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Wall Street closed mostly higher on Wednesday buoyed by House voting result in favor of $1.9 trillion of new fiscal stimulus. Moreover, muted inflation data also strengthened market participants' confidence on equities. The Dow and the S&P 500 ended in green while the Nasdaq Composite dropped marginally.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.5% or 464.28 points to close at 32,297.02, marking its first closing above the technical barrier 32,000. In the intraday session, the blue-chip index touched a fresh all-time high at 32,389.50. Notably, 26 components of the 30-stock index ended in the green while 4 in red.
The Nasdaq Composite finished at 13,068.83, declining 4.99 points due to weak performance by large-cap tech stocks. Investors reallocated funds to cyclical stocks from technology stocks due to upcoming large coronavirus-aid package.
Meanwhile, the S&P 500 gained 0.6% to end at 3,898.81. The Energy Select Sector SPDR (XLE) and the Financials Select Sector SPDR (XLF) rose 2.5% and 2%. Notably, ten out of eleven sectors of the benchmark index closed in the green while one in red.
The fear-gauge CBOE Volatility Index (VIX) was down 6.1% to 22.56. A total of 13.82 billion shares were traded on Tuesday, lower than the last 20-session average of 15.16 billion. Advancers outnumbered decliners on the NYSE by a 2.97-to-1 ratio. On Nasdaq, a 1.79-to-1 ratio favored advancing issues.
Congress Send New Stimulus Bill to White House
On Mar 10, the House of Representatives, where the Democrats hold the majority, passed the revised $1.9 trillion fresh coronavirus-relief package proposed by President Joe Biden. On Mar 4, the Senate passed a revised $1.9 trillion coronavirus relief package. The bill is now in White House waiting for President's signature expected by Mar 12. After that the bill will transform in a law.
The revised version of Biden's “American Rescue Plan” will include a direct payments of $1,400 and supplemental unemployment benefits to $300 per week through Sep 6. The bill will provide $25 billion in rental and utility assistance and about $10 billion for mortgage aid. Moreover, $30 billion is allocated as aid to restaurants. The bill expands the child tax credit for one year, which will increase to $3,600 for children under 6 and to $3,000 for kids between 6 and 17.
Biden's proposal includes $15 billion in grants to small businesses, along with $35 billion in low-interest loans. The Small Business Paycheck Protection Program of $284 billion in loans will also continue. The plan will include $20 billion for a national vaccination program, $50 billion for COVID testing, and $350 billion aid to state and local governments. In addition, the plan will provide more than $120 billion for K-12 schools.
Muted Household Inflation
The Department of Labor reported that consumer price index (CPI) grew 0.4% in February, in line with expectation. CPI rose 0.3% in January. Year over year, CPI increased 1.7% in February compared with 1.4% in January.
The core (excluding the volatile food and energy items) CPI rose 0.1% in February after remaining static for two straight months. The consensus estimate was 0.2%. Year over year, core CPI increased 1.3% in February compared with 1.4% in January.
Other Economic Data
For the week ended Mar 5, U.S. crude inventories increased by 13.8 million barrels from the previous week.
ConocoPhillips (COP - Free Report) recently announced the resumption of share repurchase program. (Read More)
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Stock Market News for Mar 11, 2021
Wall Street closed mostly higher on Wednesday buoyed by House voting result in favor of $1.9 trillion of new fiscal stimulus. Moreover, muted inflation data also strengthened market participants' confidence on equities. The Dow and the S&P 500 ended in green while the Nasdaq Composite dropped marginally.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.5% or 464.28 points to close at 32,297.02, marking its first closing above the technical barrier 32,000. In the intraday session, the blue-chip index touched a fresh all-time high at 32,389.50. Notably, 26 components of the 30-stock index ended in the green while 4 in red.
The Nasdaq Composite finished at 13,068.83, declining 4.99 points due to weak performance by large-cap tech stocks. Investors reallocated funds to cyclical stocks from technology stocks due to upcoming large coronavirus-aid package.
Technology behemoths like Apple Inc. (AAPL - Free Report) and Microsoft Corp. (MSFT - Free Report) lost 0.9% and 0.6%, respectively. Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 gained 0.6% to end at 3,898.81. The Energy Select Sector SPDR (XLE) and the Financials Select Sector SPDR (XLF) rose 2.5% and 2%. Notably, ten out of eleven sectors of the benchmark index closed in the green while one in red.
The fear-gauge CBOE Volatility Index (VIX) was down 6.1% to 22.56. A total of 13.82 billion shares were traded on Tuesday, lower than the last 20-session average of 15.16 billion. Advancers outnumbered decliners on the NYSE by a 2.97-to-1 ratio. On Nasdaq, a 1.79-to-1 ratio favored advancing issues.
Congress Send New Stimulus Bill to White House
On Mar 10, the House of Representatives, where the Democrats hold the majority, passed the revised $1.9 trillion fresh coronavirus-relief package proposed by President Joe Biden. On Mar 4, the Senate passed a revised $1.9 trillion coronavirus relief package. The bill is now in White House waiting for President's signature expected by Mar 12. After that the bill will transform in a law.
The revised version of Biden's “American Rescue Plan” will include a direct payments of $1,400 and supplemental unemployment benefits to $300 per week through Sep 6. The bill will provide $25 billion in rental and utility assistance and about $10 billion for mortgage aid. Moreover, $30 billion is allocated as aid to restaurants. The bill expands the child tax credit for one year, which will increase to $3,600 for children under 6 and to $3,000 for kids between 6 and 17.
Biden's proposal includes $15 billion in grants to small businesses, along with $35 billion in low-interest loans. The Small Business Paycheck Protection Program of $284 billion in loans will also continue. The plan will include $20 billion for a national vaccination program, $50 billion for COVID testing, and $350 billion aid to state and local governments. In addition, the plan will provide more than $120 billion for K-12 schools.
Muted Household Inflation
The Department of Labor reported that consumer price index (CPI) grew 0.4% in February, in line with expectation. CPI rose 0.3% in January. Year over year, CPI increased 1.7% in February compared with 1.4% in January.
The core (excluding the volatile food and energy items) CPI rose 0.1% in February after remaining static for two straight months. The consensus estimate was 0.2%. Year over year, core CPI increased 1.3% in February compared with 1.4% in January.
Other Economic Data
For the week ended Mar 5, U.S. crude inventories increased by 13.8 million barrels from the previous week.
Stocks That Have Made Headline
ConocoPhillips Resumes Stock Repurchases: Here's Why
ConocoPhillips (COP - Free Report) recently announced the resumption of share repurchase program. (Read More)
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>