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Although the non-farm employment report was the worst since April last year, on Friday (8) Wall Street expected the data to spur the introduction of a broader bailout plan, with US stocks continuing to hit new intraday highs in the early operations.
However, during the session it was reported that the Democratic Party, which is about to be in full power, faces differences within the party. Democratic Senator Manchin strongly opposes the issuance of a $ 2,000 ransom check, calling for priority to get vaccinated and increase employment.
With Democrats and Republicans each holding 50 Senate seats, Manchin’s speech meant that the biggest stimulus plans could be blocked, and the US Dow Jones stock market fell by more than 200 points.
President-elect Biden subsequently resumed hopes for a broader stimulus bill. He said he plans to launch a new multi-trillion-dollar bailout plan, which will increase Americans’ bailout payments to $ 2,000 and expand the scope of unemployment insurance. The government and state governments provide billions of dollars in aid to promote economic growth. In the end, the three major US stock indices hit all-time highs, only half finished.
Additionally, on Friday, US President Trump tweeted that he did not intend to attend President-elect Biden’s inauguration ceremony on January 20. Biden responded that Trump is one of the most incompetent presidents. Trump’s absence was due to his relationship with Trump. One of the common consensuses.
The global epidemic of new corona pneumonia (COVID-19) continues to have a fever. Before the deadline, according to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 87.65 million and the number of deaths has exceeded 1.89 million . The United States has accumulated More than 21.41 million cases were diagnosed and the accumulated number of deaths exceeded 36,200.
The performance of the four major US stock indices on Friday (8):
- The Dow Jones index rose 56.84 points, or 0.18%, to close at 31,097.97 points.
- The S&P 500 Index rose 20.89 points, or 0.55%, to close at 3,824.68 points.
- The Nasdaq index rose 134.50 points, or 1.03%, to close at 13,201.98 points.
- The Philadelphia Semiconductor Index fell 0.53 points, or 0.02%, to close at 2,936.47 points.
Four of the top 11 S&P sectors closed. Consumer discretionary, real estate and utilities led the gains, while materials, industrial and financial led the decline.
Focus actions
The five kings of science and technology only blocked Facebook. Apple (AAPL-US) was up 0.86%; Facebook (FB-US) fell 0.44%; Alphabet (GOOGL-US) was up 1.32%; Amazon (AMZN-US) rose 0.65%; Microsoft (MSFT-US) was up 0.61%.
The constituent shares of Dow Jones were mixed. Coca-Cola (KO-US) rose 2.24%; Amgen (AMGN-US) was up 1.91%; Salesforce (CRM-US) was up 1.86%; McDonald’s (MCD-US) rose 1.84%; 3M (MMM-US) fell 1.83%.
The actions of half of Fei’s components misbehaved. Intel (INTC-US) fell 1.03%; Qualcomm (QCOM-US) was up 0.60%; AMD (AMD-US) fell 0.61%; NVIDIA (NVDA-US) fell 0.50%; Micron (MU-US) fell 2.14%.
Taiwan ADR shares closed lower. TSMC ADR (TSM-US) fell 2.26%; UMC ADR (UMC-US) fell 0.93%; ASE ADR (ASX-US) fell 1.37%; Chunghwa Telecom ADR (CHT-US) was up 1.62%.
Stock Market News
Apple (AAPL-US) was up 0.86% to $ 132.05 a share. News about Apple Friday continued.
CNBC analysis data shows that total Apple App Store revenue in 2020 will exceed $ 64 billion, a 28% increase from 2019. Previously, data research company Sensor Tower said revenue from the App Store in 2020 can reach 72.3 billion US dollars.
The new corona epidemic has caused people to switch to remote work and the use of laptops has increased considerably. Morgan Stanley is optimistic that Apple will become the biggest beneficiary of the PC market.
South Korea’s Hyundai Motor (HYUNDAI MOTOR) made hot news with Apple on Friday, but the company “changed not to mention Apple” and adjusted the wording of the statement several times. Hyundai said it has received “multiple companies” in the development of (electric) cars. The request for potential cooperation, as the discussion is still in the early stages, has yet to be decided.
Tesla’s shortstop continued to shrink. Evercore ISI, an investment institution, also withdrew from the Air Force camp on Friday, upgrading Tesla’s stock rating from “sell” to “hold.” Tesla’s share price soared 7.84% per share on Friday by $ 880.02, approaching a record $ 900.
Baidu (BIDU-US) was up 15.57% to $ 240.25 a share. The company plans to establish a joint venture with Geely Automobile to jointly build electric vehicles.
The UK Competition and Markets Authority (CMA) announced on Friday that it is investigating Google Chrome’s plan to remove third-party cookies, as it believes this may benefit Google’s advertising business at the expense of its competitors.
Micron (MU-US) hit a 20-year high once during the session, and its share price fell 2.14% at the end. The company released its latest after-market financial report on Thursday, and its financial estimates were better than expected. The main reason is that long distance working and the recent increase in the adoption rate of 5G have increased the market demand for Micron chips.
Optical components maker Acacia Communications (ACIA-US) terminated its merger agreement with US networking equipment maker Cisco (CSCO-US) on the grounds that it did not get timely approval from China. Cisco challenged the right to cancel the transaction. Cisco Increased 0.22%, Acacia increased 9.87%.
Goldman Sachs reported that it plans to sell 38 million shares of Uber (UBER-US), and Uber fell 5.09%.
Deutsche Bank raised US Steel’s share price rating to “Buy.” The bank’s analysts believe that since cost has been basically controlled, US Steel (X-US) has a greater influence on the current rise in steel prices. US Steel was up 8.84%.
Economic data
- Non-farm employment in the United States decreased by 140,000 in December and is expected to be 85,000. The previous value was revised up from 245,000 to 336,000.
- The US unemployment rate reported 6.7% in December, expected to be 6.8% and 6.7% earlier
- The US labor participation rate reported 61.5% in December, down from 61.5% previously.
- The average rate of increase in hourly wages in the United States in December was 5.1%, which is expected to be 4.5%, and the previous value is 4.4%
- The average monthly hourly wage increase rate in December in the United States reported 0.8%, which is expected to be 0.2%, and the previous value is 0.3%
- The average weekly working hours in the United States in December is reported to be 34.7 hours, which is expected to be 34.8 hours and the above value is 34.8 hours
Wall Street Analysis
Diane Swonk, Grant Thornton’s chief economist, said this is a nonfarm employment report affected by the new crown. Unemployment is mainly concentrated in restaurants, bars and education. As the epidemic intensifies, open schools must be closed again. Universities also began distance learning.
Fed Vice Chairman Richard Clarida said the US economy will have an impressive year and the economy will rebound, but he does not want the Fed to reduce its asset purchases starting this year.
Economists believe that the expected impact of stimulus spending, and with the increase in vaccination and the improvement of the epidemic, future job opportunities will increase considerably.
Jonathan Boyar, CEO of BoyarValue, said Biden brought up more stimulus plans today, and the sooner they can see the two sides act together in a constructive way, the better.
Edward Moya, senior market analyst at Oanda, a veteran forex broker, said the market is so sensitive to subtle adjustments in timing and intensity of stimulus measures. It’s surprising that the market is beginning to digest the Biden administration’s large-scale economic rescue plan. This will continue to be a driver of the stock market.
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