Futures dip as S&P 500 heads towards best November ever

S&P 500 heads towards its best November EVER and the Dow is on track for its best month in more than 33 YEARS as COVID-19 vaccine fuels hope of a swift economic rebound

  • Wall Street’s main indexes were set to finish the month up more than 10%
  • Investors are pinning their hopes on the development of a COVID-19 vaccine
  • Prospects of a smooth handover of power to Joe Biden after weeks of legal challenges mounted by Donald Trump have also aided the stock-market rally 
  • At 08:20 a.m. ET, Dow E-minis were down 0.49%, S&P 500 E-minis were down 0.24%. Nasdaq 100 E-minis were up 0.16% 

The S&P 500 opened lower on Monday as investors paused ahead of crucial economic indicators later this week to take stock of what was set to be the benchmark index’s best November ever. 

Wall Street’s main indexes were set to finish the month up more than 10% as investors bet that progress in the development of a COVID-19 vaccine would fuel a swift economic rebound next year.

The Dow is on track for its best month in more than 33 years, The Wall Street Journal reports, after last week topping 30,000 for the first time.

It fell 55.86 points, or 0.19%, at the open to 29,854.51. The S&P 500 opened lower by 4.17 points, or 0.11%, at 3,634.18, while the Nasdaq Composite gained 18.40 points, or 0.15%, to 12,224.25 at the opening bell. 

The S&P 500 is heading towards its best November ever; its is seen over the last month

The Dow is on track for its best month in more than 33 years after last week topping 30,000 for the first time; it is seen over the last month 

Wall Street’s main indexes were set to finish the month up more than 10% as investors bet that progress in the development of a COVID-19 vaccine would fuel a swift economic rebound next year; the Nasdaq is seen over the last month 

Prospects of a smooth handover of power to President-elect Joe Biden after weeks of legal challenges mounted by incumbent President Donald Trump have also aided the stock-market rally.

Biden and Vice President-elect Kamala Harris were set to receive their first classified presidential daily briefing on Monday, the first step toward the transfer of responsibility for the most sensitive intelligence to a new administration.

Ahead of opening bell shares of oil majors including Chevron Corp, Occidental Petroleum and ConocoPhillips were down between 1% and 2.4%, tracking a fall in crude prices on uncertainty about whether OPEC+ would agree to extend large output cuts at talks this week.

Drug maker Moderna jumped over 10% ahead of the bell in New York. The company said it will apply for emergency FDA approval of its COVID-19 vaccine on Monday after promising data revealed it is 94.1 percent effective.

Moderna is the second US company to submit for emergency approval; Pfizer submitted last week. Its vaccine is 90 percent effective. 

‘A little bit of cautiousness and a little bit of trepidation…. the focus is going to continue to be on vaccine and its distribution, economic news and to see if there is a continuation of interest in early cyclicals,’ said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.  

Macy’s Inc, Walmart Inc and Best Buy Co Inc slipped between 0.2% and 1.9% as masked shoppers turned up in smaller numbers at major U.S. retailers on Black Friday as early online deals and concerns about a spike in COVID-19 cases dulled enthusiasm for trips to the mall.

After an explosion in COVID-19 infections and business restrictions this month that undermined the U.S. labor market recovery, focus will be on the monthly employment report and the Fed’s Beige Book as well as an address by Fed Chair Jerome Powell before the Senate Banking Committee.

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