Closing Comment — Friday, December 03, 2021
DJIA: 34,580.08, down 59.71
S&P 500: 4,538.43, down 38.67
Nasdaq: 15,085.47, down 295.85
Stocks trim losses but post weekly drop
U.S. stocks pared early session losses but still finished lower on Friday. The S&P 500 fell 0.8% to end the week down 1.2%. Notably, the broad benchmark snapped a five-session streak of daily moves of at least 1%, the longest such stretch of volatility since November 2020. The Nasdaq Composite slid 1.9%, logging a 2.6% weekly decline and its sharpest two-week sell-off since early March (-6.1%). The Dow shed 59 points, capping a 0.9% weekly loss. The blue chip index recorded its fourth consecutive negative week--a losing streak not seen since September 2020. The small-cap Russell 2000 also suffered a fourth straight weekly slump, its worst run since March 2020. The CBOE Volatility Index (VIX)--Wall Street’s so-called “fear gauge” spiked to its highest level since January.
On the data front, the Labor Department showed non-farm payrolls rose by 210,000 in November, the smallest increase of the year and missing estimates of a 550,000 addition. However, the unemployment rate dropped to a pandemic low of 4.2% from October’s 4.6% figure. Separately, the Institute for Supply Management (ISM) revealed U.S. services sector growth unexpectedly accelerated at a record pace in November. Treasuries rallied, with the yield on the 10-year note falling seven basis points (0.07%) to 1.36%. In commodities, WTI crude saw a sixth consecutive weekly decline, its worst stretch since November 2018.
In corporate news, Chinese ride-hailing giant Didi Global tumbled over 22% after announcing plans to delist its U.S. traded shares. Meanwhile, Facebook parent Meta Platforms closed within striking distance of bear market territory (defined as a 20% drawdown from a recent peak).
Midday Comment — Friday, December 03, 2021
DJIA: 34,409.03, down 230.76
S&P 500: 4,512.03, down 65.07
Nasdaq Composite: 14,966.46, down 414.86
Stocks head for weekly losses; Tech weighs
U.S. equities are firmly lower near mid-session Friday as investors assess the monthly jobs report and its implication on monetary policy. The major averages are extending a turbulent week, with the S&P 500 declining 1.3%, on track to log a sixth consecutive session with a 1% move in either direction. The Dow is falling 230 points, headed towards its longest weekly losing streak since September 2020 (four weeks). The Nasdaq Composite is slumping 2.6%, set for its biggest one-day decline since September.
On the data front, the Labor Department showed non-farm payrolls increased by 210,000 in November, missing estimates of a 550,000 rise and easing from the prior month’s 546,000 uptick. The unemployment rate dropped to 4.2% from October’s 4.6% figure. Separately, the Institute for Supply Management (ISM) revealed U.S. services purchasing managers’ index (PMI) unexpectedly climbed to a record 69.1. Treasuries are advancing, with the 10-year note yield falling five basis points (0.05%) to 1.38%. In commodities, WTI crude is up 1.2% to $67.31/barrel, but on track to extend a five-week losing streak.
Nine of 11 S&P 500 sectors are trading in negative territory with Tech and growth-related stocks leading laggards. Facebook parent Meta Platforms is dipping 2.6%, poised to close in bear market territory (defined as a 20% drawdown from a recent peak). In corporate news, Chinese ride-hailing giant Didi Global is slumping 17% after announcing plans to delist its U.S. traded shares. Breadth is negative on issues by 3:1 on the NYSE and 6:1 on the Nasdaq. Composite NYSE volume is 2.3 billion shares.
Opening Comment — Friday, December 03, 2021
DJIA: 34,542.30, down 97.49
S&P 500: 4,549.27, down 27.83
Nasdaq Composite: 15,155.64, down 225.68
Stocks decline with jobs report in focus
U.S. equities are lower in early trading Friday as investors take stock of a turbulent week and digest the latest monthly jobs report. The Dow is losing 97 points, while the S&P 500 is declining 0.6%. The Nasdaq Composite is falling 1.5% amid weakness in tech shares. For the week, both the S&P 500 and Nasdaq Composite are positioned for a second consecutive decline, while the Dow is headed towards a fourth straight negative week--a losing streak not seen since September 2020--despite yesterday logging its best day since March (+1.8%).
On the data front, the Labor Department showed non-farm payrolls increased by 210,000 in November, the smallest gain this year. The figure missed estimates of a 550,000 rise and eased from the prior month’s upwardly revised 546,000 uptick. The unemployment rate dropped to 4.2% from October’s 4.6% figure. In other data, the Institute for Supply Management (ISM) revealed U.S. services purchasing managers’ index (PMI) unexpectedly climbed to a record 69.1 reading. Additionally, factory orders advanced 1.0% in October, topping expectations for a 0.5% increase. Treasuries are mixed, with the yield on the 10-year note adding one basis point (0.01%) to 1.44%, still on course for a five-basis point weekly decline.
Central bank news remains in focus, as a perceived hawkish pivot from Federal Reserve officials this week has caused market participants to heighten expectations for a faster pace of monetary policy tightening. In commodities, WTI crude is rallying 2.9% to $68.45/barrel, on track to snap a five-week losing streak. Breadth is negative on issues by 9:4 on the NYSE and 9:2 on the Nasdaq.