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(DAILY NOTION): Mixed Day for Wall Street, Next Mover: Progress of Biden Stimulus Package

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NASDAQ 100 (as of Jan 22, 2021 at 11.10 a.m.)

(DAILY NOTION): Mixed Day for Wall Street, Next Mover: Progress of Biden Stimulus Package

Source: Yahoo Finance

SPX 500 Futures (as of Jan 22, 2021 at 11.10 a.m.)

(DAILY NOTION): Mixed Day for Wall Street, Next Mover: Progress of Biden Stimulus Package

Source: Yahoo Finance

US30 Futures (as of Jan 22, 2021 at 11.10 a.m.)

(DAILY NOTION): Mixed Day for Wall Street, Next Mover: Progress of Biden Stimulus Package

Source: Yahoo Finance 

Post-inauguration, the US30 closed flat as the dip in energy stocks offset the strengths in technology stocks. The US30 dipped 0.04%, but both the NAS100 and the SPX500 is clearly still riding the positive wave as it closed on record highs at 0.55% and 0.03% respectively.

In the first hours of being in the office, President Joe Biden was greeted by rising housing starts from December, which came in at 1.669 million versus an expected forecast of 1.56 million. The housing starts rose at the fastest pace since 2006. The initial jobless claims came in lower at 900,000 versus an estimate of 935,000. Continuing claims also showed a slight decrease to 5.05 million.

President Joe Biden has been busy in his first few hours at the Oval Office. He has signed a total of 15 executive orders to ramp up the federal response to the pandemic. He has reversed Trump’s policies on the Paris Climate Agreement and the World Health Organisation (WHO).

However, what the market is clearly anticipating is the progress of the stimulus package from the new president and the U.S. Congress. Janet Yellen, who is the president’s nominee for treasury secretary, promises that the new administration will focus on domestic investments in works and infrastructure, prior to embarking on any new free trade agreements. The Senate Finance Committee will be meeting later today to consider her nomination.

An analysis by LPL Financial showed that the SPX500 recorded its best Inauguration Day gains since Ronald Reagan’s second inauguration in 1985. RBC Capital Markets also forecasted that SPX500 will reach 4,100 in 2021. Needless to say, the next few months would be highly watched ones for Wall Street as a new administration begins its rule. 

FOLLOWME User Sentiment (as of Jan 22, 2021 at 11.10 a.m.)

SPX500

Short – 83.86%

Long – 13.14%

NAS100

Short – 78.24%

Long – 21.76%

US30

Short – 75.13%

Long – 24.87%

Edited 22 Jan 2021, 11:28

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