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Market Snapshot

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

Dow 34639.79 +617.75 (1.82%)
Nasdaq 15381.34 +127.27 (0.83%)
SP 500 4577.10 +64.06 (1.42%)
10-yr Note -3/32 1.435
NYSE Adv 2434 Dec 836 Vol 1.1 bln
Nasdaq Adv 2800 Dec 1585 Vol 5.3 bln

Industry Watch
Strong: Energy, Financials, Industrials, Real Estate, Materials
Weak: Health Care

Moving the Market

-- Stocks try to rebound again with value stocks outperforming growth stocks

-- Apple (AAPL) tells suppliers it's seeing less demand for the iPhone 13, according to Bloomberg

-- S&P 500 reclaims 50-day moving average (4543)

-- Omicron concerns tempered

Stocks close higher in cyclically-led rebound
02-Dec-21 16:20 ET
Dow +617.75 at 34639.79, Nasdaq +127.27 at 15381.34, S&P +64.06 at 4577.10

[BRIEFING.COM] The S&P 500 rose 1.4% on Thursday, bouncing back from two days of sharp losses. The Dow Jones Industrial Average (+1.8%) and Russell 2000 (+2.7%) outperformed the benchmark index, while the Nasdaq Composite underperformed on a relative basis with a 0.8% gain.

Supportive factors included 1) a bargain-hunting mindset amid an increasing number of stocks trading near 52-week lows, 2) a view that the Omicron variant might not be as bad as feared after the second reported case in the U.S. produced mild symptoms in a vaccinated person like the first case, and 3) a recognition that the S&P 500 reclaimed its 50-day moving average (4543).

All 11 S&P 500 sectors closed higher, featuring leadership positions from the cyclical industrials (+2.9%), energy (+2.9%), financials (+2.8%), and materials (+2.0%) sectors. The information technology (+0.8%), consumer staples (+0.8%), and health care (+0.4%) sectors trailed with more modest gains.

The relative underperformance of the Nasdaq was due to softness in Apple (AAPL 163.76, -1.01, -0.6%), Microsoft (MSFT 329.49, -0.59, -0.2%), Amazon.com (AMZN 3437.36, -6.36, -0.2%), Tesla (TSLA 1084.60, -10.40, -1.0%), and Facebook (FB 310.39, -0.21, -0.1%).

Apple was pressured by a report from Bloomberg indicating that the company told suppliers that demand for the iPhone 13 has weakened. AAPL shares declined 0.6%, but they were down as much as 4.2% shortly after the open.

Boeing (BA 202.38, +14.19, +7.5%) stood out with a 7.5% gain on news that China may soon allow the 737 MAX to return to flight. Snowflake (SNOW 360.38, +49.28, +15.9%) and Kroger (KR 44.65, +4.44, +11.0%) rallied noticeably following their earnings reports.

Elsewhere, the Treasury yield curve experienced some flattening activity amid a rise in shorter-dated rates. The 2-yr yield increased five basis points to 0.61%, and the 10-yr yield increased one basis point to 1.45%. The U.S. Dollar Index increased 0.1% to 96.14. WTI crude futures settled higher by 1.6%, or $1.03, to $66.64/bbl.

Strikingly, WTI crude futures were down more than 4.0% immediately after it was reported that OPEC+ agreed to stick to its planned production schedule for January. There was some speculation that the ministers would adjust production because of the Omicron variant and the U.S.-led effort for nations to tap into their oil reserves.

Reviewing Thursday's economic data:

For the week ending November 27, initial jobless claims increased by 28,000 to 222,000 (Briefing.com consensus 255,000). Continuing claims for the week ending November 20 decreased by 107,000 to 1.956 million.
The key takeaway from the report is that initial jobless claims are firming up at lower levels seen before the start of the pandemic.

Looking ahead to Friday, investors will receive the Employment Situation Report for November, the ISM Non-Manufacturing Index for November, Factory Orders for October, and the final IHS Markit Services PMI for November.

S&P 500 +21.9% YTD
Nasdaq Composite +19.3% YTD
Dow Jones Industrial Average +13.2% YTD
Russell 2000 +11.7% YTD

FTC sues to block NVIDIA's acquisition of Arm Holdings
02-Dec-21 15:30 ET
Dow +664.06 at 34686.10, Nasdaq +128.51 at 15382.58, S&P +69.36 at 4582.40

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.5% and is on track to close above its 50-day moving average (4543).

The FTC recently announced that it's suing to block NVIDIA's (NVDA 320.29, +5.93, +1.9%) $40 billion acquisition of Arm Holdings for anti-competitive reasons. NVIDA shares have pared gains but are still up 2% despite the news.

WTI crude futures settled higher by 1.6%, or $1.03, to $66.64/bbl.