Dow Jones Industrial Average Climbs, Approaches Milestone
By Anna Hirtenstein
U.S. stocks rose after President Trump said his aides would
cooperate with President-elect Joe Biden's transition to the White
House, easing investors' concerns about a drawn-out period of
The Dow Jones Industrial Average rose 380 points, or 1.3%, to
29972, once again within reach of the 30000 level after hitting a
record intraday high of 29996.17.
The S&P 500 rose 1.3%, pointing to a second day of gains,
while the Nasdaq Composite eased higher 1%.
Investors are cheering signs that a protracted fight over
control of the White House is potentially drawing to a close,
reducing political risks over the winter months. The General
Services Administration chief said Monday that her agency would
provide Mr. Biden federal resources meant to assist in a smooth
transfer of power. Mr. Trump also said he has instructed aides to
help with the transition.
"This is very positive: it means that we finally might get an
orderly transition process," said Luc Filip, head of private
banking investments at SYZ Private Banking. "That would relieve
some of the uncertainties that have been weighing on the market
over the past two to three weeks."
Optimism also increased Monday after The Wall Street Journal
reported that Mr. Biden plans to select former Federal Reserve
Chairwoman Janet Yellen as Treasury secretary. Ms. Yellen has said
recently the recovery will be uneven and lackluster if Congress
doesn't spend more to fight unemployment and keep small businesses
One of Ms. Yellen's first decisions could be to potentially
reactivate a series of measures to backstop credit growth that the
Fed and Treasury launched this spring. Treasury Secretary Steven
Mnuchin decided last week that the programs would cease the
purchase of loans or assets at the end of the year, declining an
extension that had been sought by the Fed.
"She has clearly shown that she's willing to minimize the
downside risks to the economy," said Eric Barthalon, global head of
capital markets research at Allianz. "This is good news from a
markets' point of view."
The WSJ Dollar Index, which measures the greenback against a
basket of currencies, declined 0.1%.
The digital currency bitcoin, meanwhile, rose 4.9% to $19,275,
closing in on its record high of $19,783 set in December 2017.
In bond markets, the yield on 10-year U.S. Treasury notes edged
up to 0.872%, from 0.857% on Monday.
Brent crude, the international benchmark for oil, rose to its
highest since the turmoil in markets in the spring, ticking up 1.9%
to $46.90 a barrel. U.S. crude oil rose 2.1% to $43.95.
"Oil demand rebound in 2021 is now a certainty, and markets are
not waiting to price it in," said Bjarne Schieldrop, chief
commodities analyst at Nordic bank SEB. "Add in the new stability
from Biden, and it is again possible to make sensible
A survey of U.S. consumer confidence showed a decline for
November, reflecting the recent surge in coronavirus cases and
government restrictions in some states to contain the spread.
Companies including Dell Technologies and retailers Gap and
Nordstrom are scheduled to report earnings after markets close.
Investors will be scrutinizing their results for further insights
into businesses' ability to operate and their guidance for the
coming months in light of the fresh limits on commercial activity
around the world.
Overseas, the pan-continental Stoxx Europe 600 rose 0.7%.
Among European equities, travel stocks rose after the U.K.
government said it would allow travelers to reduce the number of
quarantine days, starting Dec. 15, if they test negative for
Travel stocks rose in U.S. trading as well, with American
Airlines, United Airlines Holdings, Southwest Airlines and Alaska
Air Group climbing over 3%. Royal Caribbean Group gained 6.1%.
Most major Asian benchmarks edged up by the close of trading.
Hong Kong's Hang Seng added 0.4% and Japan's Nikkei 225 jumped
2.5%, playing catch up after being closed Monday for a holiday.
China's Shanghai Composite Index ticked down 0.3%.
Write to Anna Hirtenstein at firstname.lastname@example.org
(END) Dow Jones Newswires
November 24, 2020 11:37 ET (16:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.