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Dow, S&P 500 Close at Records on Signs of Stimulus Near

Stock MarketsDec 04, 2020 04:07PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The Dow closed at record highs Friday, as lawmakers talked up the prospect of a stimulus deal to shore up the economy amid signs of weakness in the jobs market.

The Dow Jones Industrial Average rose 0.83%, or 248 points to close at a record of 30,218.  The S&P 500 was up 0.90%, and the Nasdaq Composite added 0.70%, with both indexes also hitting closing at record 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 5% 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 13%.

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 5%.

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

The second-straight weekly gains for the market comes in the wake of concerns over a Covid-19 vaccine distribution after Pfizer a day earlier halved its vaccine target for 2020, citing supply chain issues.  

But Bank of America (NYSE:BAC) said the announcement from Pfizer Inc (NYSE:PFE) was old news and pharma giant remained on track to roll out 1.3 billion doses by the end of 2021. 

"While production is scaling up at an unprecedented pace, we remain confident in the partnership given Pfizer's expertise and valuable know-how in the vaccine space," BofA said. 

Dow, S&P 500 Close at Records on Signs of Stimulus Near
 

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Comments (17)
Tony Mai
Tony Mai Dec 05, 2020 8:27AM ET
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Implode!
perplexed76 .
perplexed76 . Dec 05, 2020 12:25AM ET
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black fridays at DJ store
Trilok Singh
Trilok Singh Dec 04, 2020 8:49PM ET
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With just hopes it went far enough , inagine once this stimulus will be passed
Dietmar Stahl
Dietmar Stahl Dec 04, 2020 8:49PM ET
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Disgusting. Dow Jones 30200 but pandemic still getting stronger and stimulus will barley keep it stable if at all.
Leon Kelly
Leon Kelly Dec 04, 2020 7:45PM ET
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That Dow won't get pass 30,200 without Mitch blessing
David Galvin
David Galvin Dec 04, 2020 7:44PM ET
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I sure hope Mitch McConnell looks after us the same way he has for the good people of Kentucky. Oh wait..
king michael
king michael Dec 04, 2020 7:12PM ET
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The market hurdle will continue before the year end. There is no sign that democratic understand the terrible market bubble trap that current government set to sabotage the economy in the next 4 years. Once a low ball stimulus come out, the market will crash and Biden will have no excuse to convince republic to pass any further stimulus. The pandemic will go away any way next year.
Ricardo Ramirez
Ricardo Ramirez Dec 04, 2020 6:56PM ET
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Burbuja.
one time
One_Time Dec 04, 2020 5:47PM ET
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Dont need a stimulus with markets at all time high, fake news.
Юрий Шабалин
Юрий Шабалин Dec 04, 2020 5:47PM ET
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Stimulus is for real life, which really needs it. Stock market growth is only a side effect, but it prevents inflation.
Matius Marvn
Matius Marvn Dec 04, 2020 5:33PM ET
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Read all bears here . Cry and cry . Fed manipulate this . They want more rally 2021 , sad . Don't fight with him .
king michael
king michael Dec 04, 2020 5:25PM ET
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Biden and Pelosi need to break the market bubble now rather than after taking over white house. This market bubble has never been so terrible in history. Once it below out, it will take years to recover which is a nightmare for democratic in the next 4 years. Not talking Trump has also bring the national and cooperate to the edge of national bankruptcy.  Be smart and being alerted. Don't fall into the deep trap Trump cabinet set.
Brandon Olds
Brandon Olds Dec 04, 2020 5:25PM ET
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trump saved the USA from socialist Hobama policies and now her go back.... trouble ahead but good for communist China
Thom Miller
Thom Miller Dec 04, 2020 4:58PM ET
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Atta boy, Joe!  Keep those markets hitting record highs!  And Donny said since you're a "socialist," the markets would crash and burn if you were elected.  Donny told his base if you got elected to immediately pull everything out of equities. And since Donny's base does everything Donny says, they've all missed out on the largest stock market gain in 33 years!!  Now Donny's base is even more impoverished than they were on Nov. 2. Word on Wall Street is Donny's base plowed all they had into "Donny's Tried and True Home Lysol Injection Kit."
Erski Gumby
SB20 Dec 04, 2020 4:58PM ET
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Ok Mr. Wong.
Simon Gagnebin
Simon Gagnebin Dec 04, 2020 4:41PM ET
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Big joke of the year... Less job + more deads in USA = US ATH every week
Erski Gumby
SB20 Dec 04, 2020 4:41PM ET
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I hope you’re not complaining about all the money you’ve been making in this awesome market. lol
Dionte Edwards
Dionte Edwards Dec 04, 2020 4:37PM ET
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This stimulus is going cause more inflation and destruction than whatever amount the government gives.
Mitchel Pioneer
Mitchel Pioneer Dec 04, 2020 4:33PM ET
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Record levels of fraud in the US Ponzi Scheme.
Michael Garrett
Michael Garrett Dec 04, 2020 4:31PM ET
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LMAO stimulus is near GOOD ONE can't wait to read this same exact headline in 2022 when SP 500 has eclipsed 5000
Joel Schwartz
Joel Schwartz Dec 04, 2020 4:28PM ET
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I swear to God, I have heard this same headline 1,000 times. Still no stimulus.
David Pardy
David Pardy Dec 04, 2020 4:19PM ET
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These headlines that you guys print are so mentally exhausting..... do so actual fundamental analysis....
matthew Lamb
swampdonkey Dec 04, 2020 4:19PM ET
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At least im not the only one that cant stand these headlines!!! Good day=stimulus bad day=covid fears...
Michael Garrett
Michael Garrett Dec 04, 2020 4:19PM ET
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and let's be honest. they print the covid fear headline when markets are only green <.5%
 
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