Dow Slashes Earnings as Tech Gets Reality Check Ahead of Biden’s Stimulus Speech By



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By Yasin Ebrahim – The Dow Jones closed lower after climbing to intraday highs Thursday as losses in technology stocks offset gains in value stocks on expectations that President-elect Joe Biden will reveal a tax package of over $ 1 trillion to boost the economy. It fell 0.36%, or 68 points, after hitting an intraday record of 31,223.78. The was reduced by 0.31%, while 0.12%. Biden’s tax package, which is expected to be released around 7:15 p.m. EST, will likely include proposals to boost direct payments to Americans, state and local aid and funding for vaccine distribution. Investors’ focus is likely to be on the size of the package and any updates on potential tax increases to partially offset a $ 1.5 trillion healthcare and infrastructure package expected to roll out in the second half of 2021, Morgan Stanley (NYSE 🙂 said. “The market will be very vigilant about the overall size of the proposed package, as well as the scope of possible tax increases. We believe that an overall stimulus figure substantially above $ 1.5 trillion would be a surprise,” the bank said. In another boost to stimulus optimism, Federal Reserve Chairman Jerome Powell reiterated that the central bank will continue to keep the monetary tap wide open as the risk of runaway inflation in the post-pandemic era is unlikely. “The real question is, how big is that effect [post-pandemic rise in prices] it’s going to be and will be persistent … clearly, a single price increase is highly unlikely to meet persistently high inflation, “Powell said Thursday during a virtual event sponsored by the Bendheim Center for Finance in Princeton. Powell’s remarks come just a day after Vice President Richard Clarida said the Fed won’t raise rates until inflation hits 2%. The latest weekly jobs report highlighted the need for more support as jobless claims rose 181,000 to a more than four-month high of 965,000, well above the economists’ forecast of 795,000. Value stocks, those linked to the performance of the economy, led the rise in the market in general, with energy, industry and finance on the rise. Finances will be the subject of increased attention on Friday when a trio of Wall Street banks kick off their quarterly earnings season in earnest. JPMorgan Chase (NYSE :), Citigroup (NYSE 🙂 and Wells Fargo (NYSE 🙂 report quarterly earnings on Friday. Banks have rebounded in the run-up to their quarterly reports, as investors anticipate strong business divisions, improving lending trends will boost performance. The possible resumption of dividend payments, as well as the size of share buybacks, will also be closely monitored. Last month, the Fed lifted restrictions after stress tests found that banks were sufficiently capitalized to withstand a negative economic shock. Ahead of the large amount of bank earnings, Delta Air Lines (NYSE 🙂 was up 2% as upbeat guidance offset the mixed quarterly performance. In technology, the weakness of the Fab 5 offset the strength of chip stocks. (NASDAQ :), Facebook (NASDAQ :), Google‘s parent Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 closed negative.

Intel and Taiwan Semiconductor Manufacturing (NYSE 🙂 closed sharply higher, the latter driven by better-than-expected quarterly performance. Intel (NASDAQ 🙂 was up 4% as multiple Wall Street analysts spoke of the embattled chipmaker’s outlook as poised for new leadership. In other news, Plug Power (NASDAQ 🙂 fell 4% after JPMorgan began hedging the stock in neutral, saying the stock is “fully priced”, following its gains of more than 100% since the beginning of the month. year.