(DAILY NOTION): Wall Street Closes Higher Amidst U.S. Political Uncertainties, Next Movers: Earnings Report, Biden's Stimulus Update

NASDAQ 100 (as of Jan 13, 2021 at 11.05 a.m.)

Source: Yahoo Finance

SPX 500 (as of Jan 13, 2021 at 11.05 a.m.)

Source: Yahoo Finance

US30 (as of Jan 13, 2021 at 11.05 a.m.)

Source: Yahoo Finance

The US30 led the gains on Wall Street as it closed 0.23% higher, followed by US30 that rose 0.20%. The SPX500 was up by 0.01%.

The US30 was supported by the strength of cyclical stocks which offset the weaker tech stocks. Overall, the market was pumped by value stocks which includes energy materials and financials.

Anticipation fills the air as the markets look to see what President-elect Joe Biden’s stimulus plan would be. It is expected to be in the trillions and includes a higher stimulus check of RM 2,000 and both state and local aid.

Investors also expected an increase in Covid-19 vaccine, which would allow more parts of the U.S. economy to open. The head of portfolio management at Commonwealth Financial Network in Boston, Peter Essele, opines that pent-up demand slowly unwinds, this would lead to one of the strongest growth in the market over 20 years.

However, there is still a sense of jitters in the market over the heated action in the U.S. politics stage. President Donald Trump has declared a state of emergency in Washington D.C. as the battle to impeach him goes on. There are also fears of violence with Joe Biden’s inauguration only a week away.

Traders would also be watching the earnings reports due for release this week from big banks. Quincy Krosby, the chief market strategist at Prudential Financial in Newark, New Jersey, believes that the earnings report is crucial to get information on market recovery, especially in these uncertain times.

 FOLLOWME User Sentiment (as of Jan 13, 2021 at 11.05 a.m.)

SPX500

Short – 79.28%

Long – 20.72%

NAS100

Short – 70.60%

Long – 29.40%

US30

Short – 73.22%

Long – 26.78%