Shares rose on Wednesday even though President Donald Trump indicated he wanted more direct payments to households in the current fiscal stimulus bill. Silver lining for investors: Congress can easily overturn any veto. Also, optimistic economic news in the form of lower-than-expected unemployment claims picked up stocks.
Dow Jones industrial average
rose 114.32 points, or 0.38%, to close at 30,129.83. The
rose 2.75 points, or 0.08%, to end at 3,690.01, and
it fell 36.80 points, or 0.29%, to close at 12,771.11.
The biggest winner on the S&P 500 was
(label: FANG), growth of 8.5%. The price of crude oil rose 2%, to $ 48 a barrel, on a day when small-cap stocks – economically more sensitive than large ones – had a pretty good day. The
the small cap index rose 1%. Other smaller oil companies have emerged, with
(OXY) stocks of 6% i
(APA) shares are up 5%.
The S&P 500 was burdened with sluggishness in big technologies, which had a tough day when investors switched to cyclical stocks.
(AMZN) shares, for example, fell 0.7%.
President Trump criticized the $ 900 Incentives Congress passed this week, saying direct payments to $ 600 households should be increased to $ 2,000. It seems that he may not approve a law that does not meet his expectations. But investors are still confident the bill will pass – and soon. The draft would provide money to small businesses, which can then hire workers when Covid-19 vaccines are widely distributed, keeping the economic recovery alive.
With a Senate vote of 92-6 on account of spending, the Senate is very likely to overcome a potential veto, wrote Washington Mind analyst Raymond James of Washington Ed Mills. The others on Wall Street are on the same wavelength. “There are enough votes to overturn President Trump’s veto,” David Bahnsen, chief investment officer of The Bahnsen Group, wrote in remarks to the media.
The stock seemed to be trading entirely under the assumption that the economic trajectory remained high and that the recovery from the pandemic remained intact. Not only did they outperform small limits, but the stock market was held by value stocks tied to current stocks of economic growth. Vanguard
S&P 500 A stock exchange traded fund
(VOOV) increased by 1%, while its
growth of pandanus
(VOOG) fell 0.5%.
Initial claims for the unemployed last week beat estimates, reaching 803,000, while economists expected 875,000. The actual result was also lower than the readings of 892,000 from the previous week, even though the blockades continue. Investors have mostly looked at poor economic data, as incentives and vaccines support a positive outlook for 2021.
“This undermines the multi-week trend of increasing initial claims,” Citigroup economists wrote in a note. “The fall is an encouraging sign that any weakness can be curbed.”
Write to Jacob Sonenshine at [email protected]