The Dow Jones Industrial Average, America's oldest equity benchmark has closed above 30,000 for the first time on record.

MARKETS

News

Japan’s Nikkei is up nearly 2% as Asia-Pacific shares mostly rise after Dow surges to a new record;

Airlines and cruise stocks surged on Tuesday as stocks tied to an economic recovery continued to rise after a series of positive vaccine announcements. Shares of American Airlines and United Airlines both jumped more than 9%, while Carnival led the way for cruise stocks with an 11% gain;

Tesla jumped more than 6% to hit a record high as investors continue to favour the stock. The move pushed Tesla’s market cap above $500 billion for the first time on record. Shares have gained more than 550% this year;

Nikola shares fell 8% after-hours as CEO failed to reassure investors GM won’t pull out of $2 billion deal. The stock gained 17% in regular hours.

What Else? 

Credit Suisse set to take $450m hit as hedge fund York Capital retreats;

Abercrombie shares fell 2% after hours as the company announced an early exit from four of its European flagship locations;

JD Health to raise up to $4bn in Hong Kong IPO. Listing of ecommerce group’s healthcare unit is set to be one of 2020’s biggest listings;

Biden’s pick for foreign policy head affirms a push to get allies on board with U.S. policy on China;

Coronavirus latest: Italy reports highest daily death toll since March-end. Texas food bank doubles amount of people it serves amid coronavirus pandemic. US records deadliest day in more than 6 months as 2,028 succumb. Internet searches for "Bidet" begin to soar in the U.S as Toilet paper shortage intensifies. 

Earnings update 

Best Buy (BBY) Q3 Non-GAAP EPS of $2.06 beats by $0.34 but GAAP EPS of $1.48 misses by $0.10. Revenue of $11.85B (+21.4% Y/Y) beats by $880M. Stock dropped by 6% in regular trading;

Dollar Tree (DLTR) reports comparable sales increased 5.1% in Q3 vs. +4.7% consensus. Stock gained 14%;

Tiffany (TIF) beat Wall Street expectations for quarterly profit as the U.S. jeweller benefited from an over 70% rise in sales in China and a recovery in demand at home. Stock was flat in regular trading;

Gap (GPS) shares tumbled more than 10% after hours as earnings fall short, retailer ‘remains optimistic’ about the holidays;

Hong Kong-listed shares of Chinese smartphone maker Xiaomi fell more than 3% in Wednesday morning trade. The declines came despite the firm posting a roughly 19% year-over-year surge in its adjusted net profit in Q3.

Day Ahead 

Earnings: Deere & Co;

Macro: U.S. Core Durable Goods Orders, U.S. Core PCE Price Index, U.S. Preliminary GDP (Q3), U.S. Michigan Consumer Sentiment and Expectations, U.S. New Home Sales; U.S. FOMC Meeting Minutes Released.

WRAP

The Dow Jones rallied on Tuesday, breaking above 30,000 for the first time amid positive vaccine news, hope for a strong economic recovery in 2021 and easing of political uncertainty as the Trump administration approved the start of the presidential transition. 

The Dow surged 1.5% with Energy and Financial stocks leading the index. The small-cap Russell 2000 also hit an all-time high, gaining 1.9%. European markets close higher amid vaccine optimism and Biden transition progress. Precious metals were weak again while oil surged more than 4%. Bitcoin closed at a record high (not quite intraday high), above the $19,100 close on Dec 16th 2017.

QUOTE

“Have no fear of perfection. You’ll never reach it.” – Salvador Dali. 

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