Tag: points

Categories
World News

Shares are set to rebound with Dow futures up 100 factors, Intel shares acquire

5 things to know before the stock market opens Feb 17, 2021

U.S. stocks are likely to rebound on Wednesday as investors again bet on a strong economic recovery from the pandemic.

Dow Jones Industrial Average futures rose 130 points, or 0.4%. S&P 500 futures rose 0.5% while Nasdaq futures rose 0.8%.

Intel’s shares drove market gains that rose nearly 5% after the chip giant announced plans for a comeback. He opened two new factories to manufacture his own chips and those for other companies.

The Dow lost more than 300 points on Tuesday, as Caterpillar stocks fell 3% late in the day as it worried about the surge in new coronavirus cases in the US and abroad. The S&P 500 fell 0.8%, with airlines and cruise lines taking significant losses. The small-cap benchmark Russell 2000 fell 3.58% on its worst day since June.

However, cruise lines and airlines rebounded on the Wednesday before entering the market, with Carnival and United Airlines shares soaring more than 2%. Energy stocks also rebounded as oil prices rebounded.

Fundstrat Global Advisors’ Tom Lee said his clients were concerned about the increasing cases of Covid in Europe, but he believes Tuesday’s sell-off had more to do with the portfolio realignment towards the end of the quarter and superstitious investors a year after took profits at the lows of the market. He is still betting on stocks that will benefit the most from an economic recovery compared to previous post-war periods.

“After the war, cyclical companies will become new growth stocks,” Lee told CNBC. “This is what happened. It happened in Iraq and the Middle East. It happened in Japan. It happened in Korea after the Korean War. It happened in the US after World War II and the Korean War. This is a post-war environment . “”

In many regions of the world there are actually increasing Covid-19 cases as highly contagious variants continue to spread, according to the World Health Organization. Germany and France are extending or enforcing new lockdown measures.

But the pace of vaccination in the US is picking up, with nearly one in five adults now fully vaccinated.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will continue their testimony before the US House Committee on Financial Services on Wednesday. When they first appeared together on Tuesday, the pair acknowledged the highly valued asset prices in the markets but said they are not concerned about financial stability.

“I would say that while the valuation of assets is increased by historical metrics, there is also a belief that with rapid vaccinations the economy can get back on track,” Yellen said during the testimony. “I think in an environment with high asset prices, it is important that regulators make sure that the financial sector is resilient and that markets are functioning well.”

Powell said the economic recovery from the pandemic “has advanced faster than generally expected and appears to be strengthening”.

However, he said the economic sectors hardest hit by the pandemic “remain weak” and the unemployment rate “underestimates the deficit,” so the recovery still has a long way to go.

Government bond yields fell on Tuesday and continued to decline slightly on Wednesday.

General Mills, Tencent, KB Homes and RH are among the companies posting profits on Wednesday.

Categories
World News

Dow futures rise greater than 100 factors after Senate passes $1.9 trillion Covid aid invoice

Dow futures rise more than 100 points after Senate passes $1.9 trillion Covid relief bill

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

NYSE

The Dow futures rose on Sunday evening as a new stimulus package from Washington headed for the final passage this week.

Futures contracts linked to the Dow Jones Industrial Average gained 101 points, or 0.3%. Those for the S&P 500 rose 0.2% while those for the Nasdaq 100 fell 0.3%, suggesting that recent underperformance in technology stocks may continue Monday.

The move into the future came after the Senate passed a $ 1.9 trillion economic relief and incentive bill on Saturday that paved the way for an increase in unemployment benefits, another round of economic reviews, and aid to government and local governments paved. The Democratic-controlled house is expected to pass the law later this week. President Joe Biden is expected to sign the bill before the unemployment benefits programs expire on March 14.

The new round of government spending could ripple the US financial market, where the 10-year benchmark yield has risen sharply in recent weeks. The yield rose to 1.62% on Friday after falling below the 1% mark in the calendar year. It was trading at around 1.59% on Sunday evening.

The rapid movement of the tagged bond has also unsettled equity investors and contributed to the weakness of stocks with high valuations.

“10-year returns have finally caught up with other asset markets. This is putting pressure on valuations, especially for the most expensive stocks that hit nosebleed ratings,” said Mike Wilson, chief US equity strategist at Morgan Stanley, in a note.

The stock market pulled through an afternoon rally on Friday that took some of the sting out of a difficult week for soaring momentum names. The tech-heavy Nasdaq ended the week down 2.1% while the S&P 500 rose 0.8%. The Dow, which relied more on cyclical stocks, rose 1.8%.

Friday’s turnaround doesn’t signal that recent market weakness is over, but the divergence between technical and cyclical games shows that the bullish history remains intact, Morgan Stanley’s Wilson said.

“The bull market remains under the hood, with value and cyclicals taking the lead. Growth stocks can rejoin the party once the valuation correction and repositioning are complete,” said Wilson.

In economic terms, starting in January, investors will take a look at wholesale inventory data on Monday. Several economic measures in recent weeks have shown the recovery is accelerating, including a better-than-expected February job report released on Friday.

Categories
World News

Rally picks up steam as market shakes off charge fears, Dow climbs 650 factors

Rally picks up steam as market shakes off rate fears, Dow climbs 650 points

US stocks rose sharply on Monday as government bond yields fell from last week’s highs, alleviating inflation concerns and higher interest rates undermining stock valuations.

The Dow Jones Industrial Average rose 660 points, or 2.2%, led by Boeing, which rose 6.8%. The S&P 500 gained around 2.1% as all 11 sectors traded in the green. The Nasdaq Composite, the tech heavy index that was hit hard last week, also fell 2.1%.

The 10-year government bond yield fell to 1.43% on Monday, a 3 basis point decrease from Friday and a decrease from its recent high of 1.6% on Thursday. The sudden surge in the benchmark yield has rocked stocks for the past week as rising interest rates can jeopardize the relative attractiveness of stocks and compress stock valuation by reducing the value of future cash flows.

Market breadth was strong on Monday with only about 8 stocks trading lower across the S&P 500. On the NYSE, 11 stocks rose for every stock that fell. Economic reopening games like Carnival and American Airlines were at least 3% higher due to optimism about vaccines and economic reopening. Meanwhile, high-growth technology stocks did better as interest rates fell. Apple and Tesla both rose 3%.

“Equity investors continue to view the rise in interest rates primarily as ‘a good thing’ rather than a threat, although the tree was mixed up in several stocks and other parts of the market last week,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group . “The advantages of vaccines versus the challenge of higher rates will be the theme this year.”

The Centers for Disease Control and Prevention Advisory Board unanimously decided on Sunday to recommend the use of Johnson & Johnson’s one-off Covid-19 vaccine for people aged 18 and over. The company expects to initially ship four million cans.

Last week the blue-chip Dow and the S&P 500 lost 1.7% and 2.5%, respectively. Tech-heavy Nasdaq fell more than 4% over the same period after suffering its worst one-day sell-off since October on Thursday. Technology companies rely on being able to borrow money at low interest rates to invest in future growth.

“The oversized rotation suggests that there may be a tactical reversal as returns calm down,” said Keith Parker, equity strategist at UBS, in a note. “The result should more than make up for headwinds over the course of the year, albeit with downward trends in this upward trend.”

On the stimulus front, the House passed a $ 1.9 trillion Covid Relief Act, the American Rescue Plan Act of 2021, early Saturday. The Senate will now review the legislation.

Key averages rose in February on the back of a strong earnings season, positive news on the vaccine launch and hopes for another stimulus package.

The Dow was up 3.15% in February for its third positive month in four years. The S&P 500 was up 2.61% and the Nasdaq Composite was up nearly 1% for the fourth positive month in a row.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
World News

Nasdaq rebounds from worst sell-off since October, Dow falls 100 factors

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

Traders on the floor of the New York Stock Exchange.

Source: The New York Stock Exchange

Tech stocks lifted the broader market higher in volatile trading on Friday, rebounding from heavy losses after a key inflation indicator showed tame price pressures.

The Nasdaq Composite rose 1.7% as Apple, Facebook and Microsoft each gained more than 2%. The tech-heavy benchmark swung wildly on Friday, even falling 0.7% at one point. The S&P 500 gained 0.6% while the Dow Jones Industrial Average fell 150 points, led by Salesforce and Chevron.

Some investors consoled themselves with the consumer spending price index, which pointed to subdued inflation in January. The PCE index, which the Federal Reserve is closely monitoring, rose 0.3% for the month, slightly above expectations of 0.2%. However, it rose only 1.5% year-on-year and was in line with Dow Jones estimates.

Government bond yields initially fell after the inflation data was released, but later bounced back from their lows. The 10-year yield was last trading near 1.5% after rising above 1.6% at one point on Thursday. The 10-year interest rate has increased more than 50 basis points since the start of the year, a sharp increase for a bond rate that is used as a benchmark for mortgage rates and auto loans.

“When the market starts to believe that the Fed has somehow lost control of the bond market, all of this tantrum idea will crop up,” Art Cashin, director of floor operations at UBS, said on CNBC’s “Squawk” on the street on Friday . “

Falling interest rates alarmed stock investors, bringing the Nasdaq Composite to its worst session since October the day before. The Dow fell 559 points and pulled back from a record high. The S&P 500 lost 2.5% while the tech-heavy Nasdaq lost 3.5%.

Economists and investment managers say the bond market will respond to positive economic conditions as vaccines roll out and GDP projections improve, which should benefit corporate earnings. The move could also signal inflation faster than expected.

The sheer pace of the surge has also dampened investor appetites for highly valued areas of the market. Higher interest rates reduce the value of future cash flows, so they can compress stock valuations. With Thursday’s 10-year yield spike, it was also above the S&P 500’s dividend yield, meaning stocks – considered riskier assets – have lost that fixed-payment premium over bonds.

“Until recently, market participants could digest the uptrend in long-term interest rates, but it appears that the next hike in interest rates will be a bigger bite,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. said in an email.

“Given where real returns have been, they were just too low given growth expectations, and it is likely that long-term real returns will continue to rise as economic data improves,” he added.

Popular big tech stocks like Alphabet, Facebook and Tesla, all of which started the year strong, fell 3.2%, 3.6% and 8%, respectively, on Thursday. Apple, one of the largest, cash-intensive companies in the world, saw its share price fall more than 15% last month.

Instead of technology, where companies borrow more on average, investors are investing money in so-called reopening businesses and buying stocks of companies that would benefit most from the introduction of the vaccine and a return to regular travel and hospitality trends.

Energy has increased 6.8% this week alone. This is by far the biggest winner as consumers around the world are expected to be driving and flying soon as they did before the Covid-19 pandemic. Industry and finance are the only other sectors in the Green Week so far.

The S&P 500 is down 2% so far this week while the Nasdaq is down 5%. The Dow Industrials is down 0.3%.

– CNBC’s Kevin Stankiewicz contributed to the coverage.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
World News

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%.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
World News

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.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
World News

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.

Categories
World News

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.

Categories
World News

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.

Categories
World News

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.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.