Wall Street Today | E-Commerce Stocks Rally on Black Friday Sales
RECAP
US Stocks Wobble as Investors Weigh Signs of Consumer Resilience Amid Higher Black Friday Spending
US stocks wobbled Monday, pausing a four-week winning streak, as investors weighed signs whether consumer spending will be sustained after Black Friday sales advanced.
The $S&P 500 Index(.SPX.US$ slipped 0.2% to 4,550.43 and the $Dow Jones Industrial Average(.DJI.US$ slid 0.2% to 35,333.47. The $Nasdaq Composite Index(.IXIC.US$ closed little changed at 14,241.02.
$Shopify(SHOP.US$ surged 4.9% after the company said merchants set a Black Friday record of $4.1 billion in combined sales while $Amazon(AMZN.US$ gained 0.7%. $Affirm Holdings(AFRM.US$ climbed 12% after Adobe Analytics reported that consumer spending through buy-now-pay-later options rose during the Black Friday weekend.
On Tuesday, the Conference Board will release its report on consumer confidence, offering another sign on the health of consumer spending that's a major driver of the country's overall economic activity. Federal Reserve Bank of Chicago President Austan Goolsbee may offer clues on the trajectory of interest rates.
MACRO
New Home Sales Fall in October While Cyber Monday Sales Seen Topping Black Friday's Online Spend
In economic news, new home sales in the US fell 5.6% to a seasonally adjusted 679,000 units in October from a month earlier. The latest data missed the 723,000 units average estimate of economists surveyed by Reuters.
New home sales were weighed down by higher mortgage rates, even as builders cut prices, Reuters reported. Sales could rebound in November or December as mortgage rates fall, Reuters reported, quoting Citigroup economist Veronica Clark.
On the retail side, Cyber Monday is expected to take in $12 billion to $12.4 billion in sales, topping the Black Friday’s online spending estimate of $9.8 billion, CNBC reported, citing data from Adobe Analytics.
About $782 million of that total are expected to be purchased through buy-now-pay-later services including Affirm, a 19% jump from a year earlier, Reuters reported, citing Adobe Analytics.
SECTORS
In the oil market, Saudi Arabia is reportedly asking members of the Organization of Petroleum Exporting Countries and its partners to cut their oil output quotas to support oil prices, according to Bloomberg.
Saudi Arabia’s voluntary reduction of 1 million barrels per day, which was implemented in tandem with Russia’s 300,000 barrel a day export reduction, are expected to continue until the end of the year.
Crude oil futures continued to trade lower, declining 0.9% to $74.88, even with the reported efforts to further curtail supply.
Any reduction smaller than 1 million barrels a day could send prices to the low-$70s, Bloomberg quoted analysts at Eurasia Group as saying.
COMPANIES
Amazon Clinches Deal With Spanish Union Over Cyber Monday Walkout
$Amazon(AMZN.US$ reached an agreement with most of its workers in Spain, averting the full impact of a strike that risked crippling its warehouses during Cyber Monday, on one of the busiest days of the year.
Affirm Shares Pop 13%+ After Big Buy-Now-Pay-Later Shopping Weekend
Shares of $Affirm Holdings(AFRM.US$, which offers so-called buy-now-pay-later services, jumped after new data indicated consumers are embracing BNPL offers so far this holiday shopping season. The stock jumped to a new 52-week high. Shares have more than tripled this year.
AMC Shares Continue Their Tumble After Disney Does Not Get Its Box-office 'Wish'
$AMC Entertainment(AMC.US$ shares extended their slump after Disney’s “Wish” movie reported a $19.5 million in ticket sales over the Thanksgiving weekend, missing expectations that the animated adventure would bring in $35 million for the period. Disney slipped 0.9%.
Tharimmune Shares Climb as Much as 64% as Phase 1 Drug Trial Met Its Primary Goal
$Tharimmune(THAR.US$ shares climbed as much as 64% after the clinical-stage biotechnology company said its phase 1 trial for its lead therapeutic candidate for chronic pruritis achieved its primary objective.
Crown Castle Shares Climb as Elliott Builds $2 Billion Stake, Calls for Leadership Change
$Crown Castle(CCI.US$ shares climbed as much as 5.2% after activist investor Elliott Investment said it built a $2 billion stake in the company and called for a “comprehensive leadership change” to address the stock’s “long-term underperformance.”
Source: Bloomberg, Dow Jones, CNBC
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