Wall Street’s main stock indexes vaulted out of the gate on Tuesday after President Donald Trump okayed the formal transition of power to the incoming President-elect Joe Biden’s administration, ending months of political uncertainty that took markets on a wild ride.
The Dow Jones Industrial Average opened up more than 305 points or points or just over 1 percent at 29,896.34.
The broader S&P 500 index – a proxy for the health of retirement and college savings accounts – gained 0.78 percent and the Nasdaq Composite Index vaulted jumped 0.48 percent.
On Monday, Trump said the head of the General Services Administration could go ahead with a transition to Biden’s administration.
Trump confirmed his approval with a tweet that also pledged to “keep up the good fight”.
Meanwhile, Biden’s cabinet is taking shape.
The President-elect is reportedly tapping former Federal Reserve Chair Janet Yellen as his Treasury Secretary – a crucial role always, but especially now given the fragile state of the nation’s economic recovery and fresh financial perils posed by new business-sapping restrictions to curb record-breaking COVID-19 infections and hospitalizations.
…fight, and I believe we will prevail! Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.
— Donald J. Trump (@realDonaldTrump) November 23, 2020
To date, the coronavirus has claimed the lives of 257,671 Americans, according to Johns Hopkins University.
State and local governments are urging caution ahead of the Thanksgiving holiday. California, Ohio, North Carolina, and New York are imposing new restrictions.
The nation’s economic recovery was already downshifting as nearly $3 trillion in federal government virus relief aid waned and key programmes expired.
Economists have been sounding the alarm, urging more stimulus to help struggling businesses and households as well as state and local governments.
New York City’s Mayor Bill De Blassio warned on Tuesday that the city needs stimulus aid from the federal government to stay above water.
“If there’s not a stimulus, the state of New York is going to be in dire, dire shape, and, unfortunately, might have to pass on cuts to localities,” de Blassio said a news conference.
More red flags are being waived by the airline industry – a sector of vital importance to national security that has been financially gutted by the pandemic.
Globally, airlines will lose another $39bn next year on top of the $118bn they are expected to bleed out this year the International Air Transport Association (IATA) said on Tuesday.
IATA had forecast back in June $100bn dollars in losses over the two years but with surging coronavirus infections and shutdowns, it upgraded that number to $157bn on Tuesday.
Among stocks to watch on Tuesday:
Tesla Inc shares gained 2.59 percent, putting the electric-car maker on track to hit $500bn in market value on Tuesday.
Tesla’s relentless rise has also boosted Chief Executive Officer Elon Musk’s net worth by $7.2bn to $127.9bn, pushing him past Bill Gates to become the world’s second-richest person, the Bloomberg Billionaires Index said.
On the retail front as we approach Black Friday weekend, shares of Abercrombie & Fitch Co fell 2.3 percent. The apparel retailer outdid Wall Street’s expectations for quarterly profit and sales after it cut costs and saw a spike in online sales, but said it sees net sales in the fourth quarter down 5 percent to 10 percent.
Tiffany & Co’s shares were virtually unchanged after it also beat forecasts for quarterly profit. The US jeweler, which is being bought by French luxury giant LVMH, benefited from an over 70 percent rise in sales in China and recovering demand at home.