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By Nicholas
Jasinski | Tuesday, December 1 Jolt.
Stocks marched higher today, following
details of a new bipartisan fiscal stimulus proposal and the latest dose of
manufacturing data from the U.S. and China, which showed a continuing global
economic recovery. Covid-19 vaccine optimism underpins it all, and continues
to buoy markets. The S&P
500 closed up 1.1%, at an all-time high,
while the Nasdaq
Composite added 1.3% to set its own record. The Dow
Jones Industrial Average rose 0.6% and the Russell
2000 gained
0.9%. Both are about a percentage point below their records set last week. Today's was
a broad rally: 10 of 11 sectors in the S&P 500 closed in the green.
Communication services led the market higher, finishing up 1.8% on a good day
for media stocks. Financials was also among the leaders, and industrials
was the lone sector to fall today. This
afternoon, a group of Democratic and Republican senators
including Sen. Mark
Warner of Virginia
and Sen. Susan
Collins of Maine unveiled a
$908 billion fiscal stimulus package. The plan includes extended federal
unemployment benefits, funding for state and local governments, and
additional Payroll Protection Program
funding. It also includes funds for Covid-19
vaccine distribution and administration. How far that
proposal goes is anyone's guess, but it's the first serious discussion of
fiscal stimulus since before the November election. A Dec. 11 deadline looms
to avoid a government shutdown. Congress goes away for the holidays on Dec.
21. Needless to say, fiscal stimulus to tide over the individuals,
businesses, and governments most affected by the pandemic remains
far from certain. “We can see
what may be the light at the end of the tunnel with the vaccines,” Federal
Reserve Chairman Jerome
Powell told members of the Senate Banking Committee
today. “Some fiscal support now would really help move the economy along as
well.” Today's
economic highlights included the Institute
for Supply Management’s November manufacturing
index, which came in at 57.5. That matched prior
expectations, but was down from October’s 59.3. Nonetheless,
it's the seventh-straight month above 50, signifying an expanding U.S.
manufacturing economy. In China, a
private-sector survey of manufacturing was better than expected, showing that
Chinese factory activity accelerated at the fastest pace in a decade last
month. An official government survey showed similar industrial economic
strength. Stock indexes in Asia rose strongly today. As far as
economic data goes, all eyes are on Friday's November jobs report and how
much the fall surge in Covid-19 cases is affecting the recovery.
Less-than-usual holiday season hiring could also weigh on the
numbers. That result could even jolt Congress into action on stimulus. |
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DJIA: +0.63% to 29,823.92 The Hot
Stock: Lincoln
National +5.7% Best Sector:
Communication Services +1.8% |
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