Packed Thanksgiving Week Ends With Broader Market Selloff

The S&P 500 and Nasdaq notched records to start the week

Deputy Editor
Nov 26, 2021 at 11:40 AM
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Despite being shortened due to the Thanksgiving holiday, this week was still stuffed with economic data and big-name earnings reports. Before the market selloff on Friday, the S&P 500 Index (SPX) had a fairly muted week, despite hitting a record intraday high on Monday, after President Joe Biden's decision to nominate Jerome Powell as Fed Chair for a second term. The Nasdaq Composite (IXIC) swung to a record intraday high to start the week as well, before eventually dropping triple digits as rising bond yields weighed on the benchmark through Tuesday. The Dow Jones Industrial Average (DJI) started the week off strong, with a triple-digit pop on Tuesday following upbeat IHS Markit manufacturing purchasing managers' index (PMI) data. However, Friday afternoon the benchmark is down over 1,000 points, with all three benchmarks now headed toward steep weekly losses, after news of a new Covid-19 variant out of South Africa.

Further, Initial jobless claims came in at 199,000 for last week, its lowest level since 1969, as the labor shortage continues. Elsewhere, October data showed new home sales rose 0.4%, consumer spending jumped a higher-than-expected 1.3%, and U.S. personal incomes rose 0.5%. 

Analysts Stayed Busy

The brokerage bunch wasn't deterred by the Holiday week, with several firms making adjustments throughout. Notably, Micron (MU) stock extended its recent rally after Mizuho reversed its previous bear note. What's more, eectric vehicle (EV) concern Blink Charging (BLNK) was downgraded on its high valuation, and blue-chip oil name Chevron (CVX) was upgraded as a sector favorite. 

Earnings Reports

Investors had several earnings reports to sift through this week. Zoom Video (ZM) announced an upbeat earnings report, but fell lower on its sales warning as well as a barrage of price-target cuts. Short squeeze candidate Dell Technologies (DELL) jumped after its third-quarter report, drawing a slew of bull notes, while its fellow laptop producer HP (HPQ) hit record highs after its post-earnings surge the same day. Elsewhere, China-based Pinduoduo (PDD) plummeted after its dismal third-quarter results.  

Last Month of the Year Ahead

As November comes to a close and December begins, the earnings docket is still packed, with quarterly reports from names such as Salesforce.com (CRM), DocuSign (DOCU), Dollar General (DG), and CrowdStrike (CRWD). Plus, there is plenty of economic data on tap, specifically employment data, as well as the Fed's Beige Book. In the meantime, look at what typically happens with the S&P 500 (SPX) after Black Friday, with Schaeffer's Senior Quantitative Analyst Rocky White. 

 

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