Stocks rise as White House, Senate strike $2T stimulus deal
Yahoo Finance’s Jared Blikre joins the On The Move panel to discuss the latest swings in the stock market
Video Transcript
JULIE HYMAN: Let's get a check on how the markets are reacting to all of this first. Jared Blikre is joining us now. Jared, it seems like a lot of the rally has already come in advance of the stimulus bill, and now, in today's session there's more of a muddling around kind of feeling.
JARED BLIKRE: Yeah. I'd agree with that. Stocks are forward looking, so if you're looking to the markets, they are a discounting mechanism, but we see the Dow here. It's up over 600 points. That's good for 3%. The NASDAQ is just positive. It's kind of isolated around the unchanged line most of the day. Same for the Russell 2000, down just a little bit, and the S&P 500 up over 1%. And let's take a look at the candlestick chart going back two months, and we can see now we've definitively broken out of this downtrend, which is a good first step.
Yesterday was a 90% up day in NYSE listed stocks. That means 90% of them ended in the green, and when that happens, we tend to get continuation. Now how much is up for debate. But we do have a tailwind here of pension funds, which have to rebalance, buying equities and selling bonds into the end of the month, which is also the end of the quarter. So we'll look to see if that realizes some gains here for the indices.
The 10 year T-note yield is down just about half of a basis point here. Really not much action going on in the bond market. For that matter, even just looking at stocks, even though the Dow is up 3%, that's a relatively muted day as we wait for some more information here. And then the 30 year T-bond yield, that's down about two basis points, and the US dollar index, this has kind of done the opposite of stocks. So it has broken its upward trend line, and that is taking some pressure off of emerging markets, and some of the people around the world just scrambling for dollars as little as a few days ago. And then WTI Futures here, they're not really doing much either. They're down just about eight basis points. Julie--
