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Stock Market News for Dec 4, 2020

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U.S. stock markets closed modestly higher on Thursday after falling from record intraday highs. Market participants became skeptical about the rally following news of supply chain issues related to the COVID-19 vaccine. Moreover, investors also took note of a mixed set of economic data. The Dow and the Nasdaq Composite ended the day in green while the S&P 500 closed in the red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rallied 0.3%, closing at 29,969.52, continuing its 3-day winning run. Notably, 17 components of the 30-stock index ended in green while 13 finished the day in red. Major gainer of the Dow was Walgreens Boots Alliance, Inc. (WBA - Free Report) that surged 7.5%. Notably, Walgreens has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite closed the day at 12,377.18, up 0.2%, a record high, on the back of strong performance by large-cap technology stocks, reversing its losses from Wednesday. However, the S&P 500 dipped 0.1%, closing the day at 3,666.72, snapping its 2-day winning streak. The Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) popped 1.1% and 0.7%, respectively. Notably, six out of eleven sectors of the benchmark index closed in the positive zone and five in the red.

The fear-gauge CBOE Volatility Index (VIX) was up 0.5% to 21.28. A total of 11.5 billion shares were traded on Thursday, lower than the last 20-session average of 11.7 billion. Advancers outnumbered decliners on the NYSE by a 2.02-to-1 ratio. On Nasdaq, a 1.51-to-1 ratio favored advancing issues.

COVID-19 Vaccine Production Hit a Snag

Investor sentiment took a hit following the Wall Street Journal report that Pfizer, Inc. (PFE - Free Report) was rolling back on its COVID-19 vaccine distribution plan. The company scaled back on its 2020 vaccine production target to 50 million doses from 100 million doses planned earlier following issues in the supply chain for the raw materials used in the production of the vaccine.

Jobless Claims Fall

The U.S. Department of Labor reported that initial jobless claims declined by 75,000 to 712,000 for the week-ended Nov 28. The consensus estimate was 767,000 and previous week’s data was revised upward by 9,000 to 787,000 from 778,000 reported earlier.

Continuing claims (people who are already receiving benefits) declined by 569,000 to 5,520,000 for the week ended Nov 21 from the prior week which was revised upward by 18,000 to 6,089,000 from 6,071,000 reported earlier. The four-week moving average for continuing claims dropped by 425,500 to 6,194,250 from the prior week’s average which was revised upward by 4,500 to 6,619,750 from 6,615,250 reported earlier.

Other Economic Data

The Institute of Supply Management reported that the U.S. services purchasing managers' index (PMI) for November came in at 55.9, The consensus estimate was 56.4 for November while October’s PMI was 56.6. Notably, any reading above 50 indicates expansion in services activity. Moreover, November marked the sixth successive month of uptrend in the services sector.

Furthermore, 14 of the 18 services industries tracked by ISM expanded in November. The Supplier Deliveries Index came in at 57, compared to October’s reading of 56.2. Meanwhile, the New Orders Index came in at 57.2, compared to 58.8 in October.

The IHS Markit final U.S. services purchasing manager’s index (PMI) came in at 58.4 in November compared to the initial reading of 57.7, and reading of 56.9 in October.

Domestic vehicle sales for November came in at 12 million compared to 12.8 million in October which was revised upward from 12.7 million reported earlier. Total vehicles sales for November was reported at 15.6 million, falling short of the consensus estimate of 16.1 million and compared to 16.3 million in October which was revised upward from 16.2 million reported earlier.

Stocks That Have Made Headline

Equinor’s Dogger Bank Farm to Welcome Eni as Partner

Equinor ASA (EQNR - Free Report) recently announced that the Italian energy major, Eni S.p.A. (E - Free Report) , has agreed to join the Dogger Bank Wind Farm project. (Read More)

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Pfizer Inc. (PFE) - free report >>

Eni SpA (E) - free report >>

Walgreens Boots Alliance, Inc. (WBA) - free report >>

Equinor ASA (EQNR) - free report >>

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