(New York = Yonhap News) Correspondent Oh Jin-woo of Yonhap Infomax = The major index in the New York stock market started mixed up on the 21st due to the increased level of burden despite expectations for the new US President Joe Biden’s stimulus.
As of 10:04 a.m. (East time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 31,179.46, down 8.92 points (0.03%) from the battlefield.
The Standard & Poor’s (S&P) 500 index traded at 3,851.22, down 0.63 points (0.02%) from the battlefield, but the Nasdaq index, which is centered on technology stocks, traded at 13,483.96, up 26.71 points (0.20%).
The market is watching President Biden’s policies, major economic indicators, and corporate performance.
The leading index surged to an all-time high the day before President Biden took office, revealing expectations for the new government’s policy.
Expectations are high for a large-scale economic stimulus package of $1.9 trillion to be promoted by President Biden. It also spread optimism that the new government could be more efficient in responding to the spread of the novel coronavirus infection (Corona 19).
Immediately after taking office, President Biden is concentrating on responding to Corona 19, including signing an administrative order urging to wear a mask. On this day, it is announcing countermeasures one after another, such as announcing that it will invoke the Defense Goods Production Act for the production of masks and supplies necessary for vaccine administration.
Key economic indicators weren’t bad either.
The US Department of Labor announced last week that the number of unemployment insurance claims fell by 26,000 from the previous week to 900,000 (seasonal adjustment). It was slightly less than the estimated 925,000 people compiled by The Wall Street Journal.
However, it is pointed out that the fact that the record still records 900,000 people reflects the deteriorating job market.
The Ministry of Commerce announced that in December of last year, the number of new housing starts was recorded at 1.69 million units, an increase of 5.8% from the previous month. It was the highest since December 2006. The market forecast increased by 0.8%, exceeding 1.56 million degrees.
Also, in January, the Philadelphia Fed index soared to 26.5 from 9.1 last month. The expert’s forecast of 10.5 was also significantly higher.
Despite the not-so-bad indicator, as the level burden has increased, the stock market is not able to maintain a resilient rise.
According to the fact set, the ratio of stock price/earnings to the future expected profits of companies in the recent S&P500 index is about 23 times, which is close to that of the dot-com bubble in 2000.
It is also a burden on the stock market that the European Central Bank (ECB)’s monetary policy meeting was somewhat hawkish (preferring monetary tightening).
In its Monetary Policy Statement on the day, the ECB made it clear that the Pandemic Emergency Purchase Program (PEPP) worth 1.8 trillion euros may not be fully used.
Investors are also watching corporate performance. After the market close on this day, Intel and IBM are scheduled to release their results.
New York stock market experts have diagnosed that it may be necessary to take a breath after a short surge.
“The recent market rally could be breathtaking in the short term,” said Matt Mulley, senior market strategist at Miller Brubbac.
Stock markets in major European countries are also mixed. The pan-European index Stoxx 600 rose 0.24%.
International oil prices fell. Western Texas crude oil (WTI) prices for February moved to $52.91, down 0.75% from the previous trading day, while Brent oil fell 0.62% to $55.75.
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2021/01/22 00:12 sent