U.S. Stocks Rose Slightly Apple Led the Dow
The Dow rose 42.78 points, or 0.14%, to 31,231.16; the Nasdaq rose 83.59 points, or 0.62%, to 13,540.84; the S&P 500 index rose 6.71 points, or 0.17%, to 3,858.56.
Dow component Apple rose 3.4%, and the company is about to announce its earnings report.
On Thursday morning, the Dow rose to 31,272.22 points, the S&P 500 rose to 3861.45 points, and the Nasdaq rose to 13544.47 points, both hitting record intraday highs.
On Wednesday, Biden was sworn in as the 46th president of the United States. On that day, the three major U.S. stock indexes all set intraday and closing records. Traders expect that the Biden government may introduce additional fiscal stimulus measures and other government spending items.
According to data from LPL Financial, on Wednesday the S&P 500 Index recorded the best performance on the day of inauguration since Ronald Reagan was the second president of the United States in 1985.
In addition, the S&P 500 Index also set the largest increase in history from election day to inauguration day. From November 3, election day to Wednesday, the president’s inauguration day, the index rose more than 14%.”
Strategists believe that the prospect of the Biden administration’s additional stimulus measures is the main driving force behind the rise in US stocks on the day of the president’s inauguration. Royal Bank of Canada (85.33, -0.11, -0.13%) Capital Markets Corporation is the latest Wall Street company that predicts that US stocks will continue to rise this year. The bank set a price target for the 2021 S&P 500 index at 4,100 points on Wednesday, which is about 6.4% higher than Wednesday’s closing point.
According to White House officials, Biden will sign 10 administrative orders on the fight against the epidemic on Thursday. Actively fighting the epidemic will also be reflected in the expectation of a faster economic recovery, which will further boost market sentiment.
The number of first-time jobless claims in the United States dropped to 900,000 last week, but it is still much higher than the level before the outbreak of the new crown.
European Central Bank President Lagarde said in a speech on Thursday that the new crown epidemic still poses a serious risk to the economy. The European Central Bank is ready to take action at any time and will adjust all tools when necessary and maintain flexibility in debt purchases.
Biden will sign more anti-epidemic administrative orders
After taking office on Wednesday, Biden immediately signed a series of executive orders, which involved curbing the new crown epidemic, implementing environmental protection plans, and revoking many immigration policies implemented by the Trump administration. On Thursday, Biden will also sign some other executive orders.
According to a briefing by the Biden administration, Biden will issue orders on Thursday to reform and unify virus detection methods in the United States, use federal power to stabilize the supply chain of critical medical supplies, and strengthen the government’s ability to provide rapid and fair vaccine distribution.
Biden called the former President Trump’s virus testing and vaccine strategy a “failure” and warned that there is no quick solution to the crisis. However, members of his COVID-19 fight team outlined a strategy on Wednesday to use all the means of the federal government to deal with the epidemic, starting with 10 executive orders.
Including Treasury Secretary-designate Janet Yellen, key personnel in Biden’s cabinet may help provide more support to Washington. Yellen attended the Senate Finance Committee hearing on Tuesday, and the vote to confirm his position as Treasurer will be held on Thursday as soon as possible.
The number of first-time jobless claims in the U.S. dropped slightly last week and is still much higher than the level before the outbreak
The number of applicants for unemployment benefits in various states in the United States declined only slightly last week and remained at a high level, highlighting the heavy pressure on the US job market caused by the epidemic when Biden took office.
The US Department of Labor reported on Thursday that as of the week of January 16, the number of people applying for regular weekly unemployment benefits fell by 26,000 to 900,000. The unadjusted data dropped by more than 151,000 to 960,668.
As of the week of January 9, the number of people applying for unemployment benefits fell by 127,000 to 5.05 million. Economists predict that the median value is 935,000, and the number of people who continue to apply for unemployment benefits is 5.3 million.
Due to the rebound of the epidemic, companies are subject to stricter epidemic prevention restrictions, and people are afraid of being infected by the virus. The above figures are still far higher than the level before the epidemic crisis. Vaccine distribution is expected to promote the recovery of economic activity later this year, but the current slower than expected rate of vaccination has limited the pace of recovery in the job market.
The latest number of people applying for unemployment benefits falls within the survey cycle of the monthly employment report, indicating that the January employment data may indicate weak employment growth.
Although the U.S. economy has remained stable in areas such as housing and manufacturing in recent months, the labor market has been difficult to pick up. The US$900 billion stimulus plan approved in December should provide some relief to employees and companies in the current quarter, especially if the company obtains a “Salary Protection Program” loan and does not lay off employees.
Biden announced the details of his $1.9 trillion economic relief plan last week. If approved by Congress, supplementary unemployment insurance of US$400 per week will be provided until September. In addition, there will be state and local government assistance funds, as well as a direct relief fund of US$1,400 per person.
Ford Motor (11.53, 0.67, 6.17%) stated that it supports the creation of “birth certificates” for vehicles and the use of blockchain technology to track vehicle history.
Asme’s fourth fiscal quarter 2020 revenue far exceeded guidance, and the shipment of lithography machines increased significantly.
United Airlines’ fourth-quarter and full-year net loss exceeded market expectations.
Logitech’s third-quarter net profit increased by 2.25 times year-on-year, and Morgan Stanley (74.7, -0.14, -0.19%) raised its target price to $116.
Pharmaceutical company Inovio announced that it will issue 17.7 million shares of common stock at a price of $8.50 per share.
Tesla (844.99, -5.46, -0.64%) has obtained permission from the German Federal Ministry of Economic Affairs to start building a facility to produce 4680 batteries near the Berlin Super Factory. Tesla responded to the Shanghai Model 3 fire accident: initially ruled out the Shanghai Model 3 fire as spontaneous combustion.
Bank of America Securities raised the target price of Amazon (3306.99, 43.61, 1.34%) from 3650 US dollars to 4000 US dollars.
In other markets, European stocks closed down across the board on Thursday. The German DAX30 index fell 0.25% to 13886.75 points; the UK FTSE 100 index fell 0.43% to 6711.42 points; the French CAC40 index fell 0.67% to 5,590.79 points.
Bitcoin’s decline intensified, approaching a three-week low. Bitcoin fell 11% in early New York trading to below $32,000. Since breaking through $40,000, the digital currency has been in a downward trend, and the decline has accelerated in the past two days. The analysis report hints
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