By Gorilla Trades. Originally published at ValueWalk.
Commenting on the free of COVID infections spreading during Thanksgiving and today’s trading, Gorilla Trades strategist Ken Berman said:
Q3 2020 hedge fund letters, conferences and more
COVID Infections Could Spike During Thanksgiving
The major indices are all trading lower at midday following a choppy but active morning session on Wall Street. The S&P 500 and the Dow both pulled back in early trading after hitting new all-time closing highs yesterday, but they remain just a tad below their record levels despite the mounting worries regarding the short-term economic outlook. The U.S. COVID picture remains grim ahead of Thanksgiving Day, and experts fear that the holiday could lead to another spike in the number of infections in the coming weeks.
Today’s economic calendar was full of key releases, and the higher-than-expected new jobless claims number has been weighing on cyclical issues this morning. The decline in the number of continuing claims also slowed down amid the rapid spread of the virus, while personal income missed as well. On a positive note, personal spending, new home sales, and durable goods orders all beat the consensus estimates in October, and the second reading of the third-quarter GDP print confirmed the record-breaking pace of the recovery.
Market Wrap
Dow: 29,818, – 197 or 0.7%
S&P 500: 3,625 – 11 or 0.3%
Nasdaq: 12,037, -1 or 0.01%
Russell 2000: 1,838, – 15 or 0.8%
Market breadth has been relatively weak this morning, with decliners outnumbering advancing issues by a 7-to-3 ratio on the NYSE at midday. Only 3 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 89 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure.. The trends of the past couple of days reversed this morning at the level of the key sectors, with cyclical issues and the hardest-hit industries losing ground and the traditionally defensive sectors and tech stocks showing relative strength, but as volatility remains muted, the vaccine rally is likely still intact. Stay tuned!
The post Thanksgiving Could Lead To Another COVID Infection Spike appeared first on ValueWalk.
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