Dow, S&P 500 add to records as weak jobs report boosts stimulus expectations

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  • US equities gained on Friday morning as the weak jobs report spurred investors hopes for a larger fiscal stimulus package to boost the economy.
  • American businesses shed 140,000 nonfarm payrolls last month, the Bureau of Labor Statistics said Friday. The reading is weaker than consensus economist estimates that foresaw 50,000 job additions, according to Bloomberg data. 
  • “In the face of endless amounts of readily available fiscal and monetary stimulus, the stock market has so far refused to pay attention to the economic data points that matter, like the weak jobs numbers,” James McDonald, Hercules Investments CEO said.
  • Watch major indexes update live here.

US equities gained on Friday morning as the weak jobs report prompted investors to hope for a larger fiscal stimulus package to boost the economy.

The US economy saw a surprise decline in payrolls in December as stricter COVID-19 lockdown measures extended the nation’s unemployment crisis into the new year. American businesses shed 140,000 nonfarm payrolls last month, the Bureau of Labor Statistics said Friday. The reading is weaker than consensus economist estimates that foresaw 50,000 job additions, according to Bloomberg data. 

The country’s unemployment rate stayed steady at 6.7% in December, slightly lower than the median economist estimate of 6.8%.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Read more: A growth-fund manager who’s beaten 96% of his peers over the past 5 years shares 6 stocks he sees ‘dominating their space’ for the next 5 to 10 years – including 2 he thinks could grow 100%

“In the face of endless amounts of readily available fiscal and monetary stimulus, the stock market has so far refused to pay attention to the economic data points that matter, like the weak jobs numbers,” James McDonald, Hercules Investments CEO said.

“We expect stock markets to continue to move higher and bond markets to continue to move lower (price down, yields up) as the likelihood of additional fiscal stimulus out of Washington is high and the continued support of the Federal Reserve is likely as well,” said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance. 

Bitcoin hit a new all-time high of more than $41,000 on Friday morning, staging a rapid recovery despite falling to less than $37,000 overnight. The red-hot cryptocurrency has more than doubled in value over the last month, and risen over 30% in 2021 so far.  

Michael Burry, whose lucrative wager on the US housing bubble’s collapse in 2007 was captured in “The Big Short,” tweeted on Thursday that Tesla stock could implode in a similar fashion. 

“Well, my last Big Short got bigger and bigger and BIGGER too,” the Scion Asset Management boss said as Tesla jumped 8%. “Enjoy it while it lasts.”

Read more: BANK OF AMERICA: Buy these 8 US stocks poised to soar in the first quarter of 2021- and avoid these 2 at all costs

Meanwhile, billionaire investor Chamath Palihapitiya said Tesla’s stock could be worth three times its current valuation, which would make CEO Elon Musk the first trillionaire.

“Don’t sell a share” of Tesla, Palihapitiya told investors in a CNBC interview on Thursday

Gold dipped 2%, to $1,876.51, at intraday lows. The US dollar strengthened against most of its Group-of-10 currency peers, while 10-year Treasury yields climbed further above 1%, where they haven’t been since March.

Oil prices climbed amid a drop in US inventories. West Texas Intermediate crude rose as much as 2%, to $51.83 per barrel. Brent crude, oil’s international benchmark, gained 2.1%, to $55.50 per barrel, at intraday highs.

Read more: Deutsche Bank says buy these 14 beaten-down financial stocks poised for a bullish recovery from 2020’s ‘savage sell-off’ – including one that could rally 30%

Read the original article on Business Insider

US stocks close mixed as stimulus optimism clashes with new virus strain

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  • US stocks closed mixed on Tuesday after Congress passed a multitrillion-dollar spending bill that includes $900 billion in new stimulus.
  • The package, which also funds the government through September 30, includes $600 direct payments, $300 in additional federal unemployment benefits, and aid for small businesses. 
  • The fresh fiscal support locked horns with concerns around a new strain of COVID-19 in the UK. The variant’s emergence prompted several European nations to enact travel restrictions on UK visitors.
  • Oil futures fell as investors viewed the new virus strain as a risk to near-term energy demand. West Texas Intermediate crude fell as much as 2.4%, to $46.60 per barrel.
  • Watch major indexes update live here.

US equities closed mixed on Tuesday as investors weighed Monday’s stimulus vote against the emergence of a new coronavirus strain in the UK.

Congress approved the measure Monday night after months of negotiations over additional fiscal support. The bill, which includes $900 billion in new stimulus, funds the government through September 30. The package also includes $600 direct payments, $300 in additional federal unemployment benefits, and funds for the Paycheck Protection Program.

Here’s where US indexes stood at the 4 p.m. ET market close on Tuesday:

Read more: BANK OF AMERICA: Buy these 16 medtech stocks with strong fundamentals that are set to soar post-pandemic

The White House has indicated President Donald Trump will sign the bill. Economists have largely backed additional fiscal support, though the slowed pace of economic recovery and rising COVID-19 cases still present sizeable risks.

“The $900 billion fiscal aid package is months late and will likely fall short of what is needed to prevent a rough winter, but it’s better than nothing,” Gregory Daco, chief US economist at Oxford Economics, said, adding the measure will “partially buffer the current economic slowdown” while vaccines are distributed.

Enthusiasm toward the new fiscal support was somewhat offset by reports of a new COVID-19 variant in the UK. Several European countries implemented travel restrictions on UK visitors to slow its spread.

Fears were somewhat allayed later in the day after public health experts said Pfizer and Moderna’s COVID-19 vaccines are likely effective against the new strain. Still, the new restrictions and virus fears threaten to tamper down on already weakened economic activity.

Read more: Brooke de Boutray has beaten 99% of her peers over the last 5 years and runs a fund that is up 148% in 2020. She shared with us 4 stocks she’s most bullish on heading into 2021.

Economic indicators also flashed some warning signs. US consumer confidence unexpectedly fell to a four-month low this month as surging COVID-19 cases and stricter lockdown measures offset a slight improvement in Americans’ long-term outlooks, Conference Board said Tuesday. The organization’s sentiment gauge fell to 88.6 from 92.9, while economists expected a jump to 97.

The tech and real estate sectors outperformed, while communications-service and energy stocks lagged.

The Nasdaq composite index was lifted by Apple, which extended a late Monday climb following a Reuters report that the iPhone maker aims to produce electric cars by 2024. The news also boosted lidar-sensor producers, as Apple reportedly plans to partner with such firms for its vehicle systems.

Peloton soared after the company inked a deal to buy exercise-equipment company Precor for $420 million. Peloton plans to use Precor’s facilities to boost its manufacturing capacity and cut down on its order backlog.

Read more: A fund manager at JPMorgan’s $1.9 trillion asset management arm breaks down the 6 high-conviction bets he’s making to stand out from the crowd next year – and shares the 2 biggest risks on his radar

Bitcoin rose back above $23,000 after plunging the most in nearly a month on Monday. The cryptocurrency faced pressure after the US Treasury proposed rules that would require exchanges to collect information from users who transfer more than $10,000 to a crypto wallet.

Spot gold erased early gains and fell as much as 1%, to $1,858.97 per ounce, at intraday lows. The US dollar strengthened against all of its Group-of-10 peers and Treasury yields dipped.

Oil prices fell amid fears that the new COVID-19 strain will further cut into demand. West Texas Intermediate crude dropped as much as 2.4%, to $46.60 per barrel. Brent crude, oil’s international benchmark, declined 2.7%, to $49.56 per barrel, at intraday lows.

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US stocks trade mixed as investors weigh $900 billion stimulus package against renewed virus fears

NYSE traders
  • US stocks traded mixed on Tuesday after Congress passed a multitrillion-dollar spending bill that includes $900 billion in new stimulus.
  • The package, which also funds the government through September 30, includes $600 direct payments, $300 in additional federal unemployment benefits, and aid for small businesses. 
  • Investors are weighing the bill’s passage against concerns around a new strain of the coronavirus in the UK.
  • Oil futures fell as investors viewed the new virus variant as a risk to near-term energy demand. West Texas Intermediate crude fell as much as 2.9%, to $46.60 per barrel.
  • Watch major indexes update live here.

US equities edged higher on Tuesday after Congress passed a $2.3 trillion bill that included government funding and a new tranche of stimulus measures.

Lawmakers approved the measure Monday night after months of negotiations over additional fiscal support. The bill, which includes $900 billion in new stimulus, funds the government through September 30. The package also includes $600 direct payments, $300 in additional federal unemployment benefits, and funds for the Paycheck Protection Program.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

Read more: Brooke de Boutray has beaten 99% of her peers over the last 5 years and runs a fund that is up 148% in 2020. She shared with us 4 stocks she’s most bullish on heading into 2021.

The White House has indicated President Donald Trump will sign the bill. Economists have largely backed additional fiscal support, though the slowed pace of economic recovery and rising COVID-19 cases still present sizeable risks.

“The $900 billion fiscal aid package is months late and will likely fall short of what is needed to prevent a rough winter, but it’s better than nothing,” Gregory Daco, chief US economist at Oxford Economics, said, adding the measure will “partially buffer the current economic slowdown” while vaccines are distributed.

The mixed trading follows a mild decline across indexes on Monday. Stocks fell to start the week amid concerns around a new strain of the coronavirus emerging in the UK. Several European countries implemented travel restrictions on UK visitors.

Fears were somewhat allayed later in the day after public health experts said Pfizer and Moderna’s COVID-19 vaccines are likely effective against the new strain.

Read more: BANK OF AMERICA: Buy these 16 medtech stocks with strong fundamentals that are set to soar post-pandemic

The Nasdaq composite index was lifted by Apple, which extended a late Monday climb following a Reuters report that the iPhone maker aims to produce electric cars by 2024. The news also boosted lidar-sensor producers, as Apple reportedly plans to partner with such firms for its vehicle systems.

Peloton soared after the company inked a deal to buy exercise-equipment company Precor for $420 million. Peloton plans to use Precor’s facilities to boost its manufacturing capacity and cut down on its order backlog.

Bitcoin rose back above $23,000 after plunging the most in nearly a month on Monday. The cryptocurrency faced pressure after the US Treasury proposed rules that would require exchanges to collect information from users who transfer more than $10,000 to a crypto wallet.

Spot gold gained as much as 0.4%, to $1,884.33 per ounce, at intraday highs. The US dollar wavered against a basket of currency peers and Treasury yields dipped.

Oil prices fell amid fears that the new COVID-19 strain will further cut into demand. West Texas Intermediate crude dropped as much as 2.9%, to $46.60 per barrel. Brent crude, oil’s international benchmark, declined 2.7%, to $49.56 per barrel, at intraday lows.

Now read more markets coverage from Markets Insider and Business Insider:

Brian Barish’s mutual fund crushed the market for 8 straight years and is in the top 2% after reinventing value investing for the digital age. Here’s how they pulled it off.

SoftBank aims to raise up to $525 million for its own blank-check company

Treasury Secretary Mnuchin expects direct stimulus checks to be released next week, says he ‘couldn’t be more pleased’ about deal

Read the original article on Business Insider

US stocks dip as stimulus hopes waver and jobless claims hit 11-week high

Worried trader
  • US stocks edged lower on Thursday amid disappointing economic data and slowed stimulus progress.
  • New US weekly jobless claims jumped to an unadjusted 853,000 for the week that ended Saturday, handily exceeding the 725,000 estimate. The reading also marks the highest total in 11 weeks.
  • Democrats and Republicans remain at odds over a new fiscal relief package. The House voted Wednesday night to fund the government for an additional week and buy more time for stimulus negotiations.
  • The US Food and Drug Administration will evaluate Pfizer’s coronavirus vaccine on Thursday and vote on whether its benefits outweigh its risks for use in people at least 16 years old.
  • Watch major indexes update live here.

US stocks fell slightly on Thursday as jobless claims leaped to unexpected highs and Congress hit a new snag in stimulus negotiations.

New filings for unemployment benefits climbed to an unadjusted 853,000 for the week that ended Saturday, the Labor Department said Thursday. Economists surveyed by Bloomberg expected a reading of 725,000 claims. The jump places claims at their highest level in 11 weeks and marks a sharp reversal from the previous week’s revised total of 716,000.

Continuing claims, which track Americans receiving unemployment benefits, jumped to 5.8 million for the week that ended November 28. That similarly came in above economist forecasts and marked the first weekly increase since August.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

Read more: Cathie Wood is beating 99% of fund managers this year. The ARK CEO and her team share their outlooks for 2021 – including thoughts on Tesla’s $5 billion stock sale, the Salesforce-Slack tie-up, and bitcoin’s meteoric rise.

“The jump in weekly unemployment claims was partially due to a rebound from lower claims during Thanksgiving week, but the trend of more Americans losing jobs is clearly rising over the last month,” Robert Frick, corporate economist at Navy Federal Credit Union, said.

On the stimulus front, Democratic and Republican leaders remain at odds over key elements of their respective proposals. Senate Majority Leader Mitch McConnell offered a package that omitted pandemic-related liability protections for businesses and state and local government aid. House Speaker Nancy Pelosi balked at the proposal, and Senate Minority Leader Chuck Schumer emphasized the need for more state and local relief.

The House voted Wednesday night to fund the government for another week and buy extra time for stimulus talks.

Read more: We spoke to the top 5 European fund managers of 2020 to uncover their tips and tools for delivering stellar returns – and their star stock-picks for 2021

The tech-heavy Nasdaq composite underperformed peer indexes as Facebook slid lower. The social media giant fell after the US Federal Trade Commission filed lawsuits that could force Facebook to divest Instagram and WhatsApp.

The US Food and Drug Administration convened to evaluate Pfizer’s coronavirus vaccine. A panel will vote on Thursday on whether the benefits of the vaccine outweigh its risks for use in people at least 16 years old.

Airbnb is set to begin trading on Thursday after raising $3.5 billion in its initial public offering. The debut comes after DoorDash shares nearly doubled in the company’s first day of public trading.

Bitcoin fell to a 24-hour low of $18,021.45 before bouncing back above $18,100. The token has steadily trended lower after hitting record highs in early December.

Read more: Morgan Stanley is warning that the stock market’s economic recovery trade may soon be over. Here are 4 strategies they recommend for finding the returns that still exist.

Gold edged as much as 0.4% higher, to $1,847.75 per ounce. The US dollar weakened against a basket of Group-of-20 currencies and Treasury yields fell. 

Oil prices gained on vaccine hopes. West Texas Intermediate crude rose as much as 1.8%, to $46.33 per barrel. Brent crude, oil’s international benchmark, jumped 1.9%, to $49.77 per barrel, at intraday highs.

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