…And the bullish sentiment continues. Tuesday’s closing bell brings us not one but three all-time highs on the major indexes: the Dow, which finished over 30K for the first time ever, +1.54%; the S&P 500, which closed up 1.62% to 3635; and “the little engine that could” — the small-cap Russell 2000, which outperformed all indexes +1.94% to 1853. The Nasdaq just past the 12K threshold for the second time, to 12,036 (+1.31%), and within spitting distance of its all-time high set in early September.
It’s a well-rounded rally, with cyclicals leading the way, demonstrating healthy underpinnings to the overall economy. But is it getting a bit frothy all of a sudden? We began the parade with continued good news on the Covid vaccine front, then accelerated a bit on the presidential transition now looking to go smoothly — complete with new nominated Treasury Secretary Janet Yellen calling for new stimulus sooner than later — but at what point are we getting ahead of ourselves?
After all, even as plans are in the works to deliver Covid vaccines to high-risk individuals by the end of the year, massive distribution is still a ways off. And consider that new Covid cases, while off their peak of nearly 200K per day, have maintained a daily case rate north of 150K, it would be a mistake to try and see our current situation as being out of the woods. We now show 12.3 million Americans having been infected by the disease, with 257K fatalities as a result. And this is before a certain percentage of citizens ignore health authorities and join their extended families for the holidays, starting this week.
We have a full plate of economic data tomorrow morning — from Initial and Continuing Jobless Claims to Durable Goods Orders to the Q3 GDP revision, among others — but for the remainder of the week we don’t expect the same level of trading volume. That’s from an historical perspective, at least; perhaps with fewer people traveling for Thanksgiving more traders will be active?
In any case, Thursday markets are closed and Friday’s are a half-day. We’ll see if this positive sentiment can work its magic for the final full trading day of the week.
Questions or comments about this article and/or its author? Click here>>
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>