BMO Capital Markets Chief Investment Strategist Brian Belski provides insight into the market’s reaction to ADP’s employment report and how it could accelerate another stimulus deal.
Technology stocks fell early in the day, with the high-tech Nasdaq dropping more than 1%, with investors positioning themselves for Democratic control of the legislative and executive branches.
The decline in names like Apple, Facebook and Amazon, all down more than 2%, is due to concerns that additional regulations could hurt their profits.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: COMP | NASDAQ COMPOSITE INDEX | 12722.657807 | -96.30 | -0.75% |
| AAPL | APPLE INC. | 127.70 | -3.31 | -2.52% |
| FB | FACEBOOK INC. | 263.08 | -7.89 | -2.91% |
| AMZN | AMAZON.COM INC. | 3,174.19 | -44.32 | -1.38% |
The Dow Jones Industrial Average and the S&P reversed initial losses to become higher, led by finance and materials. Caterpillar is the main name of Dow.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 30656.03 | +264.43 | + 0.87% |
| CAT | CATERPILLAR INC. | 192.77 | +9.13 | + 4.97% |
| SP500 | S&P 500 | 3737.31 | +10.45 | + 0.28% |
| XLF | FINANCIAL SELECT SECTOR SPDR ETF | 30.16 | +0.95 | + 3.25% |
| XLB | MATERIALS SELECT SECTOR SPDR ETF | 75.56 | +2.25 | + 3.06% |
Fox News projects that Democratic challenger Raphael Warnock defeated Republican Senator Kelly Loeffler, while the race between Republican David Perdue and Democratic challenger Jon Ossoff was too close.
Actions that could benefit from a Democratic victory include names of solar and green energy that are at work.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| SEDG | SOLAREDGE TECHNOLOGIES INC. | 355.50 | +38.69 | + 12.21% |
| RUN | SUNRUN | 80.39 | +7.30 | + 9.99% |
| FSLR | FIRST SOLAR INC. | 97.09 | +4.93 | + 5.35% |
| SPWR | SUNPOWER CORP. | 28.47 | +3.73 | + 15.08% |
In addition, cannabis stocks can also benefit, as Democrats can push for broader legalization.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| CGC | CANOPY GROWTH CORP | 30.45 | +3.41 | + 12.61% |
| ACB | AURORA CANNABIS | 10.84 | +1.17 | + 12.04% |
ECONOMIC REPORTS
ADP reported that the United States lost 123,000 jobs in December, compared to expectations for a gain of 88,000, according to economists consulted by Refinitiv.
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Mortgage data for the week ending January 2 showed an increase of 1.7%, with the US housing market continuing to be a bright spot in the economy.
Traders will also receive updated readings on the IHS Markit Services PMI, factory orders and the weekly crude oil inventory report.
BITCOIN CAN SET SIX NUMBERS SAYS JPMORGAN BUT THERE IS A CAPTURE
In other asset classes, bitcoin has surpassed the $ 35,000 level in morning trades.
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Oil and gold also rose, with West Texas Intermediate crude rising again above the $ 50 a barrel level, while gold reached $ 1,959.50 an ounce.