US stocks rebounded on hopes that Biden’s $2 trillion economic agenda could still get done in January. Investors want to be optimistic leading up to the holidays and lawmakers on Capitol Hill will not want to be painted the villain, so all the rhetoric will likely be upbeat for the rest of the week. Before President Biden’s speech, it was reported that 500 million tests could be sent for free to Americans that want them. To assist healthcare capacity concerns, 1,000 military personnel will try to help the labor shortage in hospitals.
President Biden’s afternoon speech provided another plea for Americans to get vaccinated and eased fears that the US won’t go back to lockdowns. Biden addressed the COVID-19 response and the economic hit that would happen if Build Back Better does not get done. Biden concluded his presser by stating, “Senator Manchin and I will get something done.” Biden’s comments just confirm Wall Street’s upbeat outlook for the US economy and stock market.
Nike Nike shares rallied after producing strong results that showed US sales were able to overcome the shortfall with sales in China. Nike is navigating fairly well with supply chain issues and that should only get better as Vietnam reopens. Nike’s 20 cent earnings beat, solid guidance, and optimism supply chain bottlenecks will start to ease at the end of next quarter should keep shares heading higher.
Micron gave a strong outlook that has Wall Street analysts scrambling to upgrade their outlooks and raise their price targets. Strong demand for chips was ahead of what Wall Street was expecting and that should keep this stock supported.
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