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Wall Street closed sharply higher on Friday reversing previous day's losses despite resurgence of coronavirus and uncertainty on a fresh fiscal stimulus. All the three major stock indexes ended in positive territory. For the week as a whole, the Dow and the S&P 500 registered strong growth while the Nasdaq Composite finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.4% or 399.64 points to close at 29,479.81. This was the blue-chip index's highest closing since Feb 12. Notably, all components of the 30-stock index ended in the green. The index is 1.5% away to reach its all-time high recorded on Nov 9.
Meanwhile, the S&P 500 surged 1.4% to end at 3,585.15, recording a new all-time highest close after Sep 2. The index is 1.7% away to reach its all-time high recorded on Nov 9. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Industrials Select Sector SPDR (XLI) rallied 3.6%, 2.3% and 2.2%, respectively. Notably, all eleven sectors of the benchmark index closed in green.
Moreover, the tech-laden Nasdaq Composite finished at 11,829.29, gaining 1% or 119.70 points due to strong performance by large-cap technology stocks. The tech-heavy index is 2.1% away to reach its all-time high recorded on Sep 2. Additionally, the small-cap centric Russell 2000 Index rose 2.1% to close at 1,744.04, marking its all-time closing high since August 2018.
The fear-gauge CBOE Volatility Index (VIX) was down 8.9% to 23.10. A total of 9.86 billion shares were traded on Friday, higher than the last 20-session average of 10.1 billion. Advancers outnumbered decliners on the NYSE by a 4.76-to-1 ratio. On Nasdaq, a 2.83-to-1 ratio favored advancing issues.
Market Surges Despite Spikes in COVID-19 Infections
Per the COVID Tracking Project in the United States, both new cases and hospitalizations set records, respectively, topping 170,300 and 68,500 on Nov 13. Total U.S. cases have crossed 10 million and the death toll stands at more than 242,000. New cases are rising in 49 states and territories.
The Governor of New York Andrew Cuomo ordered bars, restaurants and gyms to close at 10 P.M. starting Nov 13. The mayor of Chicago advised people to stay at home or work from home, apart from essential travel and business, from Nov 16 for 30 days.
Despite this gloomy scenario, stock prices surged on a possible vaccine hope in near future and a Congressional settlement on a new tranche of fiscal stimulus. Reopening stocks like Carnival Corporation & Plc (CCL - Free Report) , United Airlines Holdings Inc. (UAL - Free Report) and The Boeing Co. (BA - Free Report) jumped 7.2%, 5.8% and 5.9%. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Producers Price Index (PPI) increased 0.3% in October compared with 0.4% in the previous month. However, the consensus estimate was 0.2%. October was the sixth consecutive month where PPI increased. Year-over year, the PPI grew 0.5% in October compared with 0.4% in September. The core (excluding volatile items) PPI rose 0.2% in October in line with the consensus estimate. Year-over-year, core PPI increased 0.8%.
The University of Michigan has reported that the preliminary index of consumer sentiment declined to 77 from 81.8 in October. This was the lowest reading since August and fell well short of the consensus estimate of 81.6. The current conditions index fell to 85.8 from 85.9. The future expectations index tumbled to 71.3 from 79.2.
Weekly Roundup
Last week was a mixed one in Wall Street. The Dow and the S&P 500 gained 4.1% and 2.2%, respectively, buoyed by coronavirus vaccine hopes in near future as investors shifted toward cyclical reopening stocks. Both indexes recorded two successive weeks of rally. On the other hand, the Nasdaq Composite fell 0.6% as investors sold overvalued growth stocks like technology and invested in reopening stocks.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stock Market News for Nov 16, 2020
Wall Street closed sharply higher on Friday reversing previous day's losses despite resurgence of coronavirus and uncertainty on a fresh fiscal stimulus. All the three major stock indexes ended in positive territory. For the week as a whole, the Dow and the S&P 500 registered strong growth while the Nasdaq Composite finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.4% or 399.64 points to close at 29,479.81. This was the blue-chip index's highest closing since Feb 12. Notably, all components of the 30-stock index ended in the green. The index is 1.5% away to reach its all-time high recorded on Nov 9.
Meanwhile, the S&P 500 surged 1.4% to end at 3,585.15, recording a new all-time highest close after Sep 2. The index is 1.7% away to reach its all-time high recorded on Nov 9. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Industrials Select Sector SPDR (XLI) rallied 3.6%, 2.3% and 2.2%, respectively. Notably, all eleven sectors of the benchmark index closed in green.
Moreover, the tech-laden Nasdaq Composite finished at 11,829.29, gaining 1% or 119.70 points due to strong performance by large-cap technology stocks. The tech-heavy index is 2.1% away to reach its all-time high recorded on Sep 2. Additionally, the small-cap centric Russell 2000 Index rose 2.1% to close at 1,744.04, marking its all-time closing high since August 2018.
The fear-gauge CBOE Volatility Index (VIX) was down 8.9% to 23.10. A total of 9.86 billion shares were traded on Friday, higher than the last 20-session average of 10.1 billion. Advancers outnumbered decliners on the NYSE by a 4.76-to-1 ratio. On Nasdaq, a 2.83-to-1 ratio favored advancing issues.
Market Surges Despite Spikes in COVID-19 Infections
Per the COVID Tracking Project in the United States, both new cases and hospitalizations set records, respectively, topping 170,300 and 68,500 on Nov 13. Total U.S. cases have crossed 10 million and the death toll stands at more than 242,000. New cases are rising in 49 states and territories.
The Governor of New York Andrew Cuomo ordered bars, restaurants and gyms to close at 10 P.M. starting Nov 13. The mayor of Chicago advised people to stay at home or work from home, apart from essential travel and business, from Nov 16 for 30 days.
Despite this gloomy scenario, stock prices surged on a possible vaccine hope in near future and a Congressional settlement on a new tranche of fiscal stimulus. Reopening stocks like Carnival Corporation & Plc (CCL - Free Report) , United Airlines Holdings Inc. (UAL - Free Report) and The Boeing Co. (BA - Free Report) jumped 7.2%, 5.8% and 5.9%. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Producers Price Index (PPI) increased 0.3% in October compared with 0.4% in the previous month. However, the consensus estimate was 0.2%. October was the sixth consecutive month where PPI increased. Year-over year, the PPI grew 0.5% in October compared with 0.4% in September. The core (excluding volatile items) PPI rose 0.2% in October in line with the consensus estimate. Year-over-year, core PPI increased 0.8%.
The University of Michigan has reported that the preliminary index of consumer sentiment declined to 77 from 81.8 in October. This was the lowest reading since August and fell well short of the consensus estimate of 81.6. The current conditions index fell to 85.8 from 85.9. The future expectations index tumbled to 71.3 from 79.2.
Weekly Roundup
Last week was a mixed one in Wall Street. The Dow and the S&P 500 gained 4.1% and 2.2%, respectively, buoyed by coronavirus vaccine hopes in near future as investors shifted toward cyclical reopening stocks. Both indexes recorded two successive weeks of rally. On the other hand, the Nasdaq Composite fell 0.6% as investors sold overvalued growth stocks like technology and invested in reopening stocks.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>