Wednesday, December 2, 2020

☝️ Stocks Soar Again on Stimulus Talk

Good morning. The stock market is easily hung up on several newsworthy, but not necessarily..
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. The stock market is easily hung up on several newsworthy, but not necessarily economically essential events. For instance, last year marked the end of the "trade war" talk, where markets would sell off like clockwork on a suggestion of higher tariffs between the U.S. and China.

Today, the markets have a knee-jerk reaction to the upside when they hear about more stimulus. Somehow, a global pandemic managed to get sandwiched in between these somewhat inconsequential pieces of news that can move markets yet rarely rise above the level of gossip. The latest stimulus talk, with a bipartisan compromise plan, was enough to send the Nasdaq to new all-time highs.


Now here's the rest of the news:

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MARKETS
DOW 29,823.92 +0.63%
S&P 3,662.45 +1.13%
NASDAQ 12,355.11 +1.28%
*As of market close
Stocks rose on the first day of December, continuing their overall gains from November.
Oil prices slid 1.7 percent, closing at $44.59 per barrel.
Gold rallied 2.1 percent, closing at $1,818 per ounce.
Cryptocurrencies had a down day, with Bitcoin dropping to $18,996.

Today's TOP TIPS
Strong Earnings Suggests Buying this Top Tech Play of 2020
Earnings season can be full of surprises. A company can miss on earnings, but still do better than expected. As a result, shares may end up rallying!

The opposite is quite common too. A company can report fantastic earnings and growth, yet not meet expectations. That tends to result in a selloff in shares. In that case, however, there's a buying opportunity as the company is clearly growing over time.

» FULL STORY

Insider Trading Report: FreightCar America (RAIL)
James Meyer, President and CEO of FreightCar America (RAIL), recently added 27,500 shares. The buy increased his holdings by nearly 15 percent, and came to a total cost of just over $58,000.

The buy follows on a 5,500 share buy from a director just two days before. Insiders have been buyers of shares over the past three years with no sales. The last insider buys before these two occurred in early 2019, at prices as much as 55 percent higher.

» FULL STORY

Unusual Options Activity: Vale (VALE)
International mining giant Vale (VALE) has fared well this year as a recovering global economy has increased demand for raw commodities. One trader sees this playing out even further. The March 2021 $18 calls just saw 17,700 contracts trade against a prior open interest of 788, for a 22-fold rise in volume.

The trade, expiring in 107 days, is that shares will move nearly $3 per share higher, or about 17 percent. The trader paid about $0.51.

» FULL STORY

IN OTHER NEWS
Lawmakers unveil a bipartisan $908 billion stimulus package.
Federal Reserve Chairman Jerome Powell warns that the economy remains "extraordinarily uncertain."
Shopping app downloads hit a record 2.8 million installs on Black Friday.
Nasdaq proposes more diverse corporate boards as a listing requirement.
Unilever tests a four-day workweek in New Zealand.
The pace of employees returning to an office has slowed, which could impact big cities.
Facebook rebrands its digital currency from Libra to Diem.
AWS adds the Mac mini to the cloud.
AWS also integrates vehicle sensor data in partnership with Blackberry.
In earnings, Zoom shares fall despite a strong beat, as growth slows.

S&P 500 MOVERS
TOP
TRIP 5.709%
LNC 5.676%
FLIR 5.57%
WDC 5.325%
DFS 5.225%
BOTTOM
ZM 15.062%
INFO 5.892%
SPGI 4.963%
APA 4.034%
OXY 3.998%

Quote of the Day
The rise in new COVID-19 cases, both here and abroad, is concerning and could prove challenging for the next few months. A full economic recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities.
- Federal Reserve Chairman Jerome Powell, warning that the economic recovery remains uncertain and that a full recovery will take longer than the mass delivery of a Covid vaccine.

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