Home Business Biden nominates Ball to re-elect Fed chairman Dow Jones rose more than 200 points, bank stocks rise | Anue

Biden nominates Ball to re-elect Fed chairman Dow Jones rose more than 200 points, bank stocks rise | Anue

by news dir

After Biden announced that he would nominate Ball for re-election as the chairman of the Federal Reserve Commission (Fed), US stocks opened higher on Monday (22nd), and bank stocks rose collectively. Before the deadline, the Dow Jones Industrial Average rose more than 240 points or 0.7%, the Nasdaq Composite Index and the S&P 500 both rose about 0.7%, both climbed to new highs, and the Philadelphia Semiconductor Index rose 1.2%.

The White House announced earlier that Biden would nominate Jerome Powell as the Fed chairman and nominate Fed director Lael Brainard as the Fed vice chairman. The next list will be sent to the Senate for approval.

After the nominees were determined, U.S. Treasury bonds and bank stocks went up together. Before the deadline on Monday, the 10-year U.S. Treasury yield rose to 1.593%, Bank of America (BAC-US) rose 2.7%, JP Morgan Chase (JPM-US) rose 2.3%, and Morgan Stanley (MS-US) also rose 1.9 %.

Apple (AAPL-US) rose more than 3% during the intraday session, and Microsoft (MSFT-US) rose 1.7%. Both share prices during the intraday session both set new highs, encouraging the S&P 500 and Nasdaq to reach historical highs

The U.S. dollar index rose in the short-term and reported 96.47 before the deadline, reaching an intraday high. The price of gold fell below $1,820 to a two-week low.

According to individual stock news, Tesla (TSLA-US) rose 4.4% before the deadline. CEO Musk tweeted earlier that the luxury electric car Model S Plaid may land in China around March next year; it was approved by the FDA last week. After providing booster shots for Americans over 18 years old, Modena (MRNA-US) continued its strong rally, rising by more than 1.5% at the opening.

Activision Blizzard (ATVI-US) dropped 3.6% at the opening. Hundreds of employees asked CEO Bobby Kotick to step down due to alleged protection of perpetrators of the company’s internal sex scandal. Foreign media reported that Kotick revealed that if it cannot change the negative culture within the company, it will sue for resignation.

As of 22 o’clock on Monday (22nd) Taipei time:
  • The Dow Jones Industrial Average rose by 244.99 points, or 0.69%, to 35,846.97 points temporarily
  • The Nasdaq Composite Index rose 108.87 points, or 0.69%, to 16159.51 points temporarily
  • The S&P 500 Index rose 34.62 points, or 0.71%, temporarily at 4731.19 points
  • Fees and a half rose by 44.50 points or 1.18%, temporarily at 3,956.58 points
  • TSMC ADR rises 2.04% to US$126.88 per share
  • 10-year U.S. Treasury yield rose to 1.593%
  • New York Light Crude Oil fell 0.67% to US$75.43 per barrel
  • Brent crude oil fell 0.66% to $78.37 per barrel
  • Gold fell 1.80% to US$1818.30 per ounce
  • The dollar index rose to 96.320
Daily chart of the Dow Jones Industrial Average (Photo: Juheng.com)
Focus stocks:

Rivian Automotive (RIVN-US) fell 6.1% to US$120.75 in early trading.

Rivian and Ford Motor (F-US) announced that they will cease their partnership in early 2019. The two parties will no longer advance development plans in the field of electric vehicles. Foreign media reported that Ford intends to accomplish the set of electric vehicle goals on its own.

Astra Space (ASTR-US) rose 40.71% in early trading to $13.41.

Astra Space, a new American space creation, successfully launched a rocket into space orbit on Saturday (20th), completing its first rocket launch mission. The company said the rocket payload reached the target orbit within 10 minutes after launching from the Kodiak launch site in Alaska.

Vonage (VG-US) rose 24.65% in early trading to $20.40.

In order to expand the wireless business, the Swedish telecommunications equipment manufacturer Ericsson agreed to acquire Vonage, a US cloud communications provider, for US$6.2 billion, or US$21 per share. The transaction is expected to be completed in the first half of next year, but Vonage shareholders and supervision are still required. Agency approval.

Today’s key economic data:
  • At 23:00 Taipei time, the annualized total number of existing home sales in the United States in October is announced. The estimated number is 6.2 million, and the previous value was 6.29 million.
  • 23:00 Taipei time announced the annualized monthly growth rate of US existing home sales in October, expected-1.4%, previous value 7.0%
Wall Street analysis:

Lyn Graham-Taylor, senior interest rate strategist at Rabobank, believes that if Biden chooses to make Lael Brainard the chairman of the Federal Reserve, short-term debt yields may fall, because investors believe that in Bran Under Nader’s guidance, the Fed will reduce the number of interest rate hikes.

Ipek Ozkardeskaya, a senior analyst at Swissquote, said that even the doves among the doves cannot guarantee that zero interest rates will last for a longer period of time. If interest rate decisions depend on economic fundamentals, then interest rates will soon need to be raised.

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