US Stock Market Overview – Stocks Rise Led by Nasdaq; Consumer Discretionary Lags

 

US Stocks moved higher on Tuesday, led by gains in the Nasdaq and the Russel. Sectors in the S&P 500 index were mixed, led higher by consumer staples, a defensive sector. Consumer cyclicals bucked the trend. Senate Republicans are looking to pass a slipped down version of a stimulus bill, which would strip away protection for liability but would not provide states’ payments. US productivity rose less than expected in September, while Unit Labor Costs Plunged.

The FDA is Poised to Approve Pfizer Vaccine

The Food and Drug Administration concluded in detailed analysis from the Pfizer vaccine being considered for U.S. distribution met the criteria in a clinical study, paving the for approval. An outside panel of scientific advisers will review the FDA report. The board is expected to be followed within a few days by the FDA granting emergency authorization for the vaccine.

Republicans Look for Stream Down Stimulus Plan

Senate Majority Leader Mitch McConnel said that Republicans are looking for a streamed down version of a stimulus bill. The Republicans have backed off their demand for businesses to get coronavirus-related liability protections as part of a year-end rescue package. They have also asked that there will be no state aid.

US Productivity Drops

The Labor Department reported that nonfarm productivity increased at a 4.6% annualized rate last quarter. The slight downward revision from the 4.9% pace estimated last month followed a 10.6% growth rate in Q2, which was the fastest since the first quarter of 1971. Expectations had been for productivity growth to be unrevised at a 4.9% rate in Q3. Hours worked rebounded at a 37.1% rate, rather than the 36.8% rate estimated in November. That followed a record 42.9% pace of decline in Q2. As previously reported, unit labor costs plunged at a 6.6% rate instead of an 8.9% rate. Unit labor costs rose at a 12.3% pace in Q2. They increased at a 4.0% rate from a year ago.