US Stock Market Weekly Update Nov. 9 - 13, 2020
After the stock market rally the previous week that was driven by the election outcome, this week the dominant theme was a risk-on mood due to positive vaccine news and developments related to the coronavirus pandemic. This confirms the Fed’s analysis that the path of economic recovery is directly related to the pandemic. What is notable news is that the S&P 500 closed at a new record high and all major US stock indices posted the second week of gains, except Nasdaq Composite. US stocks surged on Monday after Pfizer and BioNTech announced positive news about their vaccine effectiveness which was reported to be about 90%. Small-cap stocks outperformed this week, a trend that we have mentioned earlier.
Economic News
Initial Jobless Claims last week fell to 709K which was the fourth consecutive weekly decline, but what is even more positive news is the fact that this was the lowest reading since the pandemic began. The forecast was for a figure of 735K. Continuing Jobless Claims figure was also better than expected coming in at 6.786 M, less than the forecast of 6.9 M.
Inflation in the US economy is still too low as the Consumer Price Index ex Food & Energy came in at 1.6%, lower than the forecast of 1.8%. There is plenty of margins before the Fed is starting to worry again about any change in its monetary policy. Still not all economic data was positive for the US economy. The Michigan Consumer Sentiment Index figure released was 77, much lower than the forecast of 82. Lower personal consumer confidence in economic activity and mostly a lower willingness by consumers to spend money can delay the path and speed of economic recovery.
For the week of November 9– November 13, 2020, the major US stock market indexes closed as follows on Friday, November 13, 2020:
• Dow Jones Industrial Average: Close 29479.81, +4.08% for the week, +5.27% Year-to-date
• S&P 500 Index: Close 3585.15, +2.16% for the week, +10.97% Year-to-date
• Nasdaq Composite: Close 11829.29, -0.55% for the week, +31.84%, Year-to-date
• Russell 2000: Close 1744.04, +6.07% for the week, +4.53% Year-to-date
Weekly Stocks Gainers
These are the top 3 gainers, stocks with 5 days of consecutive price advances:
1. Kazia Therapeutics Ltd (NASDAQ: KZIA), Close 10.05, 5-day change +66.12%
2. Innodata Inc (NASDAQ: INOD),Close 4.24, 5-day change +49.30%
3. Summit Therapeu ADR (NASDAQ: SMMT), Close 4.85, 5-day change +49.23%
Weekly Stocks Losers
These are the top 3 losers, stocks with 5 days of consecutive price declines:
1. Vital Farms Inc (NASDAQ: VITL), Close 29.87, 5-day change -18.32%
2. Duck Creek Technologies Inc (NASDAQ: DCT), Close 39.50, 5-day change -16.28%
3. Ritchie Bros. Auctioneers Inc (NYSE: RBA), Close 64.02, 5-day change -14.87%
Economic events for the week November 16- November 120, 2020:
Important economic data for the week will the US Retail Sales, the Industrial Production, the Building Permits, and Housing Starts, the weekly Jobless Claims.
Sources: here, here, and here.
Disclosure: I have no position in any stock mentioned