Day Traders Diary

11/30/20

The major averages pulled back to end a historic November with big gains. The Dow Jones Industrial Average dropped 271 points, or 0.9%, to close at 29,638. Earlier in the day, the Dow was down by more than 400 points. The S&P 500 slid 0.5% to 3,621 while the Nasdaq Composite closed lower by 0.1% at 12,198.

Travelers and Chevron were among the worst-performing Dow stocks, falling 3.6% and 4.5%, respectively. Energy led the way lower in the S&P 500, losing 5.4% for its worst day since June 24.

Cruise lines and airlines, two of the best-performing groups this month, struggled on Monday. Carnival dipped 7.4%, and Norwegian Cruise Line slid 3.4%. American Airlines dropped more than 5%, and Delta pulled back by 2%.

Despite Monday's losses, the major averages posted sharp monthly gains. The blue-chip Dow rose 11.8% in November, its best monthly performance since January 1987, as promising vaccine developments boosted confidence of a smooth economic reopening. The S&P 500 and the Nasdaq climbed 10.8% and 11.8%, respectively, in November, their biggest monthly advances since April.

Small caps were on a tear this month as investors piled into beaten-down value names. The Russell 2000 rallied more than 18% in November, its best month ever.

Cyclical sectors, those most economically sensitive groups, led the market's November rally amid a slew of positive vaccine news. Energy, 2020′s biggest loser, jumped 26.6% this month, while financials, industrials and materials all gained at least 12.2% during this period.

Boeing and American Express led the way higher for the Dow, rising 45.9% and 30%, respectively, in November. Chevron, JPMorgan Chase, Disney and Honeywell each rose more than 20% this month.

November's gains came even as the number of coronavirus cases continued to rise in the U.S.

More than 266,000 people have died from the coronavirus in the U.S., and more than 13 million cases have been confirmed in the country, according to data from Johns Hopkins University. Dr. Anthony Fauci, the nation's top infectious disease expert, said on Sunday that the U.S. is heading into a tough period of the pandemic in which restrictions and travel advisories will be necessary.

U.S. Treasuries finished little changed in a muted session. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield was flat at 0.84%. The U.S. Dollar Index increased 0.2% to 92.00.