Shares fell Monday as investors returned some of last week’s gains, sending the S&P 500 and Nasdaq to new record highs and the Dow above 30,000 for the first time ever.
However, the three major indices were still ready to avert November with large monthly gains. Based on Friday’s closing prices, the Dow was set to provide a monthly gain of 12.9% for its best month since early 1987. The S&P 500 is tracked towards an increase of 11.3%, and the Nasdaq went towards an 11.9% advance in November, which would each be the best gain since April this year.
Investors drove last week on a wave of positive news about impending COVID-1
Stocks expected to benefit most from the lasting economic reopening a vaccine can provide ticked lower after hovering last week as traders extended November’s rotation to cyclical stocks and away from some of the high-flying technical names that led earlier in the pandemic . Shares in Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), American Airlines (AAL) and United Air Lines (UAL) jumped double-digit percentages last week alone, far exceeding the wider market advance of 2.3% in during that time frame. . Boeing (BA), American Express (AXP) and Chevron (CVX) led last week’s gains in the Dow.
The steady eardrum of vaccine updates intensified with more developments around President-elect Joe Biden’s cabinet election, with key candidates considered market-positive. And when the election results were first called by the media earlier this month, many investors cheered on the likelihood of a divided government, though control of the Senate will not ultimately be known until January.
“A trifecta of recent positive catalysts should continue to bend markets. Equities have welcomed a crucial Biden victory and a split Congress, and the news feed on vaccine efficiencies has been much better than expected, ”said Barclay’s capital strategist led by Maneesh Deshpande in a note last week. “It is important that corporate earnings continue to surprise upwards, and we expect this trend to continue. A reversal of the significant investment funds YTD outflows should provide additional support. ”
Still, the COVID-19 situation in the U.S. grew more severely, and the winter months are expected to be particularly bleak as Americans travel for the holidays and outdoor activities become harder to get past. COVID-19 cases in the U.S. have so far peaked at 4 million in November alone, which is more than doubling a monthly record of 1.9 million from just one month earlier. In all, more than 13.2 million Americans have been infected and 266,000 have died, according to Johns Hopkins data.
11:02 ET: Dow adds to losses, throwing more than 300 points
Inventory losses accelerated Monday morning, and the Dow threw more than 300 points or 1%. Shares in Components Salesforce, Dow Inc. and Boeing led to the fall.
The S&P 500 also fell by more than 0.8% as the energy and consumer discretionary sectors lagged behind. Nasdaq, which had been slightly higher earlier in the session, tumbled 0.9%
10:08 AM: Pending home sales fall unexpectedly in October
Pending home sales in the U.S. fell in October for the second month in a row, the National Association of Realtors (NAR) reported Monday, with those falling 1.1% from September. Consensus economists expected, pending that home sales would increase by 1%, according to Bloomberg data. A 5.9% drop in pending home sales in the northeastern United States led to the decline, while in the West they remained broadly strong and changed slightly from month to month.
Nevertheless, national contract signings remained more than 20% above the levels from October 2019, as low interest rates and demand for single-family homes in the suburbs helped create a jump in the demand for housing.
“Pending home transactions saw a slight decline from the previous month, but still slightly exceeded last year’s figures for October,” Lawrence Yun, NAR chief economist, said in a statement. “The housing market is still hot, but we may be starting to see rising house prices hurting affordable prices.”
9:31 ET: Dow, S&P 500 opens lower
Here were the key features of Markets starting at 9:31 AM ET:
S&P 500 (^ GSPC): -7.25 points (-0.2%) to 3,631.1
Dow (^ DJI): -157.42 points (-0.53%) to 29,752.95
Nasdaq (^ IXIC): +34.38 points (+ 0.28%) to 12,240.89
Raw (CL = F): – $ 0.06 (-0.13%) to $ 45.47 a barrel
Gold (GC = F): – $ 11.90 (-0.67%) to $ 1,776.20 pr. Ounce
10-year treasury (^ TNX): +0.3 bps to give 0.845%
8:34 AM ET: Delivery company DoorDash sees IPO that could raise as much as $ 2.8 billion
DoorDash, the country’s largest delivery company, is expected to raise up to $ 2.8 billion in its initial public offering and become one of the newest companies to participate in the stream of public debuts this year.
According to a security filed Monday, DoorDash will sell 33 million shares for between $ 75 and $ 85 per share. Piece to give the company a market value of more than $ 30 billion at the high end of the range.
In the nine months ending September 30 this year, DoorDash’s revenue more than tripled from last year to $ 1.9 billion from $ 587 million in the same period last year. Its net loss narrowed to $ 149 million during that time frame from $ 533 million in the same months of 2019.
8:23 ET: General Motors announces minor deal with electric car maker Nikola
General Motors (GM) said in a statement on Monday that they had revised the terms of their deal with newly public electric car maker Nikola (NKLA), which was only announced in early September.
Under the new agreement, GM will supply its Hydrotec fuel cell system to Nikola’s commercial semi-trucks. However, the company will no longer take a stake in Nikola, nor will it help manufacture Nikola’s electric pick-up Badger, as previously planned.
Nikola shares fell more than 7% in early trading after the announcement, while GM’s shares fell below 1%.
7:05 A MONDAY: Stock futures point to a lower open
Here were the main features of the markets from 07:05 ET on Monday morning:
S&P 500 futures (ES = F): 3,620.75, down 15.75 points or 0.43%
Dow futures (YM = F): 29,679.00, down 195 points or 0.65%
Nasdaq futures (NQ = F): 12,256.5, down 1 point or 0.01%
Raw (CL = F): – $ 0.64 (-1.41%) to $ 44.89 per. Barrel
Gold (GC = F): – $ 13.80 (-0.77%) to $ 1,774.30 pr. Ounce
10-year treasury (^ TNX): +1.3 bps to give 0.855%
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