Shares fell on Monday as investors surrendered some of last week’s gains, which sent the S&P 500 and Nasdaq to new highs and the Dow above 30,000 for the first time.
However, the top three indexes were still close to ending November with significant monthly gains. Based on Friday’s closing prices, the Dow Jones was expected to post a monthly gain of 12.9% for its best month since the start of 1987. The S&P 500 followed an 11.3% rise and the Nasdaq fell. is headed for an 11.9% gain in November, which would each be the best gains since April of this year.
Investors took advantage of a wave of bullish news last week over impending COVID-19 inoculations, with AstraZeneca (AZN) becoming the latest drugmaker to announce strong efficacy data on its vaccine candidate last week. Moderna (MRNA) on Monday said it would file an emergency use authorization application with the United States Food and Drug Administration for its vaccine candidate, joining Pfizer (PFE), which has previously applied for an EUA .
The stocks that are expected to benefit most from the lasting economic reopening that a vaccine could confer have come down after soaring last week, as traders extended November’s rotation to cyclical stocks and moved away from some of the high-tech names that had led earlier during the pandemic. Shares of Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), American Airlines (AAL) and United Air Lines (UAL) jumped double-digit percentages last week alone, far outpacing the advance of 2.3% of the market during this period. . Boeing (BA), American Express (AXP) and Chevron (CVX) led last week’s gains in the Dow.
The steady pace of vaccine updates has worsened with more developments around the cabinet selections of President-elect Joe Biden, with the top candidates seen as positive for the market. And since the election results were first announced by the media earlier this month, many investors have applauded the likelihood of a divided government, although Senate oversight was not finally known until January.
“A trio of recent positive catalysts should continue to support the markets. Actions welcomed a decisive victory from Biden and a divided Congress, and the flow of information on vaccine effectiveness has been much better than expected, ”Barclays action strategists led by Maneesh Deshpande said in a note on the week. last. “Importantly, corporate earnings continue to surprise on the upside and we expect this trend to continue. A reversal of large outflows since the start of the year should provide additional support. “
Still, the COVID-19 situation in the United States has become more dire and the winter months are expected to be particularly bleak as Americans travel for vacations and outdoor activities become harder to find. COVID-19 cases in the United States have so far exceeded 4 million in November alone, more than double the one-month high of 1.9 million a month earlier. In total, more than 13.2 million Americans have been infected and 266,000 have died, according to data from Johns Hopkins.
11:02 am ET: Dow adds to losses, loses more than 300 points
Equity losses accelerated Monday morning, and the Dow Jones fell more than 300 points, or 1%. Declines in components shares Salesforce, Dow Inc. and Boeing led the decline.
The S&P 500 also fell more than 0.8%, as the energy and consumer discretionary sectors lagged. The Nasdaq, which had been slightly higher at the start of the session, fell 0.9%
10:08 a.m. ET: Pending home sales drop unexpectedly in October
Pending home sales in the United States fell in October for a second consecutive month, the National Association of Realtors (NAR) reported on Monday, down 1.1% from September. Consensus economists had expected pending home sales to rise 1%, according to Bloomberg data. A 5.9% drop in pending home sales in the Northeast led the decline, while those in the West mostly held up strongly and changed little month over month.
Nonetheless, national contract signatures remained more than 20% above October 2019 levels, as low interest rates and demand for single-family homes in the suburbs helped fuel a surge in housing demand.
“Pending home transactions were down slightly from the previous month, but still easily surpassed last year’s numbers for October,” Lawrence Yun, chief economist of NAR, said in a statement. “The housing market is still warm, but we may be starting to see rising house prices hurt affordability.”
9:31 am ET: Dow, S&P 500 open lower
Here are the main moves in the markets, at 9:31 a.m. ET:
S&P 500 (^ GSPC): -7.25 points (-0.2%) to 3631.1
Dow (^ DJI): -157.42 points (-0.53%) to 29,752.95
Nasdaq (^ IXIC): +34.38 points (+ 0.28%) at 12,240.89
Gross (CL = F): – $ 0.06 (-0.13%) to $ 45.47 per barrel
Gold (GC = F): – $ 11.90 (-0.67%) to $ 1776.20 per ounce
10-year cash flow (^ TNX): +0.3 bp for a yield of 0.845%
8:34 a.m. ET: Delivery company DoorDash considers IPO that could bring in up to $ 2.8 billion
DoorDash, the country’s largest delivery company, is expected to raise up to $ 2.8 billion when it goes public, becoming one of the latest companies to join the torrent of public launches this year.
According to a securities filing on Monday, DoorDash will sell 33 million shares for between $ 75 and $ 85 each, to give the company a market cap of more than $ 30 billion on the high end.
In the nine months ending September 30 of this year, DoorDash’s revenue more than tripled from a year ago to $ 1.9 billion, from $ 587 million in the same period l ‘last year. Its net losses narrowed to $ 149 million during that period, from $ 533 million during the same months in 2019.
8:23 a.m. ET: General Motors announces smaller deal with electric car maker Nikola
General Motors (GM) said in a statement Monday that it revised the terms of its deal with new state-owned electric car maker Nikola (NKLA), which was first announced in early September.
Under the new agreement, GM will supply its Hydrotec fuel cell system for Nikola’s commercial semi-trucks. However, the company will no longer take a stake in Nikola, nor will it contribute to the manufacture of the Nikola’s Badger electric van, as previously planned.
Nikola shares fell more than 7% in early trading after the announcement, while GM shares fell less than 1%.
7:05 am ET Monday: Stock futures indicate lower open
Here are the main moves in the markets at 7:05 a.m.ET 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%
Future Nasdaq (NQ = F): 12,256.5, down 1 point or 0.01%
Gross (CL = F): – $ 0.64 (-1.41%) to $ 44.89 per barrel
Gold (GC = F):-$ 13.80 (-0.77%) to $ 1,774.30 per ounce
10-year cash flow (^ TNX): +1.3 bps for a yield of 0.855%
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