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End of Day Brief - Monday Dec 6 - Markets have a rebound rally

SP 5004591.67+53.24(1.17%)
10-yr Note -25/321.434
NYSEAdv 2425 Dec 839 Vol 1.05 bln
NasdaqAdv 2889 Dec 1666 Vol 5.05 bln

Industry Watch

Strong: Energy, Consumer Staples, Real Estate, Utilities, Financials, Industrials
Weak: Health Care, Technology

Moving the Market

Stocks bounce as Omicron-related concerns recede

Crude oil rebounding toward 200-day moving average (69.92)

Markets less fearful, stage a rebound

Dow +646.95 at 35227.03, Nasdaq +139.68 at 15225.15, S&P +53.24 at 4591.67

[BRIEFING.COM] The stock market began the week on a strong note with the S&P 500 (+1.2%) reclaiming its entire loss from Friday. The Dow (+1.9%) fared even better, rising to a one-week high, while the Nasdaq (+0.9%) managed a firmly higher close after revisiting Friday's low in early trade.

Equities benefited from an improvement in sentiment after the weekend went by without any ominous reports related to the Omicron variant of the coronavirus. This opened the door to a rebound in areas that faced the most pressure in recent days with the S&P 500 reclaiming its 50-day moving average.

All eleven sectors ended the day in positive territory with nine groups gaining at least 1.0%. The energy sector (+1.5%) finished near the top of the leaderboard thanks to a daylong rally in crude oil. WTI crude climbed $3.21, or 4.84%, to $69.59/BBL, finishing the pit session just below its 200-day moving average (69.93), which offered resistance over the past week.

The rebound in crude did not get in the way of a rally in airline stocks, as they extended their bounce off last week's lows on a receding probability of additional travel restrictions. United Airlines ($UAL 43.99, +3.38, +8.3%), American Airlines ($AAL 17.93, +1.31, +7.9%), and Delta Air Lines ($DAL 38.14, +2.16, +6.0%) were the top performers in the industrials sector (+1.6%), which finished atop today's leaderboard. The outperformance in airline stocks had a bigger impact on the Dow Jones Transportation Average (+2.3%), lifting the group to a one-week high.

Other growth-sensitive sectors like financials (+1.4%) and materials (+1.5%) also finished ahead of the broader market while top-weighted technology (+1.0%) underperformed throughout the day, but still ended firmly in the green.

The tech sector recovered from a weak start that was owed to notable losses among chipmakers, but the PHLX Semiconductor Index ended lower by just 0.1% after being down more than 3.0% at the open. Roughly half of the group's components ended in the red while Intel ($INTC 50.99, +1.74, +3.5%) was the top performer, rallying toward its 50-day moving average (51.38). The chip giant confirmed plans to hold a press conference at the Consumer Electronics Show on January 4, while competitor AMD ($AMD 139.06, -4.95, -3.4%) is also planning a press conference for January 4, but its event will not be an official part of CES, inviting speculation that the company is not yet ready to unveil a response to Intel's recently-launched 12th generation of CPUs.

The health care sector (+0.5%) was the weakest performer, spending the bulk of the day at the bottom of the leaderboard. Most components finished in the green, but their gains were largely offset by a loss in Pfizer ($PFE 51.48, -2.79, -5.1%) as the stock deepened its pullback from a record high.

Treasuries finished near their lows with the 10-yr yield rising nine basis points to 1.43%.

In Washington, President Biden is expected to speak with Russian President Putin amid reports of the intelligence community's concern that Russia will escalate its conflict with Ukraine in the coming months.

Tomorrow's economic data will include October Trade Balance ( consensus -$66.80 bln; prior -$80.90 bln), revised Q3 Productivity ( consensus -4.9%; prior -5.0%), and revised Q3 Unit Labor Costs ( consensus 8.2%; prior 8.3%) at 8:30 ET, followed by October Consumer Credit (prior $29.90 bln) at 15:00 ET.

  • S&P 500 +22.3% YTD
  • Nasdaq Composite +18.1% YTD
  • Dow Jones Industrial Average +15.1% YTD
  • Russell 2000 +11.6% YTD

Source: (

Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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