Dow climbs above 30,000 on vaccine and "back to normal" hopes
The major averages are continuing to rally ahead of the Thanksgiving holiday, with the Dow Jones Industrial Average topping 30,000 for first time during Tuesday morning's trading. Vaccine optimism has underpinned expectations for a return to normal next year, helping the market look past the current surge in infections and return of restrictions. Also, steps toward the formal transition to the Biden presidency has appeared to support sentiment.
ECONOMIC EVENTS: In the U.S., the Conference Board's Consumer Confidence Index declined to 96.1 in November from an upward revised 101.4 in October, which was much weaker than forecast. The S&P Case Shiller 20-city house price index climbed 1.2% to 232.5 in September. The Richmond Fed manufacturing index plunged 14 points to a 15 reading in November after jumping to 29 in October.
TOP NEWS: Shares of Best Buy (BBY) are 6% lower despite the company's report of what CEO Corie Barry called "remarkable" comparable sales growth of 23% along with earnings and revenue that beat consensus forecasts. While "once again reporting strong quarterly results in the midst of unprecedented times," according to Barry, Best Buy CFO Matt Bilunas said the company is not providing financial guidance "due to the significant uncertainty related to the various impacts of the pandemic."
In M&A news, McCormick (MKC) announced an agreement to acquire the parent company of Cholula Hot Sauce from L Catterton for $800M in cash. McCormick, which expects the transaction to be completed by the end of the calendar year, sees the deal being accretive to adjusted earnings per share in 2021.
MAJOR MOVERS: Among the noteworthy gainers was O-I Glass (OI), which rose 8% after BofA analyst George Staphos upgraded shares to Buy from Neutral. Also higher was Dollar Tree (DLTR), which gained 11% after reporting quarterly results.
Among the notable losers was SmileDirectClub (SDC), which declined 3% after its 10M share block trade priced at $11.75. Also lower was Hormel (HRL), which fell 4% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 487.28, or 1.65%, to 30,078.55, the Nasdaq was up 134.17, or 1.13%, to 12,014.81, and the S&P 500 was up 55.41, or 1.55%, to 3,633.00.