A reading of advance trade in goods for October showed the deficit increased 1.2%
• Weekly data on jobless claims from the Labor Department showed 778,000 people filed for unemployment for the first time, marking the second weekly gain in a row.
Economists polled by Dow Jones expected initial jobless claims to come in at 733,000.
• A second reading of gross domestic product for the third quarter confirmed an increase of 33.1%
• Sales of newly-constructed homes slipped fractionally in October but remained elevated
• A final reading of consumer sentiment for November dipped again
• Americans’ incomes declined, and households curtailed their spending, the government said. Inflation also moderated, to a 1.2% yearly rise in October.
• Minutes from the Fed’s Nov. 4-5 meeting showed no immediate change to its bond-buying policy, but that most staffers want to provide more guidance to market participants going forward. The minutes release comes ahead of the Federal Open Market Committee’s two-day policy meeting starting Dec. 15. “The staff also continued to view the risks to the economic outlook as tilted to the downside, with the latest data suggesting an increased probability of a resurgence in the disease,” the minutes said.
*Market participants believe U.S. stocks have more room to climb. A recent Reuters poll showed analysts believe the S&P 500 will gain 9% between now and the end of 2021. The index has surged about 66% since the coronavirus-led crash in March and is up about 12% so far this year.*
*Tesla Inc*, which surpassed $500 billion in market capitalization on Tuesday, extended its gain by 3.4% even after the electric-car maker recalled about 9,500 vehicles. The company also plans to start manufacturing electric vehicle chargers in China starting next year, according to documents it submitted to Shanghai authorities.
Volume on U.S. exchanges was 10.76 billion shares, compared with the 11.17 billion average over the last 20 trading days.
In Europe, the Stoxx Europe 600 Index edged lower, as cyclicals such as mining and energy firms fell, offsetting advances in defensives including utility shares. ABN Amro Bank NV and Commerzbank AG dropped more than 3% and led euro-area lenders lower after the European Central Bank said the industry will probably have to set aside more money to soak up losses when government pandemic support ends.
*The U.K. announced Wednesday its largest peacetime borrowing level ever as the coronavirus pandemic is forecast to cause the largest plunge in economic output for 300 years. The British economy is forecast to contract by 11.3% in 2020, according to the Office for Budget Responsibility (OBR), with the government on course to borrow £394 billion ($526 billion), or 19% of GDP (gross domestic product).*
*The European Central Bank (ECB) on Wednesday warned that European banks will not see profits return to pre-pandemic levels before 2022.*
*Here are some key events coming up:*
• Thursday sees a policy decision and briefing from the Bank of Korea.
• U.S. celebrates the Thanksgiving holiday on Thursday. The stock market closes at 1 p.m. on Friday.
• The week ends with Black Friday, the traditional start of the U.S. holiday shopping season.
*Currencies*
• The Bloomberg Dollar Spot Index fell 0.1%.
• The euro gained 0.2% to $1.1914.
• The British pound rose 0.1% to $1.3378.
• The onshore yuan strengthened 0.3% to 6.574 per dollar.
• The Japanese yen was little changed at 104.4 per dollar.
*Bonds*
• The yield on 10-year Treasuries declined one basis point to 0.87%.
• The yield on two-year Treasuries was little changed at 0.16%.
• Germany’s 10-year yield fell one basis point to -0.58%.
• Britain’s 10-year yield declined to 0.318%.
• Japan’s 10-year yield dipped less than one basis point to 0.021%.
*Commodities*
• West Texas Intermediate crude gained 3.6% to $45.62 a barrel.
• Brent crude gained 1.5% to $48.59 a barrel.
• Gold futures were flat at $1,810.70 an ounce.
By: via @AlliesFin Serve Stock Market
