US stock indexes ended trading in the red zone on Thursday. In part, this reflected the behavior within the framework of the exchange truth "buy on rumors — sell on facts".
At the same time, there are other ways to earn money.Proven and accurate as deltamarket.net who analyze and prepare the necessary information always on time and with a guarantee.Also at this time, the corporate reporting season starts on Friday in the United States. It will traditionally begin with the publication of the results of the banks: JPMorgan Chase & Co., Citigroup and Wells Fargo & Co.
Dow Jones -0.22% to 30991.5 p. (from the beginning of the year +1.26%),
S&P 500 -0.4% to 3,795. 5 p. (from the beginning of the year +1.05%),
NASDAQ +0.1% to 13112.6 p. (from the beginning of the year +1.74%).
Powell calmed the markets
The time to raise interest rates in the United States will come "not soon," Federal Reserve Chairman Jerome Powell said on Thursday. According to him, the economy is far from the goals of the Federal Reserve, so Powell sees no reason to change the ultra-soft policy. He promised that the Fed would announce in advance the curtailment of the current asset purchase program ($120 billion a month), dispelling speculation about the imminent start of reducing incentives.
Earlier, several representatives of the Federal Reserve made mixed comments in public speeches, which made market participants worry that vaccination will lead to a rapid economic recovery and a strong increase in inflation, and the Fed will respond to this by curtailing support measures. Some market participants began to assume that the Fed is already discussing the reduction of support. Such worries on the eve stimulated the strengthening of the dollar. So Powell's speech on Thursday was central to the market's focus. However, the head of the Federal Reserve dispelled the fears of investors.
Biden announces $1.9 trillion bailout plan
If there was one event on Thursday that was more interesting to the market beyond Jerome Powell's comments, it was, of course, President-elect Joe Biden's speech. Biden announced a $1.9 trillion economic aid plan to contain the spread of the pandemic. It includes direct payments to households (up to $2,000, on top of the $600 approved in December), increased unemployment benefits, increased funding for state and local governments, and expanded testing and vaccination programs.
It is also proposed to increase the minimum wage from $7.25 to $15 per hour. The plan will also require any employers to provide employees with paid leave during the pandemic. Family members caring for sick relatives will be able to receive more than 14 weeks of paid leave.
It is worth noting that the incentive payments, the increase in benefits and the minimum wage, the Democrats can pass the usual majority of votes in the Senate. However, to pass an increase in funding for vaccination programs, money for schools, funds for state and local governments, the Senate will have to vote for it by 60 votes. This means that the Democrats will have to find the support of at least 10 Republicans.
The Results Of The S&P 500
The S&P 500 index traded at a ratio of 30.2 to earnings for the past year and at a ratio of 23.1 to the projected earnings of its member companies for the coming year. 7 of the 11 sectors showed a decline.
Technology stocks contributed the most to the decline in the index (-0.9%). The energy sector showed the most positive dynamics (+3%). North Sea Brent rose 0.64% to $56.42/bbl on Thursday, while US benchmark WTI added 1.25% to $53.57 / bbl.
Of the 505 shares in the index, 234 fell and 271 gained. Apple shares (AAPL) contributed the most to the decline in the S&P 500 index (-1.5%). MSCI shares showed the most negative dynamics among the index components (-6.6%).
On Thursday, small-cap companies looked better than others. Usually, these companies are the most sensitive to positive and negative changes in the economy, and they are the key beneficiaries of economic support measures. The Russel 2000 index of small-cap companies rose 2.1%.
Stocks
Delta Air Lines shares rose 2.5% to $41.47 after CEO Ed Bastian said the airline could generate profits again by the summer, as a large proportion of the population will be vaccinated and demand for air travel will increase again. Delta ended 2020 with a loss of nearly $12.4 billion, the worst year in the company's history.
Johnson & Johnson shares rose 1.7% to $160.65. Recall, on the eve of the company published a report, according to which the single-dose vaccine developed by J&J in 90% of the study participants caused a sufficient amount of Covid-19 neutralizing antibodies within 29 days after the injection. 57 days after vaccination, 100% of the participants developed antibodies. The study lasted 71 days, and the immune response persisted until the end of the term.
The Johnson & Johnson vaccine may be the first vaccine that can protect people after just one shot, which greatly simplifies the procedure of mass vaccination. The company expects to have final data on the effectiveness of the vaccine by early February, with the final phase of the study completed by early February. If successful, regulators could approve the vaccine for emergency use by March.
Our view
Moderna says coronavirus will never go away
During the JPMorgan Healthcare conference, the head of Moderna noted that the coronavirus, according to his calculations, will always circulate in society, but with lower rates.
Ivan Asako analyst "Opening Broker" for the international market:
"Against the background of this message, some companies from the real sector began to implement the idea of paying employees for vaccination against coronavirus. So, Dollar General became the first retailer to pay employees a one-time bonus equal to four hours of pay and provide additional hours of rest after vaccination. Thus, one-time costs will bring benefits in the long run."
Petco Health and Wellness Company, the seller of pet products, has entered an IPO , Pet care products retailer Petco Health and Wellness Company Inc has publicly debuted its IPO at $18 a share. In its bid for the placement, the company planned to raise $744 million.
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