U.S. Stocks May Pull Back Off Record Highs

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Monday, 07 December 2020 11:27:12 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [The #1 Indicator Used by Ultra-Wealthy Investors]( Most of the world's richest investors totally ignore company fundamentals like P/E ratios. Those metrics have NOTHING to do with what makes stocks rise or fall. One indicator is far more accurate -- but less than 1 in 1,000 investors have ever heard of it. This is how wealth is really made in the stock market today. [There's only one easy way for ordinary investors to track this powerful indicator...]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower opening on Monday, with stocks likely to give back ground following the advance seen last week. Profit taking may contribute to initial weakness on Wall Street, as some traders look to cash in on the recent strength in the markets. Stocks showed a strong move to the upside over the course of the trading session on Friday. After ending the previous session mixed, the major averages all climbed to new record closing highs. The major averages ended the session at their best levels of the day. The Dow advanced 248.74 points or 0.8 percent to 30,218.26, the Nasdaq climbed 87.05 points or 0.7 percent to 12,464.23 and the S&P 500 jumped 32.40 points or 0.9 percent to 3,699.12. For the week, the Nasdaq spiked by 2.1 percent, the S&P 500 surged up by 1.7 percent and the Dow shot up by 1 percent. The strength on Wall Street comes despite the release of a report from the Labor Department showing much weaker than expected job growth in the month of November. The Labor Department said non-farm payroll employment rose by 245,000 jobs in November after jumping by a downwardly revised 610,000 jobs in October. Economists had expected employment to increase by 469,000 jobs compared to the addition of 638,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dipped to 6.7 percent in November from 6.9 percent in October. The unemployment rate was expected to edge down to 6.8 percent. However, the bigger than expected drop in the unemployment rate came as a 400,000-person decline in the labor force far outpaced the 74,000-person drop in the household measure of employment. "The latter is not too much of a concern given it follows a 2.3 million gain in October, but the drop in the labor force, which is now 4 million below its pre-pandemic level, is a worrying sign that the unemployed are giving up looking for work," said Michael Pearce, U.S. Senior Economist at Capital Economics. Continued optimism about coronavirus vaccines may be helping traders shrug off the disappointing jobs data, as the slowdown in job growth came amid the recent surge in new cases and subsequent restrictions. Traders may also be hoping that the weaker than expected job growth will spur lawmakers in Washington to finally pass a new fiscal stimulus bill. In a post on Twitter, Senate Minority Leader Chuck Schumer, D-N.Y., said the jobs data "shows the need for strong, urgent emergency relief is more important than ever." House Speaker Nancy Pelosi, D-Calif., also claimed that the weaker than expected job growth has created "momentum" toward a stimulus deal. Democratic and Republican leaders have resumed negotiations over a new stimulus bill, although it remains to be seen if they can reach an agreement after months of stagnation. Energy stocks continue turned some of the market's best performances on the day, benefiting from an increase by the price of crude oil. Reflecting the strength in the energy sector, the Philadelphia Oil Service Index skyrocketed by 7.4 percent, the NYSE Arca Oil Index spiked by 6 percent and the NYSE Arca Natural Gas Index soared by 5.4 percent. Significant strength was also visible among steel stocks, as reflected by the 4.6 percent jump by the NYSE Arca Steel Index. The index reached its best closing level in two years. Computer hardware stocks also saw considerable strength on the day, driving the NYSE Arca Computer Hardware Index up by 3.8 percent to a record closing high. Semiconductor, chemical and networking stocks also moved notably higher, while utilities stocks moved to the downside over the course of the session. --------------------------------------------------------------- [Man Who Predicted 2020 Gold Rally Issues New Call]( Gold expert explains why massive shift happening right now in the financial markets could create biggest opportunity in last 100 years. [Click here to know more.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Federal Reserve is scheduled to release its report on consumer credit in the month of October at 3 pm ET. Consumer credit is expected to increase by $17.0 billion. --------------------------------------------------------------- --------------------------------------------------------------- Europe European stocks fell on Monday as rising U.S.-China tensions and continued uncertainty over a Brexit trade deal sapped investors' appetite for risk. The U.S. is preparing to sanction at least a dozen more Chinese officials over their role in the recent disqualification of Hong Kong legislators, media reports suggest. Chinese Foreign Ministry spokeswoman Hua Chunying said that Beijing would take countermeasures should the U.S. continue down the "wrong path." Traders have started pricing in the prospect of a 'no deal' outcome to EU-UK trade negotiations after the Sun newspaper reported that Prime Minister Boris Johnson was ready to walk away from negotiations "within hours" amid stubborn differences over fishing rights in U.K. waters, fair competition and ways to solve future disputes. Johnson will call time on a Brexit-deal if Brussels refuses to budge from their "outrageous" demands, it was said. Upbeat trade data from China and encouraging German industrial output data helped to limit overall losses to some extent. Official data revealed that German industrial output grew more-than-expected in October, driven by the higher production of automobile and capital goods. Industrial production climbed 3.2 percent month-on-month, faster than the 2.3 percent rise in September. Economists had forecast the monthly growth to ease to 1.6 percent in October. On a yearly basis, industrial output fell 3 percent, but that was slower than the revised 6.7 percent decrease posted in September. U.K. house prices grew 1.2 percent in November from October, when prices were up 0.3 percent, data released by the Lloyds Bank subsidiary Halifax and IHS Markit showed. Economists had forecast prices to climb 0.5 percent. The Stoxx Europe 600 index dropped half a percent to 391.96 after rising for five consecutive weeks. The German DAX gave up half a percent and France's CAC 40 index shed 0.9 percent while the U.K.'s FTSE 100 was up 0.3 percent, boosted by a falling pound. Swiss drug maker Roche Group rose half a percent. The company announced positive results from a new analysis of pooled, three-year follow-up data of 401 people with haemophilia A from the pivotal HAVEN 1-4 studies. Aryzta gained 1.2 percent. The food company has received a conditional offer from Elliott to purchase the entire share capital of the company at 0.80 Swiss francs per share. Countrywide shares jumped as much as 20 percent as property firm Connells upped its offer for its rival by 30 percent to 325 pence per share. Miniature figurines maker Games Workshop rallied 3 percent after announcing it expects a jump in sales and pretax profit for the first half of fiscal 2021. Land Securities, a commercial property development and investment company, tumbled 3.2 percent after announcing an acquisition. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks turned in a mixed performance on Monday as concerns over surging coronavirus cases in the U.S. and rising tensions between Washington and Beijing offset positive Chinese data. Chinese and Hong Kong stocks fell after Reuters reported in an exclusive that the United States is preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong. China's Shanghai Composite index dropped 27.98 points, or 0.81 percent, to 3,416.60, while Hong Kong's Hang Seng index ended down 329.07 points, or 1.23 percent, at 26,506.85. China's exports surged in November driven by robust global demand, data from the General Administration of Customs showed today. Exports advanced 21.1 percent year-on-year in November, much bigger than the economists' forecast of 12 percent. At the same time, imports grew moderately by 4.5 percent annually, which was also faster than the 6.1 percent increase expected by economists. As a result, the trade surplus increased to $75.4 billion in November. Economists had forecast the surplus to fall to $53.5 billion from $58.44 billion in the previous month. Japanese shares pulled back from over 29-1/2-year high after five straight weeks of gains. The Nikkei average ended down 203.80 points, or 0.76 percent, at 26,547.44, after having hit its highest level since April 1991 at the open. The broader Topix index closed 0.86 percent lower at 1,760.75 as rising coronavirus cases in Japan overshadowed stimulus hopes. Prime Minister Yoshihide Suga said the government would decide on an economic stimulus package early this week to cushion the blow from the coronavirus pandemic. Olympus Corp, ANA Holdings and Kawasaki Kisen Kaisha fell more than 5 percent while Toppan Printing surged 6.8 percent and Denka climbed 5.5 percent. Advertising giant Dentsu Group ended 0.6 percent lower after saying it expects a smaller net loss for the year ending in December. Australian shares hit over nine-month high as rising iron ore prices helped push miners higher. The benchmark S&P/ASX 200 rose 40.90 points, or 0.62 percent, to 6,675, extending gains to a fifth session. The broader All Ordinaries index ended up 43.60 points, or 0.64 percent, at 6,908.90. BHP, Rio Tinto and Fortescue Metals Group rallied 2-4 percent after China iron ore prices hit a record high on Friday. Metcash soared 10.3 percent after the wholesaler reported a jump in its half-year earnings. Downer EDI climbed 3.6 percent after MACA confirmed it is an interested buyer of its Western mining services division. Santos advanced 3.3 percent after it signed a deal with a Mitsubishi subsidiary to supply LNG to its Barossa project off the coast of the Northern Territory. Seoul stocks rose for the fifth straight session, with chipmakers and healthcare stocks rallying after the government imposed stricter social-distancing measures. The benchmark Kospi edged up 13.99 points, or 0.51 percent, to 2,745.44. Samsung Electronics rose 2 percent, SK Hynix advanced 2.6 percent and Samsung Biologics soared 6.7 percent. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are falling $0.44 to $45.82 a barrel after climbing $0.62 to $46.26 a barrel last Friday. Meanwhile, after edging down $1.10 to $1,840 an ounce in the previous session, gold futures are rising $1.30 to $1,841.30 an ounce. On the currency front, the U.S. dollar is trading at 104.07 yen versus the 104.17 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.2137 compared to last Friday?s $1.2121. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49