- The Dow Jones rallied 0.7% Thursday.
- Investors drove the U.S. stock market higher on strong data and stimulus hopes.
- Tonight’s presidential debate could see volatility in Dow futures.
The Dow Jones climbed 200 points on a combination of stimulus optimism and strong economic data. ING economists believe the upcoming jobs report could catalyze politicians into more decisive action on coronavirus aid.
Dow Jones Rises on Strong Data, Stimulus Hopes
All three major U.S. stock market indices managed to climb on Thursday. The Nasdaq was the weakest with only a 0.2% gain, while the S&P 500 and Dow Jones rose at least 0.5%.
Economic data were positive, as initial jobless claims comfortably beat estimates. Continuing jobless claims were more than 1.2 million lower than estimates, indicating that America is increasingly heading back to work.
According to an ING report, the conclusion of an audit by the nation’s largest economy, California, contributed to the decline. The same report does however raise concerns about the upcoming non-farm payrolls figure, with Chief International Economist James Knightley noting that it could give politicians a jolt:
Elevated initial jobless claims, the flatlining of Homebase employment data coupled with remote schooling limiting the usual seasonal uptick in employment and the unwind of temporary Census hiring means we could get a soft payrolls number. A weak figure would probably be a more significant catalyst for politicians to deliver action on fiscal stimulus.
In addition to the jobs numbers, the domestic housing market continues to boom. Existing home sales were up an astonishing 9.4% versus forecasts of an already strong 5% gain.
Watch the video below for CNBC’s report on the super heated U.S. housing market.
Though strong data were a contributing factor to risk-on conditions, Nancy Pelosi and stimulus talks continue to provide a carrot for the Dow bulls. Stating that talks are “just about there,” Pelosi remains confident that an agreement was coming despite anticipated delays.
This evening will see the final presidential debate, where Donald Trump is expected to continue his assault on Joe Biden. If the last debate was any indicator, there could be plenty of volatility in Dow futures overnight.
Dow 30 Stocks: Financials Lead The Way
On a positive day for the Dow 30, it was financial giant JPMorgan Chase that was leading the way with a 3% gain. The bank’s rally came as the U.S. 10-year Treasury yield continues to trek higher, with Goldman Sachs benefiting with a 1% gain.
Watch the video below for the latest on Goldman Sachs’ 1MDB scandal:
Boeing stock continues to benefit from positive headlines tied to the 737 MAX. Consolidations continue at the aerospace giant, as it considers moving their commercial headquarters out of Renton, Washington, closer to their large operations in Everett.
Tech was less buoyant as Apple and Salesforce.com were amongst the weakest members in the Dow Jones, losing 0.8% and 1.8%, respectively.