* Biden says the economic package is trillions of dollars
* Senator Manchin lowers expectations a bit
* Non-farming payrolls fall in December
* Tesla market capitalization is $ 800 billion for the first time
* Dow 0.18%, S&P 500 0.55%, Nasdaq 1.03% (Add closing prices, comments)
By Herbert Lash
NEW YORK, Jan. 8 (Reuters) – Wall Street reached a new high on Friday as hopes for more stimulus from Washington were shaken a bit by a senator’s comment, but later strengthened after Joe Biden, the US president-elect, , said its economic package would be in the trillions. of dollars.
The latest rally in the Dow, S&P 500 and Nasdaq surpassed labor market data early in the day, indicating that the US economy will create jobs for the first time in eight months in December.
But late in the session, the S&P withdrew slightly from its most recent high following a report that Democratic U.S. Senator Joe Manchin opposed larger direct investigations before addressing the coronavirus pandemic. The remarks prompted dissatisfied investors expecting further stimulus payments.
“It’s amazing how sensitive we are to the least adjustment of when and how big the stimulus will be,” said Ed Moya, senior market analyst at OANDA in New York.
“Stocks are going to start costing in a larger economic relief package from the Biden government,” Moya said. “It will still be the driver of stocks.”
Biden said his administration’s economic package also includes unemployment insurance and rents. The package will be launched next Thursday, he said.
“It is now necessary to spend the money,” Biden told reporters. “The answer is ‘yes’, it will be in the billions of dollars, a whole package.”
Positive vaccine data and expectations of greater fiscal package and infrastructure spending under a Democratic US Congress pushed the S&P 500 above 3,800 points for the first time, putting all three major indices on track for weekly gains.
The Democrats will want to inject a lot of stimulus and spending into the economy, which in the short term will be good for economic growth, investment strategy analyst Ross Mayfield told Baird.
“The market is happy with the result,” he said.
Some Wall Street analysts expect the stock to retreat in the short term as the exuberance of unprecedented monetary and fiscal stimulus has led to a “foaming” market.
But a resumption of consumer spending, coupled with the stockpiling of business inventory as easing COVID-19 restrictions, should boost economic activity in 2021, ClearBridge Investments investment strategist Jeff Schulze said in a note.
Economy-linked financial, materials and industrial stocks, which outperformed their peers and lowered record levels this week, fell more than 1% at one point during the session.
Market participants looked past a report that Congressmen of Congress were planning to introduce articles of accusation against US President Donald Trump on Monday, after a violent crowd of his supporters stormed the US Capitol on Wednesday.
The Dow Jones industrial average rose 56.84 points, or 0.18%, to 31,097.97. The S&P 500 gained 20.89 points, or 0.55%, to 3,824.68 and the Nasdaq Composite added 134.50 points, or 1.03%, to 13,201.98.
The US stock market was 14.40 billion shares.
The S&P 500 closed above 3,800 points for the first time on Thursday, while the Dow and the Nasdaq achieved their fourth consecutive win.
For the week, the S&P rose 1.83%, the Dow 1.61% and the Nasdaq 2.43%.
Electric car maker Tesla Inc. jumped 7.8%, raising market capitalization to more than $ 800 billion for the first time ever. Tesla was the largest percentage profit on the S&P.
According to two sources, Baidu’s listed shares are 15.6% higher than plans to form a company to manufacture smart electric vehicles. Baidu was the biggest gainer on the Nasdaq 100.
Progressive issues were less than declining on the NYSE with a 1.10-to-1 ratio; on Nasdaq, a 1.07-to-1 lead was favored.
The S&P 500 reached 84 new 52-week highs and no new lows; the Nasdaq Composite recorded 309 new highs and five new lows. (Reporting by Herbert Lash, additional reporting by Devik Jain and Medha Singh in Bengaluru; editing by Marguerita Choy)