Read more about US Stocks eke out gains to close at a record on Business Standard. At the close of trade, the Dow Jones Industrial Average index fell 12.37 points, or 0.04%, to 31,176.01. The S&P 500 index added 1.22 points, or 0.03%, to 3,853.07. The tech-heavy Nasdaq Composite Index rose 73.67 points, or 0.55%, to 13,530.92.
By Jan. 19, 2021 7:00 am ET Order Reprints Print Article
While the calendar has finally turned, not much else has changed. The Covid-19 pandemic remains a very real threat, but one that has barely dampened consumers’ appetites. One real change, however, is that the millions of packages flying through the mail are now, in many cases, returns moving in the opposite direction and back to retailers. That means a continuing rush for delivery giants, such as UPS and FedEx.
The January rush feels like it deserves its own name, so Barron’s is dubbing it “Return-a-palooza.”
And.
Close
While the calendar has finally turned, not much else has changed.
The stock market could experience a correction soon.
Prices already reflect a wallop of government spending and central-bank aid that can’t get much larger from here,
Bank of America warns. Other market watchers are downbeat as well.
The S&P 500 entered Friday up about 1% year to date, but ended the day with a loss of 0.7%, bringing the year-to-date move to 0.3%. Stocks were down even after President-elect Joe Biden said he wants to spend an additional $1.9 trillion to tide over consumers and businesses until normality returns.
Meanwhile, valuations are high. The equity risk premium the earnings yield on the average
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Abu Dhabi’s sovereign-wealth fund Mubadala Investment recently sold 3 million shares of Virgin Galactic. Courtesy of Virgin Galactic
One of
Virgin Galactic Holding’s largest shareholders, Abu Dhabi sovereign-wealth fund Mubadala Investment, reduced its stake in the aerospace and space-travel company.
Virgin Galactic (ticker: SPCE) stock has rocketed 28.2% so far in January, boosted by buzz for the sector after Cathie Wood’s ARK Invest filed documents to start a new space exchange-traded fund. In comparison, the
S&P 500 index, a measure of the broader market, has only eked out a 0.3% gain in the new year.
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CAC 40 was down 0.3% and Frankfurt’s
DAX was down 0.2%.
The former Federal Reserve Chair’s testimony, which concluded midafternoon, gave Yellen the opportunity to sell President-elect Joe Biden’s $1.9 trillion fiscal stimulus plan. Yellen emphasized the need to “defeat the pandemic” first before tackling the deficit, and bolster global confidence in the U.S. economy. She also warned that the nation faces “difficult months ahead” before it achieves widespread vaccination.
Yellen confirmed that no tax hikes or repeals of 2017’s legislation are on the table near-term, nor while the country struggles with the pandemic. Yet there was some surprise in the testimony, according to Max Gokhman, Head of Asset Allocation at Pacific Life Fund Advisors, regarding potential future changes. “Yellen said that the details of tax changes may be featured in this year’s infrastructure bill, which she is going to help draft. This could be setting up an ebullient