Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Decline losses are declining as traders return some of their profits in November

Decline losses are declining as traders return some of their profits in November

Shares fell on Monday after investors regained some of last week’s gains, sending the S&P 500 and Nasdaq to new record highs and the Dow more than 30,000 for the first time.

The three major indices were still poised to limit November with large monthly gains. Based on Friday’s closing prices, the Dow was expected to report a monthly profit of 12.9% for its best month since the beginning of 1987. The S&P 500 was up 11.3% and the Nasdaq was heading for 11.9% advance in November, which would be everyone’s best income since April this year.

Last week, investors spread a wave of optimistic news about the upcoming inoculations against COVID-1

9, with AstraZeneca (AZN) becoming the last drugmaker to announce strong data on the effectiveness of its vaccine candidate last week. Moderna (MRNA) said Monday it would apply for emergency use to the US Food and Drug Administration for its vaccine candidate, joining Pfizer (PFE), which has already applied for the EUA.

The stocks that will benefit most from the sustained economic recovery that the vaccine can provide have been lower since last week’s rise, as traders expanded their cyclical stock rotation in November and away from some of the high-flying technology names, leading earlier in the pandemic. Shares of Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), American Airlines (AAL) and United Air Lines (UAL) jumped double-digit rates last week alone, well ahead of 2.3% broad market progress during that period. Boeing (BA), American Express (AXP) and Chevron (CVX) topped the Dow last week.

The constant drumbeat of vaccine updates is combined with more work around the election of President-elect Joe Biden’s cabinet, with key nominees seen as positive for the market. And since the election results were first announced by the media earlier this month, many investors welcomed the possibility of a split government, although control of the Senate will ultimately be known only in January.

“The recent positive catalyst trophy must continue to drive markets. The actions met with a decisive victory for Biden and a divided Congress, and the flow of news about the efficacy of vaccines was much better than expected, “Barclays strategists led by Manish Despande said in a note last week. “The important thing is that corporate profits continue to surprise upwards and we expect this trend to continue. The reversal of significant mutual fund outflows since the beginning of the year should provide additional support. “

However, the situation with COVID-19 in the United States has deteriorated and the winter months are expected to be particularly bleak as Americans travel for the holidays and outdoor activities become more difficult. COVID-19 cases in the United States have so far exceeded 4 million in November alone, more than doubling the one-month record of 1.9 million just a month earlier. In all, more than 13.2 million Americans were infected and 266,000 died, according to John Hopkins.

11:02 a.m. ET: Dow increases losses and throws more than 300 points

Stock losses accelerated on Monday morning and the Dow lost more than 300 points, or 1%. The decline in shares of components Salesforce, Dow Inc. and Boeing led to a decline.

The S&P 500 also fell more than 0.8% as the energy and consumer sectors fell behind. Nasdaq, which was slightly higher earlier in the session, fell 0.9%

10:08 a.m. ET: Upcoming home sales fall unexpectedly in October

Expected home sales in the United States fell in October for the second month in a row, the National Brokers Association (NAR) said on Monday, falling 1.1 percent in September. According to Bloomberg, consensus economists expect expected home sales to increase by 1%. A 5.9% drop in anticipation of home sales in the northeastern country led to the decline, while those in the West remained mostly strong and changed little during the month.

Still, national contract signatures remained more than 20% above October 2019 levels, as low interest rates and demand for single homes in the suburbs helped boost demand for housing.

“Upcoming housing deals fell slightly from the previous month, but still easily surpassed last year’s figures for October,” Lawrence Yun, NAR’s chief economist, said in a statement. “The housing market is still hot, but we can begin to see rising housing prices that are undermining affordability.”

9:31 a.m. ET: Dow, S&P 500 open lower

Here are the main market movements 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 (COM)^ IXIC): +34.38 points (+ 0.28%) to 12,240.89

  • Raw (CL = F): – $ 0.06 (-0.13%) to $ 45.47 per barrel

  • Gold (GC = F): – $ 11.90 (-0.67%) to $ 1776.20 an ounce

  • 10-year treasury (^ TNX): +0.3 bps to yield 0.845%

8:34 a.m. ET: Vendor DoorDash expects IPO, which could raise up to $ 2.8 billion

DoorDash, the country’s largest delivery company, will raise up to $ 2.8 billion in its initial public offering, becoming one of the last companies to join the stream of public debuts this year.

According to filing for securities on Monday, DoorDash will sell 33 million shares for between $ 75 and $ 85 in cash to give the company a market capitalization of more than $ 30 billion at the top of the range.

For the nine months ended Sept. 30 this year, DoorDash’s revenue tripled more than last year to $ 1.9 billion from $ 587 million for the same period last year. Its net losses shrank to $ 149 million over that period, compared to $ 533 million in the same months in 2019.

8:23 a.m. ET: General Motors announces a smaller deal with electric car maker Nicholas

General Motors (GM) said in a statement Monday that it had reviewed the terms of its deal with new public electric car maker Nikola (NKLA), which was first announced in early September.

Under the terms of 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 Nicola, nor will it help produce Nicola Badger’s electric pickup, as previously planned.

Nikola’s shares sank more than 7% at the beginning of trading after the announcement, while GM’s shares fell below 1%.

7:05 a.m. Monday: Stock futures point to a lower open

Here are the main market movements from 7:05 a.m. 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 $ 1774.30 per ounce

  • 10-year treasury (^ TNX): +1.3 bps for yield 0.855%

NEW YORK, NEW YORK CITY - NOVEMBER 24: People walk past the New York Stock Exchange (NYSE) on November 24, 2020 in New York City.  As investors' fears of an electoral crisis waned, the DowJones Industrial Average crossed 30,000 stages for the first time on Tuesday morning.  (Photo by Spencer Platt / Getty Images)
NEW YORK, NEW YORK CITY – NOVEMBER 24: People walk past the New York Stock Exchange (NYSE) on November 24, 2020 in New York City. As investors’ fears of an electoral crisis waned, the DowJones Industrial Average crossed 30,000 stages for the first time on Tuesday morning. (Photo by Spencer Platt / Getty Images)

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