Market Update: Wed, Nov 25, 2020 | LPL Financial Research

Posted by

Daily Insights

US stocks open mixed amid Dow 30,000 level reached. US equities opened the day mixed after the Dow finished above the 30,000 milestone and the S&P 500 and Russell 2000 indexes closed at record highs in Tuesday’s trading. Even with the recent vaccine progress, the effects of higher COVID-19 case numbers across the nation and ongoing political uncertainty still influence market participants.

  • Financials were boosted by a rally in bank shares.
  • Asian stocks finished their day mixed.  China ended their session 1% lower.
  • European equities are mostly lower through midday trading.

Jobless claims higher than expected. Weekly jobless claims jumped by more than 30,000 for the second straight week (source: US Department of Labor). The rise in jobless claims comes amid fresh restrictions to contain the latest wave of COVID-19. This data point adds to mounting evidence that the economic recovery is pausing.

  • 778,000 Americans filed for unemployment insurance, above Bloomberg estimates for 730,000.
  • Continuing claims marginally missed estimates, coming in at 6.07 million versus estimates of 6.0 million and roughly 300K below the prior week.

Technical update. Large cap US equities broke out of a two-week range, with the S&P 500 Index and Dow Jones both posting record closing highs on Tuesday.

  • The Dow crossed 30,000 for the first time ever.
  • The Russell 2000 Index made a record high for the second day in a row.
  • The NASDAQ lagged, but still gained 1.3% and closed just shy of its September 2 record high.
  • Oil prices broke out of a five-month range, moving above $44 per barrel for the first time since early March and furthering the energy sector’s November gain to more than 38%.

COVID-19 news. New cases in the US rose 7.7% over the prior week to 166,672, a four-day high, while the seven-day average rose 9.9% week over week, well below the 40% readings earlier this month and 30% readings only a week ago. Hospitalizations jumped 30.6% over the prior week, while the change in the seven-day average jumped from 8.8% on Monday to 15.2% on Tuesday (source: COVID Tracking Project).

  • US federal health officials are considering shortening the recommended 14-day quarantine period.
  • Germany is expected to extend its partial lockdown until December 20.

 

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value

For Public Use – Tracking 1-05083369