Previous Day Trading
On December 3, the US stock exchanges closed without significant changes. The S&P 500 index dropped 0.06% to 3667 points. Dow Jones added 0.29%, NASDAQ rose 0.23%. There were no new traffic drivers, and macro statistics were mixed. The utilities sector became an outsider, shedding 1.1%. This is the only sector in the S&P 500 to show negative dynamics in the last month due to capital flows from defensive to cyclical sectors.
- The quarterly results of the cloud cybersecurity companies Zscaler (ZS: + 26.5%) and CrowdStrike (CRWD: + 13.6%) significantly exceeded expectations, as did their forecasts for the next quarter. The demand for cybersecurity is increasing.
- Boeing (BA: + 6%) awarded its first 737 MAX contract since restrictions were imposed 20 months ago for low-cost airline Ryanair.
- Data collection and management software developer Splunk (SPLK: -23.3%) released a weak quarterly report, citing a pandemic among negative factors.
Today, world stock exchanges are showing mostly positive dynamics. The prospect of new fiscal stimulus remains a supportive factor, especially for cyclical sectors. Donald Trump’s rhetoric suggests that he will support any agreement between Democrats and Republicans. Mitch McConnell expressed hope yesterday after meeting with Republican senators that a compromise on a new fiscal stimulus package would be reached.
Meanwhile, the epidemiological situation in the United States continues to deteriorate. Yesterday, 210 thousand infected with COVID-19 were recorded across the country, and this is a new record. The increase in the number of deaths in patients with coronavirus is also causing pessimism. The Governor of California has warned that new state quarantine measures may be introduced over the next few days. In addition, market participants are concerned that pharmaceutical giant Pfizer may not be able to cope with the production of the vaccine in the planned volume. Thus, the situation on the stock market is controversial. To determine the short-term direction of movement, today’s statistics on the labor market, which investors are looking forward to, can help. If the data reflects the weak impact of the COVID-19 factor, it will increase the risk appetite in the stock market.
Japan’s Nikkei dropped 0.22%, China’s CSI300 rose 0.18%, and Hong Kong’s Hang Seng climbed 0.40%. European indices are growing. EuroStoxx 50 adds 0.3%.
The 10-year Treasury rate is reduced to 0.92%. Brent oil futures rise to $ 49.7. Gold rises in price to $ 1840.
The US labor market report for November is due today. 469 thousand new jobs are expected to appear against 638 thousand in October, which will mean a slowdown in hiring rates to the lowest since May under the influence of a new wave of the epidemic. The unemployment rate, according to the consensus, will decline from 6.9% to 6.8%.
Cinedigm (CIDM) share price is up 60.71% in Friday’s premarket session after reporting that the Company’s eight additional linear streaming channels are now available on Rad’s fast-growing global streaming platform.
In today’s premarket, BioCryst Pharmaceuticals, Inc. (BCRX) reported 24.83% gain following announcement of FDA approval of ORLADEYO (berotralstat), first oral, once-daily therapy to prevent attacks in Hereditary Angioedema patients.
NIO Inc. (NIO) share price increased 0.31% in premarket today. An electric vehicles maker recently reported that it delivered 5,291 vehicles in November 2020, a new monthly record representing a solid 109.3% year-over-year growth.
Analysts Upgrades and Downgrades
Raymond James turned bullish on Weyerhaeuser Company (WY), upgrading the stock to “Outperform”.
Sage Therapeutics Inc. (SAGE) has won the favor of Mizuho’s equity research team. The firm upgraded the shares from Neutral to Buy and moved their price target to $81.0, suggesting 16.63% additional upside for the stock.
Waddell & Reed Financial Inc. (WDR) received an upgrade from analysts at Morgan Stanley. They changed their rating on WDR to Equal-Weight from Underweight in a recently issued research note.
Earlier Friday Chardan Capital reduced its rating on Mesoblast Limited (MESO) stock to Sell from Neutral and assigned the price target to $7.5. With shares trading at around $15.74, the Wall Street firm thinks Mesoblast Limited’s stock could decline more than 59.19%.
Latest Insider Activity
Micron Technology Inc. (MU) EVP, Technology & Products Deboer Scott J announced the sale of shares taking place on Dec 03 at $70.72 for some 10,000 shares. The total came to more than $0.71 million.
The Walt Disney Company (DIS) EVP, Control, Fin Plan & Tax WOODFORD BRENT sold on Dec 02 a total 34,620 shares at $153.85 on average. The insider’s sale generated proceeds of almost $0.77 million.
Isoray Inc. (ISR) CEO Woods Lori A declared the purchase of shares taking place on Nov 30 at $0.38 for some 68,000 shares. The transaction amount was around $25534.0.
CNX Resources Corporation (CNX) EVP & Chief Financial Officer Rush Donald W. bought on Dec 03 a total 263,608 shares at $8.99 on average. The purchase cost the insider an estimated $49,452.
Earnings To Watch Today
Top US earnings releases scheduled for today include HD Supply Holdings Inc. (NASDAQ:HDS). It will announce its Oct 2020 financial results. The company is expected to report earnings of $0.47 per share from revenues of $833.56M in the three-month period.
Analysts expect Big Lots Inc. (NYSE:BIG) to report a net income (adjusted) of $0.66 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Oct 2020 is predicted to come in at $1.35B.
Huazhu Group Limited (HTHT), due to announce earnings before the market closes today, is expected to report earnings of $0.15 per share from revenues of $470.05M recently concluded three-month period.