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Stock Market News for Dec 30, 2020

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U.S. stock markets closed lower on Tuesday after falling from record intraday highs as investors monitored the possibility of further stimulus aid. Moreover, investors’ sentiment also took a hit as COVID-19 cases across the country continue to mount, raising doubts about an economic recovery. All three major stock indexes ended the day in red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) dipped 0.2%, closing at 30,335.67, snapping its 3-day winning run. Notably, 22 components of the 30-stock index ended in red while 8 finished the day in green. Major losers of the Dow were Apple Inc. (AAPL - Free Report) and The Home Depot, Inc. (HD - Free Report) that lost 1.3% and 1.1%, respectively. Notably, both companies carry 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 12,850.22, down 0.4%, on the back of weak performance by large-cap technology stocks, giving up its 2-day winning streak. The S&P 500 fell 0.2%, closing the day at 3,727.04, snapping three successive days of gains. The Real Estate Select Sector SPDR (XLRE) and the Energy Select Sector SPDR (XLE) dipped 0.8% and 0.7%, respectively. Notably, nine out of eleven sectors of the benchmark index closed in the negative zone and two in green.

The fear-gauge CBOE Volatility Index (VIX) was up 6.4% to 23.08. A total of 9.46 billion shares were traded on Tuesday, lower than the last 20-session average of 11.14 billion. Decliners outnumbered advancers on the NYSE by a 1.70-to-1 ratio. On Nasdaq, a 2.57-to-1 ratio favored declining issues.

Investors Monitor Possibility of Additional Fiscal Stimulus

Wall Street fell from record intraday highs on Tuesday and closed in the red after Senate Majority Leader Mitch McConnell blocked an attempt by Senate Minority Leader Chuck Schumer to fast-track a bill which called for an increase in stimulus payments to Americans from $600 to $2,000. The Democrat-led House of Representatives had approved the legislation on Monday that would increase the direct payments to $2,000. Investors remain watchful as McConnell further said that the chamber will address the increase in payments this week along with other issues.

Rising COVID-19 Cases Raise Concern About Economic Recovery

COVID-19 cases across the United States have been on the rise raising doubts about economic recovery. Per the latest data from the Johns Hopkins University, COVID-19 cases across the country have already crossed 19 million.

Economic Data

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all the nine U.S. census divisions, reported an annual gain of 8.4% in October, following 7% gain in September. Notably, the 10-City Composite annual increase for October was reported at 7.5%, compared to 6.2% gain in September. Meanwhile, the 20-City Composite increased 7.9% in October on a year-over-year basis, compared to an increase of 6.6% in September.

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