* Voters head to polling booths in Georgia
* U.S.-listed Chinese cos jump after NYSE flips delisting decision
* Micron jumps after Citi's double upgrade
* Wall Street's fear gauge slips after Monday's surge
* Dow up 0.79%, S&P 500 up 0.87%, Nasdaq up 0.91% (Updates to midday, adds new comment, updates prices, changes byline)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 5 (Reuters) - Wall Street shares gained on Tuesday in choppy trading, as investors took advantage of the previous session's slump to buy them back, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia.
The Georgia election will determine the balance of power in Washington.
Overall, Analysts expect the stock market to consolidate December's gains in January, as asset managers looked to rebalance their portfolios that had been heavily tilted toward equities.
The latest polls from data website 538 https://projects.fivethirtyeight.com/georgia-senate-polls gave a slight edge to the two Democratic challengers who need to win both races for Democrats to gain U.S. Senate control from Republicans.
Along with their narrow majority in the House of Representatives, a "blue sweep" of Congress could usher in larger fiscal stimulus. It could also pave the way for President-elect Joe Biden to push through greater corporate regulation and higher taxes. after a strong December, January's returns tend to be more muted and this January may be more muted with the Georgia elections providing some volatility along with the uncertainty toward tax policies," said King Lip, chief investment strategist at Baker Avenue Asset Management in San Francisco.
The Cboe Volatility Index .VIX flip-flopped after closing at its highest level in two months on Monday, which saw Wall Street's main indexes drop to two-week lows as investors booked profits at the start of the year. 2:23 p.m .ET (1923 GMT), the Dow Jones Industrial Average .DJI was up 235.92 points, or 0.78%, to 30,459.81, the S&P 500 .SPX gained 32.11 points, or 0.87%, to 3,732.76 and the Nasdaq Composite .IXIC added 117.66 points, or 0.93%, to 12,816.10.
Energy stocks .SPNY jumped about 7% on the back of higher oil prices. O/R
Although the start of vaccine rollouts and massive monetary support powered the major U.S. stock indexes to record levels recently, the discovery of a more contagious variant of the coronavirus and the latest virus-related curbs have muddied the economic outlook.
Britain, where new variant first emerged, began its third national lockdown, while New York on Monday found its first case of the highly contagious mutation of the coronavirus. terms of economic data, stocks got a boost from a survey by the Institute of Supply Management, which showed that U.S. manufacturing activity rose to its highest level in nearly 2-1/2 years in December, likely as spiraling new COVID-19 infections pulled demand away from services towards goods. Micron Technology Inc MU.O rose about 3.8% after Citigroup (NYSE: C ) raised its rating on the stock to "buy" on expectations of a recovery in demand and pricing for DRAM chips. shares of China Telecom Corp Ltd CHA.N and China Mobile Ltd CHL.N added about 7.1% and 8.6% respectively, while those of China Unicom Hong Kong Ltd CHU.N advanced 12% after the NYSE reversed its decision to delist the stocks. issues outnumbered declining ones on the NYSE by a 3.35-to-1 ratio; on Nasdaq, a 2.67-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and no new lows; the Nasdaq Composite recorded 106 new highs and four new lows.
"We remain bullish on stocks, but we're going to bounce around. January is going to be pretty choppy," said Baker Avenue's Lip.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.