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Wall Street closed sharply higher on Tuesday buoyed by investors' renewed hopes for a fresh round of coronavirus-aid package by this week end. Positive developments on COVID-19 vaccine front also bolstered market participants' sentiment. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.1% or 337.76 points to close at 30,199.31. Notably, 25 components of the 30-stock blue-chip index ended in the green while 5 in red. Likewise, the Nasdaq Composite finished at 12,595.06, surging 1.3% or 155.02 points due to strong performance by large-cap stocks. The teach-heavy index recorded an all-time high close.
Meanwhile, the S&P 500 jumped 1.3% to end at 3,694.62, reversing its four-day losing streak . Both the Energy Select Sector SPDR (XLE) and the Utilities Select Sector SPDR (XLU) gained 2%. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) was down 7.4% to 22.89. A total of 10 billion shares were traded on Tuesday, lower than the last 20-session average of 11.5 billion. Advancers outnumbered decliners on the NYSE by a 3.24-to-1 ratio. On Nasdaq, a 2.31-to-1 ratio favored advancing issues.
Hopes for a Fresh Fiscal Stimulus
Four top-level lawmakers are set to meet on Tuesday after the market close to reach a deal in order to inject a new coronavirus-aid package in the economy. House Speaker Nancy Pelosi will meet with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy.
Meanwhile, a proposed $908 billion bipartisan stimulus bill is likely to be separated in two different parts. The first part will consist of $748 billion and will include those items for which a Congressional agreement has already reached. This will include $300 billion for small business support, including restaurants and entertainment venues. Provisions to expand $300 per week unemployment insurance set to expire on Dec 26 for 16 weeks.
The bill will extend an eviction moratorium through Jan. 31 providing $25 billion into rental assistance. A provision of $6 billion into vaccine development distribution and another $10 billion into testing and contact tracing. The bill will provide $82 billion into education funding and extend federal student loan forbearance through April 1. Moreover, a provision of $45 billion to the transportation sector and $10 billion into broadband access will be in the bill.
The second part of the bill consisting $160 billion will include local and state government aid and business protection assistance. This part of the bill will be considered later due to differences of opinion between lawmakers.
Positive Development on Vaccine Front
A high-powered committee of the FDA has recommended the emergency authorization of a COVID-19 vaccine developed by Moderna Inc. (MRNA - Free Report) . If Moderna get approval, it will be second approved vaccine by the FDA.
Industrial Production in November increased by 0.4% beating the consensus estimate of 0.3%. October's data was revised downward from 1.1% to 0.9%. Manufacturing output increased 0.8%, marking its seventh consecutive monthly gain. Utilities output declined 4.3% and mining production grew 2.3%.
Industrial Capacity utilization increased 0.3% to 73.3%. The consensus estimate was 73%. Previous month's data was revised upward from 72.8% to 73%.
TC Energy Corp. (TRP - Free Report) has reached an agreement to acquire all the remaining outstanding units of its subsidiary TC PipeLines, LP in an all-stock deal worth $1.68 billion. (Read More)
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Stock Market News for Dec 16, 2020
Wall Street closed sharply higher on Tuesday buoyed by investors' renewed hopes for a fresh round of coronavirus-aid package by this week end. Positive developments on COVID-19 vaccine front also bolstered market participants' sentiment. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.1% or 337.76 points to close at 30,199.31. Notably, 25 components of the 30-stock blue-chip index ended in the green while 5 in red. Likewise, the Nasdaq Composite finished at 12,595.06, surging 1.3% or 155.02 points due to strong performance by large-cap stocks. The teach-heavy index recorded an all-time high close.
Meanwhile, the S&P 500 jumped 1.3% to end at 3,694.62, reversing its four-day losing streak . Both the Energy Select Sector SPDR (XLE) and the Utilities Select Sector SPDR (XLU) gained 2%. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) was down 7.4% to 22.89. A total of 10 billion shares were traded on Tuesday, lower than the last 20-session average of 11.5 billion. Advancers outnumbered decliners on the NYSE by a 3.24-to-1 ratio. On Nasdaq, a 2.31-to-1 ratio favored advancing issues.
Hopes for a Fresh Fiscal Stimulus
Four top-level lawmakers are set to meet on Tuesday after the market close to reach a deal in order to inject a new coronavirus-aid package in the economy. House Speaker Nancy Pelosi will meet with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy.
Meanwhile, a proposed $908 billion bipartisan stimulus bill is likely to be separated in two different parts. The first part will consist of $748 billion and will include those items for which a Congressional agreement has already reached. This will include $300 billion for small business support, including restaurants and entertainment venues. Provisions to expand $300 per week unemployment insurance set to expire on Dec 26 for 16 weeks.
The bill will extend an eviction moratorium through Jan. 31 providing $25 billion into rental assistance. A provision of $6 billion into vaccine development distribution and another $10 billion into testing and contact tracing. The bill will provide $82 billion into education funding and extend federal student loan forbearance through April 1. Moreover, a provision of $45 billion to the transportation sector and $10 billion into broadband access will be in the bill.
The second part of the bill consisting $160 billion will include local and state government aid and business protection assistance. This part of the bill will be considered later due to differences of opinion between lawmakers.
Positive Development on Vaccine Front
A high-powered committee of the FDA has recommended the emergency authorization of a COVID-19 vaccine developed by Moderna Inc. (MRNA - Free Report) . If Moderna get approval, it will be second approved vaccine by the FDA.
On Dec 13, the regulator approved the first coronavirus vaccine developed by Pfizer Inc. (PFE - Free Report) and BioNTech SE (BNTX - Free Report) . Moderna and Pfizer carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Industrial Production in November increased by 0.4% beating the consensus estimate of 0.3%. October's data was revised downward from 1.1% to 0.9%. Manufacturing output increased 0.8%, marking its seventh consecutive monthly gain. Utilities output declined 4.3% and mining production grew 2.3%.
Industrial Capacity utilization increased 0.3% to 73.3%. The consensus estimate was 73%. Previous month's data was revised upward from 72.8% to 73%.
Stocks That Have Made Headline
TC Energy Inks $1.68B Acquisition Deal With TC PipeLines
TC Energy Corp. (TRP - Free Report) has reached an agreement to acquire all the remaining outstanding units of its subsidiary TC PipeLines, LP in an all-stock deal worth $1.68 billion. (Read More)
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>