Dow Jones Hits New High As Disney Rallies; Yellen Comments Fuel Stock Market Gains
- NANCY GONDO
- 01:22 PM ET 02/08/2021
The Dow Jones Industrial Average rallied 130 points Monday afternoon as the stock market extended last week’s big gains, sending the key market indexes to new highs.into is this is a supply and demand issue in that there is definitelyhttps://imasdk.googleapis.com/js/core/bridge3.439.0_en.html#goog_265197349Volume 0%
The Nasdaq rose 0.5%, the Dow Jones industrials gained 0.4% and the S&P 500 added nearly 0.4% in the stock market today. Small caps tracked by the Russell 2000 soared 2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Friday.
Stocks rallied last week as Congress fast-tracked President Joe Biden’s $1.9 trillion stimulus relief plan. House Speaker Nancy Pelosi said the bill would be passed by the end of the month. The current stimulus package expires in mid-March.
On Sunday, Treasury Secretary Janet Yellen told CBS the plan could bring the U.S. back to full employment by 2022. “We face a huge economic challenge here and tremendous suffering in the country. We have got to address that,” Yellen said. “That’s the biggest risk.”
The Labor Department on Friday reported U.S. nonfarm payrolls grew 49,000 last month, just below Econoday’s forecast for 50,000. Private payrolls accounted for only 6,000 of those jobs. The unemployment rate fell to 6.3% from 6.7% in December.
However, December’s job losses were revised to a 227,000 decrease.
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Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.
The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and the number of cases starts to plateau in some states.
Coronavirus cases worldwide are approaching 106.8 million with over 2.3 million deaths, according to Worldometer. In the U.S., cases have surpassed 27.6 million with nearly 475,000 deaths.
Dow Winners And Losers
Disney (DIS) jumped 4% to clear a 183.50 buy point of a five-week flat base in heavy volume. Shares remain in potential buy range, which goes up to 192.68. Analysts expect the media and theme parks giant to lose 33 cents a share on nearly $15.9 billion in revenue when it reports Thursday after the close.
Outside The Dow
Twitter (TWTR) gapped up and rose nearly 2% in heavy trade to a new high. The stock is on track to extend its win streak to six. Shares remain in potential buy range, which tops out at 59.02.https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=daily&symbol=TWTR
The messaging platform is expected to earn 29 cents a share on revenue of $1.18 billion when it reports Tuesday before the open. That would represent a 16% year-over-year EPS bump on 17