The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

New York City (AFP) – U.S. stocks surged Thursday on progress toward a potential deal in Washington to prevent a debt default, recovering a hefty portion of their losses since the partial government shutdown began.

The Dow Jones Industrial Average soared 323.09 (2.18 percent) to 15,126.07, just below its level on the eve of the October 1 shutdown.

The broad-based S&P 500 jumped 36.16 (2.18 percent) to 1,692.56, while the tech-rich Nasdaq Composite Index added 82.97 (2.26 percent) at 3,760.75.

A breakthrough in the political logjam seemed at hand when House Speaker John Boehner offered to extend the U.S. borrowing authority for six weeks. But his proposal would not end the shutdown.

President Barack Obama met with Republican leaders at the White House.

The developments suggest “both sides appreciate the gravity of a default,” said Jack Ablin, chief investment officer at BMO Private Bank.

“It’s not worth sending our country into a tailspin over ideological differences. I think investors are breathing a sigh of relief.”

Some of the biggest gains came in technology stocks that had retreated in recent days.

Facebook rose 4.9 percent, Netflix jumped 5.4 percent, Amazon increased 2.3 percent and Dow component Microsoft advanced 2.1 percent.

Banking stocks, which have suffered amid concerns the Washington impasse could harm the economy, also scored outsized gains.

Dow component JPMorgan Chase surged 3.5 percent, Wells Fargo jumped 2.7 percent and Citigroup tacked on 2.8 percent.

JPMorgan and Wells Fargo will report earnings Friday in some of the quarter’s earliest major results.

Oil giant Chevron, another Dow component, underperformed the index, rising just 0.2 percent after disclosing that quarterly earnings would be lower than the previous quarter, in part due to “significantly” lower downstream earnings.

Morgan Stanley slashed its earnings estimate to $2.60 per share from $2.95.

Citrix, which provides cloud computing services, stood out in falling 11.9 percent after warning that both earnings and revenues lagged expectations.

The company forecast revenues of $710-$712 million, below the previous projection of $730-$740 million.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.68 percent from 2.65 percent Wednesday, while the 30-year increased to 3.74 percent from 3.72 percent.

Prices and yields move inversely.


Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Roger Stone Has Strong Connections To Insurrestionists

Image via Wikemedia Commons

Last week's indictment of Oath Keepers founder Stewart Rhodes for seditionist conspiracy revealed more than simply the mountain of evidence that the Justice Department has acquired in the prosecutions of key players in the Jan. 6 Capitol insurrection. It also made clear the DOJ’s larger strategy of moving up the food chain of players in the historic attack—with Donald Trump and his inner circle now only steps away.

Much of the attention has focused on former Trump adviser Roger Stone, whose connections to the “Patriot” movement—and particularly to the Oath Keepers and Proud Boys who spearheaded the siege of the Capitol—are well established; indeed, earlier on Jan. 6, two Oath Keepers now charged alongside Rhodes with sedition in the conspiracy were part of Stone’s personal security detail. But as Marcy Wheeler incisively reports, more recent court documents also make clear that the investigation into militia groups’ activities that day now encompasses Trump’s personal lawyer, Rudy Giuliani.

Keep reading... Show less

Biden Ramps Up Delivery Of Free Covid-19 Tests

Photo by Budiey/ CC BY-NC 2.0

The Biden administration is taking several steps to address the latest wave of COVID-19, including the creation of a response team designed to head off possible future variants of the coronavirus.

Experts say the month of February will likely be "tough" in terms of omicron, though there are signs that the wave may be peaking as reported infections and hospitalizations slow. Health officials are simultaneously concerned about future variants developing and groups like the World Health Organization and the Centers for Disease Control continue to monitor the ever-changing situation.

Keep reading... Show less
{{ }}