Stocks rise broadly on Wall Street, travel agencies rebound


People walk past the electronic board of directors of a securities firm in Tokyo on Monday, December 6, 2021. Shares were mixed in Asia on Monday after struggling Chinese real estate developer Evergrande warned Friday night that it could running out of money.  (AP Photo / Koji Sasahara)

People walk past the electronic board of directors of a securities firm in Tokyo on Monday, December 6, 2021. Shares were mixed in Asia on Monday after struggling Chinese real estate developer Evergrande warned Friday night that it could running out of money. (AP Photo / Koji Sasahara)

PA

Shares rose on Wall Street on Monday, led by banks and a mix of travel-related companies expected to benefit from a further reopening of the economy.

The S&P 500 was up 0.9% at 12:06 a.m. Eastern time. Over 80% of the stocks in the index gained ground. The Dow Jones Industrial Average rose 613 points, or 1.7%, to 35,193 and the Nasdaq rose 0.1%.

Bond yields have increased, which benefits banks that rely on higher yields to charge more lucrative interest on loans. The 10-year Treasury yield rose to 1.40% from 1.33% on Friday night. JPMorgan Chase rose 2.1%.

Airlines and a wide range of travel-related businesses made solid gains. Delta Air Lines jumped 8% and Expedia Group jumped 7.2%. The travel industry has been under pressure over concerns over the latest variant of the coronavirus and its potential to dampen economic activity amid the busy holiday season.

Crude oil prices in the United States rose 3.1% and helped drive energy stocks higher. Exxon Mobil rose 1.3%.

The potential impact of the omicron variant of the COVID-19 virus is still unknown, although Wall Street was encouraged to see White House chief medical adviser Dr.Anthony Fauci said early indications suggested that it might be less dangerous than the Delta variant.

The broader market is coming out of a choppy week as investors assessed the threat of COVID-19, along with a mixed batch of labor market data and lingering inflation concerns.

Investors are still reacting to the Federal Reserve’s plan to accelerate the withdrawal of its support to the market and the economy, said Michael Arone, chief investment strategist at State Street Global Advisors.

The central bank plans to step up the pace at which it is cutting bond purchases, which has helped keep interest rates low. This has raised fears that the Fed will hike its benchmark interest rates next year earlier than expected.

“What you are seeing now is that price is built into the markets and the underlying change in expectations is starting to manifest itself in market leadership,” Arone said.

Banks and other sectors that benefit from higher interest rates are starting to lead the market up, while industries that typically suffer from higher rates, like tech stocks, are lagging behind, he said. declared.

Investors will receive more economic data this week which could give them a clearer picture of the economy.

The Labor Ministry will release its survey of job openings and workforce turnover for October on Wednesday, as well as its weekly report on unemployment benefits on Thursday. Wall Street will receive another update on inflation when the Labor Department releases the Consumer Price Index for November on Friday.

A mix of business news helped push several stocks up. Del Taco Restaurants jumped 66% following the announcement of its takeover by Jack in the Box.

Department store operator Kohl’s rose 7.9% after activist investor Engine Capital LP pushed for a sale or split.

BuzzFeed fell 4.7% on its market debut after the digital media company went public through a merger with a specialist acquisition company.


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