US Stocks Rise as Covid Cases Drop, Vaccinations Pick Up
The US equity market is poised to open Tuesday’s session flat to modestly higher after Monday trading lifted stocks nearly 1.00%.
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Principal Points
- Global markets take a breather near all-time highs
- Tesla announces the purchase of $1.5bn worth of bitcoin
The US equity market is poised to open Tuesday’s session flat to modestly higher after Monday trading lifted stocks nearly 1.00%. The Dow Jones Industrial Average on Monday rose 237.52 points, or 0.76% to 31,385, while the S&P500 climbed 28.76 points, or 0.74%, and closed at 3,915. The tech-heavy Nasdaq Composite index ticked higher by 0.95%, or 131.35 to a close of 13,987. Futures tied to the indexes are trading fairly muted ahead of the open on Tuesday as markets today remain calm while investors anticipate stimulus progress.
The global race to vaccinate continues to pick up the pace. Data from 83 countries shows over 133 million doses of the Covid-19 vaccine have been administered around the globe. Seven coronavirus vaccines are now being used by governments. The daily rate of US infections dropped to a three-month low on Monday. The country reported yesterday the lowest number of confirmed new coronavirus infections since October. 77,737 new cases were registered across the states, according to the Covid Tracking Project. The number of hospitalized people in the US also marks a significant drop. For a 27th straight day, the number of people currently in US hospitals has dropped to 80,055, the lowest level since November 18.
As the infection rate of confirmed coronavirus cases continues to slide, the new Covid variant remains problematic. Testing of Oxford/AstraZeneca vaccine is said to offer only “minimal” protection against mild cases of the Covid mutation.
Tech Week Earnings Continue
Heading to the markets, the US dollar declines today as the EURUSD pair closes in on 1.2100. The pair reached a high of 1.2086 in early trading on Tuesday. Last week the EURUSD slipped below 1.20 for the first time in two months and dipped to a low of 1.1952. Gold has been climbing this week after slipping to $1,785 on Thursday. Today, the precious metal is trading near the $1,850 mark.
The biggest news so far this week, Tesla’s purchase of $1.5bn worth of bitcoin, continues to affect the price of the largest cryptocurrency. Bitcoin is now trading at record levels above $47,000 after Elon Musk’s Tesla announced it purchased bitcoin, following an investment policy change. The Tesla board had signed off the decision to “diversify and maximize” return on cash.
This week remains tech-focused while the earnings season continues. On Tuesday, the social media Twitter led by Jack Dorsey will report its quarterly results. Revenues are expected to rise, underpinned by spending on digital ads. The 4Q figures will follow a rather disappointing third-quarter report. On Wednesday, Uber is set to announce fourth-quarter results. The company’s ride-sharing business struggled in the lockdown and investors will be monitoring if it had managed to turn a profit. On Thursday, Walt Disney reports its latest figures. Investors will be on the watch for revenue from theme park operations as well as the growing Disney+ streaming platform.