Stock Market Today: November 30, 2021
Adam Rosner | 11/30/2021
Before the Bell - The U.S. stock market has been quite volatile lately, as investors react to news that a new coronavirus variant has surfaced in several countries. Traders are most likely concerned that the global economic recovery could be delayed if severe restrictions are put back in place. Further, it is not yet clear if the major pharmaceutical companies will be able to quickly modify their vaccines to battle the new variant. Overnight, the markets in Europe have been weak, with the FTSE 100 declining notably. On our shores, U.S. equity futures are mired in the red, which indicates a soft start to the trading day.
In economic news, a couple of important items are due out this morning. Specifically, we will get a look at the Conference Board’s Consumer Confidence Index for the month of November. It should be noted that inflation has intensified lately, which could cause consumers to become more cautious about making purchases. In addition, we will get a look at the Chicago Purchasing Managers Index (PMI) for the most recent month. Although this report is specific to the Chicago region, it is closely followed by analysts, as it can be used to forecast manufacturing levels across the country. Finally, the big news will come this Friday morning, when the government delivers the November employment numbers. The nation’s employment situation and the inflation outlook are key pieces of information used by the central bank when it shapes monetary policy, and as a result, Wall Street will be paying close attention. Some traders may be positioning their portfolios in advance of the news. Currently, the consensus estimate calls for the addition of about 580,000 jobs, with the unemployment rate dropping to roughly 4.5%.
In corporate arena, traders will be digesting a couple of notable reports today. After the closing bell, we will hear from Salesforce.com (CRM), a leading provider of customer management relationship software. As the company is a member of the Dow Jones Industrial Average, this release stands to impact the broader market. We will also receive results from NetApp (NTAP), a leading technology provider.
Technically, the stock market hit resistance near the 4,700 level a couple of times before a staging a sharp selloff late last week. From here, it remains to be seen if the bulls will move in to support equities, or if further consolidation will be needed. – Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.