Odeon Capital Group chief financial strategist Dick Bove and People’s United Advisors CIO John Traynor discuss their outlook for the markets and U.S. economy.
U.S. equity markets rallied Wednesday as the U.S. House of Representatives readied to vote on President Biden’s $1.9 trillion COVID-19 relief bill.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 32143.39 | +310.65 | +0.98% |
| SP500 | S&P 500 | 3904.85 | +29.41 | +0.76% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13205.370056 | +131.55 | +1.01% |
The Dow Jones Industrial Average rose 192 points, or 0.61%, while the S&P 500 and the Nasdaq Composite advanced 0.66% and 1.05%, respectively.
The early gains come as the 10-year yield holds little changed near 1.55% after the consumer price index rose 0.4% in February, in line with estimates.
Traders continue to watch the benchmark yield amid concerns Biden’s relief package, which is expected to pass through the House and be signed into law before Sunday, will help bring back inflation that has been absent since the 2008 financial crisis. The current level of the 10-year yield is higher than the S&P 500’s 1.49% dividend yield, giving investors an alternative to stocks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| QQQ | INVESCO QQQ NASDAQ 100 | 314.69 | +2.92 | +0.94% |
Mega-cap technology stocks, many of which have entered corrections or bear markets, remain in focus as investors look to enter at heavily discounted prices.
Additionally, Tesla saw early gains after posting its biggest market cap increase in history, $106 billion, on Tuesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA, INC. | 697.00 | +23.42 | +3.48% |
Elsewhere, GameStop Corp. shares were on track for a sixth straight day of gains. They have gained 109% over the course of the winning streak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 283.95 | +37.06 | +15.01% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 11.54 | +1.00 | +9.54% |
Another meme stock, AMC, will report earnings after the close of trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GENERAL ELECTRIC CO. | 13.42 | -0.57 | -4.07% |
In deals, General Electric Co. reached a $30 billion deal to sell its aircraft-leasing unit to Ireland’s AerCap Holdings NV. The deal will pay GE $24 billion cash and give the conglomerate an approximately 46% stake in the combined company.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CPB | CAMPBELL SOUP CO. | 45.16 | -1.84 | -3.91% |
In earnings, Campbell Soup Co. forecast net sales would decline by between 2.5% and 3.5% during the current fiscal year. The company reported inline quarterly earnings and revenue that fell short of Wall Street estimates.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RBLX | ROBLOX CORP. | _NA_ | n.a. | n.a. |
Meanwhile, video-game maker Roblox Corp. is set to go public via a direct listing on the New York Stock Exchange. The $45 reference price would give Roblox a $30 billion valuation.
In commodities, West Texas Intermediate crude oil rallied 58 cents to $64.59 per barrel and gold ticked up $1.20 to $1,718.10 an ounce.
Europe markets were mixed with Britain’s FTSE 100 down 0.05% while Germany’s DAX 30 and France’s CAC 40 added 0.67% and 0.86%, respectively.
In Asia, Hong Kong’s Hang Seng index rose 0.47%, Japan’s Nikkei edged up 0.03% and China’s Shanghai Composite slipped 0.05%.
