Benchmark U.S. stocks traded higher Thursday morning and the Dow touched an intraday record, despite reports of weekly jobless claims rising to their highest since August last year due to further business closures. Sometimes in some states to combat the spread of the coronavirus
However, investors are more concerned with the prospect of additional financial aid from the government, with President Joe Biden to release details of additional fiscal stimulus on Thursday evening.
What are the key benchmarks doing?
DJIA Dow Jones Industrial Average,223.78
Increased 144 points, or 0.5%, to 31,203, touching the record between 31
S&P 500 SPX Index
Trade 12 points or 0.3% higher at 3,822.
Nasdaq COMP Composite Index
Increased 74 points or 0.6% at 13,203
It fell less than 0.1% on Wednesday ahead of a House vote to impeach President Donald Trump, who incited a January 6 state agency riot, while the S&P 500 SPX.
And Nasdaq Composite COMP
Ended up a little higher
What drives the market?
CNN reports that Biden, scheduled to speak in Wilmington, Del., Has drafted a spending package that will include direct payments to American families and major state and local funding.
Hussein Sayed, FXTM’s chief market analyst, said in a note as most Republicans and some Democrats in the Senate were against “getting too big”.
“On the other hand, choosing a smaller package will disappoint investors and lead to profitable sales in the equity markets,” he said. “Finding the right balance will not be easy.”
The federal talk on additional spending was a report on the weekly US unemployment benefit in early January, the highest since late August, rising 181,000 to 965,000 due to the pandemic of the United States. COVID-19 creates a new blockade across the country. On average, economists expect the claim to come in at 800,000.
The United States added at least 230,476 new cases on Wednesday, according to the New York Times, and counted at least 3,922 deaths after setting a record of more than 4,400 on Tuesday, the most in a day since the outbreak began.
However, higher numbers of jobless claims in early January may bolster arguments among those who argue that the economy needs more fiscal assistance as the virus spreads rapidly.
“At some point, the tough work numbers we saw this morning can set the igniter for those who call for redress. But the market perspective looks like the light at the end of the tunnel is still in sight despite the launch of the vaccination, ”E-Trade Financial investment strategist Mike Loewengart wrote in an emailed comment.
“Moreover, a worse report than the unpaid job means that it is more likely for a full stimulus package.
Optimism for the new aid has bolstered positive forecasts for market performance in 2021.In fact, Goldman Sachs’ David Kostin, the project at the S&P 500, will end in 2021 at 4,300.
Investors, meanwhile, will keep an eye on bond yields, which skyrocketed last week and earlier this week on moves fueled by concerns that other financial packages might boost inflation. That can cause problems for stocks as higher returns make higher stock market valuations difficult to justify. Investors may be uncomfortable with rising inflation, seeing the Federal Reserve easing bond buying programs earlier than expected.
In other economic news, the US import price index rose 0.9 percent in December and 0.4 percent in December, excluding fuel prices.
Investors will pay close attention to Fed Chairman Jerome Powell’s speech at 12:30 PM.
Which companies are in focus?
The shares fell 3.7 percent after asset managers, with $ 8.7 trillion in assets, reported fourth-quarter profit and revenue that exceeded expectations.
Shars of Tesla Inc.
Down 1.2%, the National Highway Traffic Safety Administration sent a letter to electric vehicle manufacturers to voluntarily recall 158,000 Model X cars from 2016, 2017 and 2018 models due to possible flaws. Affect the safety function, including the operation of the rear view camera
Google parents Alphabet Inc. Share GOOG
It may be focused after the company said it acquired fitness-tracking company Fitbit, Alphabet’s Class A and C shares rose 0.4 percent.
Stocks were in focus after CNBC reported higher bids forAcacia Communications
Cisco shares were down 0.3 percent, while Acacia’s shares jumped 31 percent.
Virgin Galactic SPCE Stock
It gained more than 20% after ARK Investment Management filed with the Securities and Exchange Commission to launch a space exploration exchange fund.
How is trading with other assets?
The yield on a 10-year US Treasury Bill BX: TMUBMUSD02Y.
Increased 1 basis point approximately 1.10%
US Dollar ICE Index DXY,
The currency’s gauge against a basket of six big competitors was up 0.2%.
Oil futures traded lower with US benchmark CL.
It was down 0.3 percent at $ 52.77 a barrel. Gold Futures GC00
Trading was down 0.6 percent at $ 1,843.70 an ounce.
Europe Stoxx 600 Index XX: SXXP
Soaring 0.4% higher while London’s FTSE 100 UK: UKX
In Asia Shanghai Composite CN: SHCOMP
It closed below 0.9% while Hong Kong’s Hang Seng Index, HK: HSI.
Up 0.9% and Japan’s Nikkei 225, JP: NIK