Stock Market News for Nov 5, 2020
U.S. stock markets closed sharply higher on Wednesday amid the continuing wait for the outcome of the U.S. Presidential elections. Moreover, several positive economic data also helped in lifting investors’ sentiment. All three major stock indexes ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rallied 1.3%, or 367.63 points, closing at 27,847.66, continuing its 3-day winning streak. Notably, 14 components of the 30-stock index ended in green while 16 finished the day in red. The blue-chip index is 2.4% below to become green year to date.
UnitedHealth Group Inc. UNH was the biggest gainer of the Dow and it gained 10.3%. UnitedHealth carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The tech-heavy Nasdaq Composite closed the day at 11,590.78, up 3.9% or 430.21 points, marking third successive day of gains, backed by strong performance from large-cap technology stocks.
Meanwhile, the S&P 500 gained 2.2%, closing the day at 3,443.44, maintaining 3-day winning run. The Health Care Select Sector SPDR (XLV) and the Communication Services Select Sector SPDR (XLC) popped 4.4% and 4.3%, respectively. Notably, seven out of eleven sectors of the benchmark index closed in the positive zone and four in red.
The fear-gauge CBOE Volatility Index (VIX) was down 16.8% to 29.57. A total of 10.39 billion shares were traded on Wednesday, higher than the last 20-session average of 9.09 billion. Advancers outnumbered decliners on the NYSE by a 1.36-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored advancing issues.
Wait for The Presidential Election Outcome Continues
Wall Street closed Wednesday on a positive note as it continued to wait for the outcome of the presidential election. Investors are closely watching the results as they will be instrumental in determining the future course of policy measures and further fiscal stimulus in order to aid the economy.
The winner for the race of White House as well as the election outcome of the shape of the U.S. Congress, both the Senate and the House of Representatives, will determine several key economic issues and financial policy variables. This include the decision regarding a fresh fiscal stimulus, government's tariff policies, especially with China, deregulations and tax related issues and geo-political strategies.
Economic Data
The Energy Information Administration (EIA) reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ending Oct 30, decreased by 8 million barrels per day from the previous week. However, crude oil inventories are above the five-year average by about 7%.
The Institute of Supply Management (ISM) reported that the U.S. services purchasing managers' index (PMI) for October came in at 56.6, The consensus estimate was 57.6 for October while September’s PMI was 57.8. Notably, any reading above 50 indicates expansion in services activity. Moreover, October marked the fifth successive month of uptrend in the services sector.
Furthermore, 16 of the 18 services industries tracked by ISM expanded in October. The Supplier Deliveries Index came in at 56.2, compared to September’s reading of 54.9. Meanwhile, the New Orders Index came in at 58.8, compared to 61.5 in September.
The IHS Markit final U.S. services purchasing manager’s index (PMI) came in at 56.9 in October compared to the initial reading of 56, and reading of 54.6 in September.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis reported that trade balance for the month of September came in at -$63.9 billion which was down $3 billion from the revised August balance of -$67 billion.
Stocks That Have Made Headline
Apache’s Q3 Loss Narrower Than Expected, Sales Top
Apache Corporation APA reported third-quarter 2020 loss per share — excluding one-time items — of $0.16, narrower than the Zacks Consensus Estimate of a loss of $0.37 and also the year-ago quarter’s loss of $0.29. (Read More)
Marathon Oil’s Q3 Loss in Line, Revenues Top Estimates
Marathon Oil Corporation MRO reported third-quarter 2020 adjusted net loss per share of $0.28, matching the Zacks Consensus Estimate. (Read More)
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