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* Tech heavyweight heads down after sharp weekly gains
* Biden takes narrow lead in key states of Georgia, Pennsylvania
* Wall Street’s main indices are the best week since April
* Futures closed: Dow adds 0.06%, S&P 0.26%, Nasdaq 0.58% (comment, details, update price);
6 November (Reuters) – Wall Street’s main indices were scheduled to give relief on Friday after rising more than 7% this week as monthly payroll data showed the scale of the economic challenge awaiting America’s next president Was underlined.
Democrat Joe Biden took a narrow lead over President Donald Trump on the battlegrounds of Georgia and Pennsylvania on Friday, with a handful of undefeated states coming close to winning the White House, with a handful of undefeated states counting the votes. Continued
A closely watched report from the Department of Labor showed that US employers hired the lowest workforce in five months in October in the absence of new fiscal stimulus, and the daily COVID-19 transition set new records in the United States.
US stock index futures trimmed some losses as the number of new jobs added to Beat Economist’s forecasts, but the S&P 500 e-minis was still down 0.26% at 9:06 pm ET. The Dow e-minis and Nasdaq 100 e-minis are 0.06% and 0.58% respectively.
“The market has been booming this week,” said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.
The benchmark S&P 500 is definitely in for its best week since April, while the tech-heavy Nasdaq has jumped 6.5% since November. The 3 elections likely reduced concerns about strict regulations on companies as a possibility of policy gridlock in Washington.
Matt Sherwood, head of Forever Investment Strategy in Sydney, said the markets had already gone up in price in a Biden Presidency and a divided Congress.
He said, “We can get all the good things about the Biden Presidency, such as stable leadership and foreign policy, any bad things from the far left lefties of his party, such as taxation.”
After gaining strong gains this week, technology mega-caps including Apple Inc., Amazon.com Inc., Facebook Inc. and Alphabet Inc. reported lower gains in premarket trading.
Although a fiscal stimulus package is still widely expected post-election, the size of a deal in a divided Congress is likely to be smaller than in a Democrat-led Congress. Analysts said the Federal Reserve could be pressurized to make monetary policy easier.
The central bank on Thursday retained its monetary policy and vowed to do whatever it can to maintain the economy crippled by the COVID-19 epidemic again.
Cannabis-related stocks, which analysts have identified as potential winners under the Biden administration, were scheduled to raise sharp gains from Thursday.
Coty Inc. jumped 14.4% as the cosmetics manufacturer beat analyst estimates for quarterly revenue, while T-Mobile US Inc. gained 5.7% after adding more phone customers than analysts in the third quarter.
Electronic Games Inc. dropped 7.1% after falling short of the video game manufacturer’s quarterly sales estimate.
Reporting by Medha Singh and Susan Mathew in Bengaluru; Additional reporting by Sagarika Jaisinghani in Bengaluru and Tom Westbrook in Singapore; Editing by Bernard Orr, Soumyadev Chakraborty and Sriraj Kalluvila