Wall Street Pacing Toward Daily, Weekly Losses After Volatile Run

Bond-buying tapering also impact the benchmarks

Deputy Editor
Dec 3, 2021 at 1:26 PM
facebook X logo linkedin

As investors monitored the developing Covid-19 omicron variant situation on Monday, the Dow Jones Industrial Average (DJI) and the Nasdaq Composite (IXIC) logged triple-digit wins, with the latter benefitting immensely from a recovery in the tech sector. However, on Tuesday, U.S. Federal Reserve Chairman Jerome Powell hinted that the central bank might speed up its bond-buying taper, which put the Dow and S&P 500 Index (SPX) on track for weekly losses, and reignited Wall Street's "fear gauge," the CBOE Market Volatility Index (VIX). Though the Nasdaq logged a loss for that session, it gained for the month, while the VIX scored its best monthly performance since February 2020. On the flip side, the Dow and SPX marked steep monthly drops for November.

Optimistic jobs data had the benchmarks on track to rebound by Wednesday afternoon; however, their midday gains were given up as the Centers for Disease Control and Prevention (CDC) confirmed omicron's presence in the U.S. The Dow managed to regain most of its lost ground on Thursday, rising over 500 points that afternoon, and going on to gain more than 700 points at its session highs. By Friday afternoon, that rally was stymied by more omicron cases around the globe, and all three indexes are on track to log daily and weekly losses.

Analysts Log a Busy Week

Such a volatile week saw plenty of analyst action. Goldman Sachs downgraded Dollar Tree (DLTR), saying the equity was trading at its full valuation. The analyst also upgraded this homebuilding giant to "buy," on optimism of the rollout of larger communities. News that Jack Dorsey was stepping down as Twitter's (TWTR) CEO led one firm to upgrade Square (SQ). The omicron variant also sent some brokerages back toward former pandemic darlings, including DoorDash (DASH), which nabbed an upgrade on a possible rebound in orders. Lastly, Nasdaq newbie Allbirds (BIRD) saw no fewer than eight analysts initiate coverage ahead of its earnings report.

The Best and Worst of Wall Street

With a new month upon us, we gathered some historical data to determine the 25 best and worst stocks to own in December. While the energy sector has had a breakout year, banking stocks absolutely dominated the list of best performing S&P 500 stocks. One such name to target is JPMorgan Chase (JPM), which boasts the best returns of any Dow member this month. Meanwhile, tech stocks are always a hot commodity, which is why Western Digital (WDC) landed near the top of the list. On the other end, Salesforce.com (CRM), fresh off of a lower-than-expected current-quarter guidance release, found itself as one of the worst stocks to own during the holiday season.

December Kicks Into Full Gear

The first full week of December is right around the corner, and though the slate of economic data is relatively bare, there remains plenty of earnings reports due. Such names slated to report include AutoZone (AZO), Chewy (CHWY), Dave & Buster's (PLAY), and United Natural Foods (UNFI). Also, be sure to brush up on this fundamental stock signal that Schaeffer's Senior Quantitative Analyst Rocky White urges traders not to overlook.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI