As xkcd wonderfully demonstrates with
their chart using DW-NOMINATE, the Democrats have pretty much always voted to the left on economic issues, even though what sorts of policies constitute being to the left, how ideological the parties are, and the relative importance of economic issues have fluctuated A LOT over time. So options 1 and 2 are both reasonably true, with caveats. Between the two, option 1 is probably closer to the Democrats' historical focus.
I know it's not an option, but haven't the Democrats also been the preferred party of recent immigrants throughout their history? Has there been a time when immigrants preferred Republicans?