- The Dow Jones rose 0.7% on Thursday.
- Investors pushed the US stock market higher on strong data and economic hopes.
- Today’s presidential debate could cause volatility in Dow futures.
The Dow Jones rose 200 points on a combination of economic optimism and strong economic data. ING economists believe the upcoming job report could spur politicians to take more determined action on coronavirus aid.
Dow Jones rises on strong data, stimulus hopes
All three major US stock market indices rose on Thursday. The Nasdaq was the weakest at just 0.2%, while the S&P 500 and Dow Jones gained at least 0.5%.
Economic data was positive, like The initial unemployment claims significantly exceeded estimates. Persistent jobless claims were more than 1.2 million below estimates, suggesting America is increasingly back to work.
According to an ING reportThe completion of an audit by the country’s largest economy, California, contributed to the decline. The same report, however, raises concerns about the imminent number of non-farm workers, with chief international economist James Knightley noting that this could jolt politicians:
Increased initial unemployment claims, the flatlining of home base employment data coupled with distance learning that limits the usual seasonal increase in employment, and handling temporary census stops mean we could get a soft number of pay slips. A weak number would likely be a more important catalyst for policymakers to take action against fiscal stimulus.
In addition to the employment figures, the domestic housing market continues to boom. Existing home sales rose a staggering 9.4% versus forecasts of an already strong growth of 5%.
Check out the video below for CNBC’s report on the Overheated US Housing Market.
Although strong data contributed to risk conditions, Nancy Pelosi and Stimulus talks continue to offer the Dow bulls a carrot. Pelosi remains confident that an agreement can be reached despite the expected delays.
The last presidential debate will take place that evening Donald Trump is expected to continue his attack on Joe Biden. If the final debate were an indicator, the Dow futures could be profusely volatile overnight.
Dow 30 stocks: financial stocks lead the way
On a positive day for the Dow 30It was financial giant JPMorgan Chase, which was ahead of the game, up 3%. The bank’s rally came as the 10-year US Treasury yield continued to rise and Goldman Sachs benefited, up 1%.
For the latest on the Goldman Sachs 1MDB scandal, watch the following video:
Boeing stock continues to benefit from positive headlines related to the 737 MAX. The consolidations at the aerospace giant continue is considering relocating its headquarters from Renton, Washington, closer to their major operations in Everett.
Tech was less buoyant as Apple and Salesforce.com were among the weakest members of the Dow Jones, down 0.8% and 1.8% respectively.