Nov. 30, 2020 - Stocks fell Monday as investors gave back some of November’s gains in the month's final session.
Unlike the previous Mondays in November, today’s moves weren’t driven by upbeat vaccine trial data. Instead, initial headlines for the day and week are reminiscent of those in the beginning of the pandemic. Oil price fell as OPEC and some allied oil-producing nations began negotiations on extending oil production cuts past January. In the U.S. lawmakers have until Dec. 11 to agree on a package of government funding to avoid government shutdown. All while economists and many market participants will be keeping a close eye on the Employment Situation Report for November, which will be released on Friday.
The OPEC meetings seek to find a compromise to delay a production boost in January, when current oil production cuts are set to expire. This is set to be a challenging negotiation as some members of the cartel fear that demand is too fragile to handle production boosts, while the goals of other member countries seek to sell more crude.
Congress has until midnight on Dec. 11 to finalize the government’s funding and avoid shutting down. Republican lawmakers oppose the current version of the bill due to $2 billion for President Trump’s border wall being left out. The border wall will likely be the primary area of division between the sides, however it may be less of a sticking point for Democrats because the incoming Biden administration will likely be able to reallocate the resources.
Lastly, investors will be watching Friday for the November jobs report. The unemployment rate for November is expected to remain at October levels of 6.9%. This would show a slowing labor recovery and would be the first time since April that the rate didn’t fall.
Economic Events this Week
Tuesday
- 10:00 a.m. - ISM Manufacturing Index
Wednesday
- 8:15 a.m. - ADP Employment Change
- 10:30 a.m. - EIA Crude Oil Inventories
Thursday
- 8:30 a.m. - Initial Claims
- 10:00 a.m. - ISM Non-Manufacturing Index
Friday
- 8:30 a.m. - Nonfarm Payrolls
- 8:30 a.m. - Unemployment Rate
- 8:30 a.m. - Trade Balance
Earnings Reports this Week
Tuesday:
Before the bell: BNS,BMO,MOMO After the bell: HPE,CRM,NTAP,TCOM
Wednesday:
Before the bell: RY,PDCO After the bell: PVH,SNPS,SPLK,GES,FIVE,SPWH,VRNT
Thursday:
Before the bell: KR,TD,DG,CM,MIK,SIG,GMS After the bell: SAIC,ULTA,RH,MRVL,COO,OLLI
Friday:
Before the bell: BIG,GCO
Sector and Industry Sentiment
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