Wall Street showed overall weakness for the third straight session as hopes of another stimulus package continue to fade — and more in Friday’s stock market update.
Senate Majority Leader Mitch McConnell said Democrats are holding the Paycheck Protection Program hostage over controversial state government bailouts.
The Russell 2000 was lower by 0.6% with the afternoon low tapping 1,896.
The Nasdaq dipped 0.2% following the midday tumble to 12,246.
The S&P 500 slipped 0.1% after trading to an intraday low of 3,633.
The Dow climbed 0.2% while testing a late-day high of 30,017.
For the week, the S&P 500 dropped 1% and the Nasdaq was off 0.7%. The Dow was down 0.6% and the Russell 2000 gained 1.1%.
Communication Services were the strongest sector after rising 0.6% while Consumer Staples and Industrial added 0.2%. Energy and Financials were the weakest sectors after falling 1.2% and 1%, respectively.
Shares of Walt Disney Co. (NYSE: DIS) surged nearly 14% after saying it sees Disney+ subscribers at 230-260 million by fiscal year 2024 versus a prior outlook of 60-90 million. The company will also raise prices in March 2021, with Disney+ monthly subscriptions increasing to $7.99 for U.S. customers, or $79.99 per year.
A bundle with Disney+, Hulu and ESPN+ will cost $13.99 per month. Walt Disney expects ESPN+ to have 20-30 million subscribers by the same time period versus a prior forecast of 8-12 million.
There were five analysts that upgraded their price targets in the $182-$192 range while keeping “Buy” ratings on the stock.
With the 3Q earnings season continuing to wind down, next week’s schedule will be light. Most of the action will occur on Thursday and Friday. The following week includes the Christmas holiday and afterwards a quiet period will ensue into the New Year.
Nordson Corp. (Nasdaq: NDSN) will be the most recognized company reporting Tuesday with ABM Industries Inc. (NYSE: ABM), Herman Miller Inc. (Nasdaq: MLHR), Lennar Corp. (NYSE: LEN) and Toro Co. (NYSE: TTC) highlighting Wednesday’s action.
Accenture Plc (NYSE: ACN), BlackBerry Ltd. (NYSE: BB), FedEx Corp. (NYSE: FDX), General Mills Inc. (NYSE: GIS), Jabil Inc. (NYSE: JBL), Rite Aid Corp. (NYSE: RAD), Sanderson Farms Inc. (Nasdaq: SAFM) and Worthington Industries Inc. (NYSE: WOR) will announce quarterly results Thursday.
Friday’s most notable earnings include Apogee Enterprises Inc. (Nasdaq: APOG), Darden Restaurants Inc. (NYSE: DRI), Nike Inc. (NYSE: NKE) and Winnebago Industries Inc. (NYSE: WGO).
European markets were weak as a stalemate in talks between the European Union and Britain raised the chances of Britain’s exit from the economic bloc without a trade deal.
Germany’s DAX 30 declined 1.4% while the Belgium20, U.K.’s FTSE 100, France’s CAC 40 and the Stoxx 600 all dropped 0.8%.
Asian markets were mixed following news the U.S. Federal Communications Commission has begun the process of revoking China Telecom’s authorization to operate in the United States.
China’s Shanghai lost 0.8% and Australia’s S&P/ASX 200 declined 0.6%. Japan’s Nikkei fell 0.4%. South Korea’s Kospi jumped 0.9% and Hong Kong’s Hang Seng climbed 0.4%.
Consumer sentiment climbed 4.5 points to 81.4 in the preliminary December reading versus forecasts for a reading of 76, but follows the surprising -4.9 point drop to 76.9 in November. The current conditions index jumped to 91.8 after edging up 1.1 points to 87 last month, while the expectations component rebounded to 74.7 after the 8.7 point November drop to 70.5.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was up for the second straight session after soaring to a morning peak of $159.39. Prior and lower resistance from late November at $159-$159.50 and the 50-day moving average was cleared but held. A move above the latter would suggest additional upside towards $160.50-$161.
Fresh support is at $158.50-$158 followed by $157.50-$157.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the third straight session with the intraday peak hitting 25.14. Prior and lower resistance from mid-November at 25-25.50 was breached but held. A close above the latter would suggest additional upside towards 26-26.50 and the 50-day moving average.
Rising support is at 23-22.50.
The SPDR S&P 500 ETF (NYSE: SPY) extended its losing streak to three sessions with the midday low reaching $363.26. Near-term and upper support at $363.50-$363 was breached but held. A close below the latter and would suggest a further slide towards $362-$361.50.
Lowered resistance is at $366.50-$367 followed by $368-$368.50.
RSI is in a slight downtrend with key support at 60 holding. A move below the latter would signal a retest towards 55-50 and levels from early November. Resistance is at 65-70.
The iShares MSCI Emerging Markets ETF (NYSE: EEM) remains in a six-session range following the intraday pullback to $50.63. Current and upper support at $50.50-$50 was challenged but held. A close below the latter would be a slightly bearish signal for additional weakness towards $49.50-$50.
Key resistance is at $51 with the recent 52-week peak at $51.14.
RSI is in a downtrend after failing to hold upper support at 65-60. A move below the latter would indicate weakness towards 55-50. Resistance is at 70-75.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.