Dow tops 30,000 points as Trump admin begins transition to Biden

The Dow Jones Industrial Average soared past a major milestone on Tuesday, crossing the 30,000 point mark for the first time ever after President Donald Trump okayed the formal transition of power to the President-elect Joe Biden’s administration.

Shortly after 12:00pm on Wall Street, the 30-share index was up 1.69 percent or 30,092.53

The broader S&P 500 index – a proxy for the health of retirement and college savings accounts – was up 1.57 percent and the Nasdaq Composite Index was 0.99 percent to the plus side.

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 upcoming 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 hospitalisations.

To date, the coronavirus has killed 257,671 Americans, according to the Johns Hopkins University.

State and local governments are urging caution before 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 Blasio 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 Blasio told 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 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 were up 4.4 percent in afternoon trading on Wall Street, after the electric vehicle maker topped $500bn in market value at the open of trading on Tuesday.

On the retail front, as we approach Black Friday weekend, shares of Abercrombie & Fitch Co were down 2.11 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 hovering near unchanged after it also beat forecasts for quarterly profit. The US jeweller, which is being bought by French luxury giant LVMH, benefitted from a more than 70 percent rise in sales in China and recovering demand at home.

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