Double-digit gains and Boeing's boom cheered investors last month. We reveal the biggest winners.
US November movers
If February and March are remembered as a time when the full implications of the global pandemic hit investors, then November may go down as a crucial turning point.
US drug maker Pfizer's (NYSE:PFE) announcement regarding the success of its vaccine proved critical. Developed in partnership with BioNTech (NASDAQ:BNTX), the potential cure was found to be more than 90% effective. Further news of vaccine successes followed from both Moderna (NASDAQ:MRNA) and Oxford University/AstraZeneca (LSE:AZN).
The unfolding of the latest US Presidential election and a win for Joe Biden, also played its part. A split of power across both the US house of representatives and the US Senate has often comforted investors, given more limited powers to increase national borrowings for example.
For US markets, both the Dow Jones and S&P 500 enjoyed significant monthly gains, rising by 11.8% and 10.8% respectively last month. The NASDAQ Composite was up by 11.8%. It was the biggest monthly gain for the Dow Jones index since 1987.
A hoped-for return to the skies for airline customers of Boeing following the rollout of vaccines helped underpin positive sentiment at the Chicago headquartered company. A return may also help Boeing clear inventories of its previously grounded 737 Max aircraft.
A one quarter gain in the price of both Brent crude and West Texas Intermediate oil during November, on hopes of a return to more normal travel habits, helped oil companies such as Chevron rise by a similar amount.
As for banks, the reduced likelihood of further bad debt provisions and even the possible writing back of earlier provisions underpinned positive sentiment. JPMorgan Chase (NYSE:JPM) shares rose by a fifth over the month.
Walt Disney, with many of its theme parks closed given pandemic restrictions, rose by just over a fifth as growth in its streaming services, including the late 2019 launched of Disney Plus, are aided investor sentiment. Both a return to business for its theme parks in 2021 and a reopening of cinemas, enabling new film releases, would help see it back firing on all cylinders.
More conservative gains over the month for the Dow included defensive plays such as Procter & Gamble (NYSE:PG) and McDonalds (NYSE:MCD), each up less than 2%. P&G has proved something of a Covid winner, with home cleaning and health care items sought after by consumers battling the virus. Many McDonalds restaurants have reopened on a drive-thru basis.
Given buoyant November markets, investors may now turn to the prospects for a Santa rally heading into 2021. Much may depend on perceived views for an early January Senate vote in Georgia, not to mention ongoing news of vaccine rollouts and regulatory body approvals.
Dow Jones - 10 biggest risers in November 2020
|Company||Ticker||Share price change (%)|
|Boeing Co (The)||BA||46.0|
|American Express Co||AXP||30.0|
|Honeywell International Inc||HON||23.9|
|Walt Disney Co (The)||DIS||22.0|
|Goldman Sachs Group Inc||GS||22.0|
|JPMorgan Chase & Co||JPM||20.4|
|Cisco Systems Inc||CSCO||19.8|
Nasdaq 100 - 10 biggest risers in November 2020
|Company||Ticker||Share price change (%)|
|Applied Materials Inc||AMAT||39.3|
|Marriott International Inc||MAR||36.6|
|Ulta Beauty Inc||ULTA||33.2|
|Lam Research Corp||LRCX||32.3|
|Expedia Group Inc||EXPE||32.2|
|Microchip Technology Inc||MCHP||27.9|
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