Dow Futures Take a Breather Amid Lackluster Jobless Data

Jobless claims came in higher-than-expected at 778,000 for the the week

Digital Content Manager
Nov 25, 2020 at 9:24 AM
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Futures on the the Dow Jones Industrial Average (DJI) are taking a breather this morning, trading just below fair value after surpassing the historic 30,000 mark for the first time during yesterday's session, with the major index now on track for its best month since 1987. Meanwhile, futures on the S&P 500 Index (SPX) are marginally lower after nabbing an all-time closing high, while Nasdaq Composite (IXIC) futures are looking at a slight gain. This week's upbeat vaccine news from AstraZeneca (AZN) and the start of a White House transition to President-elect Joe Biden are also on Wall Street's radar this morning. Elsewhere, traders are digesting higher-than-expected jobless claims data, which came in at 778,000 for the the week. 

Continue reading for more on today's market, including:

  • One biopharmaceutical stock that could soon conquer fresh record highs.
  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down how to use Black Friday to read the market. 
  • Plus, restaurant stock drops on downgrade; Nordstrom's earnings beat Wall Street's estimates; and U.S. government to distribute 6.4 million doses of Pfizer's vaccine. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts traded on Tuesday, and 969,887 put contracts. The single-session equity put/call ratio dropped to 0.38 and the 21-day moving average fell to 0.47. 
  2.  Darden Restaurants, Inc. (NYSE:DRI) is down 1.3% in pre-market trading, after the Olive Garden parent received a downgrade from BTIG to "neutral" from "buy." The analyst in question cited an interruption in the recovery of casual dining, due to the growing number of coronavirus infections. In the last six months, however, DRI has gained 44.6%.
  3. Nordstrom, Inc. (NYSE:JWN) is up 5.9% before the bell, after the luxury retail giant reported surprise third-quarter earnings of $0.34, easily beating Wall Street's expected losses. The company attributed these results to a 37% jump in online sales. However, revenue failed to meet expectations, due to lower demand for formal wear. Quarter-to-date, JWN is up 106%.
  4. The shares of Pfizer Inc. (NYSE:PFE) are down 0.3% in electronic trading, despite news that the U.S. government will send 6.4 million doses of its coronavirus vaccine across the country within 24 hours of receiving approval from the Food and Drug Administration (FDA). This month, PFE still sports a 8.8% lead.
  5.  It's a jam-packed day, with durable goods and core capital goods orders data on tap, while new home sales will be reported later on. Personal income, consumer spending, core inflation, and the consumer sentiment index data are also all due out.

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European Markets Drop on Dire Bank Profitability Outlook

Stocks in Asia were mixed today, cooling off from the recent rally driven by vaccine announcements and the Trump administration’s decision to begin the transition process for the Biden administration. Japan’s Nikkei led the region, tacking on 0.5%, while Hong Kong’s Hang Seng managed a 0.3% win despite the shares of smartphone maker Xiaomi falling substantially. Rounding out the region, South Korea’s Kospi lost 0.6%, while China’s Shanghai Composite shed  1.2%.

European stocks are mostly lower today, as investors in the region also take a break from the rally. Also weighing on indexes is a dire outlook from the European Central Bank (ECB) which warned  banks may not reach profitability until 2022. France’s CAC 40 has lost the least so far, last seen 0.1% lower, while the German DAX has so far shed 0.2%. London’s FTSE was last seen down 0.7%.

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