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Nasdaq closes at record high in lackluster session
07-Dec-20 16:15 ET
Dow -148.47 at 30069.73, Nasdaq +55.71 at 12519.86, S&P -7.16 at 3691.97

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

[BRIEFING.COM] The S&P 500 declined 0.2% on Monday to ease back from record territory, while the Nasdaq Composite (+0.5%) closed at a fresh record high amid relative strength in growth stocks. The Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.1%) finished in negative territory after setting intraday record highs in the morning.

Generally, the large-cap value/cyclical stocks struggled today after outperforming growth stocks and the S&P 500 since the end of October, as investors paid heed to the recurring headlines of rising coronavirus cases/hospitalizations in the U.S. In addition, stimulus/government funding talks dragged on without a resolution.

The energy sector was hit the hardest with a 2.5% decline, although it remained up 30% this quarter and no other sector declined more than 1.0% today. The information technology sector (+0.3%) provided influential support, while the communication services (+0.6%) and utilities (+0.6%) sectors outperformed.

Not all growth stocks had great performances, but investors appeared to hide out in mega-caps Apple (AAPL 123.75, +1.50, +1.2%), Tesla (TSLA 641.76, +42.72, +7.1%), and Facebook (FB 285.58, +5.88, +2.1%). Apple's gain was partially at the expense of Intel (INTC 50.20, -1.79, -3.4%), which fell 3% after Bloomberg reported on Apple's next-gen Mac chips that could outclass Intel's top-end PC chips.

Palantir Technologies (PLTR 28.94, +5.09, +21.3%), like Tesla, continued to ride a bullish momentum after securing a three-year contract with the FDA. PLTR shares surged 21%.

Separately, Boeing (BA 238.17, +5.46, +2.4%) and Pfizer (PFE 41.25, +0.91, +2.3%) were notable value-oriented stocks that bucked the negative trend in the space. Boeing was upgraded to Buy from Neutral at UBS. Pfizer could have its COVID-19 vaccine approved by the FDA on Thursday.

Longer-dated Treasuries finished on a higher note to bounce back from recent losses and undo some of the recent curve-steepening action. The 2-yr yield was flat at 0.14%, and the 10-yr yield decreased four basis points to 0.93%. The U.S. Dollar Index increased 0.2% to 90.85. WTI crude futures decreased 1.0%, or $0.48, to $45.77/bbl.

Reviewing Monday's economic data:

Consumer credit increased by $7.2 billion in October (Briefing.com consensus $9.0 billion) after contracting by a downwardly revised $15.1 bln (from $16.2 billion) in September.
The key takeaway from the report is that revolving credit decreased for the seventh time over the last eight months dating back to February, which preceded the initial pandemic lockdown period taking hold in the U.S.

Looking ahead, investors will receive revised figures for Q3 Productivity and Unit Labor Costs and the NFIB Small Business Optimism Index for November on Tuesday.

Nasdaq Composite +39.5% YTD
S&P 500 +14.3% YTD
Russell 2000 +13.4% YTD
Dow Jones Industrial Average +5.4% YTD

Market Snapshot
Dow 30069.73 -148.47 (-0.49%)
Nasdaq 12519.86 +55.71 (0.45%)
SP 500 3691.97 -7.16 (-0.19%)
10-yr Note +4/32 0.931
NYSE Adv 1333 Dec 1771 Vol 926.5 mln
Nasdaq Adv 1720 Dec 1883 Vol 4.7 bln

Industry Watch
Strong: Information Technology, Communication Services, Utilities
Weak: Energy, Financials

Moving the Market

-- Nasdaq Composite hits new record high in mixed session

-- Growth stocks and safe-haven assets outperform

-- Selling pressure in energy and financial stocks

Consumer credit increases less than expected in October
07-Dec-20 15:25 ET
Dow -179.32 at 30038.88, Nasdaq +42.79 at 12506.94, S&P -11.58 at 3687.55

[BRIEFING.COM] The S&P 500 is trading lower by 0.3%, while the Nasdaq (+0.3%) is on pace to close at a record high.

Released earlier, consumer credit increased by $7.2 billion in October (Briefing.com consensus $9.0 billion) after contracting by a downwardly revised $15.1 bln (from $16.2 billion) in September.

WTI crude futures settled lower by 1.0%, or $0.48, to $45.77/bbl.