U.S. Stocks Rise in Shortened Session
December 24 2020 - 10:41AM
Dow Jones News
By Caitlin Ostroff
U.S. stocks edged higher Thursday, putting major indexes on
track to finish the holiday-shortened week little changed.
The Dow Jones Industrial Average was up 21 points, or less than
0.1%. The S&P 500 rose 0.2%, and the Nasdaq Composite rose
0.5%. The blue-chip index is flat for the week, while the S&P
500 is poised for a 0.5% loss and the Nasdaq is up 0.5%.
The stock market closes at 1 p.m. ET on Christmas Eve, and U.S.
and European markets will be closed Friday.
Investors have been focused on a swath of issues this week,
including the prospects for additional fiscal support for the
economy and signs of the rebound faltering. Elevated coronavirus
infection levels and a new variant of Covid-19 that emerged in the
U.K. have prompted concerns that there may be additional lockdown
measures in the winter months, weighing on market sentiment.
"The market is so on edge at the moment. People are worried
about more lockdowns, more travel restrictions," said Altaf Kassam,
head of investment strategy for State Street Global Advisors in
Europe. "This will continue to bounce the market around."
Bets that a fresh fiscal-stimulus package would offer support to
families and small businesses in coming days have come into
question after President Trump vetoed a $740.5 billion
defense-policy bill on Wednesday and demanded last-minute changes
to coronavirus-relief legislation. His unexpected criticism of the
bill has prompted another standoff between the White House and
Capitol Hill. Mr. Trump hasn't yet said if he will veto the aid
package.
House Republicans on Friday rejected Mr. Trump's call to
increase direct payments to Americans to $2,000, adding further
uncertainty to the future of the package.
Weak recent economic data has bolstered hopes among investors
that an agreement would be reached. Data released Wednesday showed
that household spending dropped for the first time in seven months
and layoffs remained elevated as a surge in virus cases weighed on
economic recovery.
"The market is definitely expecting an aid package to go
through," said Mr. Kassam.
In bond marks, the yield on the 10-year Treasury note ticked
down to 0.941%, from 0.953% Wednesday. Yields fall when bond prices
rise.
Overseas, the pan-continental Stoxx Europe 600 edged up 0.2%,
with markets in Germany and Italy shut until Monday.
The British pound rose 0.7% against the dollar and 0.7% against
the euro, as the U.K. and the European Union drew closer to a
post-Brexit trade deal. Investors have said they would welcome
greater clarity over trade relations. The U.K.'s stock benchmark,
the FTSE 100 index, closed up 0.1%, while the FTSE 250, which
focuses on small and midsize companies, ended the day 1.2%
higher.
Sterling has rallied in recent days as investors expected that a
deal would be reached. "The market already had this as the base
case," said Andreas Steno Larsen, global foreign-exchange and
fixed-income strategist at Nordea Markets. "I don't think anyone
really believed in the cliff-edge scenario."
Most major stock indexes in Asia closed higher. South Korea's
Kospi gained 1.7%, while Japan's Nikkei 225 advanced 0.5%. China's
Shanghai Composite dropped 0.6%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
December 24, 2020 10:26 ET (15:26 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024