Market Summary
from Briefing.comIndustry Watch
Strong: Utilities, Real Estate, Telecom Services, Consumer Staples
Weak: Health Care, Financials, Consumer Discretionary, Industrials
- Expected profit-taking activity
- US Dollar Index remains near 14-yr high
- Crude oil rebounds amid renewed OPEC deal speculation
- European markets pull back
- Heavily-weighted health care, financials, consumer discretionary, and industrials underperform
[BRIEFING.COM] The stock market began the week on a lower note as the major averages consolidated after their post-election run. The Nasdaq Composite (-0.6%) settled slightly behind the S&P 500 (-0.5%). The domestically-oriented Russell 2000 (-1.3%), however, snapped a 15 session win streak.
Participants favored a cautious approach at the start of the week as volatility from the oil pit and concerns out of Europe kept risk appetite in check. This also encouraged some profit-taking activity as investors assessed whether the broader market has risen too far, too fast. The benchmark index has gained 3.6% so far this month while the Russell 2000 has surged 11.6% over that time.
Crude oil began the day on a modestly lower note as investors reassessed the likelihood of an OPEC supply cap agreement. Saudi Arabia made headlines last week by opting out of a meeting between OPEC and non-OPEC members. The move cast doubts on the country's willingness to agree to joint supply measures. However, carryover selling interest faded when Iraq indicated that it was willing to cooperate with its fellow producers. WTI crude ended the day higher by 2.5% ($47.11/bbl; +$1.15) after sinking 3.2% in the prior session. The oil collective is scheduled to meet in an official capacity on Wednesday.
Developments in Italy were also in focus as investors eyed a downturn in the country's banking names. Banca Monte dei Paschi di Siena tumbled 13.8% after the bank initiated a debt-for-equity swap and stated that it could face up to EUR8 billion in fines. The name also saw pressure ahead of the country's constitutional referendum. Italian citizens will vote on December 4 on whether the powers of the Senate should be reduced. Prime Minister Matteo Renzi stated that if the referendum should fail, he will resign.
The benchmark index finished near its session low with seven sectors ending in negative territory. The financial (-1.4%), energy (-1.3%), and health care (-0.9%) spaces outpaced today's losses in the broader market while rate-sensitive utilities (+2.0%), telecom services (+0.8%), and real estate (+0.2%) gained amid declining market rates.
The heavily-weighted financial sector (-1.4%) moved lower in sympathy with European banking names. The SPDR S&P Bank ETF (KBE 40.28, -0.73, -1.8%) narrowed its monthly gain to 16.2%. This compares to an advance of 11.9% in the broader sector. Heavily-weighted Wells Fargo (WFC 51.58,- 1.04) finished lower by 2.0% after being downgraded to "Hold" from "Buy" at Jefferies.
Biotechnology demonstrated relative weakness in the health care sector (-0.9%), evidenced by the 1.6% loss in the iShares Nasdaq Biotechnology ETF (IBB 279.99, -4.47). The ETF narrowed its November gain to 9.1% as investors continued to walk back their initial post-election assessment. Eli Lilly (LLY 67.20, -1.92) ended down 2.8% after being removed from the "US 1 List" at Bank of America/Merrill Lynch.
In the consumer discretionary space (-0.8%), retail names underperformed as the SPDR S&P Retail ETF (XRT 46.07, -0.57) declined by 1.2%. The ETF was under pressure as investors examined data from Black Friday and speculated on results from Cyber Monday. Kohl's (KSS 54.05, -0.76), Macy's (M 43.13, -1.01), and Nordstrom (JWN 56.06, -1.79) declined between 1.4% and 3.1%.
Treasuries ended on a higher note as longer-dated issues outperformed. The yield on the 2-yr note finished down two basis points (1.10%) while the yield on the benchmark 10-yr note fell five basis points to 2.31%.
Today's trading volume was below the recent average of 1.0 billion as fewer than 847 million shares changed hands at the NYSE floor.
There was no economic data of note released today.
Tuesday's economic data will include the second estimate of Q3 GDP (Briefing.com consensus 3.0%) and the Q3 GDP Deflator (Briefing.com consensus 1.5%), which will each cross the wires at 8:30 ET. Separately, the Case-Shiller 20-city Index for September (Briefing.com consensus 5.2%) and November Consumer Confidence (Briefing.com consensus 100.0) will be released at 9:00 ET and 10:00 ET, respectively.
Participants favored a cautious approach at the start of the week as volatility from the oil pit and concerns out of Europe kept risk appetite in check. This also encouraged some profit-taking activity as investors assessed whether the broader market has risen too far, too fast. The benchmark index has gained 3.6% so far this month while the Russell 2000 has surged 11.6% over that time.
Crude oil began the day on a modestly lower note as investors reassessed the likelihood of an OPEC supply cap agreement. Saudi Arabia made headlines last week by opting out of a meeting between OPEC and non-OPEC members. The move cast doubts on the country's willingness to agree to joint supply measures. However, carryover selling interest faded when Iraq indicated that it was willing to cooperate with its fellow producers. WTI crude ended the day higher by 2.5% ($47.11/bbl; +$1.15) after sinking 3.2% in the prior session. The oil collective is scheduled to meet in an official capacity on Wednesday.
Developments in Italy were also in focus as investors eyed a downturn in the country's banking names. Banca Monte dei Paschi di Siena tumbled 13.8% after the bank initiated a debt-for-equity swap and stated that it could face up to EUR8 billion in fines. The name also saw pressure ahead of the country's constitutional referendum. Italian citizens will vote on December 4 on whether the powers of the Senate should be reduced. Prime Minister Matteo Renzi stated that if the referendum should fail, he will resign.
The benchmark index finished near its session low with seven sectors ending in negative territory. The financial (-1.4%), energy (-1.3%), and health care (-0.9%) spaces outpaced today's losses in the broader market while rate-sensitive utilities (+2.0%), telecom services (+0.8%), and real estate (+0.2%) gained amid declining market rates.
The heavily-weighted financial sector (-1.4%) moved lower in sympathy with European banking names. The SPDR S&P Bank ETF (KBE 40.28, -0.73, -1.8%) narrowed its monthly gain to 16.2%. This compares to an advance of 11.9% in the broader sector. Heavily-weighted Wells Fargo (WFC 51.58,- 1.04) finished lower by 2.0% after being downgraded to "Hold" from "Buy" at Jefferies.
Biotechnology demonstrated relative weakness in the health care sector (-0.9%), evidenced by the 1.6% loss in the iShares Nasdaq Biotechnology ETF (IBB 279.99, -4.47). The ETF narrowed its November gain to 9.1% as investors continued to walk back their initial post-election assessment. Eli Lilly (LLY 67.20, -1.92) ended down 2.8% after being removed from the "US 1 List" at Bank of America/Merrill Lynch.
In the consumer discretionary space (-0.8%), retail names underperformed as the SPDR S&P Retail ETF (XRT 46.07, -0.57) declined by 1.2%. The ETF was under pressure as investors examined data from Black Friday and speculated on results from Cyber Monday. Kohl's (KSS 54.05, -0.76), Macy's (M 43.13, -1.01), and Nordstrom (JWN 56.06, -1.79) declined between 1.4% and 3.1%.
Treasuries ended on a higher note as longer-dated issues outperformed. The yield on the 2-yr note finished down two basis points (1.10%) while the yield on the benchmark 10-yr note fell five basis points to 2.31%.
Today's trading volume was below the recent average of 1.0 billion as fewer than 847 million shares changed hands at the NYSE floor.
There was no economic data of note released today.
Tuesday's economic data will include the second estimate of Q3 GDP (Briefing.com consensus 3.0%) and the Q3 GDP Deflator (Briefing.com consensus 1.5%), which will each cross the wires at 8:30 ET. Separately, the Case-Shiller 20-city Index for September (Briefing.com consensus 5.2%) and November Consumer Confidence (Briefing.com consensus 100.0) will be released at 9:00 ET and 10:00 ET, respectively.
- Russell 2000: +17.0% YTD
- Dow Jones: +9.6% YTD
- S&P 500: +7.7% YTD
- Nasdaq Composite : +7.2% YTD
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Economic Data
from Briefing.com-
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Technical Update
DOW JONES INDUSTRIAL AVERAGE19097.9 -54.24 (-0.28%)
Volume: 88.46 Mil below average of 95.18 Mil
Range: 19072.25 - 19138.72
S&P500 INDEX
2201.72 -11.63 (-0.53%)
Volume: 562.05 Mil below average of 610.46 Mil
Range: 2200.36 - 2211.14
DOW JONES TRANSPORTATION AVERAGE
8962.46 -81.75 (-0.90%)
Volume: 16.08 Mil below average of 17.25 Mil
Range: 8933.34 - 9029.59
NASDAQ COMPOSITE
5368.810059 -30.11 (-0.56%)
Volume: 1625.62 Mil below average of 1819.38 Mil
Range: 5364.910156 - 5396.27002
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Market Internal
NYSE :Lower than average volume @ 852.4M vs 921.9M
Decliners outpaced Advancers(adv/dec): 995M/1973M
New highs outpaced low(high/low): 126/13
NASDAQ :
Lower than average volume @ 1613.4M vs 1842.3M
Decliners outpaced Advancers(adv/dec): 853M/2000M
New highs outpaced low(high/low): 219/25
Decliners outpaced Advancers by 2.15 to 1 on lower volumes 2465.8 ( -10.80%) than avg 2764 (-0.27%)
VOLATILITY S&P500 (VIX) :
13.15 +0.81 (+6.56%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Treasuries Rally in Uneventful Session
- The 5 and 10-year notes led the Treasury market higher today during a session with no significant U.S. economic releases. The S&P 500 slipped 0.34% to 2,205.9 and the U.S. Dollar Index is down 0.18% to 101.31, modestly reversing strong uptrends following the November 8 U.S. election. Most of the headlines today were focused on the possibility of an agreement among OPEC producers to limit or reduce supply at their meeting on Wednesday. WTI crude now trades up 1.69% to $46.84/bbl., down from an intraday high of $47.65. On Tuesday morning, investors will see the second official estimate of Q3 U.S. GDP growth and hear remarks from two voters on the FOMC -- Vice Fed Chair Fischer and New York Fed President Dudley
- Yield Check:
- 2-yr: unch at 1.11%
- 5-yr: -3 bps to 1.80%
- 10-yr: -4 bps to 2.32%
- 30-yr: -3 bps to 2.98%
- News:
- The Dallas Fed's Manufacturing Business Index jumped to 10.2 for November from -1.5 for October, its highest level in two years
- European Central Bank President Mario Draghi said today that the eurozone economy has proven resilient in 2016 and that the global economy should continue to recover. He said that much of the eurozone recovery can be attributed to ECB policy
- ECB Executive Board Member Benoit Coeure said today that the central bank will undertake its own independent assessment of Greece's debt sustainability before including the country's obligations in the EUR80 bln/month asset purchase program
- The Dallas Fed's Manufacturing Business Index jumped to 10.2 for November from -1.5 for October, its highest level in two years
- Commodities:
- WTI crude: +1.69% to $46.84/bbl.
- Gold: +1.15% to $1,192/troy oz.
- Copper: -0.60% to $2.652/lb.
- Currencies:
- EUR/USD: +0.02% to 1.0596
- USD/JPY: -0.87% to 112.28
- Data out Tuesday:
- Q3 GDP and GDP Deflator -- Second Estimate (08:30 ET)
- September Case-Shiller 20-City Index (09:00 ET)
- November Consumer Confidence (10:00 ET
- Fed Speakers:
- Vice Fed Chair Fischer (FOMC voter) (07:45 ET)
- New York Fed President Dudley (09:15 ET) (FOMC voter)
Currencies
Commodities
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Preview: Tuesday, 29 November 2016
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 29 | 08:30 | GDP - Second Estimate | Q3 | 2.9% | 3.0% | 2.9% | ||
| Nov 29 | 08:30 | GDP Deflator - Second Estimate | Q3 | 1.5% | 1.5% | 1.5% | ||
| Nov 29 | 09:00 | Case-Shiller 20-city Index | Sep | 5.2% | 5.2% | 5.1% | ||
| Nov 29 | 10:00 | Consumer Confidence | Nov | 101.0 | 100.0 | 98.6 |
Other Events of Interest
Earnings
Commentary
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Direction for Week of 29 November 2016: DOWN
Direction for Week of 29 November 2016: DOWN
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