Stocks closed a month of record highs on a low note, but the Dow Jones Industrial Average still nabbed its best monthly showing since January 1987, and the S&P 500 posted its best November ever amid a market rotation that’s been favorable for stocks in sectors hit hard by the pandemic.
The Dow fell 271 points, or 0.9%, on Monday, but still soared nearly 12% in November, as did the Nasdaq, which ended the day virtually flat, while the S&P 500, which shed nearly 0.5% on Monday, surged 11%.
London-based IHS Markit was the S&P’s top performer on Monday, surging more than 7%, after S&P Global confirmed its intent to acquire the business analytics firm in a deal–valued at $44 billion–that’s now set to be the year’s biggest merger.
Heading up gains in the Nasdaq, Moderna shares soared 20% after the biotech firm said it’s applying for an emergency use authorization for its coronavirus vaccine candidate, becoming the second firm to do so, after Pfizer, in a matter of just 10 days.
Shares of electric-vehicle maker Nikola, on the other hand, tanked 27% on Monday after GM announced that it’s downsizing its partnership with the firm no longer plans to take an ownership stake in it.
Energy firms, including Marathon Petroleum, ConocoPhillips and EOG Resources, were also among the day’s worst-performing stocks, shedding as much as 9% as oil prices (which climbed roughly 30% in November) cut back gains ahead of an OPEC meeting on Monday that failed to yield a compromise on oil production.
Global markets, which similarly rallied in November, also stalled on Monday: The United Kingdom’s FTSE 100 closed down 1.6%, while France’s CAC 40 fell 1.4%, and Japan’s Nikkei 225 ended the day down 0.8%.
“Stocks suffered softness during the Monday session, although growth and momentum stocks rebounded sharply in the afternoon off the initial lows, but it’s hard to attribute the weakness to anything other than month-end profit taking and reshuffling following large gains during the month of November,” Vital Knowledge Media Founder Adam Crisafulli said Monday. “No one would fault investors from booking profits,” he added.
What To Watch For
Earnings. Tech giants HP and Salesforce (which is expected to announce a deal to acquire work-from-home staple Slack) report Tuesday after the market closes. Meanwhile, Okta, Dollar General, Kroger, DocuSign and Big Lots are all among firms slated for later in the week. Zoom was the biggest firm reporting earnings on Monday; shares fell nearly 5% in post-market trading despite revenue climbing four-fold due in large part to slowed growth.
$32 billion. That’s the valuation Doordash is targeting for its initial public offering–twice as much as as its last private valuation of $16 billion in June, according to a newly unveiled regulatory filing on Monday. The food delivery app plans to raise as much as $2.8 billion.
After much speculation, President-elect Joe Biden officially nominated former Fed Chair Janet Yellen for Treasury Secretary on Monday.