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Dow Eases From Lows as Biden Restores Stimulus Hopes 

Stock Markets Jan 08, 2021 03:21PM ET
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By Yasin Ebrahim

Investing.com – The Dow cut losses on Friday as stimulus hopes were restored after West Virginia Democratic Senator Joe Machin said he had not signaled that he would vote against any proposal to boost stimulus checks, while president-elect Joe Biden talked up fiscal expansion.  

The Dow Jones Industrial Average fell 0.01%, or 1.70 points. The S&P 500 was up 0.32%, while the Nasdaq Composite added 0.64% to remain on course for another record close.

Manchin was reported to have shot down the idea of boosting checks to $2,000, but later claimed his comments in The Washington Post were mischaracterized. Manchin was quoted as saying "absolutely not" when quizzed about backing an idea to boost stimulus checks to $2,000, but the West Virginia senator said this was in response to whether checks should the first priority. 

President-elect Biden further restored hopes for further stimulus, insisting that the focus should be on budget spending to boost growth. "We should be investing in deficit spending in order to generate economic growth," Biden said.

The need for further stimulus was highlighted by a wobble in the labor market following an unexpected drop in jobs in December. 

The U.S. economy lost 140,000 last month, confounding expectations for a gain of 70,000, but economists suggested the near-term wobble in the economy will likely be overlooked as vaccines are deployed and Democrats are likely to roll out more stimulus.

The loss of jobs broke the streak of seven straight months of gains since the decline over March and April, but markets are "likely looking through near-term considerations as a transitory hit in favor of longer-term upside risk tentatively reinforced by vaccines and ‘blue wave’ fiscal policy considerations," Scotiabank Economics said.

Value sectors including materials, industrials and financials kept gains in check.

Financials were weighed down by a fall in banking names ahead of their earnings slated for next week.

JPMorgan Chase (NYSE:JPM) was flat, Citigroup (NYSE:C) slipped 1% and Wells Fargo (NYSE:WFC) was down 1%.

Tech stocks were higher on mostly positive momentum in the Fab 5, which helped offset a trickle lower in chip stocks.
 
Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) traded higher, while Facebook (NASDAQ:FB) fell into the red.

Micron Technology Inc (NASDAQ:MU), which had hit a more than 20-year intraday high on better-than-expected first-quarter earnings and guidance, fell 1.8% following a reversal in chip stocks.

In other news, Tesla (NASDAQ:TSLA) continued to rack up gains, up 6%, taking its market value above $830 billion, with the electric automaker topping Facebook's $750 billion valuation.

Dow Eases From Lows as Biden Restores Stimulus Hopes 
 

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Comments (33)
Greg Nathan
Greg Nathan Jan 09, 2021 5:24AM ET
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Pres. Trump targeted 1/6 for demonstrating election certification. If he were a politician he would have cautioned for things to remain peaceful. He didn't do that. If he were brilliant he would have overdone that, but he didn't. Alas, he is a businessman. Pres.(arguably) Elect Biden, if he were brilliant, would tell the the people: no stimulus - I want our citizens to sell their Bitcoin, and tech stocks - the market ought to settle around 14,000, but there will be plenty of money in the hands of our people to take care of one another - too bad about the pandemic, but that's life. We'll get through it, and we won't have to borrow a thing. He didn't say that, he said, let's deficit spend. He is a can kicker, too weak to bear the financial impact of the pandemic. Who cares if the the market is 14,000 or 32,000 so long as we get through?  No difference except the former is healthy, the latter is destined for a currency crisis, (the longer it takes the worse it will be.)
Stratus Angelacus
Stratus Angelacus Jan 09, 2021 4:42AM ET
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To the 160 million American workers i say, right now according to the federal public debt. That is debt the federal government has taken on the last 25 years; that debt belongs to you and you are carrying it on your back. THIS DEBT is $ 185 000.oo on every working American today and it will be $ 200 00.oo next year. Meanwhile, the richest folks added 1.8 TRILLIONS to the wealth since The Pandemic.....Carry-on.
Greg Nathan
Greg Nathan Jan 09, 2021 4:32AM ET
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My parents were children during the Great Depression. This affected their lives, made them reluctant to waste anything and very watchful of their credit. Today, instead of deficit spending why aren't we allowed to suffer a consequence inline with the severity of the crisis? This is a time to tighten our belt not to deficit spend. Can't we go through a very difficult time? There is an abundance of wealth within our nation that can be liquidated to meet this crisis. This is a time to use that wealth. Times like this is what that wealth is for. Have we raised a population of greedy, spoiled wimps that can't liquidate wealth when they need to? Instead, we deficit spend and leave our wealth in place. People like Joe Biden think there will be no consequence for raising the national debt even more. What happened to getting through without dependence on government deficit spending? Good credit typically requires sacrifice. The world will soon be informing the USA: account overdrawn.
white hate
white hate Jan 09, 2021 1:20AM ET
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electoral colleage are the bunch to blame for electing trump 4yrs ago....creating all these chaos
perplexed76 .
perplexed76 . Jan 09, 2021 1:13AM ET
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they can hardly give 1,000$ to an american and at the same time FED mantains bunch of parasites round the world with its thrillion "liquidity"
Igor Tes
Igor Tes Jan 08, 2021 4:44PM ET
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if I was in Trump position right now I will back off specialy when Congress and Senate is controlled by dems, he will waste his time if he's stay in precidency. after next 4 years of scrutiny Trumpy has a better chance to re-elect.
Roger Miller
Roger Miller Jan 08, 2021 4:39PM ET
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Increased stimulus spending is a short term gain at the expense of the long term gains. Especially when the money is borrowed or printed. And ultimately it ends up in the hands of the wealthy, including politicians.
Phyllis Reisman
Phyllis Reisman Jan 08, 2021 4:39PM ET
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no everybody needs the stimulus..i dlny need any $..i need tbe vaccine.
Mark Manley
Mark Manley Jan 08, 2021 4:15PM ET
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deficit spending, great idea Joe Bob, because that always works out so well, NOT
stanley shalala
stanley shalala Jan 08, 2021 4:14PM ET
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Trump fans should be shamed.
Josh Modern
JoshModern Jan 08, 2021 4:03PM ET
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Joe I'm glad you won
 
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