Friends
It was another mixed day for stocks with the Dow, once again, leading the way higher, while Nasdaq continues to see selling pressure. Many of the “stay at home” stocks continue to be sold while the “everything will be back to normal” stocks got bought for a second day in a row. Is this a trend that will continue or, as we have seen all year, will market participants once again buy the big tech names on the dip?
As for today, by the close the Dow Jones Industrial Average was up 262 points to finish the day at 29,420. The S&P 500 was down 5 points to close at 3,545. The Nasdaq Composite Index was down 159 points to close at 11,553. Gold was up $20 to trade at $1,875 per ounce, while oil was up $1.08 to trade at $41.39 per barrel WTI.
If you were wondering why stocks ran out of gas yesterday after such great medical news, I think the answer is that stocks had rallied quite nicely last week. Many attributed last week’s rally to politics, but I was always in the camp that it was more about the coming vaccine news. We were pretty sure that we were going to see results from Pfizer and Moderna sometime in November, and I think the markets were convinced that good news was coming. Some were caught offsides, thus yesterday’s early morning surge, but now it appears that investors are plotting their strategies going forward. Value or Growth? Stay at home stocks or open up stocks? Thus the mixed performance late yesterday and today. Let’s see how things continue to unfold this week.
Have a nice evening everyone.
