By Geoffrey Smith
GossipMantri.com – The Senate passes a bill to speed up passage of President Joe Biden’s $ 1.9 trillion stimulus package. Non-farm payrolls set to exceed previous consensus for a gain of 50,000 in January, Ford and Peloton tackle production bottlenecks, Kuaishou technology completes the biggest tech IPO since Uber and oil close to $ 60 a barrel. Here’s what you need to know about the financial markets on Friday, February 5e.
1. The Senate adopts an accelerated stimulus bill
The U.S. Senate has passed a bill that allows President Joe Biden’s $ 1.9 trillion stimulus package to pass without Republican backing, which will speed the package’s progress through legislation.
The Senate finished voting on a series of non-binding amendments just after 5:30 a.m. ET, after a marathon session that saw stiff opposition from Republican senators to various provisions of the bill. Vice President Kamala Harris used her casting vote in advance, setting a precedent that is likely to repeat itself often over the next two years, given the Senate’s 50-50 split.
Biden is due to meet with the House of Representatives on Friday morning. The stimulus package has been one of the main factors supporting the markets so far this year.
2. Jobs report
Markets looked set for an upside surprise when the U.S. government released its monthly labor market report at 8:30 a.m. ET (2:30 p.m. GMT).
Forecasts made earlier in the week indicated a gain of 50,000 in the month through mid-January, but ADP’s private sector payroll report – which showed gains of 174,000 – and two successive positive surprises weekly unemployment claims suggest the labor market is recovering. a little faster than expected. The rate should remain at 6.7%.
Overnight, signs of other big savings were mixed. fell 1.9% in December, more than expected, while the Reserve Bank of Australia cited a relatively rapid resumption of the pandemic thanks to the strong rebound in Chinese demand for its commodities. This is despite Beijing’s decision to ship import orders out of Australia in response to its criticism of China’s role in the pandemic.
3. Inventories should be based on record levels; Memes bounce back in pre-market
US stocks are expected to extend their gains on Friday, after a combination of positive labor market data and stimulus progress – all washed away by the continued abundance of central bank liquidity – led the indices to new all-time highs on Thursday.
As of 6:30 am ET (11:30 am GMT), were up 145 points, or 0.5%, as they were online and futures on the Nasdaq lagged slightly with a gain of 0.3%.
Stocks likely to be the focus later include Peloton Interactive (NASDAQ :), which fell 6.8% in pre-market after warning it was struggling to keep up with demand for its bikes. connected apartment, and Ford Motor (NYSE :), which rose 0.6% after announcing it will have to halt production of the F-150 pickup due to a semiconductor shortage.
GameStop (NYSE :), which was reported to be up 7.4% in pre-market after losing another 42% on Thursday. AMC Entertainment (NYSE :), which lost 21% on Thursday, was reported up 4.1%.
4. Kuaishou completes its successful IPO
Chinese firm Kuaishou Technology (HK :), which operates China’s most popular short video service after ByteDance Ltd.’s Douyin, climbed 194% on its Hong Kong Stock Exchange debut of $ 5.4 billion. dollars.
It’s the biggest tech IPO since Uber (NYSE 🙂 two years ago.
The company backed by Tencent was founded by the former Google employee Su Hua and a partner in 2011, recorded an average of 264 million daily active users on its main Kuaishou app in November.
5. Oil is approaching 60 dollars
Crude oil closed at $ 60 a barrel for the first time in a year, as confidence in the global economic recovery coincided with declining global inventories, thanks to continued restraint on production by major producers (particularly l ‘Saudi Arabia).
As of 6:40 a.m. ET, futures were up 0.8% to $ 59.45 a barrel, having previously traded at $ 59.74. futures contracts rose 1.0% to $ 56.78 per barrel.
Baker Hughes’ data on the active United States will round off the week later, as usual, with figures for net speculative positioning in crude and other commodities. The more interesting data outside of oil may be for, which ends a week’s roller coaster up 1.7% to $ 26.68 an ounce.