On the 22nd (hereafter Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 30,996.98, down 179.03 points (0.57%) from the battlefield.
The Standard & Poor’s (S&P) 500 index closed at 3,841.47, down 11.6 points (0.3%) from the battlefield, but the Nasdaq index, centered on technology stocks, ended at 13,543.06, up 12.15 points (0.09%).
The Nasdaq hit an all-time high again.
The Dow index rose by 0.6% this week. The S&P500 index rose about 1.9% and the Nasdaq rose 4.2%.
The market watched key economic indicators, corporate performance, and stimulus measures promoted by the new US government.
As the economic indicators of the US and Europe were mixed, the direction of the stock market on this day was not clear.
As major economic indicators, such as the Eurozone’s Purchasing Managers Index (PMI), were sluggish, the unstable economic situation emerged again.
According to information provider IHS Markit, the Eurozone’s preliminary composite PMI for January was 47.5, less than the market estimate of 48.0. The manufacturing industry index was good, but the service industry index was sluggish.
On the other hand, the US indicator was better than expected.
The preliminary value for the January manufacturing PMI (seasonal adjustment) announced by IHS Markit was 59.1, up from the previous month’s final value of 57.1. It was an all-time high and exceeded the market forecast of 57.0. The preliminary service PMI also rose to 57.5 from 54.8, which was confirmed in the previous month, and was better than market expectations.
The National Real Estate Brokers Association (NAR) announced in December that existing home sales were counted at an annual rate of 6.67 million units, up 0.7% from the previous month. It significantly exceeded the expert’s estimate of 6.55 million, a 2.0% decline.
The sluggish performance of IBM put a burden on the stock market. IBM posted better-than-market profits in the fourth quarter, but sales were less than expected. IBM’s stock price, which is included in the Dow Index, plunged by about 10%.
Intel shares also plunged by more than 9%. Although Intel’s performance was good, it is interpreted that the accident occurred before the closing of the market the previous day, which had an adverse effect.
However, Apple’s share price rose 1.6% and Facebook rose 0.6%.
Expectations that Apple and others will perform well are continuing. Apple, Facebook, Tesla and others will announce their earnings next week.
In relation to the stimulus plan to be promoted by US President Joe Biden, interest is also shifting to whether or not the Congress passes smoothly.
In the Republican Party, Senators Lisa Merkoski and Mitt Romney, who belong to the middle-of-the-way group, expressed skepticism about the $1.9 trillion stimulus package. They questioned the need for an additional stimulus of this size, shortly after the $900 billion stimulus was introduced.
In order for Biden’s stimulus package to pass through the parliament smoothly, the cooperation of the Republican centers is considered an essential factor.
In the Democratic Party, Rep. Manchin Jo previously expressed negative views on untargeted stimulus measures such as cash payments.
Controversy over the speed of vaccination against the novel coronavirus infection (Corona 19) continues.
AstraZeneca announced today that there will be fewer vaccines initially available to Europe than expected.
In addition, the number of corona19 patients in China is increasing again, and the possibility of blockade in some areas in Hong Kong is also a factor of concern.
By industry on this day, communications rose 0.12%, but technology stocks fell 0.32%. Industrial stocks fell 0.5%.
New York stock market experts diagnosed volatility could arise as the market shifts focus as the Congress debates stimulus measures.
“Washington’s political realities are beginning to affect the market,” said Seven Report’s founder of Tom Essay. “It’s become more unclear whether the Democratic Party’s ambitious stimulus goals can be enacted in law.”
On the Chicago Options Exchange (CBOE), the volatility index (VIX) was 21.91, up 2.77% from the previous trading day.
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