Premarket: Apple is green

From the wsj's "Stock Futures Rise on Stimulus Bets" posted early Thursday:

U.S. stock futures rose Thursday as investors cheered signs of progress toward a fresh stimulus package that could support the economy through a potential winter slowdown.

Futures tied to the S&P 500 rose 0.5%, suggesting the benchmark stocks gauge may rise for a third-straight day at the opening bell. The S&P 500 closed at its second-highest level ever on Wednesday. Futures tied to the technology-focused Nasdaq-100 also rose 0.5%.

Congressional leaders on Wednesday closed in on a roughly $900 billion coronavirus relief deal that includes another round of direct payments to households. After months of gridlock, the emerging agreement represented a breakthrough at a critical time in the pandemic, with vaccine distribution under way but hospitalizations hitting record highs.

Investors broadly think a new dose of stimulus is necessary to gird the economy until the end of winter and widespread vaccinations have the potential to bring the virus under control in 2021. Rising cases appear to have hit consumer sentiment, weighing on retail sales, and there are new business restrictions in some states.

“The stimulus is key,” said Mary Nicola, a portfolio manager at PineBridge Investments.

My take: Nothing gets done in Congress without a deadline.

7 Comments

  1. Bart Yee said:
    Agree PED, deadlines plus More certainty about the election outcome now makes a stimulus package passage a political need to save face. Sadly, IMO, it is too little and too late.

    As for holiday spending, the higher end will be dampened slightly but the mid and lower economic tiers will be curtailed a fair bit by lack of B&M sales and weighed down by uncertainty regarding paychecks, rents, and impending energy costs due to winter.

    This stimulus bill is a stopgap for the next round of negotiations post inauguration and the aftermath of the Senate runoffs.

    2
    December 17, 2020
  2. Gregg Thurman said:
    Pre-market has risen to $129.06 (9:14 AM Eastern).

    1
    December 17, 2020
  3. Jerry Doyle said:
    Ford Motors is stockpiling thousands of its F-150 new manufactured trucks in lots at the Detroit airport. There is an irony in the economy today where one-half of the country is making more money than ever, personal savings rate at an all time high, so much liquidity sloshing around, interest rates setting new lows, a housing boom, etc. all while stock markets break all-time records. It’s an Oxymoron! Should I continue? 

    Ford stockpiling thousands of new F-150 pickups near Detroit airport
    USA TODAY. While thousands of F-150 trucks are being shipped to dealers, thousands of early production models are undergoing extra quality review. Read the full story. https://apple.news/AnC6aiy02SqiF-fGFbDiYPQ

    0
    December 17, 2020

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