Inventories rise after Trump signs virus relief package

Inventories rise after Trump signs virus relief package

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Stocks jumped to record levels on Monday after President Donald Trump signed a virus relief package after a delay of several days.

The Dow rose 0.7%, or about 200 points, while the S&P 500 rose 0.9% and the Nasdaq 0.7%. Each of the three major indices reached an intraday record and the last high, contributing their annual profit in the last week of 2020.

Trump on Sunday night approved the $ 900 billion two-party stimulus package after objecting to the bill earlier last week. In approving the stimulus package, Trump also signed Congress’ $ 1.4 billion omnibus bill that provided funds to the government until the end of the fiscal year, averting a government shutdown.

The virus relief package included a more modest payment of $ 600 that did not meet Trump’s demand to cut $ 2,000 checks to most Americans. Trump has also called for lawmakers to cut items he sees as “wasteful and unnecessary” in the bill.

House President Nancy Pelosi is expected to hold a ballot on Monday on a separate measure to increase direct payments, after it was not passed on by unanimous consent on Thursday. It is unclear whether the Republic-controlled Senate will take the measure.

In its current form, the stimulus package includes a number of measures to support individual Americans and businesses struggling amid the ongoing pandemic that has plagued more than 19 million people in the U.S. as of Monday. and supplement the Paycheck Protection Programs, and expand federal unemployment benefit programs and offer an improved $ 300 per week to unemployed insurance.

Yet the delay in signing the bill has seen a decline in unemployment benefits for the roughly 14 million Americans who claim federal unemployment benefits and pandemic unemployment benefits, as both of these programs expired Saturday without the new incentives to renew them. There is likely to be a brief delay in restarting these programs under the new authorization, experts said.

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16:01 ET: Stocks end at a record high after the stimulus bill

Here is where the three main indices ended the session on Monday:

  • S&P 500 (^ GSPC): 3,735.36, with 32.3 points or 0.87%

  • Dow (^ DJI): 30,403.97, with 204.1 points or 0.68% higher

  • Nasdaq (^ IXIC): 12,899.42, with 94.69 points or 0.74%

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13:43 ET: Goldman raises first-quarter GDP forecast to 5% after $ 900 billion stimulus package signed into law

Goldman Sachs economists improved their forecast for first-quarter gross domestic product growth to 5% from 3% year-on-year, citing the $ 900 billion stimulus package in consumer spending.

“Although the revenue effects of the fiscal package will be very significant, we expect the impact on consumer spending to be more even throughout the year,” said economist Jan Hatzius in a note. “The revival of viruses and the continued state and local constraints are likely to outweigh the short-term spending, which will lead to a reduced demand for mass vaccination later in the year.”

The economists also assume that economic growth for the whole year will be greater than in its previous assumption. The group sees annual growth of 5.8% in the US, up from 5.3% previously.

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12:16 ET: Stocks hold higher as stimulus optimism markets increase

The three main indices were higher in the intraday trading. Here are the main movements in markets from 12:16 ET:

  • S&P 500 (^ GSPC): 3,734.27, with 31.21 points or 0.84%

  • Dow (^ DJI): 30,413.74, with 213.87 points or 0.71%

  • Nasdaq (^ IXIC): 12,908.96, with 104.22 points or 0.81%

  • Ru (CL = F): – $ 0.08 (-0.17%) to $ 48.15 per barrel

  • Gold (GC = F): – $ 0.20 (-0.01%) to $ 1.8783.00 per ounce

  • 10-year Treasury (^ TNX): +2.1 bps to produce 0.951%

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10:55 ET: Alibaba shares steady after Beijing increases investigation into e-commerce giant Ant Group

Shares of Alibaba (BABA) are intraday Monday after slipping earlier, after Chinese authorities launched an antitrust investigation of the company late last week.

Regulators over the weekend demanded that Ant Group, the subsidiary of Alibaba, “correct” its business practices and focus more closely on the core industry for digital payments. This comes about a month after Beijing rejected the planned initial public offering of $ 34.5 billion in Shanghai and Hong Kong.

Shares in Alibaba rose 0.2% in New York after falling more than 13% on Thursday.

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09:35 ET: Stocks reach new record levels after Trump signs stimulus bill

The three main indices opened a new record at the highest peak just after the market on Monday morning, after President Donald Trump signed Congress’ bill on virus relief after a delay.

The Dow added more than 150 points to reach 30,384.54 on Monday morning. Apple and Disney made a profit in the 30-share index. Meanwhile, the information technology and materials sectors outperformed the S&P 500, which rose to its own intraday record of 3,731.38.

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07:15 ET Monday: Stock futures indicate higher open

These were the main movements in markets from Monday morning:

  • S&P 500 futures (ES = F): 3,719.75, higher 24.75 points or 0.67%

  • Dow futures (YM = F): 30 269.00, with 160 points or 0.53% higher

  • Nasdaq futures (NQ = F): 12,787.75, with 83.25 points or 0.66% higher

  • Ru (CL = F): + $ 0.48 (+ 1.00%) to $ 48.71 per barrel

  • Gold (GC = F): – $ 5.40 (-0.29%) to $ 1,877.80 per ounce

  • 10-year Treasury (^ TNX): +2.5 bps to produce 0.955%

NEW YORK, NEW YORK - MAY 26: Television journalists and others come across the entrance of the New York Stock Exchange (NYSE) on the first day that traders are admitted to the historic floor of the stock exchange in New York on May 26, 2020. City of York. While only a small number of dealers will return at this time, those who do should check temperature and wear face masks at all times. The Dow rose more than 600 points in morning trading as investors saw economic activity increase in the United States. (Photo by Spencer Platt / Getty Images)
NEW YORK, NEW YORK – MAY 26: Television journalists and others come across the entrance of the New York Stock Exchange (NYSE) on the first day that traders are admitted to the historic floor of the stock exchange in New York on May 26, 2020. City of York. While only a small number of dealers will return at this time, those who do should check temperatures and wear face masks at all times. The Dow rose more than 600 points in morning trading as investors saw economic activity increase in the United States. (Photo by Spencer Platt / Getty Images)

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