Wall Street traded in a tight, upside range during a shortened session with the Nasdaq setting another record high — and more in Friday’s stock market update.
Trading could remain very cautious over the near-term given the ongoing surge in COVID-19 cases and tightening of restrictions. However, Black Friday sales and the upcoming Cyber Monday event could be catalysts for additional strength if the numbers are favorable.
The Nasdaq rallied 0.9% after trading to another record high of 12,236.
The Russell 2000 rose 0.6% while closing on the session peak at 1,855.
The S&P 500 climbed 0.3% after testing a high of 3,644.
The Dow edged up 0.1% following the opening run to 30,015.
For the week, the zoomed 4.1% and the Nasdaq soared nearly 3%. The Dow was higher by 2.2% and the S&P 500 was up 2.3%.
Healthcare and Communication Services were the strongest sectors with gains of 0.9 and 0.6%, respectively. Energy and Utilities were the worst performing sectors after falling 1.2% and 1%.
Shares of Sage Therapeutics Inc. (Nasdaq: SAGE) fell nearly 10% despite the company announcing a global collaboration and license agreement with Biogen Inc. (Nasdaq: BIIB). The companies will jointly develop and commercialize the drug zuranolone for major depressive disorder, postpartum depression and other psychiatric disorders. Additionally, SAGE-324 is being developed for essential tremor and other neurological disorders.
Zuranolone is a potential first-in-class, two-week, once daily oral therapy in Phase 3 development. If zuranolone and SAGE-324 achieve certain development and commercial milestones, Sage will be eligible to receive up to approximately $1.6 billion in potential milestone payments.
Zoom Video Communications, Inc. (Nasdaq: ZM) is scheduled to announce third-quarter results after Monday’s closing bell with a possible 10%-15% move forthcoming, depending on the news.
The company is expected to report earnings of 76 cents a share on revenue just south of $694 million. The high estimate is at 88 cents a share with the low estimate at 73 cents a share, meaning a beat of 12 cents or a miss of 3 cents a share.
Zoom has topped estimates by 47, 11, eight and six cents over the past four quarters. Out of the 28 analysts that follow the stock, there are eight “Strong Buy” ratings, four “Buy” ratings, and 15 “Hold” recommendations.
European markets settled higher across the board.
The Belgium20 jumped 0.8% and France’s CAC 40 advanced 0.6%. The Stoxx 600 and Germany’s DAX 30 were up 0.4%. UK’s FTSE 100 nudged up 0.1%.
Asian markets closed mostly higher.
China’s Shanghai rallied 1.1% and Japan’s Nikkei gained 0.4%. South Korea’s Kospi and Hong Kong’s Hang Seng rose 0.3%. Australia’s S&P/ASX 200 lost 0.5%.
There was no major economic news.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) snapped a three session slide after trading to a high of $160.24. Fresh and lower resistance at $160-$160.50 was cleared and held. A close above the the latter and the 50-day moving average would be a bullish signal for continued strength towards $161.50-$162 and the 200-day moving average
Support is at $159.50-$159.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) extended its losing streak to four sessions after tagging an opening and fresh multi-month low of 19.51. Longer term and upper support from late July at 20-19.50 was breached but held. A close below the latter would be an ongoing bullish signal for the stock market.
Lowered resistance is at 21.50-22 followed by 23.50-24.
The S&P 400 Mid Cap Index (NYSE: MID) rebounded after tagging a late session high of 2,208. Current and lower resistance at 2,225-2,250 easily held. A close above the latter and Tuesday’s all-time high at 2,223 would likely indicate a further push towards 2,275-2,100.
Support is at 2,200-2,175 with a close below 2,150 signaling a possible near-term top.
RSI (relative strength index) is showing signs of rolling over after falling below key support at 70. Continued closes below this level would indicate weakness towards 65-60. Resistance from early June is at 75 and a level that was nearly matched this week.
The Health Care Select Sector SPDR Fund (NYSEArca: XLV) remains in a six session trading range after finishing on the session high of $109.31. Near-term and lower resistance at $109-$109.50 was recovered. A close above the latter would signal a possible retest towards $110-$110.50.
Support is at $108.50-$108 with backup help at $107-$106.50 and the 50-day moving average.
RSI is trying to curl higher with lower resistance at 55-60 holding. A close above the latter would signal additional upside towards 65-70. Support is at 50-45.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.