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Dow Hits Record as Bulls Feast on Stimulus Hopes

Stock MarketsDec 04, 2020 03:37PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Dow climbed to an intraday record Friday, as traders bet a wobble in the jobs market will force U.S. lawmakers to roll out a fiscal relief package sooner rather than later.

Dow Jones Industrial Average rose 0.61%, or 188 points and hit an intraday record of 30,181.7.  The S&P 500 was up 0.71%, while the Nasdaq Composite added 0.58%, with both indexes also hitting record intraday highs. 

The U.S. economy created just 240,000 jobs in December, missing a forecast for 469,000 new jobs. The unemployment rate fell to 6.7% from 6.9%.

"Today's data underscore the urgent need for additional policy support. Fiscal authorities are clearly better equipped to offer relief, and recent developments are encouraging. If Congress fails to deliver next week, we would expect the Fed to step in. Either way, help is on the way," Jefferies (NYSE:JEF) said in a note.

House Speaker Nancy Pelosi said Friday she held talks with Senate Majority Mitch McConnell about adding the new bipartisan $908 billion coronavirus relief legislation to a government funding omnibus, which must pass within the next week.

A day earlier, McConnell said a compromise was “within reach” on a bipartisan Covid-19 relief package. 

Value stocks – those linked to the progress of the economy – were in demand as financials, industrials and energy climbed, with the latter pushed higher by rising oil prices.

Energy stocks jumped more than 4% after OPEC and Russia agreed to raise production by 500,000 barrels per day from January, sending oil prices up more than 1% as investors bet on further tapering of production cuts ahead.

“This is a slower ramp-up than the previously planned 1.9 mb/d January increase … OPEC+ was able to clear the important hurdle of exiting its current cuts in a coordinated way, strongly reducing the tail risk of an OPEC+ taper tantrum,” Goldman Sachs (NYSE:GS) said.

Occidental Petroleum (NYSE:OXY), EOG Resources (NYSE:EOG), and Diamondback Energy Inc (NASDAQ:FANG) were among the biggest gainers, with the latter up about 12%.

Other value sectors of the market that are also sensitive to the economy like financials, industrials, and materials also racked up gains, pushing the broader market higher.

In tech, DocuSign (NASDAQ:DOCU) and Cloudera (NYSE:CLDR) climbed sharply, up 5% and 7% respectively, on better-than-expected quarterly reports.

In other news, Marvell Technology (NASDAQ:MRVL) warning of “industry-wide supply constraints,” offset better-than-expected quarterly results. Its shares fell more than 4%.

 “These supply challenges are currently limiting our ability to fully satisfy the increase in demand for some of our networking products,” the company said

Dow Hits Record as Bulls Feast on Stimulus Hopes
 

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Comments (14)
Michael Angelo
Michael Angelo Dec 04, 2020 6:33PM ET
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I really wonder if there is another country in the world that has an unemployment index so crook that diminish when unemployment goes up. Hollywood is real.
Mart Bab
Rubberduck1973 Dec 04, 2020 6:26PM ET
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Ahhhh the us solution to a pandemic. Trow dollars at it and see what happens.
Brad Smith
Brad Smith Dec 04, 2020 6:10PM ET
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Looks like more of the same stimulus song and dance.
Ross Dre
Ross Dre Dec 04, 2020 4:12PM ET
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Obviously a huge Rainbow Bright fan, that Nancy.
George Jetson
George Jetson Dec 04, 2020 4:03PM ET
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just don't burn down any buildings this time around when you get your checks, dems
Ross Dre
Ross Dre Dec 04, 2020 4:03PM ET
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No freaking kidding!!
Lakshmana Reddy
Lakshmana Reddy Dec 04, 2020 3:58PM ET
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Print money and give everyone
king michael
king michael Dec 04, 2020 3:15PM ET
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Pelosi must be fooled by republic. If there is no stimulus before Trump lose, there will be no stimulus now especially the vaccine is right at the door. Republic is just try to keep the market up by talking now and crash it when Biden take over white house. If Asia countries can pretty much eliminate COVID in two months without vaccine,  the COVID will go away or becoming just another flu virus in media next year.
Mart Bab
Rubberduck1973 Dec 04, 2020 3:15PM ET
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😱
Donald Brown
Donald Brown Dec 04, 2020 3:01PM ET
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To not include stimulus checks to the people is a disgrace. And Kentucky and California keeps reelecting the same representatives. My hope is Biden steps in and asks for new house and senate leaders to end this log jam. Merry Christmas to all citizens who cannot pay the bills or struggling to have enough food.
Jermaine .A
Jermaine .A Dec 04, 2020 2:52PM ET
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Bad news = Good news
Alan Rice
Alan Rice Dec 04, 2020 2:51PM ET
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"The Great (Worldwide) Fossil-fuel Folly" - continues.
Xavier Mendez
Xavier Mendez Dec 04, 2020 2:30PM ET
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You got to be high outta your mind to be buying this ********Pop this hyper bubble
Whaling Trawler
Whaling Trawler Dec 04, 2020 2:25PM ET
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Hope is going to let people down big time...
Rugged Bear
Rugged Bear Dec 04, 2020 2:25PM ET
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banaland rationalization that bad jobs numbers means more free money for markets. and yet...we live in bananaland. thanks, jpow.
Mitchel Pioneer
Mitchel Pioneer Dec 04, 2020 2:15PM ET
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Stocks hit records as the malicious financial dismantling of America, by the biggest investment joke in world history, continues.
Дмитрий Сильвестров
Дмитрий Сильвестров Dec 04, 2020 2:15PM ET
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It has been continuing for 12 years, at least.
 
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