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Dow falls greater than 100 factors amid price fears, Apple and Tesla shares decline

Dow falls more than 100 points amid rate fears, Apple and Tesla shares decline

US stocks fell on Monday as a steady rise in bond yields hurt appetite for risk-weighted assets, particularly growth technology stocks.

The Dow Jones Industrial Average fell 120 points. The S&P 500 lost 0.7%, led by technology and consumer discretionary. The Nasdaq Composite fell 1.1%.

Some equity investors have been increasingly concerned over the past few weeks about rapidly rising government bond yields as they could hurt especially high-growth companies that rely on easy borrowing while reducing the relative attractiveness of stocks.

Tesla stock lost 3% after falling 4% last week. Big tech stocks came under pressure as Apple, Amazon, Microsoft, Netflix and Alphabet traded at least 1% less.

The yield on 10-year government bonds rose last week by 14 basis points to 1.34%, the highest level since February 2020. The reference yield rose on Monday by a further 3 basis points to 1.37%. So far this month the reference rate has risen by 28 basis points. One basis point is 0.01%.

“This movement in returns should be watched closely by investors,” said Matt Maley, chief marketing strategist at Miller Tabak, in a note. “Just because long-term interest rates are extremely low on a historical basis, we don’t think they need to rise as much as most experts believe … before they affect the stock market.”

All eyes will be on Federal Reserve Chairman Jerome Powell as he gives his semi-annual testimony on the economy to the Senate Banking Committee on Tuesday. His comments on rates and inflation could set the market direction for the week.

Meanwhile, many on Wall Street believe the rise in bond yields is a sign of growing confidence in the economic recovery and stocks should be able to absorb higher interest rates on strong gains.

“We don’t see the recent surge in returns as a threat to the bull market,” said Keith Lerner, chief market strategist at Truist, in a note. “Given that we are in the early stages of an economic recovery, monetary and fiscal policies remain supportive, and the strong recovery in earnings and cheap relative valuations maintain our overweight position on equities.”

The move on Monday came after the S&P 500 and Nasdaq Composite posted a two-week winning streak last week, losing 0.7% and 1.6% respectively. The blue-chip Dow was up 0.1% over the same period, supported by Caterpillar and JPMorgan.

The market goes into the last week of February with solid gains. The Dow and S&P 500 are up more than 5% this month, while the Nasdaq is up 6.2%. The small-cap Russell 2000 outperformed this month, up 9.3%.

On the pandemic, the White House said it expects to ship millions of delayed coronavirus vaccine doses this week after a widespread winter storm disrupted logistics. Governor Andrew Cuomo said Sunday that a New York resident tested positive for the variant of Covid-19, which was first identified in South Africa.

The airline’s shares rebounded after Deutsche Bank upgraded several stocks. American Airlines rose more than 7%.

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Dow rises 80 factors as market tries to construct on February’s rally

Dow rises 80 points as market tries to build on February's rally

US stocks cut gains in volatile trading Tuesday, hovering near record levels as rising bond yields kept sentiment in check.

The Dow Jones Industrial Average recently rose 85 points. The 30-share ad briefly put out a 150-point gain to fall into negative territory. The S&P 500 has been flat and has been pressured by declines in healthcare and real estate. The tech-heavy Nasdaq Composite fell 0.2%. All three major averages hit record highs earlier in the day.

Some on Wall Street became increasingly concerned about rising interest rates and the potential for a surge in inflation that could pose a threat to certain sectors and general confidence. On Tuesday, the yield on 10-year government bonds was above 1.25% for the first time since March and rose 8 basis points to a new one-year high of 1.28%.

“While higher yields are good for banks, they hit the bond replacement sectors like REITs, utilities and staples,” said Art Hogan, chief strategist at National Securities. “The market can digest rising returns, especially if they are rising for the right reason, but not if they are rising linearly.”

The benchmark yield on 10-year government bonds, used as a barometer for mortgages, student loans, and annual percentages for credit cards, hovered around 0.6% for much of 2020. Many fear that a rebound in interest rates could hinder economic recovery from the pandemic-induced disability recession as businesses may find it increasingly expensive to borrow. Others wonder if a flood of fiscal stimulus could trigger prices to rise after a decade of dormant inflation.

Energy was the top performing sector, up 2.2% as a deep freeze in the south sparked a rally in oil prices and West Texas Intermediate crude futures topped $ 60 a barrel for the first time in over a year.

The market has seen solid gains this month thanks to the launch of the Covid-19 vaccine, the economic reopening, and the expectation of further fiscal stimulus. The Dow gained around 5% in February, while the S&P 500 and Nasdaq rose 5.8% and 7.4%, respectively. The S&P 500 achieved ten record deals in 2021.

The previous Tuesday, major averages hit new highs after a market volatility measure fell below an important threshold, paving the way for more quant fund purchases.

The Cboe Volatility Index, widely believed to be Wall Street’s top fear indicator, fell below 20 on Friday to hit 19.97. This was the first significant breach of the threshold since the pandemic-triggered sell-off began in February 2020. However, stocks fell as the VIX pushed higher again. The meter recently rose more than 1 point over 21.

The crack of level 20 is viewed by some on Wall Street as a big “risk-in” signal that could trigger buying by algorithmic traders and other big players. The meter last rose one point to 21 on Tuesday morning.

“We believe that a sustained move below 20 will be positive for risk markets,” said Tom Lee, FundStrat co-founder and head of research. “It will be a sign that the systemic fear that gripped markets in 2020 is finally easing.”

Lee, a CNBC employee, added that the easing of fear in the market is usually followed by a buy between systematic and quantitative funds. Should quantitative funds announce a retreating VIX as a positive sign, Lee believes the buy could prolong the current rally.

Elsewhere, Bitcoin briefly topped $ 50,000 for the first time on Tuesday and continued its dizzying rally as more companies warmed up in the crypto space.

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Dow rallies 600 factors because the GameStop buying and selling mania continues to reverse course

Dow rallies 600 points as the GameStop trading mania continues to reverse course

US stocks rose Tuesday, building on a strong rally in the previous session as concerns about a speculative retail frenzy continued to subside.

The Dow Jones Industrial Average rose 610 points while the S&P 500 rose 1.7% after posting its best day since November on Monday. The tech-heavy Nasdaq Composite gained 1.4% and has been gaining nearly 4% for weeks.

Successive advancement on Wall Street coincided with a sharp reversal of GameStop, the video game inventory that intrigued Wall Street with its massive short squeeze coordinated by a group of retail investors on social media. GameStop, which rose 400% last week, was down 30% on Monday and fell another 50% on Tuesday. The stock lost more than half of its value in two days.

“Inevitably, as with any tech-powered short squeeze, the Reddit missile ship ran out of fuel and is now crashing back to earth,” said Max Gokhman, director of asset allocation at Pacific Life Fund Advisors Work and Fundamentals Matters, Others Market participants will be comfortable returning to the market and that likely drove this week’s comeback rally. “

Other highly speculative investments popular with the Reddit crowd also fell. AMC Entertainment fell more than 35%. Silver futures contracts, which saw their biggest one-day jump in eleven years on Monday, fell more than 5% on Tuesday.

Investors took this as a sign that retailers’ speculative mania is subsiding, which is healthy for the overall market and investor confidence. The stock market suffered its worst week since October last week as many feared that the fierce trading activity in these greatly shortened names could be contagious and spill over to other areas of the markets.

However, some believe that this Reddit-fueled commercial frenzy has shown that the collective power of retail investors deserves special attention.

“Retail investors are a force to be reckoned with,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “This particular example will fade and retail investor influence will wane over time. However, I think it is prudent to expect investors to draw attention to certain stocks from time to time.”

In the meantime, investors will be following the stimulus talks in Washington after Republicans in Congress made a counter-offer against President Joe Biden’s $ 1.9 trillion stimulus plan on Sunday.

Biden met with these lawmakers on Monday when Congress Democrats passed a reconciliation law without bipartisan support. Jen Psaki, White House press secretary, described the meeting as “substantive and productive”.

Investors also waited for big earnings reports on Tuesday. Tech giants Amazon and Alphabet will publish quarterly figures after the market closes.

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Dow futures prolong losses after J&J says vaccine much less efficient in opposition to some Covid variants

Dow futures extend losses after J&J says vaccine less effective against some Covid variants

U.S. stock futures were significantly lower in early Friday trading after Johnson & Johnson said its one-off coronavirus vaccine showed less effectiveness in some regions.

The average Dow Jones Industrial futures lost 160 points, or 0.5%. S&P 500 futures lost 0.3%. Nasdaq 100 futures were down 1.5%.

Futures accelerated losses after JNJ said its single-dose vaccine had shown an overall 66% effectiveness in protecting against Covid-19. The vaccine was 72% effective in the US, 66% in Latin America, and 57% in South Africa at four weeks. The vaccine provided full protection against hospital stays related to Covid. JNJ’s shares fell 3.7% in the pre-market.

Stocks had rebounded to hit record highs in hopes that vaccines against Covid would be effective to allow for a smooth economic reopening before the end of the year. New mutations that are more resistant to vaccines could improve the bright outlook for investors.

Increased speculative trading by private investors also continued to worry the market. GameStop’s shares doubled in premarket trading after Robinhood announced it would restrict purchases of the stock and other heavily shortened names after restricting access the previous day. Robinhood raised more than $ 1 billion overnight from its existing investors and also used the banks’ credit lines to ensure that the capital was in place to start trading the volatile stocks again.

Investors are concerned that if GameStop continues to rise in such volatility, it could penetrate financial markets and cause losses at brokers like Robinhood and force hedge funds that bet against the stock to sell other stocks to raise cash.

There are also fears that the GameStop mania is a sign of a bigger bubble in the market, and that its dissolution could also create turmoil and hit retail investors hard. Several e-brokers took steps Thursday to curb intentional buying of highly speculative names. A number of lawmakers also called for an investigation into the chaotic trade.

“Between calling for hearings and reports in Washington, Robinhood was forced to not only draw on its credit lines but also raise $ 1 billion from existing investors. The whole situation continues to undermine market confidence,” said Adam Crisafulli, founder of Vital Knowledge, note in a Friday.

It’s been a volatile week on Wall Street. The Dow lost more than 600 points on Wednesday and suffered its worst sell-off in three months. Then the blue chip benchmark rallied 300 points on Thursday amid a broad market rally. All three major averages have lost at least 1% this week.

The market also saw its highest trading volume in years as the mania heated up. On Wednesday, the total market volume reached more than 23.7 billion shares, surpassing the level at the height of the financial crisis in 2008. On Thursday, there was also extremely strong trading with more than 19 billion shares that changed hands.

A wave of retailers motivated each other on the red-hot WallStreetBets Reddit forum to pile into the most hated names of hedge funds, resulting in massive short-bruising of stocks. GameStop is up more than 900% in January, while AMC Entertainment is up over 300% this month.

“This smaller capitalization rally would likely destabilize and lead to inefficiencies,” Christopher Harvey, senior equity analyst at Wells Fargo, said in a note. “Stocks are ultimately fundamentals – and reversals can be very painful, both up and down.”

However, some believe that the impact on the overall market should be limited as the retail crowd is focused on only a handful of names.

“While we believe there will be more pain, we remain optimistic that it will likely stay local,” said Maneesh Deshpande, head of equity derivatives strategy at Barclays. “Long-short hedge funds have relatively little market exposure, which indicates little impact on the overall market due to deleveraging.”

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Shares are set to retreat from data to finish the week, Dow futures drop 280 factors

Stocks are set to retreat from records to end the week, Dow futures drop 280 points

Stock futures fell early Friday morning as the S&P 500 and Nasdaq Composite pulled back from the records as investors reassessed the outlook for President Joe Biden’s ambitious Covid stimulus plan.

The average Dow Jones Industrial futures fell 283 points, or 0.9%, while the S&P 500 futures fell 0.8%. Nasdaq 100 futures lost 0.6%. The Nasdaq Composite and the S&P 500 each hit record highs on Thursday. The Dow set a record earlier this week.

IBM shares fell more than 7% in premarket trading after the company reported fourth-quarter revenue that was below analysts’ expectations. Revenue declined 6% on a year-on-year basis for the fourth straight quarter of declines.

Intel stocks were down 4% after falling 6% on Thursday after posting better-than-expected gains just before the closing bell.

A growing number of Republicans have expressed doubts about the need for another stimulus package, particularly one with a price proposed by Biden of $ 1.9 trillion. Meanwhile, Democratic Senator Joe Manchin has criticized the scope of the last round of proposed stimulus checks. The contradiction of both parties carries weight for Biden, who took office with a narrow majority in Congress.

“Washington’s political reality is starting to affect markets and it is becoming increasingly unclear when the Democrats’ ambitious economic targets will become law,” said Tom Essaye, founder of Sevens Report.

Cyclical sectors, which would benefit most from additional stimulus, lagged the broader market this week. Energy and finance have both lost more than 1% in weeks, while materials have also declined.

Tech, whose growth does not depend on reflation, led the indictment. Hopes for a robust earnings season from the country’s biggest communications and technology stocks have kept mega-cap stocks on the uptrend this week, with major indices nearing records during the week of shortened holidays.

Apple and Facebook were up 7.7% and 8.6%, respectively, this week ahead of their quarterly results, while Microsoft was up 5.8%.

With the S&P 500 up another 2% this year and up 16% over the past 12 months, some investors believe the market could outperform itself as problems with the vaccine rollout and economic reopening likely will continue to exist in the future.

“The Covid pendulum, which usually emphasizes the vaccine’s optimism about the harsh short-term reality, is swinging back towards the latter (for now) as epicenter stocks are hit hard in Europe,” Adam Crisafulli, founder of Vital Knowledge, said in a note Friday.

The S&P 500 is up 2.3% in the week so far. The Dow is up 1.2% and the Nasdaq Composite is up 4%.

Meanwhile, the Senate is expected to approve former Fed chair Janet Yellen as Biden’s Treasury Secretary by an overwhelming majority on Friday. If this were confirmed, she would be the first woman to head the department.

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Dow futures soar 200 factors on better-than-expected Goldman earnings, stimulus hopes

Dow futures jump 200 points on better-than-expected Goldman earnings, stimulus hopes

Stock futures rose Tuesday, pointing to a rebound from a troubled week as investors hailed Goldman Sachs with excellent earnings and gave signals of another big stimulus and a faster pace of vaccine distribution.

Futures contracts linked to the Dow Jones Industrial Average rose 200 points, or 0.7%. S&P 500 futures were up 0.8%. Nasdaq 100 futures were up 1%.

Goldman’s shares rose 2.7% in premarket trading after the bank beat expectations for fourth-quarter earnings and sales. The blowout results were based on the strong performance of stock traders and investment bankers.

Bank of America was down more than 1% in the premarket after the bank posted quarterly sales that fell short of expectations. The result, however, was slightly above the estimate.

“We expect investors to review the fourth quarter results and focus on company comments on how the rebound is progressing in 2021,” said David Kostin, head of US equity strategy at Goldman, in a note. “With investors in mind through 2021, politics remains a major driver of corporate earnings.”

Janet Yellen, Joe Biden’s nominee for Treasury Secretary and former Federal Reserve chairman, will appear before the Senate Finance Committee Tuesday. Yellen’s prepared remarks call on the federal government to put in a big incentive to support business.

“Neither the president-elect, nor I are proposing this bailout without appreciating the country’s debt burden. But with interest rates at historic lows, it is smartest to act big right now,” Yellen said in prepared remarks. “I believe the benefits will far outweigh the costs, especially when it comes to helping people who have had problems for a long time.”

Stocks that would benefit most from further stimulus and a faster vaccine roll-out resulted in profits in premarket trading. Norwegian Cruise Line Holdings shares were up 3%. Boeing gained 2.8% in premarket trading. American Airlines gained 2.5% in early trading.

Some tech stocks also rebounded from their losses over the past week.

Stocks are “likely to trend higher again after a healthy consolidation ends,” Fundstrat’s Tom Lee wrote in a note citing an increase in vaccination rates and an eventual rollover in coronavirus cases.

Dr. Rochelle Walensky, Joe Biden’s election to head the Centers for Disease Control and Prevention, said Sunday she was confident the U.S. will have enough vaccine doses to meet the new administration’s goal of 100 million people in 100 days to vaccinate.

The movement in futures comes after stocks fell last week. The S&P 500 lost 1.5% for its first weekly loss in three years, while the Dow and Nasdaq Composite lost 0.9% and 1.5%, respectively, and both had their first negative week in five years.

The market fell slightly last week, despite Biden unveiling its $ 1.9 trillion plan for economic relief as the country tries to deal with the Covid-19 pandemic. Biden is slated to be inaugurated with the National Guard in Washington on Wednesday after security concerns rose following a January 6 riot in the U.S. Capitol.

“We’ll have plenty of global economic data and US earnings reports in the coming week. What matters is whether President Elect Biden’s inauguration on January 20 will be peaceful and whether the Senate Republicans are sending signals of constructive cooperation or a repeat of 2020. ” Julian Emanuel, chief strategist for stocks and derivatives at BTIG, said in a statement to clients on Sunday.

The US stock market closed on Monday in honor of Martin Luther King Jr. Day.

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Dow futures rise 100 factors forward of holiday-shortened session

Dow futures rise 100 points ahead of holiday-shortened session

US stock index futures rose early in the trading day on the Thursday before the last trading day of the week with shortened holidays.

Futures on the Dow Jones Industrial Average indicated an opening gain of around 100 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory.

The S&P 500 ended Wednesday’s session barely changed – up less than 0.1% – after slipping in the last few minutes of trading. Even so, the benchmark index suffered a three-day streak of bad luck. The Dow gained 114.32 points, or 0.38%, after rising more than 270 points at one point during the session. The Nasdaq Composite hit a record high before wiping out those gains and closing 0.29% lower.

“It was sold in the index-dominating tech names that weighed on the SPX, not in the general market weakness,” Vital Knowledge’s Adam Crisafulli said in a note. Netflix and Microsoft were among the declining tech names, falling 2.4% and 1.3% respectively.

The late-day decline came as investors took profits late in the year and President Donald Trump vetoed a comprehensive defense bill. The move came after calling the US $ 900 billion congressional aid package to Covid an inappropriate “shame”. The president looked particularly at direct payments, which were to be increased from $ 600 to $ 2,000.

Democrats will attempt to make $ 2,000 direct payments Thursday, but Minority Leader Kevin McCarthy, R-Calif., Will object, CNBC reported. Meanwhile, McCarthy plans to offer a new temporary spending bill that will separate State Department funding and foreign aid funding from the wider spending package – a plan Democrats would likely oppose.

The main averages were mixed until the last day of the shortened vacation week. The Nasdaq is well on its way to end the week higher while the Dow and S&P 500 are slightly lower for the week. The Russell 2,000, which hit a new intraday and all-time high on Wednesday, is also higher for the week. Amid the strength of small-cap names, the index is on its way to its eighth straight week of earnings – the longest weekly earnings streak since February 2019.

With only 4.5 trading days a year, the Nasdaq is well on its way to becoming the clear winner, currently up around 42%. The Russell 2,000 is up 20% over the year while the Dow and S&P 500 are up 5.6% and 14.2%, respectively.

In terms of data, US jobless claims for the week ended December 19 were 803,000, better than an estimate of 888,000, according to economists polled by Dow Jones. However, both core durable goods and personal income fell below expectations in November.

The market closes early on Thursday at 1:00 p.m. ET and closes on Friday for Christmas.

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Dow falls greater than 100 factors as lawmakers battle to seal last-minute stimulus deal

Dow falls more than 100 points as lawmakers struggle to seal last-minute stimulus deal

Stocks slid from record highs in volatile trading on Friday as lawmakers struggled to bridge disparities on additional measures to stimulate the coronavirus.

The Dow Jones Industrial Average fell 124.32 points, or 0.4%, to 30,179.05. At its session low, the 30-stock benchmark lost more than 270 points. The S&P 500 fell 0.4% or 13.07 points to 3,709.41 while the Nasdaq Composite lost 0.1% or 9.11 points to 12,755.64. All three indices hit new intraday highs earlier in the day after the records close in the previous session.

Leaders on Capitol Hill said they were on the verge of an agreement that would provide $ 900 billion in additional aid. The month-long talks are about to begin, and federal funds will run out on Saturday at 12:01 a.m. ET.

Senate Majority Leader Mitch McConnell, R-Ky., Said Friday that negotiations “remain productive”. “In fact, I am even more optimistic now than last night that a bipartisan, bicameral framework for a major bailout is very close,” he added.

House Majority Leader Steny Hoyer, D-Md., Said that afternoon that the Chamber would be on hiatus until 5 p.m. while leaders of Congress try to get a “clearer picture” of how to move forward. He urged representatives to keep Friday evenings, Saturday and Sunday free.

Last-minute disputes preventing Congress from passing an aid agreement include direct payments, small business loans and an increase in unemployment insurance.

Big volume

The stock market saw massive volume on Friday as Tesla’s historic entry into the S&P 500 will be based on close of trading prices. There has been a rush of activity on the final bell and the S&P 500 will start trading with Tesla as a member on Monday.

With a market cap of more than $ 600 billion after rallying 700% this year, the electric car maker is named the 7th largest company in the index.

Tesla is added to the benchmark in one fell swoop, marking the biggest realignment of the S&P 500 in history. It is estimated that passive funds tracking the S&P 500 will need to buy more than $ 85 billion of Tesla, while $ 85 billion of the rest of the index will need to be sold to make room for it.

Tesla shares rose up to 4%, hitting an all-time high on Friday before closing just 0.4% higher. More than 181 million shares of Tesla changed hands, quadrupling the average 30-day volume.

Several large exchange-traded funds such as Invesco QQQ Trust (QQQ), which mirrors the Nasdaq 100, are being rebalanced alongside the S&P 500 Friday.

Meanwhile, Tesla’s inclusion coincides with a quarterly event known as Quadruple Sorcery, when options and futures expire on indices and stocks. Many expect Friday to be one of the busiest trading days of the year.

Winner Week

The main averages posted gains for the week despite Friday’s weakness. The Dow was up 0.4% for the week. while the S&P 500 was up 1.3% in its fourth positive week in five years. The tech-heavy Nasdaq outperformed the week, up 3.1%.

Shares rose earlier this week on optimism about a stimulus deal and the launch of the vaccine. On Thursday evening, Food and Drug Administration advisors overwhelmingly backed Moderna’s Covid vaccine, a major step towards FDA approval for public distribution. The first vaccinations in the US were given on Monday with the vaccine from Pfizer and BioNTech.

Investors are betting that an increase in Covid cases and disappointing economic data would force lawmakers to cement a new aid package. Unemployment claims reached their highest level since early September last week, while retail sales fell more than expected in November.

“The bad news this week is that the third wave is worsening and the economic damage from the pandemic continues to worsen,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “The good news is that policymakers are starting to contain the virus and the federal government is likely to put in place a stimulus package that will mitigate both of the main risk factors.”

McMillan said investors should expect higher volatility in the short term amid developments in the stimulus and vaccines space before the economy returns to growth in 2021. “With vaccines now available and rampant, we are at the end of the start of the pandemic and the markets are realizing that,” he added.

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Dow rebounds, rising greater than 100 factors as new stimulus proposal unveiled

Dow rebounds, rising more than 100 points as new stimulus proposal unveiled

Shares traded higher on Tuesday as Congress resumed negotiations on another economic bailout package and rolled out Covid-19 vaccines across the country.

The Dow Jones Industrial Average was up 100 points, or 0.3%. The S&P 500 was up 0.6% and the Nasdaq Composite was up 0.7%.

Apple led the Dow up 3.5% after Nikkei reported the company will increase iPhone production by about 30% in the first half of 2021. Technology and energy were the top performing sectors in the S&P 500, up 1.2% each.

Legislators released the latest proposal for another round of economic relief on Monday evening, splitting an earlier bipartisan proposal into two parts.

The new plan sees $ 748 billion in spending on programs popular on both sides of the aisle, including an additional $ 300 a week on federal unemployment benefits and another $ 300 billion on more under-line loans of the paycheck protection program.

A second $ 160 billion bill would cover the more controversial areas of corporate liability protection and financial assistance to state and local governments.

In addition, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the stimulus proposal and broader government funding negotiations on Monday evening, Pelosi spokesperson Drew Hammill said on Twitter. The couple “discussed the urgency of the committees to finish their work as soon as possible,” said Hammill.

The most recent move towards a business cycle deal is for investors and Americans as a whole to grapple with bleak near-term prospects but prospects for economic growth and the possible end of the pandemic in 2021.

The first round of shooting with the vaccine developed by Pfizer and BioNTech was conducted in the United States on Monday. However, according to the Johns Hopkins University, the country has also recorded 300,000 deaths from Covid-19. New York Mayor Bill de Blasio also warned residents that a complete shutdown might be needed to protect the city’s hospitals.

Luke Tilley, chief economist at Wilmington Trust, said another stimulus package was needed to keep the economic recovery from stalling before the vaccine can be distributed.

“With cases continuing to rise and mass vaccinations that are still ongoing, we could see further weakness in jobs and even a flattening where we’re not creating any new jobs at all … that’s absolutely an opportunity for this next job report. ” Said Tilley. “And if we didn’t get another stimulus package, 10 to 11 million people would immediately fall off the unemployed list, and that would also weigh on spending.”

On Tuesday morning, the Food and Drug Administration announced that Moderna’s coronavirus vaccine data is in line with emergency expectations, a crucial step ahead of full approval. If the FDA gives the vaccine the green light, it will be the second after Pfizer to be approved for use in the United States. Moderna shares were down 3.4%.

The move in stocks follows a mixed session on Monday, with the tech-heavy Nasdaq Composite and small-cap Russell 2000 rising, while the S&P 500 and Dow falling. The S&P 500’s 0.4% decline was the fourth consecutive negative day.

Despite the recent weakness in the S&P 500 and the Dow, the three major indices are trading near record highs that have risen sharply for the year. David Waddell, chief investment strategist at wealth advisory firm Waddell and Associates, said this could mitigate the normally bullish seasonal trend for stocks.

“We might have a little Santa Claus rally already,” said Waddell. “Ordinarily the markets would accelerate from here until the end of the year, and they could do it again, but the run has been so strong that I would not be surprised, and actually I would prefer the market to consolidate its gains. A. . little bit.”

The Federal Reserve will begin its two-day December meeting on Tuesday with a policy statement and press conference for Chairman Jerome Powell on Wednesday.

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Dow futures rise as shares try to bounce again from shedding week

Dow futures rise as stocks attempt to bounce back from losing week

Traders work on the trading floor of the New York Stock Exchange.

NYSE

US stock futures rose early Monday as markets indicated a rebound from a lost week.

Investors are weighing updates on the introduction of the Covid-19 vaccine and the coronavirus stimulus stalemate in Washington

Dow futures indicated an opening gain of more than 180 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory.

Last week, stocks saw their first week of downturn in several months as lawmakers continued a stalemate over a Covid-19 bailout package.

The S&P 500 fell nearly 1% in its first negative week in three years. The Dow Jones Industrial Average lost 0.57% for its first negative week in three and the Nasdaq Composite lost nearly 0.7% for its first negative week in four.

Next week is expected to be market-moving with the launch of the Pfizer vaccine and a Federal Reserve policy meeting. Tesla is also joining the S&P 500 on Friday.

Following the Food and Drug Administration’s emergency approval for Pfizer’s vaccine, Center for Disease Control and Prevention Director Robert Redfield signed the drug so that vaccinations could officially continue for those aged 16 and over.

The US has started shipping the cans from a Pfizer facility in Michigan to hundreds of distribution centers around the country. The FDA is expected to publish its assessment of Moderna’s vaccine this week.

The Covid-19 vaccine launches on some of the darkest days of the pandemic in the United States. More than 2,300 coronavirus-related deaths were recorded on Saturday, after over 3,300 deaths on Friday. New infections keep exploding. More than 219,000 cases were reported on Saturday.

The surge in cases coincides with months of debates in Washington over another round of Covid relief. A non-partisan group has proposed a $ 908 billion limit. Sen. Majority Leader Mitch McConnell has opposed the proposal, instead calling for an agreement that eliminates corporate liability and funding provisions from state and local governments. These two issues are major sources of disagreement between Republicans and Democrats.

“Politically, the debate continues on more tax legislation that is badly needed for much of the population, but will also create an even bigger ‘wall of money’ for consumers when the economies are fully reopened,” said Raymond James’ Tavis McCourt towards customers on Sunday.

“It is very clear that the economy is slowing as the local stalemate persists, but the impact on the stock market has so far been limited. Whether this will continue through Q1 is unclear, but we expect withdrawals to be limited unless the vaccine changes significantly. ” History, “he added.

The Fed begins its two-day meeting on Tuesday, the last central bank meeting in 2020. Economists have speculated that the Fed might make changes to its bond program. The Fed is currently buying at least $ 80 billion a month from Treasuries, and Fed officials at their last meeting discussed what they could do to change that program.

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