Closing Comment — Thursday, December 03, 2020
DJIA: 29,969.52, up 85.73
S&P 500: 3,666.72, down 2.29
Nasdaq Composite: 12,377.18, up 27.82
Stocks Fluctuate Near Record Levels
Stocks finished off the day's best levels amid a disappointing vaccine update from Pfizer. The pharmaceutical company cut its 2020 vaccine rollout plan by 50% citing supply-chain issues. Earlier, all three major averages traded at record highs as investors assessed encouraging fiscal stimulus updates and digested upbeat economic data. Democratic House and Senate leaders recommended lawmakers use the bipartisan $900 billion proposal as a baseline for stimulus negotiations, while Senate majority leader Mitch McConnell signaled optimism saying a "compromise is within reach." The Dow pared a more than 150 point gain to end 85 points higher, while the S&P 500 finished 0.1% below yesterday's record closing level. The Nasdaq Composite gained 0.2% to a new all-time high.
On the data front, initial jobless claims declined for the first time in three weeks to 712,000 from the prior period's upwardly revised 787,000 figure. Separately, the final November reading of services PMI from IHS Markit unexpectedly improved to 58.4, while the Institute for Supply Management's (ISM) services index showed activity in the sector expanded at a slower pace last month compared to October. Treasuries advanced, with the yield on the 10-year note down three basis points to 0.91%. Meanwhile, the U.S. dollar fell 0.5%, on track for a 1% weekly decline.
Six of 11 S&P 500 sectors ended in positive territory, with Energy pacing the gains. In corporate news, Splunk slumped 23.6% after posting a wider-than-anticipated loss in the most recent quarter. XPO Logistics added 5.6% after announcing it will be splitting its trucking and logistics units into two separate publicly traded companies.
Midday Comment — Thursday, December 03, 2020
DJIA: 30,047.76, up 163.97
S&P 500: 3,677.79, up 8.78
Nasdaq Composite: 12,424.37, up 75.00
Stocks Trade at Record Levels Near Midday
The major averages are extending their advance to record highs near mid-session, as investors assess encouraging fiscal stimulus updates and digest upbeat economic data. Democratic House and Senate leaders recommended lawmakers use the bipartisan $900 billion proposal as a baseline for stimulus negotiations, while Senate majority leader Mitch McConnell signaled optimism saying a "compromise is within reach." The Dow is advancing 163 points to 30,047, while the S&P 500 and Nasdaq Composite are rising 0.2% and 0.6%, respectively.
On the data front, initial jobless claims declined for the first time in three weeks to 712,000 from the prior period's upwardly revised 787,000 figure. Separately, the final November reading of services PMI from IHS Markit unexpectedly improved to 58.4, while the Institute for Supply Management's (ISM) services index showed activity in the sector expanded at a slower pace last month compared to October. Treasuries are advancing, with the yield on the 10-year note down three basis points to 0.91%. Meanwhile, the U.S. dollar index hit a two-year low, falling 0.5%.
Seven of 11 S&P 500 sectors are in positive territory, with Energy and Industrials pacing the gains. In corporate news, Splunk is slumping 19.7% after posting a wider-than-anticipated loss in the most recent quarter. XPO Logistics is adding 5.9% after announcing it will be splitting its trucking and logistics units into two separate publicly traded companies. Elsewhere, Tesla is rising 3.5% after being the subject of an analyst upgrade. Breadth is positive on issues by 3:1 on the NYSE and 5:3 on the Nasdaq. Composite NYSE volume is 2.2 billion shares.
Opening Comment — Thursday, December 03, 2020
DJIA: 29,883.79
S&P 500: 3,669.01
Nasdaq Composite: 12,349.37
Stocks Poised to Open Little Changed
U.S. stocks are poised for a muted open as investors digest economic data and weigh worsening coronavirus trends against vaccine optimism. The Dow and S&P 500 are both little changed in premarket trading, while the Nasdaq 100 is trading 0.2% above fair value on the GLOBEX.
On the data front, initial jobless claims declined more than expected to 712,000 in the week ending November 28 from the prior period's upwardly revised 787,000 figure. Investors will also get dual readings on the U.S. services sector, with the Institute for Supply Management's report anticipated to show activity in the sector expanded at a slower pace in November compared to October. Treasuries are advancing, with the yield on the 10-year note off one basis point to 0.93%.
Fiscal stimulus updates are also garnering attention, with Democratic House and Senate leaders calling on Congressional Republicans to use the bipartisan $900 billion proposal as a baseline for negotiations. However, the stalemate looks to continue as Senate majority leader Mitch McConnell rejected the proposal earlier this week. Meanwhile, the U.S. saw its deadliest day on Wednesday, while COVID-related hospitalizations reached a new record above 100,000. The worsening outlook prompted the Los Angeles Mayor to issue a new stay-at-home order, warning that the city is facing a "dangerous tipping point."
In corporate news, Dollar General is falling 2% despite reporting a better than expected rise in same-store sales. Software company Splunk is slumping 21.5% after posting a wider-than-anticipated loss in the most recent quarter. Elsewhere, Tesla is rising 4.5% after being the subject of an analyst upgrade.