Market Summary
from Briefing.comIndustry Watch
Strong: Telecom Services, Real Estate, Consumer Discretionary, Consumer Staples, Industrials, Utilities
Weak: Health Care, Energy
- Carryover momentum from yesterday's all-time high
- Crude oil pulls back amid OPEC concerns
- Positive bias in global markets
- Longer-dated bonds pull back
- Heavily-weighted health care underperforms
[BRIEFING.COM] The stock market ended the Tuesday affair on a modestly higher note with the Dow Jones Industrial Average (+0.4%), Nasdaq Composite (+0.3%), and S&P 500 (+0.2%) carving out fresh record highs. The domestically-oriented Russell 2000 (+0.9%) also notched a new all-time high, extending its November gain to 12.0%.
Equity indices jumped out of the gate as a positive tilt in global markets helped Wall Street build on yesterday's gain. However, the broader market pulled back after the opening hour, as crude oil extended its loss. The energy component was under pressure as participants continued assessing the likelihood of an OPEC supply cap agreement. Reports circulated this afternoon that Iran, Iraq, and Indonesia have expressed some misgivings about their participation in a proposed deal. The oil collective is scheduled to meet on November 30 to vote on potential supply control measures. WTI crude finished down 0.4% ($48.07/bbl; -$0.20).
The major averages were able to inch higher in the afternoon as the heavily-weighted consumer discretionary sector (+1.2%) and industrials (+0.5%) outperformed. Meanwhile, the economically-sensitive financial group (+0.1%) erased a slim loss despite modest flattening in the yield curve.
The S&P 500 (+0.2%) settled near its best level of the day, staying above the 2200 price level, which was revisited a few times during the session. Nine sectors ended in the green with telecom services (+2.1%), real estate (+1.7%), and consumer discretionary (+1.2%) outperforming. Conversely, health care (-1.4%) and energy (UNCH) ended with the only losses.
In the health care space (-1.4%), Medtronic (MDT 73.60, -6.98) tumbled 8.7% after the company reported some mixed quarterly results and provided below-consensus earnings guidance for fiscal year 2017. Meanwhile, biotechnology continued to give back some of its post-election gain as the iShares Nasdaq Biotechnology ETF (IBB 281.36, -5.35) fell 1.9%. The ETF rallied in the wake of the election as participants dialed back concerns about a possible introduction of price controls.
Retail names displayed relative strength in the consumer discretionary space (+1.2%) as the SPDR S&P Retail ETF (XRT 46.60, +1.06) gained 2.3%. Home improvement retailers outperformed on the heels of some better-than-expected housing data. Separately, discount retailer Dollar Tree (DLTR 88.68, +6.69) surged 8.2% after reporting mixed quarterly results and guiding fourth-quarter revenue near the high end of consensus estimates.
The high-beta chipmakers outperformed in the technology sector (+0.1%), evidenced by the 1.1% gain in the PHLX Semiconductor Index. Analog Devices (ADI 72.89, +3.07, +4.4%) led the index after the company beat analysts' estimates for the fourth quarter and issued upbeat revenue guidance for the first quarter.
In the financial sector (+0.1%), banking names led as the SPDR S&P Bank ETF (KBE 40.73, +0.23) finished higher by 0.6%. Separately, credit service names finished on a lower note with Visa (V 79.93, -1.76) falling 2.2%. The stock was under pressure after the company agreed to remedial actions related to the EMV transition in the United States.
Treasuries were little changed with the yield on the 2-yr note finishing flat at 1.08% while the yield on the benchmark 10-yr note slipped one basis point to 2.31%.
Today's trading volume was below the recent average of one billion as fewer than 893 million shares changed hands at the NYSE floor.
Today's economic data was limited to the Existing Home Sales Report for October:
Equity indices jumped out of the gate as a positive tilt in global markets helped Wall Street build on yesterday's gain. However, the broader market pulled back after the opening hour, as crude oil extended its loss. The energy component was under pressure as participants continued assessing the likelihood of an OPEC supply cap agreement. Reports circulated this afternoon that Iran, Iraq, and Indonesia have expressed some misgivings about their participation in a proposed deal. The oil collective is scheduled to meet on November 30 to vote on potential supply control measures. WTI crude finished down 0.4% ($48.07/bbl; -$0.20).
The major averages were able to inch higher in the afternoon as the heavily-weighted consumer discretionary sector (+1.2%) and industrials (+0.5%) outperformed. Meanwhile, the economically-sensitive financial group (+0.1%) erased a slim loss despite modest flattening in the yield curve.
The S&P 500 (+0.2%) settled near its best level of the day, staying above the 2200 price level, which was revisited a few times during the session. Nine sectors ended in the green with telecom services (+2.1%), real estate (+1.7%), and consumer discretionary (+1.2%) outperforming. Conversely, health care (-1.4%) and energy (UNCH) ended with the only losses.
In the health care space (-1.4%), Medtronic (MDT 73.60, -6.98) tumbled 8.7% after the company reported some mixed quarterly results and provided below-consensus earnings guidance for fiscal year 2017. Meanwhile, biotechnology continued to give back some of its post-election gain as the iShares Nasdaq Biotechnology ETF (IBB 281.36, -5.35) fell 1.9%. The ETF rallied in the wake of the election as participants dialed back concerns about a possible introduction of price controls.
Retail names displayed relative strength in the consumer discretionary space (+1.2%) as the SPDR S&P Retail ETF (XRT 46.60, +1.06) gained 2.3%. Home improvement retailers outperformed on the heels of some better-than-expected housing data. Separately, discount retailer Dollar Tree (DLTR 88.68, +6.69) surged 8.2% after reporting mixed quarterly results and guiding fourth-quarter revenue near the high end of consensus estimates.
The high-beta chipmakers outperformed in the technology sector (+0.1%), evidenced by the 1.1% gain in the PHLX Semiconductor Index. Analog Devices (ADI 72.89, +3.07, +4.4%) led the index after the company beat analysts' estimates for the fourth quarter and issued upbeat revenue guidance for the first quarter.
In the financial sector (+0.1%), banking names led as the SPDR S&P Bank ETF (KBE 40.73, +0.23) finished higher by 0.6%. Separately, credit service names finished on a lower note with Visa (V 79.93, -1.76) falling 2.2%. The stock was under pressure after the company agreed to remedial actions related to the EMV transition in the United States.
Treasuries were little changed with the yield on the 2-yr note finishing flat at 1.08% while the yield on the benchmark 10-yr note slipped one basis point to 2.31%.
Today's trading volume was below the recent average of one billion as fewer than 893 million shares changed hands at the NYSE floor.
Today's economic data was limited to the Existing Home Sales Report for October:
- Existing home sales increased 2.0% to a seasonally adjusted annual rate of 5.60 million in October from an upwardly revised 5.49 million (from 5.47 million) in September.
- The October uptick represented the second consecutive monthly increase, following declines in July and August.
- Russell 2000: +17.3% YTD
- Dow Jones: +9.2% YTD
- S&P 500: +7.8% YTD
- Nasdaq Composite: +7.6% 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 22 | 10:00 | Existing Home Sales | Oct | 5.60M | 5.38M | 5.40M | 5.49M | 5.47M |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE19023.87 +67.18 (+0.35%)
Volume: 85.31 Mil below average of 97.12 Mil
Range: 18962.82 - 19043.9
S&P500 INDEX
2202.94 +4.76 (+0.22%)
Volume: 593.60 Mil below average of 620.22 Mil
Range: 2194.51 - 2204.8
DOW JONES TRANSPORTATION AVERAGE
8911.48 +14.14 (+0.16%)
Volume: 14.24 Mil below average of 17.63 Mil
Range: 8892.47 - 8943.42
NASDAQ COMPOSITE
5386.350098 +17.49 (+0.33%)
Volume: 1886.80 Mil above average of 1876.52 Mil
Range: 5365.600098 - 5392.259766
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Market Internal
NYSE :Lower than average volume @ 899.9M vs 925.9M
Advancers outpaced Decliners(adv/dec): 2097M/880M
New highs outpaced low(high/low): 258/18
NASDAQ :
Higher than average volume @ 1874.4M vs 1851.7M
Advancers outpaced Decliners(adv/dec): 1763M/1072M
New highs outpaced low(high/low): 369/24
Advancers outpaced Decliners by 1.98 to 1 on lower volumes 2774.3 ( -0.12%) than avg 2778 (-0.30%)
VOLATILITY S&P500 (VIX) :
12.41 -0.01 (-0.08%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Strong Home Sales Weigh on Treasuries
- The U.S. Treasury market lost a bit of ground today as better-than-expected existing home sales data for October helped encourage investors that U.S. Q4 GDP growth will be significantly better than the first three quarters of 2016. While industrial production growth, the PPI, and the CPI came up slightly short last month, housing starts and retail sales performed quite well. These positive surprises all but guarantee a rate hike at the December 13-14 FOMC meeting, according to the Fed funds futures market. There is a raft of U.S. economic data due out on Wednesday ahead of the Thanksgiving holiday of which the October New Home Sales and Durable Goods reports are the most prominent. The U.S. Dollar Index is unchanged at 101.05 and the S&P 500 is up 0.16% to 2,201.6
- Yield Check:
- 2-yr: +1 bp to 1.09%
- 5-yr: +1 bp to 1.78%
- 10-yr: unch at 2.32%
- 30-yr: +1 bp to 3.00%
- News:
- U.S. existing homes sales climbed to a seasonally adjusted annual rate of 5.6M during October, beating the Briefing.com consensus of 5.4M. September's reading was revised up to 5.49M from 5.47M
October's pace was near a 10-year high- The median selling price was up 6% y/y to $232,200
- First-time homebuyers accounted for 33% of purchases, down from 34% in September
- The Richmond Fed's Manufacturing Index rose to 4 for November from -4 for October, beating estimates
- The Services Index fell to 3 from 7
- The Philadelphia Fed's Non-Manufacturing Index fell to 10.6 for November from 21.3 in October
- $34 bln 5-year Treasury auction
- High yield: 1.760% (0.3-basis point tail)
- Bid-to-cover: 2.44
- Indirect bid: 59.8%
- Direct bid: 4.5%
- U.S. existing homes sales climbed to a seasonally adjusted annual rate of 5.6M during October, beating the Briefing.com consensus of 5.4M. September's reading was revised up to 5.49M from 5.47M
- Commodities:
- WTI crude: -0.48% to $48.01/bbl.
- Gold: +0.05% to $1,210.4/troy oz.
- Copper: +1.17% to $2.5445/lb.
- Currencies:
- EUR/USD: -0.22% to 1.0623
- USD/JPY: +0.68% to 111.17
- Data out Wednesday:
- MBA Mortgage Index for the week ending 11/19 (07:00 ET)
- Initial Jobless Claims for the week ending 11/19 and Continuing Jobless Claims for the week ending 11/12 (08:30 ET)
- October Durable Goods Orders and Durable Goods ex-trans (08:30 ET)
- September FHFA Housing Price Index (09:00 ET)
- October New Home Sales (10:00 ET)
- November Michigan Sentiment – Final (10:00 ET)
- Crude Inventories for the week ending 11/19 (10:30 ET)
- Natural Gas Inventories for the week ending 11/19 (12:00 ET)
- November FOMC Minutes (14:00 ET)
- Treasury Auction:
- $28 bln 7-year Treasury auction (results at 13:00 ET)
Currencies
Commodities
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Preview: Wednesday, 23 November 2016
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 23 | 07:00 | MBA Mortgage Index | 11/19 | NA | NA | -9.2% | ||
| Nov 23 | 08:30 | Initial Claims | 11/19 | 245K | 243K | 235K | ||
| Nov 23 | 08:30 | Continuing Claims | 11/12 | NA | NA | 1977K | ||
| Nov 23 | 08:30 | Durable Orders | Oct | 2.2% | 1.1% | -0.1% | ||
| Nov 23 | 08:30 | Durable Orders, Ex- Transportation | Oct | 0.2% | 0.3% | 0.2% | ||
| Nov 23 | 09:00 | FHFA Housing Price Index | Sep | NA | NA | 0.7% | ||
| Nov 23 | 10:00 | New Home Sales | Oct | 580K | 587K | 593K | ||
| Nov 23 | 10:00 | Michigan Sentiment - Final | Nov | 91.8 | 91.6 | 91.6 | ||
| Nov 23 | 10:30 | Crude Inventories | 11/19 | NA | NA | 5.274M | ||
| Nov 23 | 12:00 | Natural Gas Inventories | 11/19 | NA | NA | 30 bcf | ||
| Nov 23 | 14:00 | FOMC Minutes | Nov 2 | NA | NA | NA |
Other Events of Interest
Earnings
Commentary
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Direction for 23 November 2016: UP
Direction for 23 November 2016: UP
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