Wall Street settled higher after President Donald Trump called the new economic stimulus bill unsuitable, calling for an increase in direct payments to $2,000 from the current $600 — and more in Wednesday’s stock market update.
Despite his remarks, expectations remain high a compromise will be reached and a bill passed in the near-term.
Bullish news on the vaccine front also lifted sentiment after Pfizer Inc. (NYSE: PFE) said it will provide 100 million additional doses to the federal government.
The Russell 2000 soared 0.9% after tapping another record high of 2,011.
The Dow added 0.4% following the late-day push to 30,292.
The S&P 500 nudged up 0.1% with the afternoon peak reaching 3,711.
The Nasdaq was down 0.3% despite testing a fresh lifetime high of 12,841.
Energy and Financials led sector strength with gains of 2.2% and 1.6%, respectively. Real Estate and Technology paced sector laggards after giving back 1% and 0.9%.
FuboTV Inc. (NYSE: FUBO) fell 14% after an analyst downgraded the stock to “Market Perform” from “Outperform” following the stock’s recent surge. Shares had more than doubled from just below the $30 level to a 52-week peak of $62.29 in the previous four sessions.
Overall trading remains light during the Christmas week and will continue into Thursday’s half-session with the stock market closed on Friday. Next week will be normal hours for trading with the exchanges closed on Friday for the New Year holiday.
European markets showed continued strength.
Germany’s DAX 30 and the Belgium20 jumped 1.3%. The Stoxx 600 and France’s CAC 40 rose 1.1%. UK’s FTSE 100 was up 0.7%.
Asian markets closed higher across the board.
South Korea’s Kospi rallied 1% and Hong Kong’s Hang Seng was higher by 0.9%. China’s Shanghai gained 0.8% and Australia’s S&P/ASX 200 advanced 0.7%. Japan’s Nikkei climbed 0.3%.
MBA Mortgage Applications rose 0.8% following the 1.1% rise in the prior week. The 12-month pace rose to 87.7% year-over-year from last week’s 75.3% clip. The increase was led by refis as the rate climbed 3.8%. The purchase index declined -4.6%. The 30-year mortgage rate inched up to 2.86% versus the previous record low of 2.85% while the five-year ARM rose to 2.71% from 2.58%.
Initial Jobless Claims claims fell -89,000 to 803,000 following the 30,000 rise to 892,000 previously. This brought the four-week moving average to 818,250 from 814,250. Continuing claims sank -170,000 to 5,337,000 following the -274,000 dive to 5,507,000 previously. The insured unemployment rate dipped to 3.6% from 3.8%.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) fell for the first time in three sessions following the intraday pullback to $155.46. Current and upper support at $155.50-$155 was breached but held. A move below the latter would signal additional weakness towards $154-$153.50.
Lowered resistance is at $157-$157.50 followed by $158-$158.50 and the 50-day moving average.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was down for the second straight session with the morning low reaching 22.13. Near-term and upper support at 22.50-22 was breached but held. A move below the latter would signal additional weakness towards 21-20.50.
Resistance is 24-24.50 followed by 25.50-26 and the 50-day moving average.
The iShares Russell Growth 1000 ETF (NYSE: IWF) fell for the third time in four sessions despite testing an all-time high of $240.14. Uncharted territory and lower resistance at $240-$240.50 was breached but held. A close above the latter would signal momentum towards the $242-$242.50 area.
The fade and close at $238.21 held current and upper support at $238-$237.50. A move below the latter would signal additional weakness towards $236.50-$236. A close below the $235 level would indicate a possible near-term top.
RSI is showing signs of rolling over after key resistance at 70 held. A move above this level would suggest additional strength towards 75-80 and prior levels from early September. Support is at 60 and the monthly low.
The Health Care Select Sector SPDR Fund (NYSEArca: XLV) was unchanged with the session high hitting $111.97. Near-term and lower resistance at $111.50-$112 was breached but held. A close above the latter would signal a possible retest towards $113-$113.50 with the early November all-time high at $114.41.
Support is at $110.50-$110 with backup help at $109-$108.50 and the 50-day moving average.
RSI has flatlined with lower resistance at 55-60 holding. A close above the latter would signal additional upside towards 65-70. Key support is at 50 and a level that has been holding since mid-November.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.