Dow and S&P 500 slip from record highs | Congress tries to buy more time for Covid relief deal | Coronavirus cases, deaths keep rising

MON, DEC 07, 2020

EVENING BRIEF

AS OF MON, DEC 07, 2020 • 04:22 ET

DJIA		30069.79
		-0.49%	-148.47

S&P 500		3691.96
		-0.19%	-7.16

NASDAQ		12519.95
		+0.45%	+55.71

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	123.75	+1.50	+1.23%
INTC	50.20	-1.78	-3.43%
BA	238.17	+5.46	+2.35%

S&P 500
NAME	LAST	CHG	%CHG
AAL	17.21	+0.81	+4.94%
GE	10.86	-0.02	-0.18%
AAPL	123.75	+1.50	+1.23%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	123.75	+1.50	+1.23%
TSLA	641.76	+42.72	+7.13%
INTC	50.20	-1.78	-3.43%

EDITOR'S NOTE

Covid-19 cases are rising in the U.S., along with deaths and hospitalizations, putting pressure on value stocks that would benefit from the economy recovering.

The iShares Russell 1000 Value ETF (IWD) dropped 0.6% while its growth counterpart, the iShares Russell 1000 Growth ETF (IWF) eked out a small gain. That shift away from value and into growth knocked the Dow Jones Industrial Average and S&P 500 off record highs set in the previous session.

The 30-stock Dow dropped more than 100 points, or 0.5%. The S&P 500, meanwhile, dipped 0.2%. The tech-heavy Nasdaq Composite, however, managed a 0.5% rise and notched a fresh record high. Facebook, Netflix and Apple led the Nasdaq up; Intel dragged the Dow lower.

"Investors are booking profits in some cyclical/value stocks while growth/momentum outperforms," wrote Adam Crisafulli, founder of Vital Knowledge. "COVID cases/mitigation trends are grim in the near-term while vaccine optimism builds in the medium/long-term; fiscal talks in Washington are making progress but a lot of work needs to occur before a deal is reached."

But despite the near-term uncertainty, Blackrock sees further upside for stocks in 2021 and upgraded equities to overweight for the new year.

"We see 2021 as a really powerful year for the restart, in terms of economic activity, but also importantly a year where we're going to see central banks hold interest rates within a pretty tight range," said Mike Pyle, BlackRock's global chief investment strategist.

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