Dow Hits 30,000 – Weekly Update
November 30, 2020 | By Steven DiGregorio
The Week on Wall Street
Stocks surged last week, ignited by another COVID-19 vaccine announcement, encouraging economic data, and the easing of political uncertainty.
The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor’s 500 added 2.27%. The Nasdaq Composite index, which has led all year, gained 2.96%. The MSCI EAFE index, which tracks developed overseas stock markets, climbed 1.54%. , ,
Dow Breaks 30,000
For the third consecutive week, markets opened on Monday to yet another announcement of a potential COVID-19 vaccine.
Stock prices found support on news of Janet Yellen, former Fed Chair, being nominated to Secretary of the Treasury. Investors responded well, encouraged by her previously vocal support for greater fiscal stimulus.
Positive momentum continued into the following day, driving the Dow Jones Industrial Average, S&P 500 index, and the Russell 2000 to record high levels, with the Dow closing above the 30,000 milestone.
Stocks eased off their highs in pre-holiday trading, though recovering some losses on Friday, as the S&P 500 and NASDAQ Composite closed with fresh record highs.
A Microcosm of the Economy
A solid economic outlook has been challenged by conflicting signals; one day a historic jump in economic growth, another day record highs of new COVID-19 infections.
Reports of healthy consumer spending, a solid rise in durable goods orders, and sales of new homes remaining near almost-14-year highs were offset by a jump in new jobless claims, a decline in household income, and new state and local COVID-related restrictions.
Last week investors chose to see the glass half full and look past the near-term challenges the economy faces.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Institute for Supply Management (ISM) Manufacturing Index.
Wednesday: Automated Data Processing (ADP) Employment Report.
Thursday: Jobless Claims, Institute for Supply Management (ISM) Services Index.
Friday: Employment Situation, Factory Orders.
Source: Econoday, November 27, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Zoom Video Communications (ZM)
Tuesday: Salesforce.com (CRM)
Wednesday: Splunk (SPLK), Snowflake, Inc. (SNOW), Crowdstrike Holdings (CRWD)
Thursday: Marvell Technologies (MRVL), Dollar General (DG), Docusign (DOCU)
Source: Zacks, November 27, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
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Tags: DowJones, durablegoods, economy, employment, Wall Street
