Wall Street continued its seesaw action following a slightly disappointing jobs report and a new string of closures coming to major cities by Friday night — and more in Thursday’s stock market update.
New York City, home to the largest public school system in the country, suspended in-person school learning as the rate of infections hit 3% over a seven-day moving average.
Meanwhile, the U.S. Centers for Disease Prevention and Control (CDC) released new guidance that suggests Americans not travel for the upcoming Thanksgiving holiday. Despite the somber news, the major indexes closed slightly higher and remain mixed for the week.
The Nasdaq jumped 0.9% after testing a high of 11,912
The Russell 2000 rose 0.8% while settling on the session high of 1,784.
The S&P 500 rose 0.4% following the late-session run to 3,585.
The Dow nudged up 0.2% with the afternoon peak hitting 29,524.
Energy and Technology showed the most sector strength, rallying 1.6% and 0.8%. Utilities and Healthcare were the only sector laggards after falling 1% and 0.1%, respectively.
Shares of L Brands (NYSE: LB) zoomed nearly 18% after announcing third-quarter earnings. The company reported a profit of $1.13 a share on revenue just above $3 billion versus expectations for a profit of 9 cents a share on revenue of $2.67 billion.
Four brokerage firms raised their price targets on the stock with the most bullish being a hike from $45 to $60.
A quick peak at overbought levels for the Nasdaq 100 and the S&P 500 confirmed this week’s choppy action.
The percentage of S&P 500 stocks trading above the 200-day moving average settled at 86.53%, up 0.40%. The peak this week reached 90%, an overbought level last seen seven years ago. Current and upper support at 85%-82.5% was challenged but held on the morning weakness. A close below the latter would signal still overbought levels at 80%-77.5%. Resistance is at 87.5%-90%.
The percentage of Nasdaq 100 stocks trading above the 50-day moving average closed at 72.81%, up 3.88%. Near-term and lower resistance at 72.5%-75% was cleared and held. A move below the latter would indicate a retest towards 77.5%-80% and overbought levels from earlier this month. Support is at 70%-67.5%.
European markets settled lower.
The Belgium20 sank 1.2% and Germany’s DAX 30 dropped 0.9%. The Stoxx 600 and UK’s FTSE 100 lost 0.8% while France’s CAC 40 fell 0.7%.
Asian markets closed mixed.
Hong Kong’s Hang Seng gave back 0.7% and Japan’s Nikkei was down 0.4%. China’s Shanghai rose 0.5% and Australia’s S&P/ASX 200 added 0.3%. South Korea’s Kospi edged up 0.1%.
Initial Jobless Claims gained 31,000 to 742,000 following the -46,000 drop to 711,000 in the prior week. The four-week moving average slid to 742,000 from 755,750. Continuing claims tumbled -429,000 to 6,372,000 and followed a -421,000 plunge to 6,801,000 in the prior reading.
Philly Fed index dropped -6 points to 26.3 in November versus 32.3 in October. The employment gauge more than doubled to 27.2 from 12.7, while the workweek edged up to 25.7 from 25.3.
Existing Home Sales rose another 4.3% to a 6,850,000 rate in October, above forecasts for 6,470,000, after surging 9.9% to 6,560,000 in September. Single-family sales climbed 4.1% to 6,120,000 following September’s 9.9% jump to 5,880,000. Condo/co-op sales increased 5.8% to 730,000 following the 9.5% gain to 690,000. The months’ supply fell to 2.5, another new record low from from the prior 2.7 print, with the single-family supply at 2.4 from 2.5, also a record low. The median sales price rose to $313,000, also a new peak, from $311,400.
Cleveland Federal Reserve President Loretta Mester said analysts are in a good place with monetary policy that is accommodative. However, she added that tool may not be the right one to meet current needs.
She wants more of a fiscal response to address the needs of firms and businesses that have been hard hit by the pandemic as rising infections are troubling and the pace is concerning. Mester is also worried about the lack of fiscal aid, especially as she sees a slowing in the economic data.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its winning streak to three sessions with the intraday high reaching $160.72. Prior and lower resistance at $160.50-$161 was cleared but held. A close above the latter and the 50-day moving average would signal continued upside towards $161.50-$162 and the 200-day moving average.
Rising support is at $159.50-$159 followed by $158-$157.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) closed lower for the first time in three sessions with the intraday low tapping 22.56. Current and upper support at 23-22.50 was breached but held. A close below the latter would suggest another retest towards 22-21.50.
Resistance is at 24-24.50 followed by 25.50-26.
The SPDRDow Jones Industrial Average ETF (NYSE: DIA) snapped a two-session slide despite trading to a first-half low of $292.90. Current and upper support at $293-$292.50 was breached but held. A move below the latter would indicate further weakness towards $291-$290.50.
Resistance is at $295.50-$296 followed by $297-$297.50 with the afternoon peak reaching $295.81.
RSI has leveled out with key support at 60 holding. A close below the latter would signal additional weakness towards 55-50. Resistance is at 65-70 with the latter representing the monthly top.
The Technology Select Sector SPDRFund (NYSE: XLK) rebounded following the late-day push to $121.58. Lower resistance at $121.50-$122 was cleared but held. A close above the latter would signal additional strength towards $123-$123.50.
Current support is at $120-$119.50 followed by $117.50-$117 and the 50-day moving average
RSI is back in a slight uptrend with key resistance at 60 holding. A close above this level would signal upside towards 65-70 and levels from mid-August. Support is at 55-50.
Check back after the closing bell each day for the most important news and numbers in the WealthPress stock market update.