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Stock Market News for Mar 26, 2021

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U.S. stock markets staged a late-session comeback to close higher on Thursday as investors took note of President Biden’s new goal of 200 million vaccine shots within his first 100 days in office. Moreover, upbeat jobless claims report as well as the fourth-quarter GDP being revised upward in third estimate, also boosted investors’ confidence. All the three major stock indexes ended the day in green.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.6%, or 199.42 points, closing at 32,619.48, snapping its two-day losing streak. Notably, 23 components of the 30-stock index ended in green while 7 finished the day in red. One of the major gainers of the Dow was American Express Company (AXP - Free Report) that gained 2.8%. Notably, American Express carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite closed the day at 12,977.68, up 0.1%, reversing its losses from the previous two sessions, on the back of strong performance by large-cap technology stocks. The S&P 500 gained 0.5%, closing the day at 3,909.52, reversing its two-day losing streak. The Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) advanced 1.7% and 1.5%, respectively. Notably, nine out of eleven sectors of the benchmark index closed in the positive zone and two in red.

The fear-gauge CBOE Volatility Index (VIX) was down 6.6% to 19.81. A total of 12.69 billion shares were traded on Thursday, lower than the last 20-session average of 13.84 billion. Advancers outnumbered decliners on the NYSE by a 1.66-to-1 ratio. On Nasdaq, a 1.75-to-1 ratio favored advancing issues.

President Biden Sets New Target of 200 Million Vaccine Shots Within His First 100 Days

Market participants took note of President Joe Biden’s first Presidential press conference where the President announced a new goal of 200 million COVID-19 vaccine doses to be administered within his first 100 days in office. Notably, the President’s previous target of 100 million doses being administered were met last week, in his 59th day in office.

Initial Jobless Claims Fell to One-Year Low Last Week

Wall Street rallied late in the session as investors took note of the upbeat data released early-Thursday on initial jobless claims, that showed jobless claims falling to a one-year low last week. Notably, the U.S. Department of Labor reported that initial jobless claims declined by 97,000 to 684,000 for the week-ended Mar 20. The consensus estimate was 733,000 and previous week’s data was revised upward by 11,000 to 781,000 from 770,000 reported earlier.

Continuing claims (people who are already receiving benefits) declined by 264,000 to 3,870,000 for the week ended Mar 13 from the prior week which was revised upward by 10,000 to 4,134,000 from 4,124,000 reported earlier. The four-week moving average for continuing claims dropped by 137,250 to 4,120,750 from the prior week’s average which was revised upward by 2,500 to 4,258,000 from 4,255,500 reported earlier.

Fourth-Quarter GDP Revised Upward in Third Estimate

Per the third estimate released by the U.S. Department of Commerce, the fourth-quarter 2020 GDP increased at an annual rate of 4.3%, surpassing the consensus estimate of 4.2%, and higher than the second estimate of 4.1% reported earlier.

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