Stocks down after strong December open. Equity markets opened lower today after Tuesday’s strong session where the S&P 500 Index and NASDAQ finished 1% higher. Market participants appear concerned about higher COVID-19 numbers amid vaccine progress. There’s still no clear path to a bipartisan deal on additional COVID-19 fiscal stimulus measures.
- Communication services and tech names led the market Tuesday.
- Energy, which was dominant in November, trailed with lower WTI crude prices Tuesday.
- Asian markets closed their trading day mixed.
- European markets are mostly lower during midday trading.
December’s A Strong Month for Stocks
Since 1950, the S&P 500 has been up 1.5% on average in December, the second best month of the year. Stocks have been up 2% on average when the year-to-date return was 10% or more heading into December. Election-year Decembers also have been strong—could December deliver more gains in 2020? Read today’s LPL Research blog.
Technical update. Stocks set more record highs Tuesday as the communications services sector led the S&P 500 to a 1.1% gain. Along with communications services, technology helped propel the NASDAQ 100 to its first record high since September 2. The S&P 500 now has strong technical support in the range from 3550–3600.
COVID-19 news. New cases in the United States rose 6% week over week on Tuesday, the first weekly increase in four days. The seven-day average is about 6% below the prior week, but holiday gatherings may increase these numbers (source: COVID Tracking Project).
- Hospitalizations rose 15% week-over-week and are up more than 70% over the past month based on seven-day averages.
- Pfizer and BioNTech received approval for their COVID-19 vaccine in the United Kingdom, where it is expected to be available beginning next week.
- The US Food and Drug Administration will discuss the Pfizer-BioNTech vaccine on December 10.
- Healthcare workers and residents of long-term care centers will be prioritized, according to the US Centers for Disease Control.
LPL Research in the Media
Chief Market Strategist Ryan Detrick appeared on Fox Business recently. Watch Ryan’s interview here.
Equity Strategist Jeff Buchbinder was quoted in Kiplinger discussing the stock market. Read Jeff’s quote here.
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 1-05085001