The Dow, S&P 500, and Nasdaq all scored record closes
Stocks wrapped up the last Monday of 2020 with a win, as traders reacted positively to U.S. President Donald Trump's surprise signing of a $900 billion stimulus bill into law, which includes $600 direct payments to Americans. In response, the Dow rose roughly 204 points to finish the session with a record close, thanks in part to FAANG name Apple (AAPL). Not wanting to be left out, both the S&P 500 and Nasdaq Composite followed suit with outsized gains and record closes as well.
Elsewhere, the House will vote on raising stimulus checks to $2,000 later today, but the move is not expected to be backed up by a Republican-led Senate. Meanwhile, COVID-19 infections continue to rise, with no less than 184,000 new cases each day, according to Johns Hopkins University data. This weekend, White House advisor Dr. Anthony Fauci said Christmas and New Year's celebrations may lead to another surge in the coming weeks.
Continue reading for more on today's market, including:
- Mizuho has high hopes for these two semiconductor stocks.
- Will Workhorse stock continue to ride the electric vehicle wave?
- Plus, an e-commerce stock with upside potential; pharma stock surges thanks to partnership; and options strategies amid volatility spikes.
The Dow Jones Industrial Average (DJI - 30,403.97) added 204.1 points, or 0.7% for the day. Apple (AAPL) led the Dow components with a 3.6% rise, while Dow (DOW) paced the laggards, falling 0.9%.
Meanwhile, the S&P 500 Index (SPX - 3,735.36) rose 32.3 points, or 0.9% for the day. The Nasdaq Composite (IXIC - 12,899.42) jumped 94.7 points, or 0.7%, for the day.
Lastly, the Cboe Volatility Index (VIX - 21.70) added 0.2 point, or 0.8% for the day.
- A Republican congressman filed a lawsuit against Vice President Mike Pence in a last-ditch attempt to reverse President-elect Joe Biden’s election victory. (CNBC)
- AstraZeneca (AZN) officials said its COVID-19 vaccine, which could be approved in the U.K. this week, will be effective against the new virus strain. (MarketWatch)
- E-commerce name Lovesac is a small-cap stock with major upside potential.
- This biopharmaceutical concern surged on a partnership with Pfizer.
- The last Market Mashup episode of 2020 dives into volatility strategies.
Gold Prices Drop as U.S. Dollar Remains Neutral
Oil prices reversed course today to finish lower, after a boost in investor sentiment following the signing of a $900 billion stimulus package into law was overshadowed by fears that a spike in COVID-19 cases may come after the holiday season, which would impact demand. In turn, February-dated crude fell 61 cents, or 1.3%, to settle at $47.62 per barrel.
Gold prices finished lower as well, after the U.S. dollar remained neutral despite stimulus pressure. Meanwhile, stocks across the globe rallied, creating additional tailwinds for the safe-haven commodity. As a result, February-dated gold shaved $2.80, or 0.1% for the day, to settle at $1,880.40 an ounce.