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LIVE MARKETS U.S. stocks on the mat

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  • Major U.S. indexes slide; banks, small caps take big hits
  • Energy weakest major S&P 500 sector; healthcare sole gainer
  • Euro STOXX 600 index falls >3%
  • Dollar down; gold up; crude, bitcoin collapse
  • U.S. 10-Year Treasury yield collapses to ~1.50%

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U.S. ON THE MAT (1056 EST/1556 GMT)

U.S. stocks are being tossed to the floor on Black Friday, triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant.

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Not surprisingly, given renewed coronavirus concerns, more economically sensitive groups and "re-opening plays" are being hit especially hard, while defensive groups see less severe declines.

Banks (.SPXBK) and small caps (.RUT) are down more than 4%. Energy (.SPNY) is sliding nearly 6%, while NYMEX crude futures are collapsing more than 11%.

The 10-Year U.S. Treasury yield has plunged to the 1.50% area.

Healthcare (.SPXHC) is a bright spot as the only major S&P 500 (.SPX) sector up on the day, though just fractionally.

This chart shows action in a composite of five major re-opening plays vs a composite of five major stay-at-home stocks :

AwayVStay11262021

As the re-opening group is hit relatively harder vs stay-at-home plays, the ratio is on track for its biggest daily percentage decline in more than a year.

Meanwhile, retail stocks are also down sharply on this Black Friday. The SPDR S&P Retail ETF (.XRT.P) is off more than 3%.

Here is where markets stand in mid-morning trading:

midmorning11262021

(Terence Gabriel)

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U.S. STOCKS POISED TO PLUNGE (0900 EST/1400 GMT)

U.S. equity index futures are sliding on Friday, with travel, bank and commodity-linked stocks bearing the brunt of the selloff, as the discovery of a new and possibly vaccine-resistant coronavirus variant, spooked investors ahead of a short trading session.

Of note, over the past 10 years, the day after Thanksgiving has been relatively quiet. On average, the Dow Jones Industrial Average (.DJI) has opened down around 0.05% and ended the day with a 0.05% gain. Over this period, the DJI's range on that Friday as a percentage of the prior trading day's close has averaged only around 0.6%.

As stands, the CBOE Market Volatility Index (.VIX) has popped to a more than two-month high, and CBT e-mini Dow Futures are suggesting the Dow will plunge more than 2% in the early throes of this Black-Friday session. And at more than 3%, the Dow Futures' range so far today as a percentage of Wednesday's close is its biggest since early January.

All of this is occurring in the wake of pronounced technical deterioration across the market. Click here: read more

Thus, based on the futures' action, the DJI's 50-day moving average (DMA), which ended Wednesday around 35,260, can quickly come under pressure. The Dow has not closed below this intermediate-term moving average since October 13:

DJI11262021B

The DJI's 200-DMA ended Wednesday around 34,300. The blue-chip average has not closed below this long-term moving average since July 13, 2020.

A key support line resides around 34,000. Click here: read more

Here is your premarket snapshot:

premarket11262021

(Terence Gabriel)

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FOR FRIDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE: read more

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Terence Gabriel is a Reuters market analyst. The views expressed are his own

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