Dow industrialists climbed on Friday as a Cisco, Disney share rally; Nasdaq heads for weekly losses

Stock indices traded higher on early Friday, as investors watched a week on Wall Street, mostly created by optimism over vaccines and treatment prospects for COVID-19, while the US and Europe Overshadowing a spike in viral outbreaks.

The market remains sensitive to talk about the possibility of another fiscal aid package, which could help workers and businesses, despite the lack of political momentum to achieve an agreement after a controversial US presidential election .

How are stock benchmarks performing?

Dow Jones Industrial Average DJIA,
+ 0.81%
Traded up 156 points, or 0.5%, to nearly 29,235, while the S&P 500 index SPX,
+ 0.75%
Gained 20 points to reach 3,557, up 0.6%, while the Nasdaq Composite Index comp,
+ 0.46%
+ 0.19%
Climbed 34 points, up 0.3%, to around 11,746.

For this week, the Dow is up by 3.3%, with the S&P 500 index showing a 1.4% gain, while the Nasdaq Composite Index Comp.
+ 0.46%
Is on track for a weekly decline of 1,3%.

What is driving the stock market?

The US stock index was set to rise to 13th on Friday despite several factors that should otherwise shake investors.

Expectations for COVID-19 vaccines have pushed most of the equity benchmarks to a second straight weekly gain, but the question is whether to face a new lockdown to detect a new spread of the virus in parts of the world Does matter.

“For all the optimism about the delivery of a successful vaccine, the reality is that the announcement of a potential candidate was never likely to be able to stop playing across Europe, as well as the US. Coronovirus A sharp increase in infection rates, hospitalization and ultimately mortality, ”Michael Hexen, Chief Market Analyst at CMC Market UK, wrote in a note.

ReadThis strategist says that the market is now in the grip of bad news. What he says here comes forward

The US set a record Thursday for coronovirus hospitalization of more than 67,000, as well as a record of 163,405 one-day coronavirus cases. The spread of the pathogen in New York City meant a daily case and positivity rate was 2.6% – and Mayor de Blasio reiterated on Thursday that he would close schools if he hit 3%.

Earlier in the week, the promise of an effective Pfizer PFE,
+ 2.19%
And biotech BNTX,
+ 3.89%
The vaccine prompted investors to drop technology stocks that benefited from domestic trends favoring price-oriented plays that could benefit from the economic recovery, but the latter half of the week saw a resurgence of those bets Those who are considered winners. Epidemic.

Federal Reserve Chairman Jerome Powell warned investors not to overplay the vaccine report on Thursday during a webcast panel event with central bankers. “From our point of view, it is too soon to assess with any confidence the news’s implication for the path of the economy, especially in the near term,” he said.

“The next few months can be challenging,” Powell said, adding that the event included Christine Lagarde, president of the European Central Bank and Andrew Bailey, Governor of the Bank of England.

Meanwhile, there is growing skepticism in the market that another coronavirus aid package may soon be drawn up by Congress, with a gulf remaining between Republicans and Democrats seeking relief packages to help American and troubled businesses.

Through all the headwanders, many investors remain upbeat on the basis of monetary support from the Fed, which promises future policies for the future. Investors also hope that the US and other parts of the world will be better prepared for the next wave of coronavirus proliferation.

In a speech to the Economic Club of Memphis, St. Louis Fed President James Bullard said Friday that the US labor market improved at a faster pace this year than in the aftermath of the 2008–2009 financial crisis.

“Basically unemployment has come down to a lot from the extreme, I’m not sure how shocking you can really absorb it,” he said.

He also said that the United States needs to focus more on not allowing the new wave of COVID-19 to hinder newborn recovery.

Meanwhile, better-than-expected results from the likes of the Walt Disney Company DIS,
+ 1.69%
And Cisco Systems CSCO,
+ 6.32%
Friday also helped boost the shopping mood on Wall Street. Also, Post-It producer and diversified industrial company 3m cum. MMM,
+ 0.73%
Friday sales rose 3% to $ 2.9 billion in October.

Investors are eyeing the transition of Joe Biden to the White House after being elected as the winner of the 2020 US presidential election against Donald Trump.

In economic reports, the producer-price index advanced 0.3% last month, the government said on Friday. It has grown for six consecutive months since the economy reopened in May. Wholesale inflation was more largely muted, however. The increase in producer prices increased from 0.4% to 0.5% in the last 12 months.

Separately, a report on consumer sentiment from the University of Michigan revealed concerns about a coronovirus resurgence, with the US dropping to 77 from its previous reading of 81.8 in November.

Which stocks are in focus?
  • Cisco Systems Inc. Wall Street estimates rose 7.1% after quarterly results and outlook for videoconferencing equipment and security software, a maker of network services, and announced a new chief financial officer.

  • Disney Wrapped its fiscal year with another quarterly loss, resulting in the entertainment giant’s first annual loss in more than 40 years, but the stock gained momentum in Thursday’s trade on hopes of bettering the quarter. The shares gained 1.8%.

  • JetBlue Airways Corp. JBLU,
    + 4.85%
    Providing details of its plans to limit the ship’s capacity for the busy holiday season and to open all its seats, it said the decision was backed by “science validating the safety of the aircraft’s cabin”. Shares climbed 3.2% at the start of Friday.

  • Shares of Lee Auto Inc
    + 7.55%
    After reporting first-quarter results since going public by China’s electric vehicle maker, it surged 23% on Friday to another record high, with it expecting a broader revenue loss, while revenue raised forecasts Defeated, as delivery continued to accelerate.

  • Shares of Spectrum Brands Holdings Inc. SPB,
    + 3.11%
    After the home, pet and garden care products company rose 5.2% on Friday, fiscal fourth-quarter profit and sales were expected to rise above expectations, amid “accelerated recovery” related to COVID-19 amid high demand And supply disruptions citing strong point of sales.

  • Shares of DraftKings
    + 4.00%
    It rose 6.9% to $ 44 after the company defeated revenue and earnings estimates. Gambling declined by 57 cents per share compared to a loss of 63 cents. Revenue was $ 132.8 million, estimated at $ 131.6 million.

  • Doordash Filed for public stock offering on Friday. The food delivery company will be listed on the New York Stock Exchange under the ticker DASH.

How are other assets trading?

TMUBMUSD10Y, yield on 10-year US Treasury note
On Friday there was little change from 0.89%. Yields and bond prices move in opposite directions.

Pan-European Stakes 600 Europe Index SXXP,
+ 0.14%
Trading less than 0.1% and London’s FTSE 100 UKX,
Was trading 0.4% on Friday.

Oil futures fell, with US benchmark CL.1
Losing 51 cents, or 1.2% to reach $ 40.62 a barrel. Gold Prices GCZ20,
+ 1.07%
The December contract traded higher, climbing $ 18.90, or 1%, to trade at $ 1,892.20 an ounce.

ICE US Dollar Index DXY,
A measure of the currency, against a basket of six major rivals, was less than 0.2% at 92.821.


Leave a Reply

Your email address will not be published.