Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The House gave final approval Friday night to a budget resolution that paves the way for President Joe Biden’s $1.9 trillion stimulus plan. Coronavirus vaccinations have picked up the pace, crossing another milestone Saturday.
The stock market rally is looking strong, buoyed by generally strong earnings and Biden stimulus progress. The indexes are at record highs with several new breakouts. Growth stocks overall had powerful week, with software, IPOs, cyclicals, China names and more big winners. Several chip stocks ran into trouble, but the sector did rise.
But the market is getting increasingly extended, among other warning signs.
Disney earnings are on tap Thursday night, but Apple, JPMorgan and Caterpillar stock have already reported while Nike isn’t due for more than a month.
Congress Fast Tracks Biden Stimulus
The House voted Friday night to provide formal, final approval to a budget resolution fast tracks the $1.9 trillion Biden stimulus proposal. The House voted 219-209 on party lines after the Senate approved the resolution early Friday, with Vice President Kamala Harris casting the tiebreaker vote. The House had already approved the budget resolution on Wednesday, but had to OK the Senate’s largely symbolic changes.
The budget resolution means a Biden stimulus plan can pass with a bare majority, instead of needing 60 Senate votes to avoid a filibuster. Democratic lawmakers will start crafting the actual stimulus legislation soon, with final passage possible by late February.
Because of Democrats’ narrow majorities, the Biden stimulus plan could be slimmed down even without any Republican votes. Negotiating with moderate Democrats could also win over some centrist GOP senators.
President Biden cited Friday’s weak jobs report as a reason to swiftly pass his stimulus plan. That thinking is one reason why the stock market rally had a solid session. He’s already signaled he’s willing to lower the income limits on new direct stimulus check, but he’s insisting that each check be $1,400.
Biden did concede Friday that a $15 minimum wage is unlikely to be included in the stimulus. A budget reconciliation bill is only supposed to include tax and spending items. It’s also supposed to be deficit neutral over 10 years.
Dow Jones Futures Today
Dow Jones futures will open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
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