Stock market is happy with Biden’s plan to flush trillions

Investors on Wall Street seem to welcome the new investment plans of US president Joe Biden. The main gauges in New York were in the first trading minutes on profit. In addition, attention was paid to the jobs report of payslip processor ADP. That report anticipates the important jobs report of the US government on Friday.

Biden’s infrastructure investment package is worth $ 2250 billion and will be spread over an eight-year period. The money goes, among other things, to bridges, roads, railways, ports and airports. Biden wants to finance these and other plans by raising corporate taxes from 21% to 28% over the next 15 years and also raising taxes on foreign profits of US multinationals.

ADP’s figures show that the number of jobs in the US is growing rapidly. The growth in March, when 517,000 jobs were added, was the strongest in months. The figures show that the U.S. labour market is recovering from the coronavirus pandemic, aided by vaccinations against the virus and U.S. government support measures against the crisis.

The leading Dow-Jones index was 0.2 percent higher at 33,134 points shortly after the opening bell. The broad S&P 500 rose 0.4 percent to 3,974 points, and  Nasdaq won 0.9 percent to 13,158 points.

Among the companies, attention is paid to pharmacists Pfizer and BioNTech. Their coronavirus vaccine was shown to be 100 percent effective in a trial among young people between 12 and 15 years of age. Pfizer expects to quickly get approval for its use in that age group. BioNTech won 4.4 percent and Pfizer rose 0.1 percent.

Furthermore, drug store chain Walgreens gained 4.2 percent market capitalization after good figures. However, the company noticed that sales of anti-flu and cold drugs fell, which weighed the result.

Apple’s share (plus 1.8) moved on to an advisory increase. In addition, analysts expressed the expectation that the demand for iPhones will be stable especially in the long term. Tesla won 2.5 percent. Tesla’s truck will only be produced very slowly this year. The maker of electric vehicles says he can produce too few batteries to produce the Tesla Semi, as the truck is called, on a large scale.

The euro was worth $ 1.1728, compared to $ 1.1724 a day earlier. A barrel of American oil became 0.7 percent cheaper at $ 60.11. Brent oil cost 0.8 percent less at $ 63.66 a barrel.