Stock Market Today: Dow Nicks New High in 2020's Penultimate Session
A Wednesday session light on trading volume and news alike ended in slight gains, with the Dow setting another fresh closing high.


Stocks quietly crept higher Wednesday as low volume on Wall Street accompanied heavy gridlock in Washington.
The Senate adjourned late Tuesday without taking action on the House's recently passed bill to hike stimulus payments to $2,000. For now, $600 payments are already starting to hit Americans' bank accounts.
On Wednesday, the U.K. became the first country to approve a two-dose COVID-19 vaccine from AstraZeneca (AZN, +0.6%) and Oxford University, but that good news was blunted by yesterday's reported 3,725 coronavirus deaths in the U.S. – a new daily high.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One market firework of note today: New S&P 500 component Tesla (TSLA, +4.3%) jumped to within just a few dollars of its previous all-time high after Wedbush analyst Daniel Ives said the electric vehicle stock's goal for 500,000 deliveries in 2020, while "not even on the map … going back to the late spring/early summer timeframe," is now within reach thanks to strength in China and Europe.
The major indices all finished a little higher, including the Dow Jones Industrial Average, whose 0.2% gain to 30,409 was just enough for yet another record close.
Other action in the stock market today:
- The S&P 500 edged 0.1% higher to 3,732.
- The Nasdaq closed with a 0.2% gain to 12,870.
- The Russell 2000 rebounded strongly, up 1.1% to 1,979.
- U.S. crude oil futures improved by 0.8% to $48.40 per barrel.
- Gold futures climbed 0.6% to settle at $1,893.40 per ounce.
More Forecasts for a Bumpy 2021 Start
A fruitful year with a turbulent start. Why yes, we could be describing the stock market in 2020 – the S&P 500, with just one more trading day to go, is on pace to finish with a 17%-18% total return (price plus dividends) despite COVID dragging the economy into recession.
But no, we're talking about how an increasing number of analysts are describing their outlooks for 2021.
For 2021, CFRA chief investment strategist Sam Stovall says his firm is targeting S&P 4,080, or a 9.5% return, in 2021, but "domestic equity markets appear to us to have over-discounted a second-half 2021 economic and EPS recovery, however, and as a result may be vulnerable to a Q1 pullback."
"The Russell 2000 is currently more than 30% above its 200-day moving average, the S&P 500’s next-12-month (NTM) P/E ratio trades at a 42% premium to its 20-year average, and the 12-month return differential for S&P 500 growth-value indices remains at a level last seen in December 1999," he says.
Practically speaking, that means a few things for investors. For one, you still have a little time to exit stocks that are facing more headwinds in 2021 than most. And if you're looking to put money to work, you have two choices: 1) Buy at the start of the year, and steel yourself for a potentially choppy first few months, or 2) Wait for a dip to buy into 2021's best stocks and funds.
However you decide to proceed, start your wish list with these 21 best stocks for 2021 – a group of picks that are either expected to benefit from a 2021 "return to normalcy" or ride emerging trends to red-hot returns in the year to come.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
The Riskiest S&P 500 Stocks Right Now
Buyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.
-
Stock Market Today: Stocks Chop as Chipmakers Decline
Several semiconductor stocks fell Friday on reports that the White House may consider revising license waivers for global chipmakers.
-
Stock Market Today: Wall Street Is Standing By
The waiting is the hardest part with trade war truce talks underway and inflation data on the way.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.
-
Stock Market Today: Tesla Drags on Stocks Amid Musk-Trump Feud
Sentiment has soured between President Trump and his once-loyal ally, Tesla CEO Elon Musk.
-
Stock Market Today: Rally Extends on Good-Enough Expectations
Fiscal policy still has markets' attention, but taxes rather than tariffs and deficits rather than inflation are participants' primary focus.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.