U.S. stocks opened lower on Monday, and market sentiment was still suppressed by epidemic factors. By the end of the day, the Dow was down 271.73 points, or 0.91%, at 29638.94, the Nasdaq was down 0.06% to 12198.74, and the S & P 500 index was down 0.46% to 3621.63. The Dow rose 11.8% in November, its best monthly performance since January 1987. The S & P 500 index and the NASDAQ rose 10.8% and 11.8% respectively, the largest monthly gain since April. The Russell 2000 index surged more than 18% last month, its best month ever.
In a series of positive vaccine news, the cyclical industry, which is most sensitive to the economy, led the market last month. Boeing and American Express led the Dow up 45.9% and 30% respectively in November, while Chevron, JPMorgan Chase, Disney and Honeywell all rose more than 20%.
In November, novel coronavirus pneumonia cases were diagnosed in the United States in more than 4 million cases, two times more than the number of cases in October. Dr. fudge, director of the National Institute of allergy and infectious diseases, said on Sunday that there could be a surge of coronavirus in the United States in the weeks after Thanksgiving, and he did not expect the current advice on social distance to relax before Christmas. U.S. health secretary Azar said two new coronal vaccines may be available to Americans before Christmas.
U.S. President elect Joe Biden on Monday nominated former Federal Reserve Chairman Alan Yellen as Treasury Secretary candidate. Neera tanden, director of the center for American progress, will be head of the White House Office of administration and budget; and Princeton University labor economist Cecilia rouse will lead the White House Economic Advisory Committee meeting.
Fed chairman Colin Powell said in his pre released congressional testimony that recent vaccine news was very positive for the medium term, but the rise in confirmed cases was worrying. Part of the reason for the overall rebound in household spending is federal aid. Economic activity continued to recover, but the pace of improvement slowed. The U.S. economic outlook is uncertain, depending on the development of the epidemic.
In the traditional shopping season, online sales in the United States are booming. Adobe analytics predicts that this years online Monday will become the largest digital sales day in the history of the United States, with sales estimated at $10.8 billion to $12.7 billion. Previous Black Fridays online sales rose 21.6% year-on-year to $9 billion.
John Stoltzfus, chief investment strategist at Oppenheimer asset management, believes that the duration and strength of the current rally in US stocks indicate that the market may be prone to some degree of profit taking at these levels, which is similar to the bull market which came out from the low point on March 23 this year, and the epidemic may be the trigger for market fluctuation.
In terms of stocks, the biomedical company Moderna surged by 20.2%. The company announced its application for the emergency use license of the new crown vaccine in the United States, and applied to the European Union for conditional approval of its new crown vaccine.
Video communications giant zoom announced its results after hours, with revenue of $777 million in the third quarter, expected to be $694 million, and EPS per share was 99 cents and expected to be 76 cents. As the market was worried that the growth rate of revenue would slow down in the future, the companys share price fell by nearly 5%.
Ihsmarkit rose 7.4% as S & P global plans to buy ihsmarkit in a $44 billion all stock deal, making it the largest corporate acquisition in 2020. If it can be reviewed by antitrust authorities, the transaction is expected to be completed in the second half of 2021.
Technology stocks were mixed, with apple up 2.1%, Netflix down 0.1%, Facebook 0.3%, Microsoft 0.5%, Amazon 0.9% and Google 1.8%.
Under collective pressure, Alibaba fell 4.8%, Jingdong fell 4.5%, pinduoduo fell 3.6%, new forces of car building performed poorly, Weilai automobile fell 6.4%, Xiaopeng automobile fell 8.6%, ideal car fell 8.8%.
The Federal Reserve announced the extension of four loan programs
On the 19th of last month, US Treasury Secretary mnuchin wrote to US Federal Reserve Chairman Powell that he would not approve the extension of five loan plans in the fiscal stimulus bill, which will mature on December 31. The Fed then responded that it did not approve of Mr. mnuchins decision, but had not formally voted to extend the remaining four loan programs.
The Fed said in a statement that these tools are supporting the operation of the market and increasing the flow of credit to the economy. The novel coronavirus pneumonia has also been approved by the Ministry of finance, which will facilitate the planning of potential participants and ensure that these tools will continue to be used in the first quarter of 2021 to help the economy recover from the new crown pneumonia epidemic.
The four projects to be extended include: 1. Ppplf, which will meet the funding needs of PPP projects; 2. Commercial paper financing facility, which will support short-term corporate ious; 3. Money market fund liquidity facility, which can avoid the potential of money market mutual funds 4. Primary dealer credit facility, which will allow banks to provide a wider range of collateral to the Fed.
International oil prices fell on Monday as investors focused on the progress of the OPEC meeting, which was postponed to Tuesday after the parties failed to reach an agreement on a postponement and cut in production. WTI crude oil contract fell 0.4% to US $45.34/barrel, up 26.7% in November, the second largest monthly increase in the year. Brent crude oil contract fell 1.3% to US $47.54/barrel. COMEX gold closed 0.4% lower at $1780.90 an ounce, its lowest close since July 1. International gold prices fell by 5.6% in November, the fourth consecutive month of decline. European stocks fell across the board, with the pan European Stoxx 600 index down 0.98% to 389.36, the FTSE 100 index down 1.59% to 6266.19, Germanys DAX30 index down 0.33% to 13291.16, and Frances CAC40 index fell 1.42% to 5518.55. The pan European Stoxx 600 index rose more than 14% in November, its best monthly performance ever. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368
International oil prices fell on Monday as investors focused on the progress of the OPEC meeting, which was postponed to Tuesday after the parties failed to reach an agreement on a postponement and cut in production. WTI crude oil contract fell 0.4% to US $45.34/barrel, up 26.7% in November, the second largest monthly increase in the year. Brent crude oil contract fell 1.3% to US $47.54/barrel.
European stocks fell across the board, with the pan European Stoxx 600 index down 0.98% to 389.36, the FTSE 100 index down 1.59% to 6266.19, Germanys DAX30 index down 0.33% to 13291.16, and Frances CAC40 index fell 1.42% to 5518.55. The pan European Stoxx 600 index rose more than 14% in November, its best monthly performance ever.