Major Benchmarks Reverse Records Amid Stalled Stimulus Talks

COVID-19 cases increased by 1 million in just four days

Digital Content Manager
Dec 9, 2020 at 4:35 PM
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After breaking records earlier today, stocks took a breather this afternoon to ultimately finish the day in the red. Tech giants Apple (AAPL) and Microsoft (MSFT) struggled, and stimulus talks remain far from conclusion. The downfall was a comment from Senate Majority Leader Mitch McConnell, who said the two parties were “still looking for a way forward” after Treasury Secretary Steven Mnuchin proposed a $916 billion stimulus plan. McConnell added he wants to set aside liability protection, as well as state and local relief, in a proposal that was swiftly rejected by Senate Democrats.

In turn, the Dow fell roughly 100 points, while the S&P 500 and Nasdaq registered significant losses as well, with the semiconductor sector taking on water in particular. Elsewhere, investors remain wary of the rising number of COVID-19 infections. In just the last four days, cases have grown by 1 million to reach a record of 15 million. On average, 200,000 Americans are testing positive for the disease each day, according to Johns Hopkins University data. 

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

  • A security breach sent FireEye stock plummeting.
  • Chewy stock scored slew of post-earnings bull notes.
  • Plus, bet against this lackluster gold stock; GameStop stock drops on revenue miss; and did General Mills come out on top of the pandemic?

The Dow Jones Industrial Average (DJI - 30,068.81) fell 105.07 points, or 0.4% on the day. Goldman Sachs (GS) led the Dow components with a 1.7% rise, while Salesforce.com (CRM) paced the laggards, falling 3.2%.

Meanwhile, the S&P 500 Index (SPX - 3,672.82) dropped 29.4 points, or 0.8% for the day. The Nasdaq Composite (IXIC - 12,338.95) was down 243.8 points, or 1.9% for the day.

Lastly, the Cboe Volatility Index (VIX - 22.27) added 1.6 points, or 7.7% for the day.

 Closing Summary Dec 9

nyse nasdaq dec 9

  1. President Trump said he will join Texas Attorney General Ken Paxton in a legal effort at the Supreme Court that seeks to reverse Joe Biden’s election win. (CNBC)
  2. After two adverse cases, U.K. regulators are telling those with a history of severe allergic reactions to avoid the Pfizer (PFE) COVID-19 vaccine. (MarketWatch)
  3. Now is the right time to bet against this underperforming gold stock.
  4. GameStop stock took a tumble after a third-quarter revenue miss.
  5. Did General Mills stock avoid the negative impacts of the pandemic?

Earnings Dec 9

UvolDec9

Gold Snaps Winning Streak to Log Worst Day in a Week

Oil prices finished today's volatile session slightly higher, after the Energy Information Administration (EIA) increased crude supplies to more than 15 million barrels a week. January-dated crude shed eight cents, or 0.2%, to settle at $45.52 a barrel.

Meanwhile, gold prices snapped a three-day winning streak to end at their lowest level in a week. The negative price action was attributed to a strengthening U.S. dollar and lack of progress in stimulus talks, after Senate Majority Leader Mitch McConnell claimed that Democratic leaders were uncooperative. In turn, February-dated gold dropped $36.40, or 1.9%, to settle at $1,838.50 an ounce for the day.

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