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Wall Street closed sharply higher on Thursday supported by the new infrastructure plan proposed by President Joe Biden and strong manufacturing data. All the three major stock indexes ended in green. U.S. stock markets were closed on Friday to observe Good Friday.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.5% or 171.66 points to close at 33,153.21. Notably, 20 components of the 30-stock index ended in the green while 10 in red. The Nasdaq Composite finished at 13,480.11, climbing 233.23 points or 1.8% due to strong performance by large-cap technology stocks.
Meanwhile, the S&P 500 surged 1.2% to end at 4,019.87, marking its first closing above the technical barrier of 4,000. In intraday trading, the broad-market index touched a record-high at 4,020.63. The Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLK) rose 2.6% and 2%, respectively. Notably, eight out of eleven sectors of the benchmark index closed in the green while three in red.
The fear-gauge CBOE Volatility Index (VIX) was down 10.7% to 17.33, marking its first closing below 18 for the first time in 14 months. A total of 10.5 billion shares were traded on Thursday, lower than the last 20-session average of 13 billion. Advancers outnumbered decliners on the NYSE by a 4.16-to-1 ratio. On Nasdaq, a 3.14-to-1 ratio favored advancing issues.
Biden Proposes $2.3 Trillion Infrastructure Plan
On Mar 31, President Joe Biden unveiled his $2.3 trillion infrastructure development plan. Notably, some economists believe that final expenditure may reach around $4 trillion as additional parts are announced. The proposed plan will allocate $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development. Provide $400 billion to care for elderly and disabled Americans.
Biden's proposal will include more than $300 billion for improving drinking-water infrastructure, expanding broadband access and upgrading electric grids. It will allocate more than $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools. The new plan has the provision to invest $580 billion in American manufacturing, research and development and job training efforts.
Strong Economic Data
The Institute of Supply Management (ISM) reported that its manufacturing Purchasing Managers' Index (PMI) for March soared to 64.7% from 60.8% in February, marking its highest reading since December 1983 and 10th consecutive month of growth. The consensus estimate was 61.3%. Notably, any reading above 50 means expansion of manufacturing activities.
Out of a total 18 industries, 17 reported expansions. The sub-index for new orders jumped to 68% from 64.8% in February, reflecting the highest level since January 2004. The sub-index for manufacturing employment came in at 59.6% from 54.4% in February, posting the highest reading since February 2018.
The IHS Markit reported that its U.S. manufacturing PMI rose to 59.1% in March from 58.6 in February, marking its second highest level on record.
Construction spending declined 0.8% in February compared with a gain of 1.7% in January. The consensus estimate was for a decline of 0.7%.
The Department of Labor reported that weekly jobless claims increased by 61,000 to 719,000 for the week ended Mar 27 compared with downwardly revised previous week's data of 658,000. The consensus estimate was 682,000.
Combined state and federal jobless claims totaled an unadjusted 951,548 for the week ended Mar 20. Meanwhile, the continuing claims (number of people who have already collected jobless benefit) declined by 46,000 to a seasonally adjusted 3.79 million for the week ended Mar 20, lowest level in a year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Stock Market News for Apr 5, 2021
Wall Street closed sharply higher on Thursday supported by the new infrastructure plan proposed by President Joe Biden and strong manufacturing data. All the three major stock indexes ended in green. U.S. stock markets were closed on Friday to observe Good Friday.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.5% or 171.66 points to close at 33,153.21. Notably, 20 components of the 30-stock index ended in the green while 10 in red. The Nasdaq Composite finished at 13,480.11, climbing 233.23 points or 1.8% due to strong performance by large-cap technology stocks.
Technology behemoths like Lam Research Corp. (LRCX - Free Report) , Microsoft Corp. (MSFT - Free Report) and salesforce.com inc. (CRM - Free Report) jumped 7.4%, 2.8% and 3.2%, respectively. Microsoft carries 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 surged 1.2% to end at 4,019.87, marking its first closing above the technical barrier of 4,000. In intraday trading, the broad-market index touched a record-high at 4,020.63. The Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLK) rose 2.6% and 2%, respectively. Notably, eight out of eleven sectors of the benchmark index closed in the green while three in red.
The fear-gauge CBOE Volatility Index (VIX) was down 10.7% to 17.33, marking its first closing below 18 for the first time in 14 months. A total of 10.5 billion shares were traded on Thursday, lower than the last 20-session average of 13 billion. Advancers outnumbered decliners on the NYSE by a 4.16-to-1 ratio. On Nasdaq, a 3.14-to-1 ratio favored advancing issues.
Biden Proposes $2.3 Trillion Infrastructure Plan
On Mar 31, President Joe Biden unveiled his $2.3 trillion infrastructure development plan. Notably, some economists believe that final expenditure may reach around $4 trillion as additional parts are announced. The proposed plan will allocate $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development. Provide $400 billion to care for elderly and disabled Americans.
Biden's proposal will include more than $300 billion for improving drinking-water infrastructure, expanding broadband access and upgrading electric grids. It will allocate more than $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools. The new plan has the provision to invest $580 billion in American manufacturing, research and development and job training efforts.
Strong Economic Data
The Institute of Supply Management (ISM) reported that its manufacturing Purchasing Managers' Index (PMI) for March soared to 64.7% from 60.8% in February, marking its highest reading since December 1983 and 10th consecutive month of growth. The consensus estimate was 61.3%. Notably, any reading above 50 means expansion of manufacturing activities.
Out of a total 18 industries, 17 reported expansions. The sub-index for new orders jumped to 68% from 64.8% in February, reflecting the highest level since January 2004. The sub-index for manufacturing employment came in at 59.6% from 54.4% in February, posting the highest reading since February 2018.
The IHS Markit reported that its U.S. manufacturing PMI rose to 59.1% in March from 58.6 in February, marking its second highest level on record.
Construction spending declined 0.8% in February compared with a gain of 1.7% in January. The consensus estimate was for a decline of 0.7%.
The Department of Labor reported that weekly jobless claims increased by 61,000 to 719,000 for the week ended Mar 27 compared with downwardly revised previous week's data of 658,000. The consensus estimate was 682,000.
Combined state and federal jobless claims totaled an unadjusted 951,548 for the week ended Mar 20. Meanwhile, the continuing claims (number of people who have already collected jobless benefit) declined by 46,000 to a seasonally adjusted 3.79 million for the week ended Mar 20, lowest level in a year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>