Friday, December 4, 2020

😕 The December Slowdown has Arrived

Good morning. November's explosive rally higher is clearly over. From some down days for stocks to..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. November's explosive rally higher is clearly over. From some down days for stocks to some "barely up" days like Wednesday and Thursday, the rest of the year is likely to follow this seasonal pattern of low volatility.

After everything else that's gone on this year, that's not so bad. And stocks are still near record highs, even as the economy is far from recovered from unprecedented levels of shutdowns. Traders can still find plenty of opportunities, even in a slower market. Expect some market moves around Covid stimulus headlines to be a big driver, and for investors to continue investing in areas that have done well over the past few months.


Now here's the rest of the news:

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MARKETS
DOW 29,969.52 +0.29%
S&P 3,666.71 -0.06%
NASDAQ 12,377.18 +0.23%
*As of market close
Stocks traded mixed on Thursday, as Pfizer reported supply chain issues for its Covid vaccine.
Oil prices rose 0.5 percent, closing at $45.50 per barrel.
Gold rallied 0.8 percent, closing at $1,845 per ounce.
Cryptocurrencies generally rose, with Bitcoin closing at $19,354.

Today's TOP TIPS
Short-Term Thinking Creates a Buying Opportunity in this Retail Giant
Many retail firms will report numbers monthly, not just quarterly. That allows traders to see what's happening much faster than a quarterly earnings report. Even better, for a company showing tremendous growth, it can give investors a reason to stay invested ahead of earnings.

But sometimes Wall Street gets overly excited—or depressed—about a company. When that happens, it can create a short-term disconnect on a company and create a trading opportunity.

» FULL STORY

Insider Trading Report: Beazer Homes (BZH)
Christian Winkle, a director at Beazer Homes (BZH), recently bought 3,775 more shares. That increased his stake by over 13 percent, and came to a price just over $55,000. This follows two buys that he made in the prior two months.

While this director has been buying, C-suite executives have been sellers of shares this year. And one director sold a massive stake back in March, when the share price was less than half of what shares go for today.

» FULL STORY

Unusual Options Activity: Under Armour (UAA)
Shares of athletic apparel firm Under Armour (UAA) have been part of the market's uptrend in the past few weeks. One trader sees shares continuing even higher. That's based on the January 8th 2021 $17 call option.

Over 14,110 contracts have traded, a 140-fold rise in volume from the prior open interest of 101. Expiring in just 35 days, the buyer paid $0.95 for the contracts, which will move in-the-money if shares move just 30 cents higher.

» FULL STORY

IN OTHER NEWS
Unemployment claims fall by 75,000 after two weeks of rising claims.
Stocks rally as a Covid stimulus compromise appears within reach.
A bill requiring foreign firms to open their books to U.S. regulators passes in the House.
Chevron slashes spending plans on a reduced outlook for oil demand in the coming years.
3M announces it will cut 2,900 jobs, or roughly 3 percent of its workforce.
Hulu launches Watch Party, its co-viewing feature.
Facebook braces for an antitrust lawsuit from at least 20 states as early as next week.
Digital health startup Everylwell raises $175 million to expand virtual care.
In earnings, Snowflake reports a 119% rise in revenue in its first post-IPO report.
CrowdStrike beats estimates and raises its outlook, leading to a rally in shares.

S&P 500 MOVERS
TOP
RL 8.705%
NCLH 8.633%
AAL 8.277%
CCL 8.129%
WBA 7.48%
BOTTOM
COG 6.628%
KR 4.367%
IP 3.249%
NDAQ 3.081%
CMI 3.011%

Quote of the Day
Compromise is within reach. We know where we agree. We can do this.
- Senate Majority Leader Mitch McConnell, on the prospects of a further Covid stimulus package within the coming days. Such stimulus would likely push markets higher, as it would provide millions of Americans with extra capital in time for the holidays.

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