Fundamental Analysis

Wall Street Set To Hit Record Highs At Open On Stimulus Bets

Wall Street’s main indexes were set to hit record highs at the open on Monday, as investors made risky bets on hopes that a fiscal relief package would lead to a speedy economic recovery.

Oil prices rose to their highest in more than a year, lifting Marathon Oil Corp, Schlumberger NV, Exxon Mobil Corp, Chevron Corp and Occidental Petroleum Corp between 1% and 1.9% premarket.

Last week, the S&P 500 and the Nasdaq logged their best weekly performance since the U.S. elections in early November, on upbeat earnings and economic data.

Sentiment was also boosted by U.S. Treasury Secretary Janet Yellen’s comment on Sunday that if Congress approves the $1.9 trillion plan, the country would get back to full employment next year.

The U.S. Congress on Friday approved a budget plan that would allow a coronavirus relief bill to muscle through in the coming weeks without Republican support.

“There’s increasing odd of much closer to the $1.9 trillion stimulus getting passed than a lower number,” said Jim Besaw, chief investment officer at GenTrust in Florida.

“There might be a potential pullback after a stimulus package is unloaded – buy the rumor sell the fact.”

Progress in vaccination efforts and upbeat fourth-quarter earnings have helped investor shrug off fears of a short-term pullback in stocks due to lofty valuations and increasing coronavirus infections.

Bitcoin surged more than 10% to a record high after Tesla Inc said it had invested around $1.5 billion in the cryptocurrency and would begin accepting payment in bitcoins for its cars and other products. Tesla shares rose about 2%, while cryptocurrency miner Riot Blockchain and Marathon Patent Group surged over 20% each.

At 08:33 a.m. E.T., Dow E-minis were up 140 points, or 0.45% and S&P 500 E-minis were up 14.25 points, or 0.37%. Nasdaq 100 E-minis were up 56 points, or 0.41%.

Walt Disney Co, Cisco Systems Inc and General Motors Co were up between 1.6% and 2.8% ahead of their earnings reports this week.

S&P 500 companies were now on track to post earnings growth for the fourth quarter as opposed to a prior forecast of decline, according to Refinitiv IBES data.

Hasbro Inc rose 2.2% after the toymaker beat analysts’ estimates for quarterly revenue on higher demand for its board games and “Magic: The Gathering” collectible cards.

Source

Advertisement

Click To Join Our Community Telegram Group

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

Recent Posts

Futures Subdued As Nvidia’s Forecast Disappoints, Geopolitical Tensions Mount

U.S. stock index futures were subdued on Thursday, as AI-heavyweight Nvidia's revenue forecast failed to…

14 hours ago

Litecoin Short Term Forecast And Technical Analysis

Hi Traders! Litecoin short term forecast and technical analysis is here. We do our analysis…

17 hours ago

NASDAQ Short Term Forecast Follow Up And Update

Hi Traders! NASDAQ short term forecast follow up and update is here. On September 4th…

2 days ago

EURCAD Technical Analysis And Short Term Forecast

Hi Traders! EURCAD technical analysis and short term forecast is here. We do our analysis…

2 days ago

GBPNZD Short Term Forecast Update And Follow Up

Hi Traders! GBPNZD short term forecast update and follow up is here. On Sep 3rd,…

3 days ago

GBPCHF Technical Analysis And Short Term Forecast

Hi Traders! GBPCHF technical analysis and short term forecast is here. We do our analysis…

3 days ago