Wall Street continues to climb higher
The U.S. stock market rallied again on Thursday’s open, ignoring yet another gloomy weekly jobless claims data and focusing on the prospects for a new post-electoral world without the extremes of Donald Trump or Nancy Pelosi.
The race for the White House is still pending, although Joe Biden has consolidated his position with small victories in Michigan and Wisconsin. Meanwhile, President Donald Trump has already initiated several lawsuits to stop the counting of votes, which he considers illegal, and has demanded an official recount in Wisconsin.
Meanwhile, as The Hill previously reported, House Democrats are considering nominating a new leader (now the speaker is Democratic Representative Nancy Pelosi) following their unexpected defeat in the lower house on Tuesday and their failure to achieve a clear victory in the Senate. These results have been interpreted by many as a rejection of the party’s more leftist ideas.
By 9:35 am ET (1:35 pm GMT), the Dow Jones Industrial Average is up 357 points, or 1.3%, while the S&P 500 (NYSE: SPY) is up 1.7%. while the NASDAQ Composite Index rose 2.2%.
All three indexes rose sharply on Wednesday after the elections as it became clear that the Democratic Party’s congressional performance would likely limit its ability to carry out radical reforms.
In corporate news, Amazon.com Inc (NASDAQ: AMZN) shares rose 3.1% in the morning after news that company founder Jeff Bezos sold $ 10 billion worth of shares this year, a sharp acceleration from previous ones. for years. It is unclear whether he did this to prevent a possible – if Democrats win in Congress – a capital gains tax hike.
The Chinese counterpart Amazon Alibaba (NYSE: BABA) fared worse and shed another 5%, falling to its lowest level in a month after quarterly results that showed a clear slowdown in sales growth. Both Alibaba and Amazon have become major beneficiaries of the pandemic, which has accelerated the digital transformation for many businesses and buyers. However, sentiment on Alibaba deteriorated after Chinese regulators suspended the IPO of its subsidiary, Fintech Ant Group, earlier this week.
General Motors Company (NYSE: GM) rose 3.6% after the company reported $ 4 billion in third-quarter profit, about 60% above expectations. Domestically in North America, the company achieved 15% operating margin. In comparison, this is more than 13 times the profit of Tesla (NASDAQ: TSLA) in the third quarter of $ 300 million. Tesla’s market value is $ 400 billion, eight times more than GM.
Gold miner Barrick Gold (NYSE: GOLD) gained 6.2% after the company reported record revenue thanks to higher gold prices during the quarter.