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S&P 500, Nasdaq Ride Stimulus Optimism to Close at All-Time Highs

Stock Markets Feb 05, 2021 04:21PM ET
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© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 and Nasdaq notched a second straight day of all-time highs Friday as President Joe Biden signaled that he was prepared to pass the stimulus bill without Republican support, stoking investor optimism that in the absence of compromises needed to win over GOP support the final package could be closer to $1.9 trillion. 

The S&P 500 closed up 0.39% and the Nasdaq Composite was up 0.57%. The Dow Jones Industrial Average rose 0.30%, or 92 points,

"Going forward, this minimal improvement in January hiring underscores concerns that the labor market recovery may take some time, potentially remaining well below full employment for years, and also provides additional ammunition for those in Washington focused on a further increase in government spending to help supplement growth," Stifel said in a note.

Biden on Friday said he would move forward with his $1.9 trillion stimulus relief package even if it means passing it without the 10 Republican votes needed in the Senate.  The president also stressed that he would not trim the size of the proposed $1,400 direct payments to Americans.

"The biggest risk is not going too big [on the size of the stimulus package] but too small," Biden said during televised remarks on Friday. He added: "It's very clear our economy is still in trouble,"

The Senate approved a budget bill early Friday, paving the way for passage of Biden's "American Rescue Plan."

The urgency on further stimulus comes as the economy produced fewer jobs than expected last month.

The U.S. created more 49,000 jobs in January, from a downwardly revised 227,000 decline in jobs seen in December, and lower than economists' estimates for a 50,000 gain. The unemployment rate fell to 6.3% from 6.7%, but the better-than-expected decline was due to "people leaving the labor force as employment rose 201,000 and unemployment fell 606,000," Jefferies (NYSE:JEF) said.

Mostly bullish quarterly earnings, meanwhile, continued to surprise to the upside, further boosting investor sentiment.

Ford (NYSE:F) reported better-than-expected fourth-quarter earnings, but revenue missed expectations. Its stock still climbed 1% as the company upped its spending plans on electrical vehicles to $29 billion, underscoring its intention to make a big splash in the EV market.

Activision Blizzard (NASDAQ:ATVI) surged nearly 10% after projecting strong 2021 forecast and delivering a fourth-quarter beat on the both the top and bottom lines, led by strong performance from its "Call of Duty" franchise.

Snap (NYSE:SNAP) was up 9%, shrugging off a softer-than-expected first-quarter guidance as earnings topped analysts' estimates.

Peloton Interactive Inc (NASDAQ:PTON) fell 6%, however, after flagging supply chain issues as the cycling company struggled to keep up with demand. The company's fourth-quarter earnings and revenue topped Wall Street forecasts.

S&P 500, Nasdaq Ride Stimulus Optimism to Close at All-Time Highs
 

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Comments (11)
jonah gaff
jonah gaff Feb 06, 2021 2:28PM ET
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> stimulus > optimismpic one.
Sk Tohid
Sk Tohid Feb 06, 2021 10:56AM ET
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bnb18v7zlu60lzu4q6pfxzgjxezl20nsdt8mjhy4n8
Patron Silver
Patron Silver Feb 05, 2021 7:27PM ET
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I'm just glad the market is roaring and orange boy can't take any credit for it
Raymond Huggard
Raymond Huggard Feb 05, 2021 7:27PM ET
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Big talk. When the depression hits you will look like a fool.
Ladislav Cendelin
Ladislav Cendelin Feb 05, 2021 6:51PM ET
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https://markets.businessinsider.com/news/stocks/mohamed-el-erian-reddit-war-wall-street-elements-arab-spring-2021-2-1030042395 lies from media and government new vote will be for freedom all of us
Alan Rice
Alan Rice Feb 05, 2021 6:22PM ET
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The stated goals of The new Administration are futuristic, realistic, admirable, but still under- ambitious. A good start, though, to a BETTER Biosphere (and QUALITY OF LIFE). GODSPEED.
Greg Morgan
Greg Morgan Feb 05, 2021 5:33PM ET
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What do you all think of ASTI being solar energy and this administrations focus on that.  Between that and IDEX both gambles I'm willing to take.
Casador Del Oso
Casador Del Oso Feb 05, 2021 5:33PM ET
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Clean energy might be one of the few things that will make any money after excessive stimulus crashes the economy.
Zsombor Komán Birtalan
Zsombor Komán Birtalan Feb 05, 2021 5:20PM ET
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Would be seriously surprised is such a headline would appear: " Nasdaq rise on FED continuous pumping". At the end dems should realise that a serious drop now is better than one closer to next election.
Gary Lambiase II
Gary Lambiase II Feb 05, 2021 5:16PM ET
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Green Energy is the way to go. Biden has a great vision. investing in the future. $ADN $IDEX $GEVO
Alan Rice
Alan Rice Feb 05, 2021 5:16PM ET
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and WHITE Energy is even better !!
Mitchel Pioneer
Mitchel Pioneer Feb 05, 2021 4:51PM ET
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The criminal manipulation of the US Ponzi Scheme continues, as the greatest redistribution of wealth by the most fraudulent financial mechanism in history presses on.
Michael Garrett
Michael Garrett Feb 05, 2021 4:44PM ET
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rich get richer and the middle class gets poorer
 
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