Wall Street at record high as Democrats take control of Senate
By Medha Singh and Devik Jain (Reuters) -Wall Street hit record levels on Thursday as market participants bet on more coronavirus relief aid under a Democrat-controlled U.S. Congress to help the economy ride out a steep pandemic-led downturn
By Medha Singh and Devik Jain
(Reuters) -Wall Street hit record levels on Thursday as market participants bet on more coronavirus relief aid under a Democrat-controlled U.S. Congress to help the economy ride out a steep pandemic-led downturn.
Economy-linked financials jumped 2.1%, while industrial and materials sectors hovered near record highs on expectations that President-elect Joe Biden would line up a bigger fiscal package and boost infrastructure spending.
"You're seeing a reflation trade on the assumption that a more progressive and aggressive fiscal stimulus packages could be in the offing," said Keith Buchanan, portfolio manager at GlobAlt in Atlanta.
Rate-sensitive bank shares gained 3.3%, tracking a surge in the benchmark 10-year U.S. Treasury yield. [US/]
The S&P 500 technology, up 2.4%, was set to more than make up for its losses from a day earlier, when shares of some of the biggest technology companies dropped on fears of increased regulation.
The NYSE FANG+TM index, which includes the core FAANG group of stocks that have led the Wall Street rally from pandemic lows, gained 2.1%.
The Congress on Thursday certified Biden's election victory, hours after hundreds of President Donald Trump's supporters stormed the U.S. Capitol in a harrowing assault on American democracy that briefly weighed on markets.
At 11:47 a.m. ET the Dow Jones Industrial Average rose 306.47 points, or 0.99%, to 31,135.87, the S&P 500 gained 57.18 points, or 1.53%, to 3,805.32 and the Nasdaq Composite gained 306.33 points, or 2.40%, to 13,047.12.
The number of Americans filing for jobless benefits unexpectedly dipped last week, while staying elevated, a Labor Department report showed, with the job market recovery appearing to stall as COVID-19 threatens to overwhelm the country.
"With more stimulus coming, even if we do have a miss on claims, it's going to be a little bit less severe, because we know there's going to be a bigger back up for those who are recently unemployed," said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors in Newport Beach, California.
Investors are now awaiting a comprehensive December jobs report, which is expected on Friday.
DXC Technology surged 7% as France's IT consulting group Atos made a more than $10 billion takeover approach for its U.S. rival, according to two sources with knowledge of the matter.
Electric-car maker Tesla Inc jumped 6% to a record high after RBC Capital Markets upgraded its stock rating to "sector perform".
Walgreens Boots Alliance Inc advanced 6.6%, leading gains among Dow components, after it beat analysts' estimates for adjusted quarterly profit, driven by higher sales at its retail pharmacy stores and higher prescription volumes.
Advancing issues outnumbered decliners by a 1.6-to-1 ratio on the NYSE and by a 2.8-to-1 ratio on the Nasdaq.
The S&P 500 posted 92 new 52-week highs and no new lows while the Nasdaq recorded 445 new highs and 13 new lows.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.