Business & Investment

Dow is on record as Texas Coldsnap pushes energy stock up

U.S. stocks almost rose on Tuesday afternoon, with investors showing President Joe Biden’s progress towards a $ 1.9 trillion coronavirus rescue package and a decline in COVID-19 cases that fell to their lowest levels in four months. Looking at the data, Dow went at a pace to set a new record. President’s birthday.

The energy sector was the top gain on the S & P 500 as deep freezes across the country soared natural gas prices and raised oil prices.

How does the stock benchmark work?
  • Dow Jones Industrial Average

    I adjusted the initial gain, but it remained up at 31,539.20 by 80.80 points, or 0.3%.

  • S & P500 Index

    It increased by 1.94 points to 3,936.77.

  • Nasdaq Composite Index

    It fell by 32.58 points (0.2%) to 14,062.90.

The market was closed to protect President’s Birthday on Monday.Dow, S & P 500, Nasdaq are all Friday’s best record..

What is driving the market?

Energy inventories increased by 2.4% as natural gas prices soared in response to cold climates where crude and fuel oil transport was disrupted, forcing refineries to close temporarily.

Due to energy issues, oil and gas prices at West Texas Intermediate reached their highest levels in a few months.

International benchmark Brent crude exceeds $ 60 a barrel

Natural gas price rises to over $ 63 a barrel

The day ended at nearly 5%.

to see: As US temperatures drop below freezing, natural gas prices soar and oil prices reach highs of over a year.

Equities struggled to gain traction, but reflationary trading appears to be in commodities and bonds, as investors are waiting for a COVID bailout package that is expected to fall below Biden’s $ 1.9 trillion proposal. , Benchmark Treasury yields are rising.

Christopher Smart, Chief Global Strategist and Head of Barrings, said: Investment Institute, in a memo.

Concerns about long-term unemployment and runaway inflation seem to be “beyond when many of the short-term ones look good,” Smart said. But he also said those concerns would eventually become the central stage.

The House Budget Committee put together all the elements of Biden’s ambitious proposal into one bill, which was expected to vote by the end of the month.

Assistance package supported by speakers Nancy PelosiAccording to The Wall Street Journal, Democrats are paid $ 1,400 directly per person, increased child tax deductions, aid to state and local governments, and unemployment due to federal payments of $ 400 a week until August 29. Includes insurance expansion. It also includes a gradual increase in the minimum wage to $ 15 an hour, but wage measures appear to face tough challenges in the Senate, where two Democrats have expressed concern.

Meanwhile, the number of COVID-19 cases has decreased. In the United States, the average number of new cases over the past week was 85,798, a 41% decrease from the average two weeks ago.

The· Global tabulation of confirmed COVID-19 cases Over 109 million on Tuesday, According to data compiled by Johns Hopkins University The death toll has exceeded 2.4 million. Over 52,000 new cases were reported on Monday, down from 64,938 the day before and 89,727 a week ago, but data could be underreported due to weekend and holiday headcount reductions.

Expectations for a reduction in viral cases and additional financial assistance to limit the financial harm caused by COVID-19 are millions of people in a devastating winter storm that is skyrocketing demand. Especially for energy assets that come from putting the Texas belt in the dark. The Texas Electrical Reliability Council estimated that about 2 million homes were unpowered on Monday.

Meanwhile, the bond market was under pressure. 10-year government bond yield

It rose from 1.199% on Friday to about 1.29%. Yields go up as prices go down.

Rising borrowing costs and steady rises in yields, reflecting intensifying competition between the attractiveness of risk-free fixed income assets compared to equities, do not appear to undermine the bullish situation in equities at this time. But investors were enthusiastic about its dynamics.

Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said: But she added that the real problem with stocks would come when the Fed began to sound more hawkish. This seems unlikely this year.

New York Fed Empire State Business Condition Index In February, it increased by 8.6 points to 12.1. The local federal bank said on Tuesday. This is the highest level of activity since July. According to a study by The Wall Street Journal, economists expected a reading of 5.9. Readings above zero indicate that the condition is improving.

Which stock is the focus on?
What are the other markets doing?
  • Nikkei 225 Index of Japan
    JP: NIK

    After finishing above 30,000 levels on Monday for the first time in more than 30 years, it finished 1.3% higher.Hang Seng Index in Hong Kong
    HK: HSI

    Trading in Shanghai remained closed due to Chinese New Year holidays, but rose 1.9%.

  • In Europe, Stoxx 600
    XX: SXXP

    And the FTSE 100 in London
    UK: UKX

    Each fell 0.1%.

  • ICE USD Index

    Currency readings for the baskets of the six major rivals rose 0.1%.

  • Gold futures fall As bond yields rose with the April contract

    It fell by $ 24.20 (1.3%) to settle at $ 1,799 per ounce. In oil, benchmark crude oil futures rose 58 cents (1%) to settle at $ 6,0.05 a barrel.

Dow is on record as Texas Coldsnap pushes energy stock up Dow is on record as Texas Coldsnap pushes energy stock up

Back to top button