Major bourses hit record highs on Jan 20 after Democrat Joe Biden was sworn in as the 46th President of the United States. The Dow and the broader S&P 500 advanced 0.8% and 1.5%, respectively, and notched their best Inauguration Day gains since Ronald Regan became president for the second term in 1985, per Dow Jones Market Data, as quoted in a
MarketWatch article. Notably, the tech-laden Nasdaq Composite Index went on to rise 2% yesterday, marking its best Inauguration Day gains ever, as mentioned in the article.
Biden, no doubt, has taken reins at a time when the United States is grappling with the continuous rise in coronavirus cases that ravaged economic growth for the most part of last year. In fact, the pandemic is threatening to roil the economy this year as well, with hospitalization rates showing no signs of declining. Lest we forget, scores of people are still unemployed after the pandemic squeezed corporate profits and compelled business houses to lay off employees.
Needless to say, several small businesses as well as retail chains had to file for bankruptcy and many states are still struggling to recoup from the colossal losses faced due to the spring shutdown. What’s more, lately, consumer confidence has taken a beating and their spending has dried up. So, why did the stock market move northward yesterday? After all, its performance is directly related to the state of the economy. This is because market pundits believe that Biden will take the much-needed steps to pep up the economy, which anyhow has improved to some extent since last spring.
In his inaugural speech, Biden has emphasized on the need to address the coronavirus issue vis-à-vis economic growth. The 46th president is now widely expected to implement a $1.9-trillion coronavirus relief package that he proposed in recent times. Such a huge stimulus measure undoubtedly will jump-start the economy. Some $415 billion will be used to ramp up COVID-19 response, while $1 trillion will be provided to households impacted by the deadly virus. At the same time, nearly $440 billion will be given to small businesses that had been badly bruised by the pandemic. Additionally, further stimulus checks will be provided and unemployment insurance would also increase.
Treasury secretary nominee, Janet Yellen, recently backed massive stimulus measures to support battered business houses and improve the livelihoods of individuals. She categorically mentioned stimulus measures are the need of the hour to save the economy from a painful recession due to the coronavirus pandemic. Moreover, implementing a stimulus package will be seen as a pragmatic approach and will be reassuring for people amid the global crisis.
5 Gainers on Inauguration Day With More Room to Run
Even though the economy is in a dire state, hopes about more stimulus measures from the Biden administration to bolster economic growth helped Wall Street close at an all-time high yesterday. What’s more, hopes for such a coronavirus relief package, and of course, if put into action, will continue to help the broader market scale upward. Banking on such positives, it’s prudent to invest in five stocks that have not only posted solid gains yesterday but are also poised to gain further in the near term. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
CEVA, Inc. ( CEVA Quick Quote CEVA - Free Report) is the leading licensor of signal processing IP for a smarter, connected world. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up1.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 40%. CEVA’s shares gained 4.2% on Jan 20. KB Home ( KBH Quick Quote KBH - Free Report) is a well-known homebuilder in the United States. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen19.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 63.3%. KB Home’s shares gained 7.4% on Jan 20. WilliamsSonoma, Inc. ( WSM Quick Quote WSM - Free Report) is a multi-channel specialty retailer of premium quality home products. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 4.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 74.4%. WilliamsSonoma’s shares gained 2.8% on Jan 20. You can see the complete list of today’s Zacks #1 Rank stocks here. Facebook, Inc. ( FB Quick Quote FB - Free Report) is the world’s largest social media platform. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.3%. Facebook’s shares gained 2.4% on Jan 20. Alphabet Inc. ( GOOGL Quick Quote GOOGL - Free Report) provides online advertising services. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved0.4% up over the past 60 days. The company’s expected earnings growth rate for the current year is 19.9%. Alphabet’s shares gained 5.4% on Jan 20. Biggest Tech Breakthrough in a Generation
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