Stocks Log Historic Thanksgiving Week Amid Vaccine Optimism

The Dow toppled the 30,000 level for the first time ever

Assistant Editor
Nov 27, 2020 at 10:37 AM
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Despite the holiday-shortened week, there was no shortage of market-moving events that took place. Monday saw the major indexes log big wins thanks to upbeat vaccine news from AstraZeneca, though Big Tech kept gains from the Nasdaq Composite in check. That momentum carried into the next day, when the Dow surpassed the 30,000 level for the first time ever, while the S&P 500 also closed at a new record high. Wednesday, saw markets take a breather from the historic rally after some less-than-stellar unemployment data rolled in.

After markets closed on Thursday and investors everywhere gorged themselves on turkey, trading resumed on Friday with major indexes modestly above fair market value. All three indexes are on track for comfortable weekly wins and sizable November gains. 

Corporate Buyouts Dominate Headlines, Downgrades Pour In

At least two major deals grabbed investors attention during the week. First, blue-chip pharmaceutical maker Merck (MRK) announced its acquisition of OncoImmune in a $425 million all-cash deal. Then Frank's RedHot's parent company announced its buying Cholula for $800 million.

Elsewhere, Canada Goose (GOOS) was hit with a double downgrade, as analysts reacted to the warmer start to winter. And consumer products giant Kellogg (K) was slapped with a downgrade from Credit Suisse, who cited an expected "disappointing guidance" for 2021 as the reason.

  

Earnings Winners and Losers

There were several notable post-earnings reactions to unpack this week. Retailers Dick's Sporting Goods (DKS) and Nordstrom (JWN) both scored earnings beats, although options traders reacted differently. Red-hot alternative energy stock Plug Power (PLUG) has piqued call trader interest, while Dell Technologies (DELL) received a slew of bull notes after its top-line beat.

How to Use the Black Friday Indicator

A shorter week means a shorter roundup, but Schaeffer's Senior Quantitative Analyst Rocky White has compiled Black Friday data to monitor next week. There's plenty to look forward to as we approach peak holiday season, and there's no shortage of earnings to come, as well.

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