[ad_1]
Shares fell on Friday as President-elect Joe Biden unveiled a $ 1.9 trillion Covid-19 relief package, banks tumbled after earnings season started and US retail sales were worse than expected.
The Dow Jones Industrial Average fell 359 points, or 1.16%, to 30,632, the S&P 500 was down 1.1% and the Nasdaq was down 1.06%. Shares fell at the last hour of trading on Thursday. The Dow and the Nasdaq set intraday records during the session.
Biden’s American Rescue Plan includes $ 1,400 in personal checks, in addition to the $ 600 provided for in the last relief bill. Other elements of the plan include the extension of additional unemployment benefits and a moratorium on evictions and foreclosures until September.
The president-elect’s plan also includes funds for the deployment of vaccines to fight the coronavirus pandemic which on Thursday killed nearly 389,000 Americans.
The size of the aid program, as well as the potential for tax hikes, made many on Wall Street fear that Biden would not win congressional support for his proposals.
“To a certain extent, most of that optimism had been taken into account, but the huge numbers had also prompted questions as to whether the necessary bipartisan support will materialize for this huge sum,” said Jingyi Pan, a market strategist. Singapore based for IG.
JPMorgan Chase Actions (JPM) – Get the report, Wells Fargo (WFC) – Get the report and Citigroup (VS) – Get the report collapsed on Friday after the big banks announced their fourth quarter results.
JPMorgan Chase, America’s largest bank, posted much stronger fourth-quarter profits than expected as investment banking profits rose and the company recorded a $ 1.9 billion advantage on its provisions of previous credit.
“While positive vaccine and stimulus developments have contributed to these reserve releases this quarter, our credit reserves of over $ 30 billion continue to reflect significant economic uncertainty in the near term and will enable us to weather the storm. an economic environment much worse than the current baseline forecasts of most economists. CEO Jamie Dimon said in a statement.
JPMorgan Chase and Wells Fargo are interests in Jim Cramer Action Alerts PLUS Members Club. Want to be alerted before Jim Cramer buys or sells the shares? Find out more now.
Retail sales in the United States weakened for a second consecutive month in December, the Commerce Department said on Friday, as consumers pulled back from vacation spending amid increased job losses due to a pandemic.
[ad_2]
Source link