Market Summary
from Briefing.comIndustry Watch
Strong: Consumer Discretionary, Financials, Technology, Real Estate
Weak: Energy, Materials, Health Care
- U.S. Bond market closed for Veterans Day
- Post-presidential election assessment continues
- U.S. earnings reporting season rolls on
- Heavily-weighted health care pulls back
- Fed Vice Chair Fischer: the case for removing policy accommodations is quite strong; fiscal policy would ease the Fed's task going forward
[BRIEFING.COM] The stock market ended an extremely strong week on a fairly solid note as the post-election rally effort was maintained for the most part. The S&P 500 slipped just 0.1% while the Dow Jones Industrial Average ended with a gain of 0.2%. The two indices locked in respective weekly advances of 3.8% and 5.4%. The Russell 2000 (+2.4%), however, managed to extend its weekly gain to an impressive 10.2%.
The major averages rallied in the prior two sessions as investors rapidly re-positioned to account for the expected pro-growth policies of a Trump Administration. Mr. Trump is expected to advance a reduction in regulations, lower tax rates, and fiscal stimulus through large infrastructure projects. That combination resulted in heavy positioning in the financial (+0.4%), industrial (+0.3%), and materials (-1.7%) sectors throughout the week.
Conversely, increased inflation concerns and fiscal stimulus expectations drove investors out of the Treasury market and defensively-oriented positions.
The S&P 500 (-0.1%) finished modestly lower on some otherwise light profit-taking from a huge move that was highlighted by an 11.3% gain for the financial sector, the vast majority of which came after the election. Six sectors lost ground on Friday.
The health care sector (-1.5%) displayed relative weakness as pharmaceutical and biotechnology names narrowed their weekly gains. Those groups had been on the rise as investors dialed back fears that they might face drug pricing legislation. The iShares Nasdaq Biotechnology ETF (IBB 288.00, -1.78) finished lower by 1.1%, but ended the week up 14.4%. The broader health care sector rose 5.8% this week.
Banking names continued to outperform in the financial sector (+0.4%) as the S&P Bank ETF (KBE 38.94, +0.71) jumped 1.9%. Bank stocks benefited handsomely this week from a steepening yield curve and talk the Trump Administration is looking at dismantling a good chunk, if not all, of Dodd-Frank.
In the consumer discretionary space (+0.6%), Dow component Disney (DIS 97.68, +2.72, +2.9%) finished at the top of the price-weighted average as some upbeat guidance for the company's ESPN division overshadowed weaker-than-expected quarterly results. On the flip side, mixed results from the retail sub-group kept the sector in check. Michael Kors (KORS 49.70, -2.06) finished down 4.0% after missing top- and bottom-line estimates for the quarter and lowering its third quarter and full year outlook.
The high-beta chipmakers outperformed, evidenced by the 3.9% gain in the PHLX Semiconductor Index. NVIDIA (NVDA 87.97, +20.20, +29.8%) led the group after beating consensus estimates for the quarter and issuing upbeat guidance. The company also increased its buyback and quarterly dividend.
Bonds sold off in recent days as the yield on the benchmark 10-yr note jumped 38 basis points from last Friday's settlement to 2.15%. There was no action in the Treasury market today, however, as the bond market was closed in observance of Veterans Day.
There was plenty of action in the oil pit. Crude futures settled 2.8% lower at $43.39 per barrel, facing ongoing pressure from concerns about excess supply and a strengthening dollar. Crude futures settled the week 1.5% lower.
Today's trading volume at the NYSE was above the average of 914 million as more than 1.1 billion shares changed hands at the NYSE floor.
Today's economic data was limited to the University of Michigan Consumer Sentiment Index for November:
The major averages rallied in the prior two sessions as investors rapidly re-positioned to account for the expected pro-growth policies of a Trump Administration. Mr. Trump is expected to advance a reduction in regulations, lower tax rates, and fiscal stimulus through large infrastructure projects. That combination resulted in heavy positioning in the financial (+0.4%), industrial (+0.3%), and materials (-1.7%) sectors throughout the week.
Conversely, increased inflation concerns and fiscal stimulus expectations drove investors out of the Treasury market and defensively-oriented positions.
The S&P 500 (-0.1%) finished modestly lower on some otherwise light profit-taking from a huge move that was highlighted by an 11.3% gain for the financial sector, the vast majority of which came after the election. Six sectors lost ground on Friday.
The health care sector (-1.5%) displayed relative weakness as pharmaceutical and biotechnology names narrowed their weekly gains. Those groups had been on the rise as investors dialed back fears that they might face drug pricing legislation. The iShares Nasdaq Biotechnology ETF (IBB 288.00, -1.78) finished lower by 1.1%, but ended the week up 14.4%. The broader health care sector rose 5.8% this week.
Banking names continued to outperform in the financial sector (+0.4%) as the S&P Bank ETF (KBE 38.94, +0.71) jumped 1.9%. Bank stocks benefited handsomely this week from a steepening yield curve and talk the Trump Administration is looking at dismantling a good chunk, if not all, of Dodd-Frank.
In the consumer discretionary space (+0.6%), Dow component Disney (DIS 97.68, +2.72, +2.9%) finished at the top of the price-weighted average as some upbeat guidance for the company's ESPN division overshadowed weaker-than-expected quarterly results. On the flip side, mixed results from the retail sub-group kept the sector in check. Michael Kors (KORS 49.70, -2.06) finished down 4.0% after missing top- and bottom-line estimates for the quarter and lowering its third quarter and full year outlook.
The high-beta chipmakers outperformed, evidenced by the 3.9% gain in the PHLX Semiconductor Index. NVIDIA (NVDA 87.97, +20.20, +29.8%) led the group after beating consensus estimates for the quarter and issuing upbeat guidance. The company also increased its buyback and quarterly dividend.
Bonds sold off in recent days as the yield on the benchmark 10-yr note jumped 38 basis points from last Friday's settlement to 2.15%. There was no action in the Treasury market today, however, as the bond market was closed in observance of Veterans Day.
There was plenty of action in the oil pit. Crude futures settled 2.8% lower at $43.39 per barrel, facing ongoing pressure from concerns about excess supply and a strengthening dollar. Crude futures settled the week 1.5% lower.
Today's trading volume at the NYSE was above the average of 914 million as more than 1.1 billion shares changed hands at the NYSE floor.
Today's economic data was limited to the University of Michigan Consumer Sentiment Index for November:
- The University of Michigan's Index of Consumer Sentiment for November increased to 91.6 (Briefing.com consensus 87.9) from the final reading of 87.2 for October.
- That was the highest reading since mid 2016, although it won't be taken at face value since the data were compiled before the election result was known.
- Russell 2000: +12.8% YTD
- Dow Jones: +8.2% YTD
- S&P 500: +5.9% YTD
- Nasdaq Composite: +4.6% YTD
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Economic Data
from Briefing.com| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 11 | 10:00 | Mich Sentiment | Nov | 91.6 | 87.0 | 87.9 | 87.2 |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE18847.66 +39.78 (+0.21%)
Volume: 107.30 Mil above average of 95.43 Mil
Range: 18736.96 - 18855.78
S&P500 INDEX
2164.45 -3.03 (-0.14%)
Volume: 734.60 Mil above average of 608.73 Mil
Range: 2152.49 - 2165.92
DOW JONES TRANSPORTATION AVERAGE
8578.65 +22.05 (+0.26%)
Volume: 19.90 Mil above average of 17.20 Mil
Range: 8499.73 - 8579.32
NASDAQ COMPOSITE
5237.109863 +28.31 (+0.54%)
Volume: 2285.05 Mil above average of 1858.57 Mil
Range: 5179.640137 - 5241.080078
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Market Internal
NYSE :Higher than average volume @ 1146.3M vs 913.2M
Advancers outpaced Decliners(adv/dec): 1617M/1384M
New highs outpaced low(high/low): 211/161
NASDAQ :
Higher than average volume @ 2258.7M vs 1832.6M
Advancers outpaced Decliners(adv/dec): 1997M/848M
New highs outpaced low(high/low): 374/55
Advancers outpaced Decliners by 1.62 to 1 on higher volumes 3405 (+24.00%) than avg 2746 (+1.16%)
VOLATILITY S&P500 (VIX) :
14.17 -0.57 (-3.87%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Market Closed
The Treasury market is closed, November 11, in observance of Veterans Day
The Treasury market is closed, November 11, in observance of Veterans Day
Currencies
Commodities
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Preview: 14 - 18 November 2016
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 15 | 08:30 | Retail Sales | Oct | 0.7% | 0.6% | 0.6% | ||
| Nov 15 | 08:30 | Retail Sales ex-auto | Oct | 0.5% | 0.5% | 0.5% | ||
| Nov 15 | 08:30 | Export Prices ex-ag. | Oct | NA | NA | 0.4% | ||
| Nov 15 | 08:30 | Import Prices ex-oil | Oct | NA | NA | 0.0% | ||
| Nov 15 | 08:30 | Empire Manufacturing | Nov | -3.0 | -0.5 | -6.8 | ||
| Nov 15 | 10:00 | Business Inventories | Sep | 0.2% | 0.2% | 0.2% | ||
| Nov 16 | 07:00 | MBA Mortgage Index | 11/12 | NA | NA | -1.2% | ||
| Nov 16 | 08:30 | PPI | Oct | 0.3% | 0.3% | 0.3% | ||
| Nov 16 | 08:30 | Core PPI | Oct | 0.2% | 0.2% | 0.2% | ||
| Nov 16 | 09:15 | Industrial Production | Oct | 0.1% | 0.2% | 0.1% | ||
| Nov 16 | 09:15 | Capacity Utilization | Oct | 75.6% | 75.5% | 75.4% | ||
| Nov 16 | 10:00 | NAHB Housing Market Index | Nov | 65 | 64 | 63 | ||
| Nov 16 | 10:30 | Crude Inventories | 11/12 | NA | NA | 2.432M | ||
| Nov 16 | 16:00 | Net Long-Term TIC Flows | Sep | NA | NA | $48.3B | ||
| Nov 17 | 08:30 | CPI | Oct | 0.4% | 0.4% | 0.3% | ||
| Nov 17 | 08:30 | Core CPI | Oct | 0.2% | 0.2% | 0.1% | ||
| Nov 17 | 08:30 | Housing Starts | Oct | 1160K | 1178K | 1047K | ||
| Nov 17 | 08:30 | Building Permits | Oct | 1210K | 1200K | 1225K | ||
| Nov 17 | 08:30 | Initial Claims | 11/12 | 258K | 257K | 254K | ||
| Nov 17 | 08:30 | Continuing Claims | 11/05 | NA | NA | 2041K | ||
| Nov 17 | 08:30 | Philadelphia Fed | Nov | 8.5 | 7.0 | 9.7 | ||
| Nov 17 | 10:30 | Natural Gas Inventories | 11/12 | NA | NA | 54 bcf |
Other Events of Interest
Earnings
Commentary
Trump Administration supports infra growth but not so much tech growth. Bond yields have been increasing since the elections, which corrosponds with the higher volumes in the equity market. The market is getting greedier. Volumes are lesser than yesterday, but still above average.
Direction for 14 - 18 November 2016: UP
Direction for 14 November 2016: UP
Direction for 14 - 18 November 2016: UP
Direction for 14 November 2016: UP
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