Commenting on investors betting on more fiscal stimulus from the Biden administration and today’s trading, Gorilla Trades strategist Ken Berman said:
Indices Hit New Highs As Investors Bet On More Stimulus From The Biden Administration
The major indices are all trading in the green at midday following an active and slightly chaotic morning session. The Democratic party will likely take control of the Senate, completing the sweep in the wake of yesterday’s runoff elections, and the slightly surprising outcome caused major waves on Wall Street. Despite the fears of a post-election pullback, which led to Monday’s broad-based selloff, the Dow, the S&P 500, and the Russell 2000 all hit new all-time highs in early trading as investors bet on more fiscal stimulus from the Biden administration.
Michael Gelband’s Exodus Point launched in 2018 with $8.5 billion in assets. Expectations were high that the former Millennium Management executive would be able to take the skills he had learned at Izzy Englander’s hedge fund and replicate its performance, after a decade of running its fixed income business. The fund looks to be proving Read More
The giants of the tech sector have been lagging behind the broader market due to the increased regulatory risk, but solar companies and other renewables surged higher, pricing in a possible “green” shift in the U.S. In economic news, the ADP payrolls number came in well below the consensus estimate, printing at -123,000, its worst reading since June. On a positive note, factory orders and crude oil inventories pointed to strengthening demand, but we got mostly bearish overseas reports overnight, so the global economic outlook remains mixed.
Dow: 30,855, + 463 or 1.5%
S&P 500: 3,765 + 38 or 1.0%
Nasdaq: 12,849, + 30 or 0.2%
Russell 2000: 2,053, + 74 or 3.7%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 4-to-1 ratio on the NYSE at midday. Only one stock hit a new 52-week low on the NYSE and the Nasdaq, while 391 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. The key sectors have been diverging substantially due to the election results. But apart from tech stocks and communication services, all of the key sectors are sporting gains at midday, with financials, energy-related issues, industrials, and materials leading the rally. Stay tuned!