Stocks finished mixed Friday, as energy shares dragged down the S&P 500 index to a slight loss while strength in tech shares lifted the Nasdaq Composite to a record high. Investors were concerned by COVID-19 related developments in Europe, where Austria announced a full national lockdown due to a spike in cases, and Germany mandated new restrictions for unvaccinated people. The news cut down shares of air carriers and other travel related firms. Federal Reserve Vice Chair Richard Clarida said fourth-quarter growth likely will be very strong, and the Fed may need to discuss the pace of its tapering bond purchases. Also, the House passed the Biden Administration’s $2 billion economic plan, where it moves to the Senate for possible revisions. For the week, the Dow Jones average fell 1.3% while the S&P edged 0.3% higher and the Nasdaq rose 1.2%,
Top Sectors:
- S&P 500 Consumer discretionary sector up 3.81% (ETF: XLY)
- S&P 500 Information technology sector up 2.37% (ETF: XLK)
- S&P 500 Utilities Sector up 0.91% (ETF: XLU)
Interesting news:
- Lockdowns are back: Austria became the first country in Western Europe to reimpose a full lockdown, which starts Monday and will last for at least 10 days. Austria has one of the lowest vaccination rates in Western Europe (about 64%, still higher than the US), and its infection rates are among the highest on the continent. Germany isn’t ruling out another lockdown, either. “We are in a national emergency,” the country’s health minister said of a surge in cases. Shares of travel companies have all dipped this week due to...all of the above: United Airlines –8.15%, Delta airlines –6.92%, Royal Caribbean Cruises –6.85% , Carnival Corp –9.26%, MGM Resorts –3.5%, American Airlines –5.55% .
- Booster shots approved: Moderna and Pfizer gave investors a dose of good news when they said Friday the U.S. Food and Drug Administration had expanded its emergency use authorizations to allow booster shots for adults ages 18 and above. While Pfizer shares dropped on Friday, the booster news was a shot in the arm for Moderna. The stock was among the day's best performers, closing up 5% on Friday and up more than 14% during the week.
- Oil prices are dropping: News of Austria’s lockdown sent oil prices falling yesterday to a six-week low, as investors fret that demand for fuel could dry up with Covid spreading. Brent crude price went under $79, and the shares of energy companies were hit hard as well: Energy Select Sector SPDR Fund (XLE) was down 5% during the week. Oil prices going down may be welcome relief to people worldwide paying much more for the gas at the pump, than they used to few months ago, but it could take a while for lower oil prices to trickle down to your local gas stations.
Earnings calendar:
Monday, November 22: Zoom Video Communications (ZM), Agilent Technologies (A), Spire (SR), Urban Outfitters (URBN) and Niu Technologies (NIU).
Tuesday, November 23: Analog Devices (ADI), HP (HPQ), Best Buy (BBY), Gap (GPS), Dick's Sporting Goods (DKS), Dell Technologies (DELL), Jack in the Box (JACK), Dollar Tree (DLTR) and Vmware (VMW).
Wednesday, November 24: Deere (DE) and Futu Holdings (FUTU).
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