Eli Lilly Jumps, Dollar Tree Slips as Stock Market Chases Infrastructure Plan Higher
Stocks look set for a higher open as lawmakers are signaling that an infrastructure deal could get done soon.
The Dow Jones Industrial Average gained 175 points, or 0.5%, while the S&P 500 rose 0.5% the Nasdaq Composite advanced 0.6%. The Nasdaq and the S&P 500 look set to open at all-time highs.
A group of bipartisan lawmakers said they have agreed on a framework for an infrastructure deal. They intend to meet with President Joe Biden Thursday to complete the deal, which could come out to roughly $1 trillion. Infrastructure spending would add jobs and serve as a moderate boost to economic growth. It would also provide a new revenue stream for some construction companies and manufacturers. Construction company MasTec (MTZ), for example, saw shares rise 2.5%, while Martin Marietta Materials (MLM) had gained 1.5%.
“S&P futures are trading solidly higher this morning amid infrastructure deal optimism,” writes Tom Essaye, founder of Sevens Report Research.
There needs to be optimism about something. Initial jobless claims came in at 411,000, only a slight improvement from last week’s 412,000 and worse than estimates of 380,000.
Here are five stocks making moves in Thursday’s premarket action:
Darden Restaurants (DRI) stock rose 1% after reporting a profit of $2.03 a share, beating forecasts for $1.79 a share, on sales of $2.28 billion, above expectations for $2.19 billion.
MGM Resorts International (MGM) stock gained 2.4% after getting upgraded to Buy from Hold at Deutsche Bank.
Seagate Technology (STX) stock gained 1.7% after getting upgraded to Outperform from Market Perform at Northland Capital.
Credit Suisse (CS) stock gained 2.7% after getting upgraded to Buy from Hold at Berenberg.
Dollar Tree (DLTR) stock dropped 1.3% after getting downgraded to Neutral from Overweight at Piper Sandler.
Eli Lilly (LLY) stock jumped 7.5% after its Alzheimer’s treatment was designated a “breakthrough therapy” by the FDA. Biogen stock fell 7.2%.
Write to Jacob Sonenshine at [email protected]
