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US stocks were higher on Thursday 7. The Dow Jones Industrial Average rose more than 100 points or 0.44%, the S&P 500 Index rose 0.8%, the Nasdaq Index rose 1.2% and rates they were up almost 1.9%. Tesla (TSLA-US) rose more than 4% at open and its share price continued to hit a record high.
Although violent clashes broke out on Capitol Hill, market sentiment was basically unaffected. The victory of the Democratic Party in Georgia made investors focus on more fiscal stimulus.
Trump supporters stormed the Capitol on Thursday and businesses prevented Congress from proceeding with the certification process of Biden’s victory. A fierce conflict broke out. Although the joint meeting of Congress was interrupted for a time, the United States Congress still confirmed the results of the Electoral College vote early Thursday morning. Biden received more than 270 electoral votes and defeated Trump to become the 46th president of the United States. Trump later issued a statement promising that the regime would make a peaceful transition on January 20.
Despite the disruption, the market showed few signs of concern and trading was normal for the day.
On the other hand, Democrat Jon Ossoff defeated Republican opponent David Perdue in the Georgia Senate runoff on Thursday and scored a key victory for the Democratic Party. This means that the Democratic Party will control the White House and the House of Representatives for the next two years. The formation of a full ruling brings great advantages to the legislative path of the Biden administration.
Fueled by news of the Democratic Party victory, the 10-year US Treasury yield continued to climb, rising to 1.073% at the open of US stocks on Thursday.
In terms of economic data, the Labor Ministry announced data on unemployment benefits earlier this year for the first time this year. About 790,000 people received unemployment benefits at the beginning of last week, almost unchanged from the previous value. The US ISM services industry PMI for December will be announced later.
At 22 o’clock on Thursday (7) Taipei time:
- The Dow Jones Index climbed 135.69 points, or 0.44%, to 30,965.09 points temporarily.
- Nasdaq rose 151.82 points, or 1.19%, to 12,892.62 points temporarily
- The S&P 500 Index rose 29.03 points or 0.77%, temporarily to 3,777.17
- Commissions and media rose 53.22 points or 1.88%, temporarily at 2881.18 points
- TSMC ADR rises 2.59% to US $ 118.61 per share
- Yield on 10-year US Treasuries increased to 1,073%
- New York light crude oil rose 0.08% to $ 50.67 a barrel
- Brent crude fell 0.15% to $ 54.22 a barrel
- Gold rose 0.43% to $ 1916.90 an ounce
- The US dollar index rose 0.23% to 89.705 points
Focus actions:
Bed Bath & Beyond (BBBY-US) fell 14.17% to US $ 18.05 in early trading.
Household goods retailer Bed Bath & Beyond announced that its EPS for the third quarter (September to November) for fiscal year 2020 was 8 cents, which was less than the market consensus of 19 cents. The epidemic led to a sharp decline in store traffic and higher transportation costs, and revenue performance was not that good. expected.
Before the release of the latest financial report, the company announced that it would close some stores starting this year and gradually shift its operational goals to online. 43 stores are expected to close by the end of February and about 200 stores by 2022.
Walgreens (WBA-US) was up 2.28% to $ 44.01 in early trading.
Walgreens, a U.S. pharmacy chain, announced its most recent revenue of $ 36.31 billion and EPS adjusted to 1.22 cents. Both exceeded market expectations. The net loss still reached $ 308 million, far worse than the net profit of $ 845 million in the same period last year.
Walgreens said that despite the challenging business environment, the financial forecast for fiscal 2021 remains the same as previously expected.
CureVac (CVAC-US) was up 18.60% in early trading to $ 103.00.
CureVac, a German biotechnology company, agreed to form an alliance with the pharmaceutical manufacturer Bayer, seeking to integrate the pharmaceutical market channels and Bayer’s distribution network to promote its new corona vaccine around the world.
Key daily economic data:
- The United States reported 787,000 initial unemployment benefits last week (1/2) and an expected 800,000. The previous value rose from 787,000 to 790,000.
- The United States reported 5.072 million renewed unemployment benefits last week (12/26), which is expected to be 5.2 million. The previous value was reduced from 5,219 million to 5,198 million
- At 23:00 Taipei time, the US ISM Non-Manufacturing PMI for December will be announced, which is expected to be 54.5 and 55.9 earlier.
Wall Street Analysis:
Eastspring Investments Portfolio Manager Ken Wong said: “Overall, the market is promising. Investors’ eyes are not limited to the turmoil of Congress, but also include other issues, such as the Democratic Party’s understanding of the possible fiscal implications of Congress. “
Edward Smith, head of asset allocation research at Rathbone Brothers, believes violent conflicts in Congress will not affect the transfer of power. As long as the situation is established, investors will ignore this conflict.
Smith said the balance of power between the two parties in the Senate and House of Representatives has been lowered, which is gratifying for investors, because it will increase the influence of moderates in the party, and allow for significant increases in taxes and other policies that weaken the profitability of the company. It gets smaller.
Morgan Stanley (Morgan Stanley) analyst Michael Wilson believes that the current tipping point is the rate at which US bond yields are rising. If they go up too fast, all stocks will undergo substantial adjustments.
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