S&P500 +2.27% (3,638.35); NASDAQ +2.96% (12,205.85); DJIA +2.21% (29,910.37)
This week’s reports:
* Q3 2020 GDP Growth Annualized (second est.) was confirmed at 33.1%, as was previously estimated.
* November’s Consumer Confidence Index dropped to 96.1 from 101.4 in October; it was expected to fall to 98. The confidence fell amid a widespread resurgence in new Covid-19 infections and business restrictions; the data was collected before the news on vaccines progress.
* November’s Michigan Consumer Sentiment Index declined to 76.9 from October’s 77.
* October’s Personal Income fell 0.7% from September’s +0.7%. Personal Spending rose 0.5% from September’s +1.2%.
* September’s FHFA Housing Price Index jumped 1.7% from August’s +1.5%.
* September’s S&P/Case-Shiller Home Price Indices rose 6.6% y/y versus August’s +5.3% y/y.
* October’s New Home Sales fell 0.3% from September’s +0.1%.
* November’s Markit Manufacturing PMI (prelim.) rose to 56.7, a 74-month high, from October’s 53.4; it was expected to decline to 53. Services PMI (prelim.) rose to 57.7, a 68-month high, from October’s 56.9; it was expected to decline to 55.3. Composite PMI (prelim.) rose to 57.9, also a 68-months high, from October’s 56.3, indicating that growth momentum picked up further.
* October’s Chicago Fed National Activity Index (CFNAI) rose to 0.83 from September’s 0.32.
* November’s Richmond Fed Manufacturing Index fell to 15 from October’s 29; it was expected to remain unchanged.
* October’s Wholesale Inventories (prelim.) rose 0.9% from September’s +0.7%.
* October’s Durable Goods Orders rose 1.3% from September’s +2.1%. Durable Goods Orders ex Transportation also rose 1.3% from September’s +1.5%.
* Initial Jobless Claims for the week ending November 21st rose by 30K to 778K, versus the expected decrease to 730K. Continuing Jobless Claims for the week ending November 14th fell by 299K to 6.071M versus the expectations of a decline to 6.02M. The advance seasonally adjusted insured unemployment rate was 4.1%, a decrease of 0.2% from the previous week’s rate.
- US stocks edged higher during Friday’s holiday-shortened session amid decreasing political uncertainty and positive vaccine news. Gains across shares of technology and health-care companies pushed the S&P 500 and Nasdaq Composite to new closing records. Earlier in the week, the DJIA also surged to a record, rising above 30,000 for the first time, a remarkable development even though the index declined shortly afterward. The VIX index briefly dipped below 20 on Friday for the first time since late February.
- The Dow is up 12.9% in November, its biggest monthly gain since January 1987. The S&P 500 and Nasdaq are up 11.3% and 11.9%, respectively, in November. Meanwhile, the small-cap Russell 2000 is on track for its best month ever, up about 20%. November’s sharp gains were led by beaten-down value stocks as the positive vaccine news sparked hope for a strong economic recovery.