States added at least 230,476 new cases on Wednesday According to a New York Times tracker It counted at least 3,922 deaths, after setting a record of more than 4,400 on Tuesday, the largest number in a single day since the start of the outbreak.
However, higher jobless claims numbers in early January may help fuel the debate among those who assert that the economy needs more financial aid as the virus spreads.
“At a certain point, tough job numbers like the ones we’ve seen this morning could be a spark for those calling for a correction, but the market view seems to be that the light at the end of the tunnel is still on the horizon, despite the vaccination launch,” Mike Lowingart wrote, E-Trade Financial investment strategist, in email comments.
“Moreover, the bleaker jobs report than the exceptions translates into a greater likelihood of a full blown stimulus package, which acts in reverse as a backwind to the market,” he said.
Optimism about the new aid has bolstered a bullish outlook for market performance in 2021. Indeed, David Costin of Goldman Sachs The S&P 500 is expected to end in 2021 at 4,300.
Meanwhile, investors will also be watching bond yields, which rose last week and early this week in a move blamed on concerns that another financial package could fuel inflation. This could cause problems for stocks, as higher returns make higher stock market valuations more difficult to justify. Investors may also be concerned that rising inflation could lead to the Federal Reserve easing its bond-buying program more quickly than expected.
In other economic news, the US Import Price Index rose 0.9% in December, and 0.4% in December, excluding fuel prices.
Investors will also focus on Federal Reserve Chairman Jerome Powell’s speech at 12:30 PM ET.
What companies are you focusing on?
Stocks are down 3.7%, after the asset management company, with assets under management of $ 8.7 trillion, reported fourth-quarter earnings and revenues. Exceeding expectations.
stocks Tesla Corporation
It was 1.2% lower. The National Highway Traffic Safety Administration sent a letter to the electric vehicle maker Search for a voluntary recall Of 158,000 Model X units from the 2016, 2017 and 2018 model years due to a potential defect affecting safety functions including rearview camera operation.
Google’s father Alphabet Inc. GOOG shares,
It may be in focus after the company said it completed the acquisition of fitness tracker Fitbit. Alphabet’s Class A and C shares rose 0.4%.
The focus was on stocks after CNBC stated that it was proposing a slightly higher percentage forAcacia Communications
Cisco shares were down 0.3%, while Acacia shares were up 31%.
Virgin Galactic SPCE shares,
It jumped more than 20% after ARK Investment Management submitted to the Securities and Exchange Commission To launch the Space Exploration Trade Exchange.
How are other assets traded?
10-year US Treasury yield TMUBMUSD02Y,
It rose by 1 basis point, around 1.10%.
US dollar index ICE DXY,
The currency gauge against a basket of six major competitors rose 0.2%.
Oil futures traded lower, with the US benchmark CL.1,
0.3% lower at $ 52.77 a barrel. GC00 Gold Futures,
It was trading 0.6% lower at $ 1,843.70 an ounce.
Stoxx All-European 600 Index SXXP,
It is up 0.4%, while the FTSE 100 UKX Index in London,
It rose 0.5%.
In Asia, SHCOMP shanghai composite,
The Hang Seng HSI in Hong Kong closed 0.9% lower,
It rose 0.9% and the Japanese Nikkei 225 index,