Stocks rise as Biden taps Fed’s Powell for second term

Economist Stephen Moore: ‘Wise decision’ for Biden to tap Powell for second term

FreedomWorks economist Stephen Moore argues  Lael Brainard, the sole Democrat on the Fed’s Board of Governors, ‘would have been a disaster’ as chair of the Federal Reserve.  

The S&P 500 and Nasdaq Composite jumped to new all-time highs on Monday after investors welcomed President Biden's re-nomination of Federal Reserve Chair Jerome Powell for a second term. The Dow Jones is also climbing, up approximately 0.7%. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35865.1 +263.12 +0.74%
SP500 S&P 500 4739.84 +41.88 +0.89%
I:COMP NASDAQ COMPOSITE INDEX 16189.302281 +131.86 +0.82%

With Powell at the helm for a second term, he also tapped Fed governor Lael Brainard as vice-chair. Investors took their nominations in stride as their prior working experience will likely represent continuity with monetary policy.  

President Biden will speak on the appointments this afternoon. 

FED'S LAEL BRAINARD: WHAT TO KNOW

Jerome Powell and Lael Brainard ( )

Oil is also trading above the $75-per-barrel level as reports suggested countries including China and perhaps the U.S. may tap the Strategic Petroleum Reserves. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 54.33 +0.56 +1.04%

Existing home sales increased 0.8% in October to a seasonally adjusted annual rate of 6.34 million, beating Wall Street expectations, and the Chicago Fed's national activity index rose to 0.76, up from -0.18 in September. Durable goods, GDP and inflation are among the reports slated for release on Tuesday and Wednesday. 

Ticker Security Last Change Change %
VG VONAGE HOLDINGS CORP. 20.50 +4.12 +25.20%

In deal news, Swedish telecom equipment maker Ericsson is buying U.S. cloud communications company Vonage in a $6.2 billion deal that will help it expand wireless services for business customers.

Ticker Security Last Change Change %
URBN URBAN OUTFITTERS, INC. 37.53 +1.36 +3.76%
ZM ZOOM VIDEO COMMUNICATIONS, INC. 243.84 -7.46 -2.97%

Elsewhere, shares of Rivian fell following news that the company has abandoned plans with Ford to develop electric vehicles together. Amazon remains a backer in the newly public electric vehicle maker. 

Ticker Security Last Change Change %
RIVN RIVIAN AUTOMOTIVE INC. 121.00 -7.59 -5.91%
F FORD MOTOR CO. 20.18 +0.79 +4.08%
AMZN AMAZON.COM, INC. 3,624.94 -51.63 -1.40%

In other auto news, Tesla rose after CEO Elon Musk indicated the Model S Plaid could go on sale in China around March. The vehicle retails for around $129,000.

Ticker Security Last Change Change %
TSLA TESLA, INC. 1,192.32 +55.26 +4.86%

Retailers are also in focus with many Black Friday holiday sales already underway. 

Ticker Security Last Change Change %
TGT TARGET CORP. 246.12 -4.61 -1.84%
WMT WALMART, INC. 142.91 +0.52 +0.37%
M MACY’S, INC. 35.38 +0.69 +1.97%
KSS KOHL’S CORP. 59.38 +2.38 +4.18%

In earnings news, Zoom and retailer Urban Outfitters will report results after the bell. 

Ticker Security Last Change Change %
ZM ZOOM VIDEO COMMUNICATIONS, INC. 243.84 -7.46 -2.97%
URBN URBAN OUTFITTERS, INC. 37.53 +1.36 +3.76%

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