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Stock Market News for Dec 6, 2019

Wall Street closed higher on Thursday as investors’ remained mostly optimistic on a possible interim trade deal between the United States and China. However, the Dec 15, dateline of imposing a new set of U.S. tariffs on Chinese goods still holds well. All three major stock indexes ended in green.

The Dow Jones Industrial Average (DJI) gained 0.1% to close at 27,677.79. The S&P 500 increased 0.2% to close at 3,117.43. Meanwhile, the Nasdaq Composite Index closed at 8,570.70, rising 0.1%. The fear-gauge CBOE Volatility Index (VIX) tanked 1.9% to close at 14.52. A total of 6.42 billion shares were traded Thursday, higher than the last 20-session average of 6.71 billion. Advancers outnumbered decliners on the NYSE 1.15-to-1 ratio. On Nasdaq, a 1.01-to-1 ratio favored declining issues.   

How Did The Benchmarks Perform?

The Dow closed in positive territory with 17 components of the 30-stock blue-chip index closing in the green while 13 ended in red. Within the Dow, NIKE Inc. NKE with a Zacks Rank of #3 (Hold) gained 2.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-laden Nasdaq Composite also ended in the positive territory due to strong performance of tech stocks, especially semiconductor stocks. The S&P 500 also finished in the green. The Materials Select Sector SPDR (XLB) gained 0.5% while the Energy Select Sector SPDR (XLE) lost 0.5%.  Notably, eight out of 11 sectors of the benchmark index closed in the green while three in the red.

Conflicting News on U.S.-China Trade Deal

On Dec 5, The Wall Street Journal reported that the United States and China are yet to reach an agreement about the amount of agricultural products that China will procure for the United States. President Donald Trump Wants China to import around $40-50 billion of U.S. agricultural products which was substantially higher than the China’s import of $8.6 U.S. farm products in 2018.

On Dec 4,  Bloomberg reported that United Sates and China are earnestly negotiating to reach at least a partial trade deal that will gives space two both countries o grow more. Citing sources familiar to recent developments, the report said that an interim trade deal is likely to be signed before the U.S. government imposed fresh tariffs on China effective Dec 15.

Notably, on Dec 3, President Trump said at NATO summit in London that his administration may consider postponing the phase-one trade deal with China until the completion of 2020 U.S. Presidential election. Notably, the election is scheduled on November 2020.

Economic Data

The Department of Labor reported that initial jobless claims fell 10,000 to 203,000 for the week ended Nov 30, marking its lowest level in seven months. The figure currently stands around its 50-year low level. The consensus estimate was 215,000. The number of people already collecting unemployment benefits, popularly known as continuing claims, increased 51,000 to 1.69 million.

The Department of Commerce reported that the U.S. factory orders rose 0.3% in October, reflecting first gain in three months. Consensus estimate was 0.1%. Notably, September’s data was revised downward from a decline of 0.6% to a decline of 0.8%. Durable goods orders grew 0.5% in October while non-durable goods orders remained flat with the previous month.

The U.S. trade deficit declined 7.6% in October to $47.2 billion from $51.1 billion in September. October’s trade deficit was the lowest in 16 months. Imports fell 1.7% to $254.3 billion while exports declined 0.2% to $207.1 billion. Imports of Chinese goods reduced $1.8 billion to $35.3 billion.

Stocks That Made Headline

Scott Kirby to Take Over as United Airlines' CEO in 2020

In a major leadership overhaul, United Airlines Holdings Inc. UAL announced that Scott Kirby, its current president, will be replacing Oscar Munoz as the new CEO of the company. (Read More)

Kinder Morgan Unveils 2020 Guidance: A Detailed Analysis

Kinder Morgan Inc. KMI recently provided a glimpse of its financial expectations for 2020. (Read More)

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