Dow Jumps 600 Points; US Inflation Rate Slows In November

U.S. stocks traded higher this morning, with the Dow Jones gaining over 600 points on Tuesday

The Dow traded up 1.79% to 34,612.08 while the NASDAQ rose 3.73% to 11,559.66. The S&P 500 also rose, gaining, 2.76% to 4,100.56.

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Leading and Lagging Sectors

Communication services shares rose by 3.7% on Monday. Meanwhile, top gainers in the sector included Charge Enterprises, Inc. CRGE, up 10%, and Roku, Inc. ROKU, up 9%.

In trading on Monday, consumer staples shares rose by just 0.4%.

Top Headline

The annual inflation rate in the US slowed for a fifth month in a row to 7.1% in November, recording the lowest level since December last year, and compared to market estimates of 7.3%.

The Consumer Price Index rose by 0.1% from a month ago in November, versus a 0.4% increase in the previous month.

Equities Trading UP

• Fluence Energy, Inc. (NASDAQ: FLNC) shares shot up 26% to $21.61 after the company reported better-than-expected Q4 sales.
• Shares of ACM Research, Inc. ACMR got a boost, shooting 23% to $10.70.
• Rallybio Corporation RLYB shares were also up, gaining 20% to $5.60. JP Morgan, last week, initiated coverage on Rallybio with an Overweight rating and announced a price target of $21.

Equities Trading DOWN

• China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) shares tumbled 23% to $5.45 after gaining around 115% on Monday.
• Shares of Getaround, Inc. GETR were down 21% to $1.6213 after dropping 32% on Monday. Getaround recently announced closing of business combination with InterPrivate II Acquisition Corp.
• Aerovate Therapeutics, Inc. AVTE was down, falling 18% to $24.93. Aerovate Therapeutics, last month, posted a Q3 loss of $0.56 per share.

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Commodities

In commodity news, oil traded up 2.3% to $74.88 while gold traded up 2.3% at $1,833.70.

Silver traded up 3.6% to $24.24 on Tuesday while copper rose 2.8% to $3.9080.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 jumped 2.2%, London’s FTSE 100 rose 1.3% while Spain’s IBEX 35 Index gained 1.7%. The German DAX climbed 2.4%, French CAC 40 rose 2.5% and Italy’s FTSE MIB Index climbed 2.3%.

German current account surplus shrank to EUR 5.9 billion in October from EUR 16.3 billion in the year-ago month. The ZEW Indicator of Economic Sentiment for the Eurozone rose to -23.6 in December from -38.7 a month ago, while ZEW Indicator of Economic Sentiment for Germany rose to -23.3 from -36.7. Industrial production in Italy dropped 1% from a month ago in October.

The annual inflation rate in Germany came in at 10.0% in November, while payroll employment in the French private sector rose 0.6% to 20.83 million in the third quarter. The unemployment rate in the UK rose to 3.7% during the three months to October.

Asia Pacific Markets

Asian markets closed mostly higher on Tuesday, with the Japan’s Nikkei gaining 0.40% and Hong Kong’s Hang Seng Index rising 0.68%. China’s Shanghai Composite Index slipped 0.09%.

Manufacturing production in Hong Kong declined 0.6% year-over-year in the third quarter. The NAB business confidence index in Australia declined 4 points to a reading of -4 in November, while Westpac-Melbourne Institute Index of Consumer Sentiment rose 3% to 80.

Economics

• The NFIB Small Business Optimism Index rose to 91.9 in November from 91.3 in October.
• The annual inflation rate in the US slowed for a fifth month in a row to 7.1% in November, recording the lowest level since December last year, and compared to market estimates of 7.3%.
• The Consumer Price Index rose by 0.1% from a month ago in November, versus a 0.4% increase in the previous month.

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COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 101,369,160 cases with around 1,109,980 deaths. India confirmed a total of at least 44,676,240 cases and 530,650 deaths, while France reported over 38,515,720 COVID-19 cases with 159,870 deaths. In total, there were at least 654,461,040 cases of COVID-19 worldwide with more than 6,660,700 deaths.