Although there are reports that weekly unemployment benefit applications have risen to the highest level since August last year, the benchmark US stock market index rose in early trading on Thursday, and the Dow Jones Industrial Average hit an intraday record.
However, investors are focused on the prospect of further financial aid by the government and President-elect Biden is set to set out more details of the fiscal stimulus on Thursday night..
What are the main benchmarks doing?
Dow Jones Industrial Average Dow Jones Industrial Average,
It rose 144 points, or 0.5%, to 31,203, touching an intraday record of 31,223.78.
S&P 500 Index SPX,
It rose 12 points, or 0.3%, to 3,822.
Nasdaq Composite Index COMP
It climbed 74 points, or 0.6%, to 13,203.
Dow Jones Industrial Average
Before the House of Representatives voted to condemn President Donald Trump for inciting congressional riots on January 6, the decline was less than 0.1% on Wednesday, and the S&P 500 SPX,
And the Nasdaq Composite Index,
The closing was slightly higher.
What is driving the market?
CNN reported that Biden will give a speech in Wilmington, Delaware later on Thursday. He is preparing to outline a spending plan that includes more direct payments to American households and a large number of state And local funds.
FXTM chief market analyst Hussein Sayed (Hussein Sayed) said in a report that another round of direct large payments to households may be the trickiest part of the package because most Republicans and Senate Some Democrats oppose “too big.”
He said: “On the other hand, choosing a small-scale option will disappoint investors and lead to the stock market’s profit.” “Finding the right balance is not easy.”
The Department of Labor reported on Thursday that the report on the number of weekly jobless claims in the United States in early January was the highest since late August. The report increased by 181,000 to 965,000 due to the COVID-19 pandemic that has created new jobs nationwide. Blockade. On average, economists estimate that this number will reach 800,000.
According to the New York Times tracker, the United States added at least 230,476 new cases on Wednesday and counted at least 3,922 deaths. The previous record of more than 4,400 cases was set on Tuesday, the most in a single day since the outbreak.
However, the higher unemployment claim figures in early January may help those who support the argument that as the virus begins to spread, the economy needs more financial help.
“At some point, as we saw this morning, difficult employment numbers may become a source of fire for people calling for corrections, but the market believes that although vaccination efforts are unfolding, the light at the end of the tunnel is still visible. “, wrote in an email commentary by Mike Loewengart, investment strategist at E-Trade Financial.
He said: “In addition, the out-of-proportion work report should be dimmed, which means that the implementation of a comprehensive stimulus plan is more likely, which in turn will be detrimental to the market.”
The optimism about new aid supports the optimistic forecast of market performance in 2021. Indeed, David Kostin of Goldman Sachs predicts that the S&P 500 will reach 4,300 by the end of 2021.
At the same time, investors will pay close attention to bond yields. Bond yields rose both last week and early this week, a move that was blamed on concerns that another fiscal plan could fuel inflation. This can cause problems for stocks, as higher yields make it difficult to prove higher valuations in the stock market. Investors may also worry that rising inflation will make the Fed relax its bond purchase plan faster than expected.
In other economic news, excluding fuel prices, the US import price index rose 0.9% in December and 0.4% in December.
Investors will also pay close attention to Fed Chairman Jerome Powell’s speech at 12:30 pm Eastern time.
Which companies to focus on?
After an asset management company with US$8.7 trillion in assets under management announced that its fourth-quarter profit and revenue exceeded expectations, the company’s stock price fell 3.7%.
Beard Tesla Company
A reduction of 1.2%. The National Highway Traffic Safety Administration (National Highway Traffic Safety Administration) sent a letter to the electric car manufacturer requesting it to voluntarily recall 158,000 Model X vehicles from the 2016, 2017 and 2018 model years due to possible impact on safety functions Defects (including rear-view camera operation).
Google parents Alphabet Inc. Shares of GOOG,
The company said it has completed the acquisition of fitness tracking company Fitbit, which may become the focus. Alphabet’s Class A and Class C shares rose 0.4%.
After CNBC reported that the company offered a higher offer, the stock became the focusLovesick communication
Cisco shares fell 0.3%, while Acacia shares rose 31%.
Virgin Galactic SPCE stock,
After ARK Investment Management submitted an application to the Securities and Exchange Commission to launch a space exploration exchange-traded fund, the stock rose more than 20%.
How to trade other assets?
The yield of the 10-year U.S. Treasury bill TMUBMUSD02Y,
An increase of 1 basis point, approximately 1.10%.
ICE dollar index DXY,
The euro rose 0.2% against a basket of six major competitors.
Oil futures trading fell, the US benchmark CL.1,
It fell 0.3% to US$52.77 per barrel. Gold Futures GC00
It fell 0.6% to $1,843.70 per ounce.
Pan-European Stoxx 600 Index SXXP,
Rose 0.4%, while London’s FTSE 100 UKX,
In Asia, the Shanghai Composite Index,
The market closed down 0.9%, while the Hong Kong Hang Seng Index HSI,
Climbed 0.9%, Japan’s Nikkei 225 index NIK,