U.S. Stocks Flat Following Tuesday’s All-Time Highs
Until we see a major pullback in U.S. large-cap stocks, one is well-advised to maintain a bullish bias toward the DOW, SPX, and NASDAQ.

U.S. stocks are trading near scratch as Wall Street reacts to more slumping unemployment data. At the midpoint of the American trading session, the DJIA DOW (-33.77), S&P 500 SPX (+0.88), and NASDAQ (-20.53) are largely unchanged. Sentiment is neutral following a strong rally to open December.
The headliner from this morning’s economic reports was a lag in the ADP Employment Change (Nov.). The figure came in at 307,000, well below projections (410,000) and the previous release (404,000). This isn’t a good sign and more evidence that the U.S. labor market is once again under siege from the coronavirus. Fresh lockdowns in California, New York, and Pennsylvania are the latest COVID-19 economic threats.
In addition to the ADP report, there were a few other metrics released today. Here are the highlights:
Event Actual Projected Previous
MBA Mortgage Applications (Nov. 27) -0.6% NA 3.9%
ISM-NY Business Conditions Index (Nov.) 44.2 NA 65.1
Although both of these items are peripheral, they do suggest that the economic winds are shifting. While the downturn in the ISM-NY Business Conditions Index is due to new COVID-19 lockdowns, the regression in MBA Mortgage Applications is indicative of fading consumer sentiment. Mortgage rates remain near all-time lows ― a 4.5% aggregate decline in applications reflects growing angst among American homebuyers. This is a major surprise given that stocks are trading near all-time highs.
U.S. Stocks Flat After A Strong 1 December
Below is a weekly chart for the December E-mini DOW. Prices are holding above 29,750 and are well within bullish territory.
++16_2020+-+49_2020.jpg)
Overview: Until we see a major pullback in U.S. large-cap stocks, one is well-advised to maintain a bullish bias toward the DOW, SPX, and NASDAQ. For now, the uptrend remains valid and more record highs are probable ahead of the weekend break.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
HFM
Related Posts
Doo Prime
XM
Best Forex Brokers
