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Dow Above 30,000 Again, led by Boeing, Stimulus Progress

Published 12/03/2020, 01:26 PM
Updated 12/03/2020, 03:21 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com - The Dow rose above a key level on Thursday, led by a rise in Boeing on signs of demand returning for the beleaguered Max jets, while ongoing optimism for much-needed stimulus aid continued to underpinned investor sentiment.

The Dow Jones Industrial Average rose 0.63%, or 188 points, rising above the 30,000 level intraday. The S&P 500 was up 0.30%, while the Nasdaq Composite added 0.53%.

Dow component Boeing (NYSE:BA) rose 7% after Ryanair placed an order for 75 additional 737 MAX airplanes, increasing its order book to 210 jets.

The Federal Aviation Authority ungroundedBoeing's 737 Max, which was involved in two fatal crashes.

The road to redemption for Boeing 737 Max's will continue as other airlines have pledged to fly the jets again.

American Airlines Group (NASDAQ:AAL) said it will fly the Max jets at the end of the year. Southwest Airlines (NYSE:LUV) will fly the planes in the second quarter.

Sentiment on stocks was also swayed by the latest developments on stimulus.  House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell on Thursday discussed a coronavirus relief deal and measures to avoid a government shutdown.
 
Energy enjoyed runaway gains, spurred by surging oil prices after the major produces tapered production cuts by 500,000 barrels per day to 7.2 million barrels a day. It was less than the expected 1.9 million barrels taper expected.

In tech, Snowflake (NYSE:SNOW) jumped 14% after its third-quarter results prompted a slew of upgrades from Wall Street analysts.

"The company continues to execute on the longer-term opportunity, with little to no impact from COVID. We’re impressed by customers’ embracing the broader data cloud platform…" Credit Suisse (SIX:CSGN) said in a note after upgrading its price target on the stock to $265 from $250.

On the economic front, jobless claims fell for the first time in two weeks data. But Jefferies (NYSE:JEF) said the decline this week is "encouraging, but also difficult to trust."

In the week ended Nov. 28, 712,000 people filed for unemployment insurance, down 75,000 from the prior week's upwardly revised 787,000, and lower than the 775,000 claims expected.

In other news, Tesla (NASDAQ:TSLA) jumped 4% after Goldman Sachs (NYSE:GS) hiked its price target on Tesla to $780 from $355 on signs of faster electric vehicles adoption.

Latest comments

why so we need a stimulus when the "forward" seeing markets are telling us the economy wil be so great?
“Stimulus Progress” whatever the *****that means
Gains vanishing in the last 30 minites of trading
The 2PM round of criminal manipulation unfolds with the predictability of the rising sun.  The first legalized Ponzi scheme in the world continues to defraud the US middle class.
again optimism
and why not. there is no real pandemic (there is a world health issue, but not a pandemic). and if there is, the solution exists. I thought it would come sooner and crash FAANG, so I lost some on shorts, but my ual+spg mainly did the trick. I hope it stays in this course
sounds like ual,aal,ba has the best upside and a safe long bet
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