Your Wednesday Blip 12/2/20

Your Wednesday Blip 12/2/20

The Dow began the day lower but slowly began to rally and at the close was up 60 at 29,884. Trading volume was lower for the day. Today’s upside reversal is positive for the markets from a technical standpoint because it showed that early selling was on light volume and was met with money coming off the sidelines and into risk assets. Both IBD and BTS remain positive on the market rally.
Britain become the first nation to approve a coronavirus vaccine when it gave the green light to the Pfizer BioNTech team. The first 800k doses will be available in the U.K. starting next week and will be given to healthcare workers, nursing home residence and older adults before being released to the general public. Here in the US the Pfizer and Moderna vaccines are being reviewed and and FDA approval is expected as early as next week.
The manufacturing sector continued its recovery in November but at a slower pace than in October. The November reading of 57.5 showed continued broad growth with 16 of 18 industries reporting expansion. On the inflation front the prices paid index remained at 65.4 which is at an elevated level given the rising costs for aluminum, copper and steel. In other economic news construction spending rose 1.3% in October led by strong growth in homebuilding.

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