Traders work on the trading floor of the New York Stock Exchange.
US stock futures barely changed on Wednesday evening after a market slump.
The futures linked to the Dow Jones Industrial Average and S&P 500 traded near the flat line while those for the Nasdaq 100 fell 0.2%.
The move in futures follows a session on Wednesday that ended sour. After jumping above the flat line for most of the day, the Dow Jones Industrial Average turned south in the final hour of trading, posting a loss of 345 points, or 1.2%. The S&P 500 was also down 1.2% while the Nasdaq Composite was down 0.8%.
The share slide accompanied mixed news about the coronavirus crisis. On Wednesday morning, Pfizer announced that a final analysis showed its vaccine candidate was 95% effective against Covid-19. However, New York City announced in the afternoon that schools were closing due to a rising positivity rate.
“This is the perfect day describing what we call the ‘Covid Air Pocket’. We have a linearity problem: you can’t get there from here without seeing a lot of bad news and some slowdown in the real economy,” Alicia said Levine, chief strategist at BNY Investment Management, on Thursday. “
Despite the struggle on Wednesday, Wall Street still saw a strong November. The S&P 500 is up 9.1% since the start of the month, while the small cap Russell 2000 hit a record intraday high on Wednesday.
Small cap strength was part of outperformance for cyclical stocks in the past few weeks after growth tech stocks fueled much of the market rally from their March lows.
“You see that the market really wants to go in one direction, and then I think the vaccine news has certainly been a catalyst to speed it up a bit. So I wouldn’t be surprised if the trade continued for some time.” Jeff Mills, chief investment officer at Bryn Mawr Trust, said about the rotation in cyclical names.
“That being said, I think market leadership could be volatile over the next few months as you battle the surge in Covid cases and incrementally better news regarding the vaccine,” continued Mills.
In terms of earnings, L Brands continued a series of strong reports for retail names with beats up and down on the wednesday after the bell. Department History Macy’s will announce its third quarter results on Thursday morning.
Thursday morning will also take another look at how the labor market rebound is shaping up with the rising number of Covid-19 cases. Economists polled by Dow Jones estimate the number of initial jobless claims will be 710,000, which is roughly unchanged from the previous week.
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