Dow futures climb greater than 100 factors after Wall Road closes a traditionally robust month
Traders work on the floor of the New York Stock Exchange on November 4th. 2020.
US stock futures rose Monday evening after major averages posted strong monthly gains in November.
Dow Jones Industrial Average futures traded 140 points, or 0.5%. The futures on the S&P 500 and Nasdaq 100 gained 0.6% and 0.8%, respectively.
The Dow rose 11.8% in November, the best monthly performance since January 1987. The S&P 500 and Nasdaq Composite rose 10.8% and 11.8%, respectively, as they were the strongest monthly advances since April recorded.
The November rally came amid a string of positive news about coronavirus vaccines, which raised hopes of a strong economic recovery and sparked a surge in shabby value names. The iShares Russell 1000 Value ETF (IWD) gained 13.4% over the month, outperforming its growth counterpart, the iShares Russell 1000 Growth ETF (IMF), by 3 percentage points.
“The vaccine news has further bolstered sentiment as multiple therapeutic / preventive measures represent another set of positive data points at the end of the pandemic tunnel,” wrote Tobias Levkovich, chief strategist for US stocks at Citi. However, he added that investors may become too complacent about the risks that the market is still exposed to.
At this point, the market either expects “an even stronger earnings outlook for 2021, possibly linked to a rapid, vaccine-driven recovery and continued containment of corporate costs, or the S&P 500 could stand before itself in the short term, especially if none.” new short is being considered. ” – term fiscal incentives and the impact of second wave outbreaks, “Levkovich said.
Data compiled by Johns Hopkins University shows that more than 13 million Covid-19 cases and over 266,000 deaths have been confirmed in the United States. In New York, Governor Andrew Cuomo said the state is implementing emergency procedures for hospitals as cases continue to increase.
Meanwhile, Jerome Powell, chairman of the US Federal Reserve, described the US economic outlook as “extremely uncertain”.
“The rise in new COVID-19 cases domestically and internationally is worrying and could prove challenging for the next few months,” Powell said in prepared remarks. “A full economic recovery is unlikely until people are confident that it is safe to get back to a wide range of activities.”
Zoom Video stocks were down more than 4% in after-hours trading, despite the video conferencing giant’s third quarter earnings. Tesla’s stock fell 3.4% after S&P Dow Jones Indices announced the electric car maker would be added to the S&P 500 in a single move on December 21.
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