US stock futures rose early in the trading day on the Thursday before the last trading day of the week with shortened holidays.
Futures on the Dow Jones Industrial Average indicated an opening gain of around 75 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory. Alibaba’s shares fell 10% before entering the market after the China-based e-commerce giant was the target of a new antitrust investigation by the Chinese government.
The market closes early on Thursday at 1:00 p.m. ET and closes on Friday for Christmas. Trade is expected to be thin on Christmas Eve.
The Dow and S&P 500 have seen small losses so far this week as profit taking was undertaken through year end. Political uncertainty also dampened investor sentiment during the holiday week. President Donald Trump slammed Congressional Covid’s $ 900 billion aid package as an inappropriate “disgrace”. The president looked specifically at direct payments, which were to be increased from $ 600 to $ 2,000.
Democrats will attempt to make $ 2,000 direct payments Thursday, but Minority Leader Kevin McCarthy, R-Calif., Will object, CNBC reported. Meanwhile, McCarthy plans to offer a new temporary spending bill that will separate State Department funding and foreign aid from the wider spending package – a plan Democrats would likely oppose.
The Nasdaq is well on its way to end the week higher after hitting an intraday high in the previous session. The Russell 2000, which also hit a record high on Wednesday, is about to have a successful week. Amid the strength of small-cap names, the index is well on its way to its eighth straight week of earnings – the longest weekly earnings streak since February 2019.
“The markets are not too interested in Trump’s criticism of the bill as a formal veto is seen as unlikely. [and] The joint legislation on the economy and budget was passed by both the House of Representatives and the Senate with a veto-safe majority, “said Adam Crisafulli of Vital Knowledge in a note.” Even if Trump were successful in rejecting the measure, Biden will be president in just 27 days and can then sign it. “
Investors also closely followed progress in the introduction of the vaccine. The CDC said just over 1 million shots had been administered as of Wednesday, about 19 million doses less than earlier health officials predictions for December.
With only five trading days a year left, the Nasdaq is well on its way to becoming the clear winner. It is currently up around 42%. The Russell 2,000 is up 20% over the year while the Dow and S&P 500 are up 5.6% and 14.2%, respectively.
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