DJIA Futures Thursday 12.05.19
S&P 500 Futures Thursday 12.05.19
Nasdaq Composite Futures Thursday 12.05.19
It was a choppy day of trading for the broader stock market, and the day ended with few changes to show for it. Let’s call it a day of pause. Today’s main market drivers were arguably yesterday’s new on the US-China trade front and today’s unemployment report.
To recap what had happened recently on the trade front, markets slid on Tuesday after Trump said that the US can wait until after the 2020 election to strike a trade deal. Apparently, investors didn’t like that comment. On the following day, a Bloomberg report said that both countries were, once again, getting close to an agreement, and that separately, President Trump mentioned that trade talks were moving forward “very well.” As you might guess, markets rallied.
Bear in mind that both countries have 10 days to reach a deal before additional tariffs on Chinese goods are to be levied. The coming round would impose tariffs on up to $156 billion worth in Chinese goods.
The second of today’s market drivers–the unemployment report–came in relatively favorably with jobless claims declining by 10,000 to 203,000 in the last week of November. This beat estimates of 215,000. With the unemployment rate at 3.6%–meaning it’s still at a 50-year low–it shows that despite the slight slowing in US economic growth, companies don’t want to lay off its workers. This factor is significant, as the low unemployment rate has played a critical role in driving the current economic expansion.
The Dow advanced 0.1%, a mere 28 points to close at 27,677.79. The S&P 500 close higher at 3,117.43, gaining 0.16%. The Nasdaq trailed behind gaining less than 0.1%, ending the day at 8,570.70. All three indexes traded in a choppy manner, seeking direction as they straddled between gains and losses throughout most of the day.
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