On Friday, the day after the S&P 500 closed at a new high, stocks were mixed.
By the evening
Dow Jones Industrial Average
fell 39 points, or 0.1%, while
little has changed and
increased by 0.2%. All three indexes rose shortly after the market opened after a bipartisan group of senators agreed on an infrastructure spending plan.
Asian markets traded both ways, with
CSI 300 in China
the index fell 0.9%, while the Korean
rose 0.8%. IN
Stoxx Europe 600 Index
grew by 0.7%, and
rose 0.7% on stronger shares in high-value commodity companies such as mining.
as metal prices rose on Friday.
A group of 10 Democratic and Republican senators said they had reached agreement on an infrastructure spending program. It will include $ 1.2 trillion in spending over the next 8 years and will not be funded through tax increases. Not only will the plan potentially create jobs and some additional economic growth, but unless corporate taxes are raised ultimately, corporate earnings will not be affected.
The market is showing “moderate optimism about infrastructure,” writes Tom Essay, founder of Sevens Report Research, but “this compromise is unlikely to ever become law.”
While investors harbor fears that rising inflation will push central banks to tighten the ultralight monetary policy introduced to tackle the Covid-19 pandemic, the Federal Reserve is trying to calm the data.
“Current signs indicate that inflationary pressures are likely to ease in the second half of the year, and investors are increasingly starting to relate to the Federal Reserve’s narrative that the current elevated levels are temporary,” said Richard Hunter, Head of Markets at Interactive Investor. , in the note to customers.
The Federal Open Market Committee will meet next week, but no policy change is expected. The European Central Bank on Thursday maintained a strong stimulus to the economy, while raising forecasts for growth and inflation.
But now investors are taking less risk. The major indices have already posted at least 9% growth since the beginning of the year, and inflation and the Fed’s actions remain a potential threat. “I feel there is a pretty strong trend towards profit taking right now,” says Jung Yoo Ma, chief investment strategist at BMO Wealth Management.
Among the stocks to look out for are stocks
(ticker: AMC) rose 9%. The cinema operator on Thursday received a credit rating upgrade from S&P Global Ratings, according to which the company is less likely to default after it took advantage of a stock rally to raise money in the stock markets.
Shares (BIIB) were initially up and then down 4% after being upgraded to Better than Market by Alliance Bernstein.
Shares (IP) gained 1% after switching to Buy from Hold to Argus.
Seagate Technology Holdings
(STX) rose initially, then fell 1.3% after advancing from Negative to Neutral in the Susquehanna.
(VRTX) shares fell 10.3% after the company halted development of a drug to treat a genetic disease.
Email Jacob Sonenshine at jacob.sonenshi[email protected]