Former New York Stock Exchange Chairman Dick Grasso weighed in on the market’s recent records on Thursday telling “Cavuto: Coast to Coast,” he thinks Wall Street is factoring in a coronavirus vaccine, more fiscal relief and a divided government.
Source: Reuters
“What the market is saying is, ‘We’re looking to a COVID relief package before the Congress goes out, we’re looking to very effective vaccination program, looking to a divided government,’ hopefully as a result of the Georgia runoffs, the Senate will remain in the hands of the Republicans,” Grasso told host Neil Cavuto.
He then noted that “a divided government has always been good for the market.”
Georgia’s two Republican senators, David Perdue and Kelly Loeffler, are the candidates seeking re-election in the January 5 runoff elections, which will determine control of the Senate.
The balance of power for the next Senate coming out of this month’s elections is 50 Republicans and 48 Democrats, which means Democrats must win both of Georgia’s runoff elections to make it a 50-50 Senate. If that occurs, Vice President-elect Kamala Harris would be the tie-breaking vote, giving her party a razor-thin majority in the chamber.
With regards to a COVID-19 vaccine, Moderna is the latest contender to announce the filing of emergency use authorization for its coronavirus vaccine.
The company said it expects to have up to 20 million doses available by the end of 2020, and up to 1 billion doses available globally in 2021. The shot, which is a two-dose jab, would be ready to ship within weeks of approval, according to the company.
Pfizer has already filed for the emergency authorization and the FDA plans to decide early this month. AstraZeneca has also indicated that it is preparing to file an emergency use authorization.
This week, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer embraced a bipartisan $908 billion coronavirus relief deal as the starting point for negotiations with Republicans, a major concession that comes as Congress struggles to send aid to Americans before the end of the year.
In a joint statement, the Democratic leaders, who for months have refused to go below $2.2 trillion, signaled they were open to a smaller bill as outside pressure builds on lawmakers to strike a deal.
All the positive news seems to be impacting U.S. equity markets, which climbed into record territory this week, even with coronavirus cases surging in states across the country and with governors implementing new restrictions and lockdowns in an effort to curb the spread.
On Thursday, U.S. equity markets rose as the Dow Jones Industrial Average reclaimed the 30,000 level after weekly jobless claims declined and as Congress grapples over COVID-19 aid.
The Dow hit the milestone 30,000 level for the first time on November 24.
Grasso stressed on Thursday that he believes the market is factoring in a divided government and “a president that’s going to have to work with both sides of the aisle and who will not be held hostage to the socialist tendencies coming from both members of the Senate and House on the Democrat side.”
