Benchmarks closed mixed on Tuesday, with investors remaining concerned about increasing coronavirus cases in America and Europe despite an ongoing vaccine rollout and additional stimulus package.
The Dow Jones Industrial Average (DJI) fell 200.94 points, or 0.7%, to close at 30,015.51 and the S&P 500 fell 7.66 points, or 0.2%, to close at 3,687 , 26. The Nasdaq Composite Index closed at 12,807.92, adding 65.4 points, or 0.4%. The CBOE volatility index (VIX) measure of fear fell 3.7% to close at 24.23. Rising issues outnumbered falling issues by a 1.10 to 1 ratio on the NYSE and a 1.45 to 1 ratio on the Nasdaq aided the advances.
How did the benchmarks perform?
The S&P 500 closed lower for a third day in a row, while the Dow Jones posted its biggest loss this month on Tuesday. However, the Nasdaq hit a new record after a 2.9% jump in Apple Inc.’s AAPL stock, after the company announced it was targeting 2024 as the year of passenger vehicle production. self-contained with a breakthrough in battery technology. Apple wears a Zacks # 3 (Hold) rank. You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.
Other Nasdaq winners include Workday, Inc. WDAY and Check Point Software Technologies Ltd. CHKP which closed 6.4% and 5.1% respectively higher on Tuesday. Of the top 11 sectors of the S&P 500, nine finished in the red with the energy sector down 1.8% for the session, followed by nearly 1% decline in communications services and financials . Among the biggest declines in the Dow were Walgreens Boots Alliance, Inc. WBA, Amgen Inc. AMGN and The Goldman Sachs Group, Inc. GS, which closed 3.4%, 2.8% and 2.7% respectively.
Overall, the S&P 500 posted 12 new 52 week highs and no new lows, while the Nasdaq Composite posted 240 new highs and 5 new lows.
Rise in new cases sparks investor concerns
Investor sentiment eased on Tuesday as concerns over a new variant of the coronavirus overshadowed the economic outlook for 2021. Continuing concerns, particularly in the UK, have led many countries to close borders with the Great -Brittany and to implement travel restrictions for visitors.
Travel-related stocks fell sharply on Tuesday. Part of American Airlines Group Inc. AAL, United Airlines Holdings, Inc. UAL, Carnival Corporation & Plc CCL and Norwegian Cruise Line Holdings Ltd. NCLH closed 3.9%, 2.5%, nearly 6% and 6.7% lower on Tuesday.
However, experts from the World Health Organization have said that the coronavirus vaccine candidates from Pfizer and Moderna would likely be effective against the new variant. They also added that the virus mutates at a slower rate than the seasonal flu.
Economic data
The National Association of Realtors reported on Tuesday that sales of existing homes fell 2.5% after five consecutive months of increases in November to 6.69 million. November sales were in line with the consensus estimate and below October’s revised downward 6.72 million figure.
Yesterday, the Conference Board reported that the consumer confidence index fell to 88.6 in December from 92.9 in November. This is the lowest reading since August and the second lowest reading since pandemic lockdowns earlier this year. The same report also said that an index that tracks how consumers feel about the economy right now fell to 90.3 in December from 105.9 last month. The increase in new coronavirus cases across the country and the renewal of restrictions on businesses have hurt consumer sentiment.
According to the Bureau of Economic Analysis report, real gross domestic product (GDP) grew at an annual rate of 33.4% in the third quarter of 2020, according to the third estimate released on Tuesday. The third estimated figure beat the consensus estimate of 33.2% increase and is higher than the second estimate increase of 33.1% and well above the second quarter, a decline in real GDP of 31.4% %.
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Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Carnival Corporation (CCL): Free Inventory Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Inventory Analysis Report
Workday, Inc. (WDAY): Free Inventory Analysis Report
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
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