Dow hits new record as banks rally, offsetting Nasdaq decline
BMO Capital Markets chief investment strategist Brian Belski provides insight into the market’s reaction to the ADP employment report and how it may accelerate another stimulus deal.
U.S. stocks ended the session mixed in choppy trading even as pro-Trump protesters stormed Capitol Hill protesting Joe Biden’s win in the presidential election, and as the nation awaits the likely confirmation of Democratic control of the legislative and executive branches of the U.S. government.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 31041.13 | +211.73 | +0.69% |
| CAT | CATERPILLAR INC. | 194.23 | +0.37 | +0.19% |
| JPM | JP MORGAN CHASE & CO. | 135.87 | +4.32 | +3.28% |
| GS | GOLDMAN SACHS GROUP INC. | 291.65 | +6.10 | +2.14% |
The Dow Jones Jones Industrial Average closed 437 points higher, or 1.4%, with gains in Goldman Sachs, JPMorgan and Caterpillar. The S&P 500 rose 0.57%, lifted by materials and financials.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 3803.79 | +55.65 | +1.48% |
| XLF | FINANCIAL SELECT SECTOR SPDR ETF | 30.94 | +0.44 | +1.44% |
| XLB | MATERIALS SELECT SECTOR SPDR ETF | 76.88 | +0.57 | +0.75% |
U.S. banks are seen benefiting from rising Treasury yields, which pushed the 10-year note above 1%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | GOLDMAN SACHS GROUP INC. | 291.65 | +6.10 | +2.14% |
| WFC | WELLS FARGO & COMPANY | 33.43 | +0.74 | +2.26% |
| BAC | BANK OF AMERICA CORP. | 32.86 | +0.71 | +2.21% |
The Nasdaq slipped back into negative territory as Apple, Facebook and Amazon remained lower on concerns a Democratic Senate will be tougher on large-cap tech.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:COMP | NASDAQ COMPOSITE INDEX | 13067.479759 | +326.69 | +2.56% |
| AAPL | APPLE INC. | 130.92 | +4.32 | +3.41% |
| FB | FACEBOOK INC. | 268.74 | +5.43 | +2.06% |
| AMZN | AMAZON.COM INC. | 3,162.16 | +23.78 | +0.76% |
Fox News projects that in the Georgia runoff election for two U.S. Senate seats, Democratic challenger Raphael Warnock defeated incumbent Republican Sen. Kelly Loeffler, while the race between Republican David Perdue and Democratic challenger Jon Ossoff was too close to call.
Stocks that may benefit from a Democratic win include solar and green energy names which are seeing gains on Wednesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SEDG | SOLAREDGE TECHNOLOGIES INC. | 365.97 | +17.84 | +5.12% |
| RUN | SUNRUN | 90.92 | +5.75 | +6.75% |
| FSLR | FIRST SOLAR INC. | 105.50 | 0.00 | 0.00% |
| SPWR | SUNPOWER CORP. | 31.30 | +1.57 | +5.28% |
Tesla, Elon Musk’s electric-vehicle maker, continued its climb to fresh records.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 816.04 | +60.06 | +7.94% |
In addition, cannabis stocks may also benefit as the Democrats may push for broader legalization.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CGC | CANOPY GROWTH CORP | 30.61 | +0.44 | +1.46% |
| ACB | AURORA CANNABIS | 10.19 | -0.08 | -0.78% |
ECONOMIC REPORTS
ADP reported that the U.S. lost 123,000 jobs in December, compared to expectations of a gain of 88,000, according to economists surveyed by Refinitiv.
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Data on mortgage applications for the week ended Jan. 2 showed a rise of 1.7%, as the U.S. housing market continues to be a bright spot in the economy.
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In other asset classes, bitcoin surged past the $35,000 level in morning trading.
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Oil and gold also rose, with West Texas Intermediate crude oil climbing back above the $50 per barrel level, while gold hit $1,959.50 an ounce.