Wall Street was mixed with the major indexes trading in tighter ranges as the rise in ongoing coronavirus cases weighed on sentiment — and more in Wednesday’s stock market update. Texas has become the first U.S. state with more than 1 million confirmed COVID-19 cases with over 19,000 deaths since the pandemic began in early March.
Meanwhile, New York Gov. Andrew Cuomo has imposed a new slate of restrictions that will take effect Friday. Any establishment licensed by the State Liquor Authority, including bars, restaurants and bowling alleys, must close indoor areas at 10 p.m. Gyms must also close at 10 pm.
The Nasdaq snapped a two-session slide after rallying 2% while testing an afternoon peak of 11,793.
The S&P 500 rose 0.8% following the midday run to 3,581.
The Russell 2000 was flat at 1,722.
The Dow slipped 0.1% with the intraday low tapping 29,281.
Technology was the strongest sector after jumping 2.4% while Consumer Staples, Consumer Discretionary and Communication Services added 0.9%.
Materials and Energy paced sector weakness with losses of 1.5% and 1%, respectively.
Shares of Datadog Inc. (Nasdaq: DDOG) fell 6% despite topping Wall Street’s earnings estimates. The company reported a third-quarter profit of five cents a share on revenue north of $154 million, versus estimates for a penny a share profit on revenue of $144 million.
The company’s CEO said the pandemic has driven organizations globally and across industries to prioritize their digital operations like never before, further strengthening the cloud’s position as the IT architecture of choice. He added Datadog continues to be a trusted partner in enabling digital transformation and cloud migration.
Walt Disney Co. (NYSE: DIS) will announce earnings after Thursday’s closing bell with Wall Street expecting the company to report a loss of 71 cents a share on revenue of $14.2 billion. Aside from its struggling parks reopening, the company recently announced that 11,350 union employees of Walt Disney Parks and Resorts U.S. in Florida will be laid off on Dec. 31. Additionally, layoffs at ESPN have been ongoing.
Last quarter, the company reported a profit of 8 cents a share while analysts had penciled in a loss of 64 cents a share. Over the previous three quarters, Disney has reported a profit of 60 cents, $1.53, and $1.07 a share.
European markets settled mostly higher with the Belgium20 lagging after slipping 0.3%.
UK’s FTSE 100 advanced 1.4% and the Stoxx 600 soared 1.1%. France’s CAC 40 was higher by 0.5% and Germany’s DAX 30 added 0.4%.
Asian markets closed mostly mixed with China markets underperforming as the government announced plans to regulate the internet industry and root out monopolistic practices.
Japan’s Nikkei rallied 1.8% and Australia’s S&P/ASX 200 jumped 1.7%. South Korea’s Kospi gained 1.4%. China’s Shanghai fell 0.5% and Hong Kong’s Hang Seng was down 0.3%.
MBA Mortgage Applications slipped -0.5% after climbing 3.8% in the prior week. All of the weakness was in the purchase index which dropped -2.6% after a -1.3% decline previously. The refi index edged up 0.6% following the prior week’s 6.4% surge. The 30-year fixed rate mortgage rage eased to 2.98% from 3.01%, another new all-time low versus the prior 3% reading. The 5-year ARM rose to 2.79% from 2.67%.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) snapped a three-session slide after trading to an afternoon high of $155.94. Fresh and lower resistance at $155.50-$156 was cleared and held. A close above the $157 level would be a more bullish signal of a near-term bottom.
Support remains at $155-$154.50.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) fell for the seventh time in eight sessions with the intraday low reaching 22.57. Current and upper support at 23-22.50 was breached but held. A close below the latter and Monday’s low at 22.41 would indicate further weakness towards 22-21.50 and levels from late August.
Lowered resistance is at 24.50-25 followed by 26-26.50.
The SPDR S&P 500 ETF (NYSEArca: SPY) rebounded after trading to a high of $357.56. Lower resistance at $357.50-$358 was cleared but held. A close above the latter would indicate additional strength towards $359.50-$360.
Current support is at $355-$354.50 followed by $353.50-$353.
RSI is in a slight uptrend with key resistance at 65 holding. A move above this level would signal additional momentum towards 70-75 and levels from late August. Support is at 60.
The Utilities Select Spider Fund (NYSE: XLU) extended its winning streak to three straight sessions after testing an intraday high of $67.10. Near-term and lower resistance at $67-$67.50 was tripped but held. A close below the latter would signal further strength towards $68.50-$69 and levels from early February.
Support is at $66-$65.50 followed by $65-$64.50.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.