Share prices hit record highs in NY

Daniel Fowler
January 9, 2021

US stocks are drifting near their record highs on Friday, following a sober reminder of how many jobs the pandemic is destroying, as Wall Street balances expectations for the economy's potentially brighter future against its current pain.

At 08:34 a.m. ET, Dow E-minis were up 55 points, or 0.18%, S&P 500 E-minis were up 8.5 points, or 0.22%, and Nasdaq 100 E-minis were up 58 points, or 0.45%. On top of that, earlier in the day, Labour department data had revealed that the USA weekly initial jobless claims, the most-timely indicator to the health of United States labour market, fell marginally to a seasonally adjusted 787,700 over the week that ended on January 2, while other Government data had revealed that the U.S. layoffs climbed more than 18 per cent in December.

The S&P 500 and Nasdaq pulled back modestly following the report as well but ended the day up 0.6% and 1% to close once again at new record highs.

"I think the reason the markets aren't too flummoxed is it's not going to change the transition of power", said Tom Lee, Fundstrat Global Advisors co-founder. And many investors are expecting Washington to soon try to send bigger cash payments to most Americans, spend more on infrastructure and provide other support for the struggling economy. "The employment recovery has stalled as a result", he said. The Dow gained 211.73 points, or 0.7%, to 31,041.13.

Some Wall Street analysts expect an equity pullback in the near-term as exuberance from unprecedented monetary and fiscal stimulus has led to a "frothy" market.

The S&P 500 is down 7.93 points, or 0.2%.

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Volume on USA exchanges was 14.40 billion shares.

Stocks started off the New Year with a slump on Monday, but the market has since churned higher despite the turmoil in Washington, where a riot at the Capitol on Wednesday delayed the procedural congressional confirmation of Presidential-elect Joe Biden's victory. The Dow hiked 0.7% and S&P 500 rose 1.5%. To lift the S&P500, the tech and consumer discretionary sectors rose 2.7% and 1.8%, respectively.

The S&P 500, the broadest measure of the U.S. equities market, was up 1.4 per cent and the Nasdaq Composite soared 2.3 per cent at midday. The events were condemned by U.S. political figures and many world leaders as a "threat to democracy".

Electric-car maker Tesla Inc jumped 6% to a record high, after RBC Capital Markets upgraded its stock rating to "sector perform".

DXC Technology jumped 10.8% as France's IT consulting group Atos made a more than $10 billion takeover approach for its USA rival, according to two sources with knowledge of the matter.

Advancing issues outnumbered decliners by a 2-to-1 ratio on the NYSE and by a 3-to-1 ratio on the Nasdaq.

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