Biden’s inauguration provided a much-needed boost for US stocks. However, experts in the field noted that vaccination progress still calls the shots.
In a statement, a leading strategist highlights that investors are currently hedging their bets. This is not on the earnings report and other corporate trading statements.
Traders are currently focusing on which country will be the first to vaccinate 60% to 70% of the entire population.
This strategy is one very few choices available at hand to boost investors’ sentiment further up.
In an analysis of the current situation, many initial projections were reduced to more conservative figures due to the trudging vaccination progress.
Nevertheless, significant political and economic updates should not be invalidated as they remain imperative drivers for growth in the short-term
Yesterday, Wall Street cheered over Biden’s inauguration and the three major indices hovered over record-high figures.
This is amid the release of earnings reports by companies on the United States’ bourses.
The Dow Jones Industrial Average hiked by 258 points. It ended at 31,188.38 points while the Nasdaq Composite followed suit with a 260-point hike to 13,457.25.
Meanwhile, the S&P 500 added 52.94 points where three out of 11 sectors lead the early trading session.
The communication services and consumer discretionary topped the session’s gains as more companies report their earnings during the quarter.
According to analysts, earnings in the US’ broadest index are likely to rise by 21% in the incumbent year following a 15% decline in 2020.
Blue Chip Updates
In an update on blue chip earnings report, IBM failed to live to expectations after falling short in actual revenue figures.
The firm’s chief executive attributed the lukewarm performance to the still-volatile market setting which poses macroeconomic risks to its partners.
Nevertheless, the tech juggernaut surpasses EPS projections and is in for a better year in 2021.
Meanwhile, American automaker Ford Motor Company jumped as much as 6.7% in the market’s close after Deutsche Bank raised its price target on the firm’s stock.
In the airline industry, United Airlines posted its fourth straight quarterly loss. The travel and tourism industry remains at risk.
The firm instantaneously dropped 5.2% along with the release of the news.
It pledged to resort to further cost-saving measures amounting to $2 billion annual costs through 2023 to keep its business afloat.
All eyes are on the FAANG coalition and other industry juggernauts that are to release quarterly profit and loss updates in the coming days.
