# Dow poised to skid a 2nd day, as Nasdaq aims to extend partial reversal of weekly slump as virus cases rise

On Wednesday, the Dow
DJIA,
-0.56%
ended lower by 23.29 points, or 0.1%, at 29,339.54, snapping a 2-day win streak. The S&P 500 index
SPX,
-0.30%
 advanced 27.17 points to close at 3,572.72, notching a gain of 0.8%, its second-highest close ever. The Nasdaq Composite Index
COMP,
+0.41%
surged 232.57 points, or 2%, to finish at 11,786.43, snapping its 2-day losing streak.

What’s driving the market?

Hopes for a vaccine against the coronavirus is being pit against the near-term reality of a significant rise in cases and hospitalizations in parts of the U.S. which has triggered the reimplementation of fresh social-distancing measures that could endanger a tepid economic rebound.

The Wall Street Journal, citing the Covid Tracking project, reported that new U.S. cases and hospitalizations both set records, respectively topping 144,000 and 65,000 on Wednesday.

Indiana saw a single-day rise of more than 5,000 cases for the first time, according to data aggregated by Johns Hopkins University. Other states recorded all-time highs, including Illinois, North Carolina, Colorado, Kentucky, Arkansas, Idaho, New Mexico and West Virginia. In the past week, the U.S. has averaged 128,081 cases a day, up 69% from the average two weeks ago and cases are rising in 49 states and territories

The resurgence of the pandemic has prompted a number of states to reimpose restrictions on consumer and business activity. In New York, Gov. Andrew Cuomo announced that bars and restaurants with state liquor licenses must close at 10 p.m., and said indoor gatherings must be limited to 10 people, as cases in the state reached the highest level since April, while the positive rate of infection approached a 3% threshold that would force schools to shut down.

Against that backdrop, investors appear ready to revert to a trading strategy that has thus far worked this year: buy large-capitalization technology stocks that benefit from the stay-at-home trend.

The move to return to the tech-heavy Nasdaq Composite and Nasdaq-100 indexes
NDX,
+0.57%
comes despite positive vaccine news on Monday from partners Pfizer and BioNTech that indicated a Phase 3 study of an experimental remedy for COVID-19 had 90% efficacy, emboldening buying in stocks that have been beaten down during the worst of the pandemic. The week’s reversion to buying growth stocks may dash some hopes for a rotation into so-called value stocks.

Late Wednesday, Moderna Inc.
MRNA,
+4.70%
 said the first batch of data from its late-stage test of an experimental COVID-19 vaccine was ready for analysis. 

In economic reports, U.S. jobless benefit claims fell 48,000 to 709,000 in early November, and continuing jobless claims in states dropped 436,000 to 6.79 million.

Meanwhile, a measure of the annual rate of U.S. inflation, the consumer price index, rose 1.2% in October, down from 1.4% in the prior month. Core CPI, excluding volatile food and energy prices, also retreated, rising 1.6%, down from 1.7% in the prior period.

Comments from Powell also will be closely followed as the Fed Chairman speaks on a panel with other central bankers Thursday during an online forum.

Which stocks are in focus?

• J.C. Penney Co. Inc. JCPNQ said Thursday that it has launched a new women’s brand, Stylus, that offers comfortable clothing, like jumpsuits and tees, in sizes ranging from XS to 3X.

• Walmart Inc.
  WMT,
  +0.23%
   announced the expansion of its pet care services on Thursday to include dog walking and pet sitting through Rover, a website and app that offers 300,000 service providers across the country.

• Shares of Energizer Holdings Inc.
  ENR,
  -11.91%
  dropped in premarket trading Thursday, after the battery maker reported a fiscal fourth-quarter profit that fell short of expectations, while revenue rose above forecasts.

• Southwest Airlines Co.
  LUV,
  -1.81%
  reported October operational data that was at the better part of previously provided guidance ranges, while providing a somewhat downbeat outlook for the rest of the year.

• Shares of XPeng Inc.
  XPEV,
  +9.51%
   shot up in premarket trading Thursday, after the China-based electric vehicle maker reported a third-quarter loss that widened from a year ago but revenue that jumped more than fourfold as deliveries soared 266%.

How are other markets faring?

The yield on the 10-year U.S. Treasury note
TMUBMUSD10Y,
0.918%
edged back to 0.936% on Thursday, from around 0.98% on Tuesday. The bond market was close in observance of Veterans Day on Wednesday. Yields and bond prices move in opposite directions.

The pan-European Stoxx 600 Europe Index
SXXP,
-0.80%
 was trading 1% lower as was London’s FTSE 100
UKX,
-1.22%.

Oil futures were little-changed, with the U.S. benchmark
CL.1,
+0.86%,
 edging up less than 0.1% at $41.46 a barrel. Gold prices were trading modestly higher, with the December contract
GCZ20,
+0.75%
 gaining 0.4%, or $7.60, at $1,869.20 an ounce.

The ICE U.S. Dollar Index
DXY,
-0.06%,
 a measure of the currency against a basket of six major rivals, was off less than 0.1% at 92.995.

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