Commenting on Pelosi announcing a 48-hour deadline to reach a stimulus deal and today’s trading Gorilla Trades strategist Ken Berman said:
Nancy Pelosi Announces A 48-Hour Deadline To Reach A Deal
The major indices are all trading slightly lower at midday despite a bullish start to the week as stocks gave back their early gains in choppy trading this morning. Investors continue to focus on the ongoing stimulus talks following House Speaker Nancy Pelosi's announcement regarding a 48-hour deadline to reach a deal before the elections. The talks are set to continue today, and the increasing number of new cases, both in the U.S. and globally will likely put more pressure on the two sides. The total number of cases hit 40 million globally while the daily total topped 400,000 for the first time ever on Saturday, with the European situation still being worrisome.
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In economic news, the NAHB Housing Market Index came in slightly above expectations, with a reading of 85, which is a new record in the history of the indicator. We also got several bullish Chinese releases overnight as retail sales and industrial production both rose by way more-than-expected and even though third-quarter GDP-growth missed expectations, the country seems to be all but over the COVID crisis. Meanwhile, the European Central Bank (ECB) once again reiterated that it’s ready to use all of its monetary tools to support the economy, which fueled the overnight risk rally as well.
Dow: 28,544, - 63 or 0.2%
S&P 500: 3,475 - 8 or 0.2%
Nasdaq: 11,663, - 9 or 0.1%
Russell 2000: 1,640, + 6 or 0.4%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 3-to-2 ratio on the NYSE at midday. 21 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 116 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. Most of the key sectors are virtually unchanged at midday, but communication services have been struggling to hold their ground while energy stocks got a boost from the Conoco (COP)-Concho (CXO) deal, but choppy trading could continue this afternoon. Stay tuned!