Dow jumps 600 points led by tech, financials on economic recovery optimism
US House passes $1.9T COVID-19 relief package
U.S. equity markets rallied Monday as investors celebrated the approval of a third COVID-19 vaccine and as the U.S. House of Representatives passed a $1.9 trillion relief package. The combination fueled optimism on the economic recovery.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 33900.99 | +223.72 | +0.66% |
| SP500 | S&P 500 | 4143.95 | +2.36 | +0.06% |
| I:COMP | n.a. | n.a. | n.a. | n.a. |
The Dow Jones Industrial Average gained 603 points, or 1.95%, while the S&P 500 and the Nasdaq Composite gained 2.38% and 3.01%, respectively.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLF | FINANCIAL SELECT SECTOR SPDR ETF | 35.41 | +0.45 | +1.27% |
| QQQ | INVESCO QQQ NASDAQ 100 | 338.38 | -2.22 | -0.65% |
Technology and financial stocks led the broad gains in U.S. equities.
The gains came as the 10-year yield slipped 1.5 basis points to 1.44%. The benchmark yield last week touched a one-year high of 1.61%, causing jitters among stock-market investors as it topped the S&P 500's dividend yield.
President Biden’s COVID-19 relief package cleared the House in a 219 to 212 vote, mostly along party lines, that saw two Democrats vote against the measure.
The bill, which gives $1,400 checks to most Americans and extends unemployment benefits among other things, has been criticized by Republicans as a “blue state bailout” with only 9% of the money going towards pandemic relief.
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In stocks, Johnson & Johnson’s single-shot COVID-19 vaccine received emergency-use authorization from the U.S. Food and Drug Administration and is expected to begin shipping 4 million doses immediately.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 159.47 | -0.09 | -0.06% |
| DAL | DELTA AIR LINES INC. | 49.09 | +0.77 | +1.58% |
| RCL | ROYAL CARIBBEAN CRUISES | 88.14 | +1.56 | +1.80% |
| MAR | MARRIOTT INTERNATIONAL, INC. | 151.45 | +2.64 | +1.77% |
News of another vaccine boosted airlines, cruise ship operators and other companies that have been hit hard by restrictions aimed at slowing the spread of COVID-19.
Elsewhere, GameStop Corp. and other heavily shorted stocks, including AMC Entertainment Holdings Inc. and Koss Corp. continued to squeeze higher.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 160.71 | +19.92 | +14.15% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 9.57 | +0.72 | +8.13% |
| KOSS | KOSS | 20.37 | +0.97 | +5.00% |
ExxonMobil Corp. shares spiked after CNBC reported activist investor Jeff Ubben will join the company's board of directors.
Boeing tacked on over 5% on word that United Airlines is buying 25 737 Max Jets.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 257.15 | +3.92 | +1.55% |
| UAL | UNITED AIRLINES HOLDINGS | 57.69 | +1.03 | +1.82% |
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In earnings, Berkshire Hathaway reported operating income, Warren Buffett’s preferred performance measure, rose 14% from a year ago. The company, which bought back $25 billion of stock in 2020 plans to continue share repurchases in the current fiscal year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS | 60.06 | +0.82 | +1.38% |
DraftKings Inc. received multiple upgrades and price target hikes after the sports-betting platform last week raised its outlook for the current fiscal year.
In commodities, West Texas Intermediate crude oil ticked lost 86 cents to $60.64 per barrel and gold slipped $5.60 to $1,722.50 an ounce.
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Global markets were higher across the board.
Germany's DAX 30 paced the advance in Europe, trading up 1.64%, while Britain’s FTSE 100 and France's CAC 40 climbed 1.62% and 1.57%, respectively.
In Asia, Japan’s Nikkei 225 surged 2.41%, Hong Kong’s Hang Seng index advanced 1.63% and China’s Shanghai Composite index rose 1.21%.