【Youth Daily 】The main index in the New York Stock Market started on the 21st as a mixed trend due to the increased level of burden and a cold wave in the US job market despite the expectations of the new US President Joe Biden’s stimulus.
As of 10:04 a.m. (East time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 31,179.46, down 8.92 points (0.03%) from the battlefield.
The Standard & Poor’s (S&P) 500 index traded at 3,851.22, down 0.63 points (0.02%) from the battlefield, but the Nasdaq index, which is centered on technology stocks, traded at 13,483.96, up 26.71 points (0.20%).
The market is watching President Biden’s policies, key economic indicators, and corporate performance.
The main index surged to an all-time high the day before President Biden took office, reflecting expectations for the new government’s policy.
There is high hope for a massive $1.9 trillion in economic stimulus package to be promoted by President Biden. It also spread optimism that the new government could be more efficient in responding to the spread of the novel coronavirus infection (Corona 19).
President Biden is concentrating on responding to Corona 19, including signing an administrative order urging to wear a mask right after taking office. On this day, it announced countermeasures one after another, including stating that it would invoke the Defense Goods Production Act to produce masks and supplies necessary for vaccine administration.
However, it is pointed out that the fact that the record still records 900,000 people reflects the deteriorating job market.
With the inauguration of the US administration by Joe Biden, the US job market chill continues.
The US Department of Labor announced on the 21st (local time) that the number of new unemployment benefits claims was counted last week (January 10-16). It was 26,000 fewer than the previous week, but it remained at 900,000 for the second consecutive week.
The number of claims last week was less than the market expert estimate of 935,000, compiled by Bloomberg News.
The number of’continuous claims for unemployment benefits’ for at least two weeks was 5.55 million, down 127,000 from the previous week.
Despite a modest decline, the US media noted that the number is still much higher than before the pandemic of the novel coronavirus infection (Corona 19).
It is analyzed because the number of cumulative deaths in the U.S. exceeds 400,000, and consumption activity has contracted as the corona 19 rises in winter, and regulations have been imposed on corporate activities. The poorer-than-expected spread of the Corona 19 vaccine is also lowering expectations for early normalization of economic activity.
The Ministry of Commerce announced that in December of last year, the number of new housing starts was recorded at 1.69 million units, an increase of 5.8% from the previous month.
It was the highest since December 2006. The market forecast increased by 0.8%, exceeding 1.56 million degrees.
Also, in January, the Philadelphia Fed index soared to 26.5 from 9.1 last month. The expert’s forecast of 10.5 was also significantly higher.
Despite the not-so-bad indicator, as the level burden has increased, the stock market is not able to maintain a resilient rise.
According to the fact set, the ratio of stock price/earnings to the future expected profits of companies in the recent S&P500 index is about 23 times, which is close to the dot-com bubble in 2000.
It is also a burden on the stock market that the European Central Bank (ECB)’s monetary policy meeting was somewhat hawkish (preferring monetary tightening).
The ECB stated in its monetary policy statement today that the Pandemic Emergency Purchase Program (PEPP) of 1.85 trillion euros may not be fully used.
Investors are also watching corporate performance. After the close of the market on this day, Intel and IBM are scheduled to release their results.
New York stock market experts diagnosed the need to take a breath after a short surge.
“The recent market rally could be breathtaking in the short term,” said Matt Mulley, chief market strategist at Miller Brubbac. “The range of strengths during the recent rally has been very limited.”
Stock markets in major European countries are also mixed. The pan-European index Stoxx 600 rose 0.24%.
International oil prices fell. Western Texas crude oil (WTI) prices for February moved to $52.91, down 0.75% from the previous trading day, while Brent oil fell 0.62% to $55.75.
【Youth Daily = Reporter by phone number】
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