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Record-setting advance falls short on Pfizer headline
03-Dec-20 16:15 ET
Dow +85.73 at 29969.46, Nasdaq +27.82 at 12377.10, S&P -2.29 at 3666.73

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 declined 0.1% on Thursday, as its record-setting hopes were interrupted by news that Pfizer (PFE 40.10, -0.70, -1.7%) is aiming to distribute only half of its COVID-19 vaccines it originally planned due to supply chain issues. Prior to the late-session news, the benchmark index was trading at all-time highs with a 0.4% gain.

The Russell 2000 (+0.6%), Dow Jones Industrial Average (+0.3%), and Nasdaq Composite (+0.2%) still closed higher, as investors had broadened their risk exposure outside the S&P 500 throughout the day.

Generally, the Pfizer headline was a good excuse to temper the pervasive bullish sentiment and upwards momentum in the market. Six of the 11 S&P 500 sectors slipped into negative territory on a closing basis, led lower by the utilities (-1.1%) and materials (-0.7%) sectors. The energy (+1.1%) and real estate (+0.7%) sectors outperformed.

For most of the day, investors were relatively pleased with the slate of macro news and the big gains in Boeing (BA 237.20, +13.35, +6.0%), Tesla (TSLA 593.38, +24.46, +4.3%), and many of the software companies following their earnings reports.

Boeing was boosted by news that Ryanair is ordering 75 737 MAX planes, and Tesla was upgraded to Buy from Hold at Goldman Sachs with a Street-high $780 price target. Software companies Snowflake (SNOW 339.89, +47.20, +16.1%), Zscaler (ZS 185.61, +38.82, +26.5%), and CrowdStrike (CRWD 161.19, +19.35, +13.6%) were among the earnings winners.

Positive macro news included Senate Majority Leader McConnell observing that a stimulus compromise is "within reach," weekly initial jobless claims decreasing more than expected to 712,000 (Briefing.com consensus 775,000), and the November ISM Non-Manufacturing Index (55.9%) denoting a sixth straight month of expansionary activity (over 50.0%).

We could nitpick that Senate Minority Leader Schumer (D-NY) didn't believe that Mr. McConnell was in a deal-making mood, jobless claims remained elevated, or that the ISM reading was less than expected, but a bull market tends to look at things positively. As such, despite the Pfizer-induced blip, today was a relatively constructive day.

The 2-yr yield decreased one basis point to 0.15%, and the 10-yr yield decreased three basis points to 0.92%. The U.S. Dollar Index fell 0.5% to 90.70 -- its lowest level since April 2018. WTI crude futures gained 0.8%, or $0.38, to $45.66/bbl after OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.

Reviewing Thursday's economic data:

Initial claims for the week ending November 28 decreased by 75,000 to 712,000 (Briefing.com consensus 775,000) -- the lowest since the pandemic started -- while continuing claims for the week ending November 21 decreased by 569,000 to 5.520 million.
The key takeaway is that there were still 712,000 initial jobless claims and 5.520 million continuing claims. In the same weeks a year ago, the totals stood at 206,000 and 1.697 million, respectively.
The ISM Non-Manufacturing Index slipped to 55.9% in November (Briefing.com consensus 56.3%) from 56.6% in October. The dividing line between expansion and contraction is 50.0%. The November reading reflects a slightly slower pace of expansion than the prior month but the sixth straight reading above 50.0%.
The key takeaway from the report is that it didn't reflect any significant weakness in the services sector in November despite the election uncertainty, the surge in coronavirus cases, and restrictions implemented to help contain the spread of the coronavirus.
The Markit Services PMI for November was revised higher to 58.4 from 57.7 in the preliminary reading.

Looking ahead, investors will receive the Employment Situation Report for November, the Trade Balance for October, and Factory Orders for October on Friday.

Nasdaq Composite +37.9% YTD
S&P 500 +13.5% YTD
Russell 2000 +10.8% YTD
Dow Jones Industrial Average +5.0% YTD

Market Snapshot
Dow 29969.46 +85.73 (0.29%)
Nasdaq 12377.10 +27.82 (0.23%)
SP 500 3666.73 -2.29 (-0.06%)
10-yr Note +2/32 0.910
NYSE Adv 2015 Dec 1061 Vol 980.0 mln
Nasdaq Adv 2150 Dec 1388 Vol 5.1 bln

Industry Watch
Strong: Energy, Real Estate
Weak: Utilities, Materials

Moving the Market

-- S&P 500 hits all-time high but falls short of record close

-- Pfizer (PFE) aiming to ship only half of its COVID-19 vaccines it originally planned due to supply chain issues -- The Wall Street Journal

-- Positive stimulus chatter

-- Big gains in many software companies following earnings reports

WTI crude futures settle higher
03-Dec-20 15:25 ET
Dow +219.05 at 30102.78, Nasdaq +71.73 at 12421.01, S&P +12.76 at 3681.78

[BRIEFING.COM] The buyers have returned to send the S&P 500 back to session highs with a 0.4% gain. Any positive finish would be good for a record close.

One last look at the S&P 500 sectors shows energy (+2.2%), real estate (+1.1%), and industrials (+1.0%) in the lead, while the utilities (-0.8%), materials (-0.2%), and communication services (-0.1%) sectors underperform in negative territory.

WTI crude futures settled today's session higher by 0.8%, or $0.38, to $45.66/bbl. On a related note, OPEC+ agreed to a smaller-than-expected 500K bpd production increase, starting in January.