Wall Street traded in another tight range to close out the week as cross-currents continue to weigh on sentiment — and more in Friday’s stock market update.
Headwinds include ongoing coronavirus concerns, renewed restrictions, updated vaccine developments, stimulus uncertainties and worrisome outlooks in the economy.
Selling pressure picked up in the final hour of trading with the lower closes for the major indexes giving the bulls and bears a split for the week. Overbought conditions remain in play while volatility continues to signal choppy action into the month’s end.
For the week, the S&P 500 lost 0.8% while the Dow was off 0.7%. The Russell 2000 rallied 2.4% while the Nasdaq added 0.2%.
The Dow dropped 0.8% with the late-day low tapping 29,231.
The S&P 500 fell 0.7% following the intraday pullback to 3,556.
The Nasdaq gave back 0.4% after testing a low of 11,852.
The Russell 2000 edged up 0.1% while testing an afternoon peak of 1,787.
Utilities were the only sector that showed strength after rising 0.02%. Technology was the leading sector laggard after sinking 1% while Industrials and Financials declined 0.9%.
Williams-Sonoma Inc. (NYSE: WSM) shares jumped nearly 7% after reporting solid third-quarter earnings. The company posted a profit of $2.56 a share on revenue of $1.765 billion versus forecasts for $1.53 a share on revenue of $1.6 billion.
CEO Laura Alber said sales again outperformed expectations with demand comp up nearly 31% compared to a net comp of 24%, driven by strength across all brands.
Wall Street applauded the news with four price target hikes. Barclays was the most bullish after raising its price target to $144 from $112 while keeping an overweight rating on the shares.
The Thanksgiving week is typically bullish for the stock market and only has three full sessions with a half-day on Friday following Thursday’s holiday.
The third quarter will continue to wind down with a number of familiar names in the spotlight. Ambarella Inc. (Nasdaq: AMBA) kicks off next week’s reduced and lightened schedule after Monday’s closing bell, and Dell Technologies Inc. (NYSE: DELL) follows Tuesday. Both could have slight impacts on how Technology trades.
Some retailers that will also report throughout the week such as Abercrombie & Fitch Co. (NYSE: ANF), Best Buy Inc. (NYSE: BBY), Burlington Stores Inc. (NYSE: BURL), Dollar Tree Inc. (Nasdaq: DLTR), Tiffany & Co. (NYSE: TIF) and Urban Outfitters Inc. (Nasdaq: URBN).
European markets settled higher after European Commission President Ursula von der Leyen said that the EU and U.K. have made more progress towards a trade agreement but much work remains for a deal to be in place by the year-end deadline.
The Stoxx 600 rose 0.5% while the Belgium20, Germany’s DAX 30 and France’s CAC 40 added 0.4%. UK’s FTSE 100 climbed 0.3%.
Asian markets were mixed.
Japan’s Nikkei was down 0.4% and Australia’s S&P/ASX 200 slipped 0.1%. Hong Kong’s Hang Seng and China’s Shanghai were up 0.4% while South Korea’s Kospi nudged up 0.2%.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) closed higher for the fourth straight session following the intraday push to $161.54. Fresh and lower resistance at $161.50-$162 was cleared and held. A close above the latter and the 200-day moving average would be an ongoing bullish signal for continued strength towards $162.50-$163.
Rising support is at $161-$160.50 and the 50-day moving average.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) settled higher for the third time in four sessions despite tapping a morning low of 22.13. Current and upper support at 22.50-22 was breached but held. A close below the latter would indicate weakness towards 21.50-21 with the monthly low at 21.66.
Resistance remains at 24-24.50 followed by 25.50-26.
The SPDR S&P 500 ETF (NYSE: SPY) was down for the third time in four sessions after trading to a low of $355.25. Current and upper support at $355.50-$355 failed to hold. A close below the latter would suggest additional weakness towards $353.50-$353.
Resistance is at $357.50-$358 followed by $359.50-$360.
RSI is showing signs of rolling over with key resistance at 60 holding. A move above this level would signal a retest towards 65-70. Support is at 55-50.
The SPDR Gold Shares (NYSE: GLD) snapped a four-session slide with the intraday high reaching $176.38. Current and lower resistance at $176-$176.50 was breached but held. A close above the latter would be a more bullish signal for a retest towards $178-$178.50 and the 50-day moving average.
Support is at $175.50-$175 followed by $174-$173.50.
RSI is back in a slight uptrend, with lower resistance at 45-50 holding. A close above 50 would suggest additional strength towards 55-60 with the latter representing the monthly peak. Support is at 40 and a level that has been holding since late September.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.