Nuveen’s chief equity strategist says the three reasons the market is going up are because of the possibility of a fax, government stimulus and fear-of-failure.
US equity futures traded lower ahead of Thursday’s Wall Street session.
One report that could set the stage for the trading day would be unemployment claims. The Labor Department is expected to say that the number of claims for unemployment benefits for a second straight week dropped to 1.12 million, down from 1,186 million the previous week. That would be the lowest in almost 5 months, but would also mark the 21st week in which claims are 1 million above. Since the coronavirus lockons began in mid-March, 55.32 million people have submitted for unemployment benefits.
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Also on tap will be import and export prices for July. Economists surveyed by Refinitiv seek import prices to increase 0.6%, less than half the rise in June. Export prices are expected to increase 0.4% from June.
In Europe, London’s FTSE is down 0.9%, Germany’s DAX is down 0.2% and France’s CAC is down 0.2%.
Asian stocks were higher on Thursday, fueled by the attack on Wall Street, which is likely to be a reward for export-driven regional economies, even as investors worry about the coronan virus pandemic.
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Japanese benchmark Nikkei jumped 1.8%, Hong Kong’s Hang Seng slipped 0.1% and Shanghai Composite’s China index was flat.
Shares rose broadly higher in the Wednesday session, briefly surpassing the S&P 500 above its all-time high in February shortly before the pandemic led to a historic market crash.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGE | 27976.84 | +289.93 | + 1.05% |
| SP500 | S&P 500 | 3380.35 | +46.66 | + 1.40% |
| I: COMP | NASDAQ COMPOSITE INDEX | 11012.238958 | +229.42 | + 2.13% |
The S&P 500 rose 1.4% to 3,380.35. The Dow Jones Industrial Average gained 1%, to 27,976.84. The Nasdaq Composition, which is heavyweight with technology stocks, climbed 2.1%, to 11,012.24.
The US stock market is wiping out the last of its losses after the coronavirus pandemic shattered the economy in recession, although the economy is still faltering despite some recent improvements.
Much of the credit is due to massive amounts of support from the Federal Reserve, which has lowered the interest rate to almost zero and refurbished far corners of the bond market to keep the economy on the floor. The ultra-low interest rates mean that investors do not pay much for their own bonds, which push some into equities, and increase their prices.
Congress has also offered unusual amounts of aid, although it has seen an apparent impasse in negotiations for a fresh incentive package.
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In other trading sliding benchmark US crude 2 cents to $ 42.65 a barrel in electronic trading on the New York Mercantile Exchange. It rose Wednesday from $ 1.06 to $ 42.67 per barrel.
The Associated Press contributed to this article.
