Stocks opened higher. S&P 500 Index opened about 0.4% higher as market participants continued to weigh the COVID-19 threat against vaccine prospects.
- Stocks responded to positive COVID-19 trial results from AstraZeneca in partnership with Oxford University.
- Asian markets closed broadly higher, with gains over 1% in China and South Korea. Japan was closed for a holiday.
- European markets were broadly higher in midday trading.
- Eurozone purchasing managers’ survey data revealed slowing services growth in November amid renewed restrictions.
Could lockdowns lead to a double-dip recession? As new COVID-19 cases and hospitalizations continue to increase, many are concerned another lockdown could be coming to the United States. With the economy in a vulnerable position, there is a growing risk this could lead to a double-dip recession. With stocks near all-time highs, however, the market doesn’t seem to be buying it. Read the LPL Research blog.
Technical update. US equities broke a two-week win streak Friday, but the S&P 500 finished less than 2% off its all-time closing high of 3626. The index appears to be in a consolidation pattern following the 10% rally that began November 2, and a move above 3626 would signal a breakout to the upside.
COVID-19 news. After a new record daily case count of 192,800 in the United States on Friday, case growth slowed over the weekend. Sunday’s 14% weekly increase in the seven-day average was the slowest in more than a month. Hospitalizations saw a similar slowing (source: COVID Tracking Project).
- AstraZeneca’s vaccine candidate requires standard refrigeration, facilitating mass distribution.
- The FDA cleared Regeneron’s antibody drug cocktail to treat mild to moderate COVID-19 cases.
- Germany may extend its shutdown restrictions through December 20.
Week ahead. This week’s holiday-shortened economic calendar includes:
- Monday: November’s Markit Purchasing Managers Index
- Tuesday: September’s S&P/Case-Shiller’s Home Price index and November’s Conference Board Consumer Confidence survey
- Wednesday: Revised Q3 gross domestic product (GDP), October durable goods orders, personal income and consumption expenditures, October wholesale inventories, November Michigan sentiment, and weekly initial unemployment.
LPL Research in the Media
LPL Financial Chief Market Strategist Ryan Detrick joined Yahoo! Finance recently to discuss current market trends. Watch Ryan’s interview here.
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