“This week’s stocks will trade on foreclosure issues and rising cases, but could see a boost in early December as optimism around a short-term stimulus package rises,” Shannon Saccocia said , Chief Investment Officer at Boston Private. “Overall, the push and pull between tech stocks and cyclicals will likely continue over the next two weeks, and we could see tough days with the release of economic data reflecting the deterioration in consumer spending that we currently know. ”
All three big averages ended Friday’s session lower, while the Dow and S&P 500 also posted a loss for the week, down 0.73% and 0.77%, respectively, for their first negative week. in three. The Nasdaq Composite managed to post a gain of 0.22% for the week, marking its second consecutive week of gains.
The drop came as cases of Covid-19 continue to rise, with the United States reporting a record high of more than 195,500 new cases on Friday. Public health officials have warned that Thanksgiving celebrations Thursday could make the outbreak even worse.
Friday’s jump brings the seven-day average of new cases to more than 167,600, an increase of nearly 20% from a week ago, according to a CNBC analysis of data compiled by Johns Hopkins University. The seven-day average of new cases is up at least 5% week over week in 43 states and the District of Columbia, according to data from Hopkins.
The spike led to coronavirus-related restrictions in some places. California Governor Gavin Newsom on Thursday instituted a “limited stay-at-home order” for the majority of state residents, requiring non-essential work and gatherings to cease between 10 p.m. and 5 a.m. morning. The move followed New York City Mayor Bill de Blasio’s decision to shut down the country’s largest school system amid an increase in cases
The measures “will likely result in negative growth” in the first quarter, economists at JPMorgan said on Friday. The company downgraded its GDP outlook for the first quarter to a 1% contraction, the first on Wall Street to forecast negative GDP for the first quarter of 2021.
A disagreement between the Treasury Department and the Federal Reserve over whether to continue funding some of the emergency programs instituted amid the Covid-19 epidemic also weighed on markets last week.
The sentiment has, however, been brought under control by the positive developments regarding the treatment and prevention of Covid-19. On Saturday, the Food and Drug Administration on Saturday granted emergency use authorization for Regeneron’s Covid-19 antibody treatment, the experimental therapy given to President Donald Trump. Meanwhile, on Friday, Pfizer and BioNTech applied for emergency use clearance from the FDA for their coronavirus vaccine, which has a 95% effectiveness rate.
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