Dow sets intraday high as stock market aims to extend year-end rally in penultimate session of 2021
U.S. stocks rose Thursday morning, with the S&P 500 and Dow extending their march to new highs to top 2021, as investor buying is driven at least in part by the belief that an omicron-fueled spread of COVID will not cause no lasting damage to the economy.
Investors are watching the latest economic reports for this calendar year, including a weekly update from the United States on UI claimants, which has remained at a 52-year low.
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How do stock market indices behave?
The Dow Jones Industrial Average DJIA,
rose 180 points, or 0.5%, to 36,660, after setting an intraday high of 36,679.44 early in the session.
The S&P 500 SPX index,
traded at 12 points, or 0.3%, to trade at 4,805, not far from its intraday high of 4,807.02.
The Nasdaq COMP Composite Index,
rose 21 points to 15,789, a gain of 0.2%.
On Wednesday, the Dow Jones rose 90.42 points, or 0.3%, ending at a record 36,488.63, and marking its 45th record at the close of 2021; the S&P 500 gained 6.71 points, or 0.1%, finishing at a record 4,793.06, for its 70th closing record of 2021. The Nasdaq Composite, however, lost 15.51 points, or 0 , 1%, closing at 15,766.22.
The week, month and year
For the week, the Dow Jones is heading for a gain of 1.5%, the S&P 500 is considering a 1.4%, the Nasdaq Composite is looking at a rise of 0.7% over the period. For the month and year, the Dow Jones was on track for a 5.8% rise in December and a 19.2% gain for 2021, the S&P 500 is considering a 5% rise for the month to ‘now and a gain of 28.4% for the year to date, while the Nasdaq Composite was up 1.5% on the month and 22.5% in 2021.
What drives the market?
U.S. stock indexes have hit new highs, with a report showing labor shortages and demand for workers currently eclipsing concerns about omicron.
US Department of Labor data shows 198,000 claimed unemployment benefits in the week ended December 25, leaving new jobless claims around a 52-year low amid the spread of the omicron .
Initial jobless claims fell slightly from 206,000 revised two weeks ago, based on new government data. Economists polled by the Wall Street Journal had predicted that the new claims would total 205,000 seasonally adjusted.
In addition to evidence of jobless claims in recent weeks, the omicron variant of COVID, with preliminary data showing it causes milder symptoms than earlier strains of coronavirus, has yet to damage any elements. keys to the economy.
The number of Americans currently hospitalized with COVID-19 stands at around 60,000, about half of the figure seen in January, the Centers for Disease Control and Prevention reported, although daily new cases are at a record high.
Hospitalizations unlikely to peak at previous high, Amesh Adalja, senior researcher at Johns Hopkins Center for Health Security at Bloomberg School Public Health, told The Associated Press. Vaccines and treatments developed since last year have made it easier to curb the spread of the virus and minimize the serious effects in people with chronic infections.
“It will take some time for people to realize that cases do not have the same importance as before,” Adalja said. “We have a lot of defense against this.” But even with fewer people hospitalized compared to past outbreaks, the virus can wreak havoc on hospitals and healthcare workers, he added.
In addition, Johnson & Johnson JNJ,
said on Thursday that a South African Phase 3 study showed her booster of her vaccine was 85% effective in preventing hospitalizations from COVID-19.
Beyond unemployment data, investors are also awaiting a report on manufacturing activity in the Chicago area for December. Chicago’s PMI is forecast at 62, down from 61.8 the month before. The data is expected to be released at 9.45 a.m. There will be no data on Friday for the New Year holidays.
Which companies are targeted?
Actions of Biogenic
were the center of attention after Korea Samsung organic products
called a media report that he was about to buy the company “that’s not true.” Biogen shares were down 5%.
shares listed in the United States of Didi Global
HAVE I GOT,
were heading to the lower pre-market after the ridesharing company said its third quarter revenue fell. Didi shares rose 1.2%.
How are the other assets doing?
The yield on the 10-year TMUBMUSD10Y T-bill was 1.53%, down 1 basis point but still around its highest since November 24, according to Dow Jones Market Data. Debt yields rise as prices fall.
The ICE US Dollar DXY Index, a measure of the currency against a basket of six major rivals, rose 0.1%.
Oil futures fell, with the US benchmark CL00 trading 0.4% to $ 76.17 per barrel. GC00 gold futures for February delivery GCG22 were down 0.1% to $ 1,803.20 an ounce.
Bitcoin BTCUSD was stable at around $ 47,195.
The Stoxx Europe 600 SXXP index traded down 0.3%, while the London markets rose less than 0.1%.
In Asian trading, the Shanghai Composite SHCOMP ended up 0.6%, while the Hang Seng HSI index edged up 0.1%. Japan’s Nikkei 225 NIK closed 0.4% lower and China’s CSI 300,000300 advanced 0.8%.