Market Summary
from Briefing.comIndustry Watch
Strong:
Weak:
[BRIEFING.COM] The stock market ended Monday's affair on a mixed, and relatively flat, note as investors continued to fine-tune their positioning following last week's election. The Nasdaq Composite (-0.4%) finished behind the S&P 500 (UNCH) and the Dow Jones Industrial Average (+0.1%). Separately, mid-cap and small-cap indices led as the Russell 2000 and the S&P Mid Cap 400 rose 1.3% and 1.6%, respectively.
Equity indices jumped out of the gate as market participants looked to build on last week's post-election rally. The Dow Jones Industrial Average (18934.05) and the Russell 2000 (1306.56) each notched new all-time highs while the S&P 500 tested technical resistance near the 2171 price level. The latter marked an approximate 7.0% gain from the lows the S&P futures hit the morning after Election Day.
The major indices did encounter some selling pressure and continued to see some divergences as investors contemplated the potential policies of a Trump Administration.
The financial sector (+2.3%) extended its recent gain while technology (-1.7%) continued to pull back amid weakness in widely-owned issues. Financials have advanced 12.2% so far this month while technology is down 3.2%.
Bonds have been far less fortunate, however, as selling pressure has accelerated in the wake of the election with fixed-income investors showing some angst about the potential for rising inflation that many think will follow on the back of increased fiscal stimulus. The yield on the benchmark 10-yr note kissed 2.30% in overnight action before garnering some buying interest from a short-term oversold condition. Even so, the yield still settled today up seven basis points at 2.23%. That marks a 51 basis point increase from the election night low on the 10-yr yield.
The economically-sensitive financial sector (+2.3%) outperformed as a rapid steepening in the yield curve in the past week has continued to bolster the group's earnings prospects. The sector also benefited from speculation regarding reduced regulations under the Trump Administration. Dow component JPMorgan Chase (JPM 79.51, +2.82) finished higher by 3.7%. The stock has rallied 14.8% so far in November compared to an equally heady 12.2% gain for the broader sector.
In the technology group (-1.7%), large-cap tech names underperformed as investors continued to evaluate their growth prospects under the next administration. Facebook (FB 115.09, -3.94) and Alphabet (GOOG 736.08, -17.94) finished down 3.3% and 2.4%, respectively. Top-weighted Apple (AAPL 105.71, -2.72) declined 2.5%, extending its November loss to 6.9%.
Pharmaceutical names underperformed in the health care space (-0.3%) as the group pulled back from its recent winning streak. Dow component Pfizer (PFE 32.38, -0.21) finished lower by 0.6%, narrowing its November gain to 1.4%. On the other hand, the iShares Nasdaq Biotechnology ETF (IBB 293.09, +5.09) ended higher by 1.8%
The energy sector gained 0.3% despite a modest loss in crude oil futures. WTI crude ended its day lower by 0.2% ($43.30/bbl; -$0.09). However, it is worth noting that crude prices rebounded smartly from an earlier 2.8% decline after news reports suggested OPEC is working to narrow its divide with Iran and Iraq, prompting speculation that such efforts could bode well for formalizing a production cap agreement at the November 30 OPEC meeting.
Today's trading volume was above the average of 961 million as more than 1.16 billion shares changed hands at the NYSE floor.
There was no economic data of note released today.
Tomorrow's economic data include Retail Sales for October (Briefing.com consensus +0.6%), Import/Export Prices for October, and Empire Manufacturing for November (Briefing.com consensus -0.5), which will each cross the wires at 8:30 a.m. ET. The day's data will be capped off with Business Inventories for September (Briefing.com consensus 0.2%) at 10:00 a.m. ET.
Equity indices jumped out of the gate as market participants looked to build on last week's post-election rally. The Dow Jones Industrial Average (18934.05) and the Russell 2000 (1306.56) each notched new all-time highs while the S&P 500 tested technical resistance near the 2171 price level. The latter marked an approximate 7.0% gain from the lows the S&P futures hit the morning after Election Day.
The major indices did encounter some selling pressure and continued to see some divergences as investors contemplated the potential policies of a Trump Administration.
The financial sector (+2.3%) extended its recent gain while technology (-1.7%) continued to pull back amid weakness in widely-owned issues. Financials have advanced 12.2% so far this month while technology is down 3.2%.
Bonds have been far less fortunate, however, as selling pressure has accelerated in the wake of the election with fixed-income investors showing some angst about the potential for rising inflation that many think will follow on the back of increased fiscal stimulus. The yield on the benchmark 10-yr note kissed 2.30% in overnight action before garnering some buying interest from a short-term oversold condition. Even so, the yield still settled today up seven basis points at 2.23%. That marks a 51 basis point increase from the election night low on the 10-yr yield.
The economically-sensitive financial sector (+2.3%) outperformed as a rapid steepening in the yield curve in the past week has continued to bolster the group's earnings prospects. The sector also benefited from speculation regarding reduced regulations under the Trump Administration. Dow component JPMorgan Chase (JPM 79.51, +2.82) finished higher by 3.7%. The stock has rallied 14.8% so far in November compared to an equally heady 12.2% gain for the broader sector.
In the technology group (-1.7%), large-cap tech names underperformed as investors continued to evaluate their growth prospects under the next administration. Facebook (FB 115.09, -3.94) and Alphabet (GOOG 736.08, -17.94) finished down 3.3% and 2.4%, respectively. Top-weighted Apple (AAPL 105.71, -2.72) declined 2.5%, extending its November loss to 6.9%.
Pharmaceutical names underperformed in the health care space (-0.3%) as the group pulled back from its recent winning streak. Dow component Pfizer (PFE 32.38, -0.21) finished lower by 0.6%, narrowing its November gain to 1.4%. On the other hand, the iShares Nasdaq Biotechnology ETF (IBB 293.09, +5.09) ended higher by 1.8%
The energy sector gained 0.3% despite a modest loss in crude oil futures. WTI crude ended its day lower by 0.2% ($43.30/bbl; -$0.09). However, it is worth noting that crude prices rebounded smartly from an earlier 2.8% decline after news reports suggested OPEC is working to narrow its divide with Iran and Iraq, prompting speculation that such efforts could bode well for formalizing a production cap agreement at the November 30 OPEC meeting.
Today's trading volume was above the average of 961 million as more than 1.16 billion shares changed hands at the NYSE floor.
There was no economic data of note released today.
Tomorrow's economic data include Retail Sales for October (Briefing.com consensus +0.6%), Import/Export Prices for October, and Empire Manufacturing for November (Briefing.com consensus -0.5), which will each cross the wires at 8:30 a.m. ET. The day's data will be capped off with Business Inventories for September (Briefing.com consensus 0.2%) at 10:00 a.m. ET.
- Russell 2000: +14.3% YTD
- Dow Jones: +8.3% YTD
- S&P 500: +5.9% YTD
- Nasdaq Composite: +4.2% YTD
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Economic Data
from Briefing.com
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Technical Update
DOW JONES INDUSTRIAL AVERAGE18868.69 +21.03 (+0.11%)
Volume: 112.25 Mil above average of 96.08 Mil
Range: 18815.75 - 18934.05
S&P500 INDEX
2164.2 -0.25 (-0.01%)
Volume: 798.24 Mil above average of 613.27 Mil
Range: 2156.08 - 2171.36
DOW JONES TRANSPORTATION AVERAGE
8765.71 +187.06 (+2.18%)
Volume: 19.05 Mil above average of 17.34 Mil
Range: 8602.71 - 8771.71
NASDAQ COMPOSITE
5218.399902 -18.71 (-0.36%)
Volume: 2369.19 Mil above average of 1876.47 Mil
Range: 5192.049805 - 5247.169922
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Market Internal
NYSE :Higher than average volume @ 1172.7M vs 919.8M
Advancers outpaced Decliners(adv/dec): 1590M/1437M
New highs outpaced low(high/low): 316/296
NASDAQ :
Higher than average volume @ 2358M vs 1846.2M
Advancers outpaced Decliners(adv/dec): 1668M/1163M
New highs outpaced low(high/low): 446/46
Advancers outpaced Decliners by 1.25 to 1 on higher volumes 3530.7 (+27.65%) than avg 2766 (+0.73%)
VOLATILITY S&P500 (VIX) :
14.5 +0.33 (+2.33%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Treasuries Slide Again
- The U.S. Treasury market took sharp losses today, pushing yields to fresh multi-month highs, but all of the losses happened in the overnight session and the market steadied itself during the day. There were no U.S. economic data releases today but Dallas Fed President Rob Kaplan said that the recent jump in yields does not yet mean anything for the direction of Fed policy and that a rate hike is likely in the near-term. Also, it now looks likely that Steven Mnuchin will be nominated to be the next secretary of the Treasury. The S&P 500 is up 0.06% to 2,165.7 and the U.S. Dollar Index is up 1.04% to 100.09. Breaking 100.51 would mark a fresh 13-year high for the index. U.S. retail sales data for October will be released Tuesday morning
- Yield Check:
- 2-yr: +5 bps to 0.97%
- 5-yr: +8 bps to 1.64%
- 10-yr: +7 bps to 2.22%
- 30-yr: +5 bps to 2.99%
- News:
- Dallas Fed President Rob Kaplan said that the Fed needs to find opportunities to hike interest rates. He said that he thinks the Fed will remove some accommodation in the near-term
- Kaplan went on to say that the recent rise in yields does not yet have implications for monetary policy
- Kaplan will vote on the FOMC in 2017
- Steven Mnuchin, a former partner at Goldman Sachs and founder of Dune Capital Management, will be recommended to head the U.S. Treasury by Donald Trump's transition team
- Dallas Fed President Rob Kaplan said that the Fed needs to find opportunities to hike interest rates. He said that he thinks the Fed will remove some accommodation in the near-term
- Commodities:
- WTI crude: +0.18% to $43.49/bbl.
- Gold: -0.47% to $1,218.6/troy oz.
- Copper: +0.44% to $2.52/lb.
- Currencies:
- EUR/USD: -1.16% to 1.0731
- USD/JPY: +1.73% to 108.49
- Data out Tuesday:
- October Retail Sales and Retail Sales ex-auto (08:30 ET)
- October Export Prices ex-ag. and Import Price ex-oil (08:30 ET)
- November Empire Manufacturing (08:30 ET)
- September Business Inventories (10:00 ET)
- Fed Speakers:
- Boston Fed President Rosengren (FOMC voter) (07:30 ET)
- Fed Vice Chair Fischer (FOMC voter) (13:30 ET)
Currencies
Commodities
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Preview: Tuesday, 15 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% |
Other Events of Interest
Earnings
Commentary
Boring directionless day for the market. Volumes still picking up, the bulls have become more tame, but the bears are not coming out to play yet - Internals are still more to the bullish side. Vix is gradually picking up again.
Direction for 15 November 2016: UP
Direction for 15 November 2016: UP
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