The stock market was rising Thursday as Washington looked set to avoid a government shut down.
Futures for the Dow Jones Industrial Average were up 113 points, or 0.4%, while futures for the S&P 500 and Nasdaq Composite were up 0.3% and 0.4%, respectively. It will take a big surge Thursday for the S&P 500 to avoid its worst monthly performance this year, even as it remains in positive territory for the third quarter of 2021.
The rise comes after Senate Minority Leader Chuck Schumer announced that an agreement has been reached to fund the U.S. government Wednesday evening. A final vote on the funding bill will be held Thursday.
“Futures are higher following news a government shutdown will be avoided,” wrote Tom Essaye, founder of Sevens Report Research.
The progress in Washington looks to be helping investors put Tuesday’s “taper tantrum,” which sent bond yields higher and hurt technology stocks in particular, behind it. The 10 year Treasury yield isn’t moving much Thursday even after weekly jobless claims were 362,000, worse than the expected 330,000 and worse than last week’s 351,000. It had surged to as high as 1.54% from a low last week of 1.31%, but is now yielding 1.53%.
Overseas, Hong Kong’s Hang Seng Index fell 0.4%. An energy crunch in China has hit industrial production, weighing on sentiment. China’s official manufacturing purchasing managers index fell more than expected to 49.6 in September, from 50.1 in August, amid underperformance from high-energy consuming industries. That is the lowest level since February 2020, when the Covid-19 pandemic most rocked Chinese industry.
The dollar remained at its highest level in a year, with the U.S. Dollar Index at 94.4.
Here are seven stocks on the move Thursday:
Snowflake (SNOW) stock rose 2.6% after getting upgraded to Buy from Neutral at BTIG Research.
Kohl’s (KSS) stock dropped 7.6% after getting downgraded to Underperform from Buy at Bank of America.
Starbucks (SBUX) stock fell 0.5% after getting downgraded to Neutral from Overweight at Atlantic Equities.
Perrigo (PRGO) was up more than 12% in U.S. premarket trading after the pharma group settled an Irish tax dispute Wednesday.
Virgin Galactic (SPCE) rocketed up 9% before U.S. markets opened. The Federal Aviation Administration cleared the company after an investigation into a flight deviation during the trip that carried founder Richard Brandon into space this summer.
Gene-sequencing specialist Oxford Nanopore (ONT.U.K.) rose more than 45% in its London initial public offering valuing the biotech company at $4.6 billion.
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