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Added on the 05/12/2020 16:01:32 - Copyright : Wochit
US stock markets opened with optimism Tuesday, as tens of millions of Americans head to the polls to decide who will be the next US president. According to Markets Insider, analysts say the upward bounce was a reaction to the end of the uncertainty surrounding who will get the top job. Fundstrat's Tom Lee said in a note to clients on Tuesday that the result would rally stocks, regardless of who won. If Democratic nominee Joe Biden wins, Lee expects a 10% rally. A surprise win for President Donald Trump could jolt stocks 15% to 17% higher. Asset manager BlackRock says that from ending political gridlock to producing sorely needed stimulus packages, the outcome could trigger an upturn.
Walmart has been one of the few companies to do well in the pandemic. Digital sales have nearly doubled from a year ago, and same-store sales have increased 9%. But according to Business Insider, even Walmart CEO Doug McMillon knows that with such widespread unemployment, its a streak of luck can't last forever. Business Insider reports McMillon said on CNBC's 'Squawk Box' on Thursday that Congress needs to pass a second stimulus package--and do it quickly. Since passing the $2.2 trillion CARES Act in March, Congress has done nothing meaningful towards passing a second stimulus package. There are Americans...that don't really care about politics, aren't really tied up in this election and they just need some help. Doug McMillon, Walmart CEO Interview, CNBC's 'Squawk Box'
President Donald Trump has changed his thinking, and now says he wants a big stimulus bill passed before the general election on November 3rd. Fed Chair Jay Powell also wants to see one passed and has warned that without one, the US economy's recovery will surely falter. But the Republican-led Senate hasn't passed a new coronavirus relief bill since April 21st, and shows little signs of doing so before the election. According to Business Insider, the GOP is far more concerned with getting the Supreme Court tilted to the right by having Amy Coney Barrett confirmed. For more than five months, Congress has held up a comprehensive stimulus package for tens of millions of Americans and left them in limbo. Senate Majority Leader Mitch McConnell wants a so-called 'skinny' bill, while House Speaker Nancy Pelosi is holding out for far more for the American worker.
Fed Chair Jay Powell warned on Tuesday that the US economy would suffer if another stimulus package isn't passed, which remains stalled in Congress. House Democrats passed a $2.2 trillion stimulus plan earlier this month, but Sen. Majority Leader Mitch McConnell (R-Ky.) called the amount 'outlandish.' Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. Jay Powell Chair, US Federal Reserve But according to Business Insider, White House economic advisor Larry Kudlow said Sunday that he doesn't agree with that assessment. We are in a strong rebound. Businesses are reopening. We are learning to deal with the virus in a targeted, safe, prevented way. White House Economic Adviser Larry Kudlow Interview, CNN's 'State of the Union'
A Morning Consult poll finds that four in five Americans want Biden to prioritize federal aid. The top two concerns of the voters were small business aid and stimulus checks. Respondents also indicated favorability of extending mortgage forbearance policies. They also favored increasing unemployment benefits and raising taxes for the wealthy. Treasury Secretary nominee Janet Yellen affirmed Biden's stance on aid in her confirmation hearing. Biden lists a quick economic recovery from the pandemic at the top of his to-do agenda.