The transition from the Trump administration to the incoming Biden administration is happening. And that alone is seen as something for Wall Street to rally behind.
All three major U.S. stock market indices rose by at least 1.3% on Tuesday, as the director of the General Services Administration agreed to begin the transition process. Investors are also still placing bets on the pace of the recovery given three promising and effective vaccines that could start rolling out to select populations by the end of 2020.
The Dow Jones Industrial Average jumped 454 points, or 1.5%, to close at 30,046, a record closing high. It was the first time the Dow crossed the psychologically significant 30,000-point mark.
The power of a dollar. Dollar Tree (ticker: DLTR) stock surged on Tuesday, jumping 14.1% and finishing as the top performer in the S&P 500 after its third-quarter earnings report breezed past expectations.
Shares of discount retailers and dollar stores in particular have a strong record of outperformance in challenging economic environments and recessions, and DLTR has proven a solid holding in the volatile, uncertain days of 2020.
Same-store sales, an important and closely watched metric for physical retailers, rose 5.1% in the quarter from the same quarter a year ago. Comparable sales rose 6.4% at the company’s Family Dollar locations.
Shares are now up 18.4% year to date.
Gold falls. Prices for the precious yellow metal declined about 1.8% on Tuesday, dipping to prices not seen since July. Even though gold has been trending lower since its August peak, prices are still about 20% higher than they were to start the year, with gold trading for more than $1,804 per ounce late Tuesday afternoon.
Oil, on the other hand, continued its recent rally sparked by positive vaccine news, with crude oil prices rising about 4.1% to $45 a gallon.
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