Market Summary
from Briefing.comIndustry Watch
Strong: Financials, Technology, Health Care, Real Estate
Weak: Energy, Consumer Staples, Telecom Services
- Broad market strength overshadows weakness in energy
- Crude oil pressured amid concerns about the likelihood of an OPEC supply cap being announced tomorrow
[BRIEFING.COM] The stock market appeared to be on track for a swift recovery from a Monday dip, but a pullback during the final hour made the rebound appear not nearly as swift. The Nasdaq Composite displayed relative strength, adding 0.2% after an intraday probe of its record high from Friday. The S&P 500 underperformed, ticking up 0.1%.
Equity indices started the day on a flat note, but heavily-weighted sectors like health care (+0.7%), financials (+0.2%), and technology (+0.2%) saw buying interest from the start, which was enough to improve sentiment around other sectors. The energy space (-1.2%) was the only laggard of note, responding to headlines that cast doubt on the likelihood of an OPEC supply cut agreement.
Better than expected economic data was peppered into the pre-market mix that was pretty bland otherwise. Third-quarter GDP was revised up to 3.2% from 2.9% (Briefing.com consensus 3.0%), driven by an upward revision to personal expenditures growth. Separately, the November Consumer Confidence report (107.1; Briefing.com consensus 100.0) soared past estimates, even though the bulk of the survey was conducted amid pre-election uncertainty.
With no red flags on the economic front, stocks climbed in methodical fashion, overcoming weakness in the energy sector (-1.2%). The growth-sensitive group was down more than 2.0% at the start, briefly testing its 50-day moving average, as crude oil stumbled ahead of tomorrow's OPEC meeting in Vienna.
WTI crude settled lower by 3.9% at $45.27/bbl, retreating amid headlines with bearish implications. Iranian oil minister Bijan Zanganeh said that his country will not take part in any production cuts. Given similar reluctance among other oil producers, the market is adjusting to reduced hopes for a supply cut being announced after tomorrow's meeting.
On the upside, the health care sector (+0.7%) maintained its early strength, bolstered by biotech names and Dow component UnitedHealth (UNH 157.59, +5.48). The iShares Nasdaq Biotechnology ETF (IBB 280.40, +0.41) slipped into the close, adding just 0.2%, while UnitedHealth jumped 3.6% after guiding earnings and revenue for fiscal year 2017 ahead of market expectations.
Health care was edged out slightly by another countercyclical group—real estate (+0.7%)—which displayed strength even as Treasuries retreated during morning action. Moving down the leaderboard, utilities (+0.3%) held a modest gain throughout the day while financials (+0.2%) and technology (+0.2%) trimmed their gains during the final hour of action, causing a pullback in the broader market.
Elsewhere, the consumer discretionary sector (+0.2%) settled in line with the benchmark index, which masked a 3.2% spike in the shares of Tiffany (TIF 80.60, +2.46), brought on by better than expected results and reaffirmed guidance.
Treasuries dipped in morning action, but climbed throughout the session to end with gains. The benchmark 10-yr yield slipped one basis point to 2.30% while the 30-yr yield slid three basis points to 2.95%.
Intraday trading volume was below average, but final-hour selling brought the NYSE floor total up to 901 million.
Economic data included Q3 GDP, Case-Shiller 20-city Index, and Consumer Confidence:
Equity indices started the day on a flat note, but heavily-weighted sectors like health care (+0.7%), financials (+0.2%), and technology (+0.2%) saw buying interest from the start, which was enough to improve sentiment around other sectors. The energy space (-1.2%) was the only laggard of note, responding to headlines that cast doubt on the likelihood of an OPEC supply cut agreement.
Better than expected economic data was peppered into the pre-market mix that was pretty bland otherwise. Third-quarter GDP was revised up to 3.2% from 2.9% (Briefing.com consensus 3.0%), driven by an upward revision to personal expenditures growth. Separately, the November Consumer Confidence report (107.1; Briefing.com consensus 100.0) soared past estimates, even though the bulk of the survey was conducted amid pre-election uncertainty.
With no red flags on the economic front, stocks climbed in methodical fashion, overcoming weakness in the energy sector (-1.2%). The growth-sensitive group was down more than 2.0% at the start, briefly testing its 50-day moving average, as crude oil stumbled ahead of tomorrow's OPEC meeting in Vienna.
WTI crude settled lower by 3.9% at $45.27/bbl, retreating amid headlines with bearish implications. Iranian oil minister Bijan Zanganeh said that his country will not take part in any production cuts. Given similar reluctance among other oil producers, the market is adjusting to reduced hopes for a supply cut being announced after tomorrow's meeting.
On the upside, the health care sector (+0.7%) maintained its early strength, bolstered by biotech names and Dow component UnitedHealth (UNH 157.59, +5.48). The iShares Nasdaq Biotechnology ETF (IBB 280.40, +0.41) slipped into the close, adding just 0.2%, while UnitedHealth jumped 3.6% after guiding earnings and revenue for fiscal year 2017 ahead of market expectations.
Health care was edged out slightly by another countercyclical group—real estate (+0.7%)—which displayed strength even as Treasuries retreated during morning action. Moving down the leaderboard, utilities (+0.3%) held a modest gain throughout the day while financials (+0.2%) and technology (+0.2%) trimmed their gains during the final hour of action, causing a pullback in the broader market.
Elsewhere, the consumer discretionary sector (+0.2%) settled in line with the benchmark index, which masked a 3.2% spike in the shares of Tiffany (TIF 80.60, +2.46), brought on by better than expected results and reaffirmed guidance.
Treasuries dipped in morning action, but climbed throughout the session to end with gains. The benchmark 10-yr yield slipped one basis point to 2.30% while the 30-yr yield slid three basis points to 2.95%.
Intraday trading volume was below average, but final-hour selling brought the NYSE floor total up to 901 million.
Economic data included Q3 GDP, Case-Shiller 20-city Index, and Consumer Confidence:
- The second estimate for third quarter GDP showed growth was revised up to an annual rate of 3.2% (Briefing.com consensus 3.0%) from 2.9% in the advance estimate while the GDP Deflator was revised down to 1.4% (Briefing.com consensus 1.5%) from 1.5%
- The Case-Shiller 20-city Index for September showed an increase of 5.1% while the Briefing.com consensus expected a reading of 5.2%
- The Conference Board's Consumer Confidence Index surged to 107.1 in November (Briefing.com consensus 100.0) from an upwardly revised 100.8 (from 98.6) in October
- Russell 2000 +16.9% YTD
- Dow Jones Industrial Average +9.7% YTD
- S&P 500 +7.9% YTD
- Nasdaq Composite +7.4% 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 29 | 08:30 | GDP - Second Estimate | Q3 | 3.2% | 2.9% | 3.0% | 2.9% | |
| Nov 29 | 08:30 | GDP Deflator - Second Estimate | Q3 | 1.4% | 1.5% | 1.5% | 1.5% | |
| Nov 29 | 09:00 | Case-Shiller 20-city Index | Sep | 5.1% | 5.2% | 5.2% | 5.1% | -- |
| Nov 29 | 10:00 | Consumer Confidence | Nov | 107.1 | 101.0 | 100.0 | 100.8 | 98.6 |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE19121.6 +23.70 (+0.12%)
Volume: 81.51 Mil below average of 91.38 Mil
Range: 19062.22 - 19144.4
S&P500 INDEX
2204.66 +2.94 (+0.13%)
Volume: 578.28 Mil below average of 592.22 Mil
Range: 2198.15 - 2210.46
DOW JONES TRANSPORTATION AVERAGE
8943.58 -18.88 (-0.21%)
Volume: 14.13 Mil below average of 16.69 Mil
Range: 8938.43 - 8991.61
NASDAQ COMPOSITE
5379.919922 +11.11 (+0.21%)
Volume: 1788.79 Mil below average of 1819.33 Mil
Range: 5360.560059 - 5403.859863
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Market Internal
NYSE :Lower than average volume @ 912.2M vs 922.4M
Decliners outpaced Advancers(adv/dec): 1432M/1520M
New highs outpaced low(high/low): 127/26
NASDAQ :
Lower than average volume @ 1763M vs 1835.9M
Decliners outpaced Advancers(adv/dec): 1372M/1436M
New highs outpaced low(high/low): 199/35
Decliners outpaced Advancers by 1.05 to 1 on lower volumes 2675.2 ( -3.01%) than avg 2758 (-0.21%)
VOLATILITY S&P500 (VIX) :
12.9 -0.25 (-1.90%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Yield Curve Flattens as Oil Drops, GDP Gets Revised Up
- The U.S. Treasury market moved higher today in a curve-flattening trade as oil prices declined on skepticism that a strong supply-cut agreement will be reached at Wednesday's OPEC meeting. The U.S. economic data was better than expected. Q3 U.S. GDP growth was revised up to a 3.2% annualized rate from the initial estimate of 2.9% and the Conference Board's Consumer Confidence Index jumped to its best level since August 2007. Fed Governor Jerome Powell said today that the case for a Fed rate hike has "clearly strengthened" since the November FOMC meeting, which just confirms what everybody knew -- the Fed will hike on December 14. The S&P 500 is up 9.15% to 2,205 and the U.S. Dollar Index is down 0.36% to 100.97
- Yield Check:
- 2-yr: unch at 1.10%
- 5-yr: -1 bp to 1.79%
- 10-yr: -1 bps to 2.30%
- 30-yr: -3 bps to 2.95%
- News:
- U.S. GDP growth for Q3 was revised up to a 3.2% seasonally adjusted annualized rate (SAAR) from the first estimate of 2.9%. The Briefing.com consensus was 3.0%
- Personal consumption rose at a 2.8% SAAR, revised up from 2.1%
- The GDP deflator or the GDP price index rose 1.4%, missing the Briefing.com consensus of 1.5%. The first estimate of the GDP deflator was 1.5%
- Final sales to domestic purchasers were up 1.7%, revised up from 1.4%. Stripping out inventory fluctuations and trade helps to smooth the data
- The Case-Shiller 20-city index of U.S. home prices rose 5.1% y/y in September, missing the Briefing.com consensus of 5.2%. August's growth was 5.1%
- The Conference Board's Consumer Confidence Index jumped to a nine-year high of 107.1 for November from 100.8 for October. The Briefing.com consensus was 100.0
- Fed Governor Jerome Powell (FOMC voter) said this afternoon that the case for a Fed rate hike had "clearly strengthened" since the November FOMC meeting
- Powell went on to say that the main risks to his U.S. GDP growth forecast of 2% comes from abroad
- U.S. GDP growth for Q3 was revised up to a 3.2% seasonally adjusted annualized rate (SAAR) from the first estimate of 2.9%. The Briefing.com consensus was 3.0%
- Commodities:
- WTI crude: -3.74% to $45.32/bbl.
- Gold: -0.22% to $1,188.2/troy oz.
- Copper: -2.34% to $2.608/lb.
- Currencies:
- EUR/USD: +0.26% to 1.0643
- USD/JPY: +0.43% to 112.38
- Data out Wednesday:
- MBA Mortgage Index for the week ending 11/26 (07:00 ET)
- November ADP Employment Change (08:15 ET)
- October Personal Income and Spending (08:30 ET)
- October Core PCE Price Index (08:30 ET)
- November Chicago PMI (09:45 ET)
- October Pending Home Sales (10:00 ET)
- Crude Inventories for the week ending 11/26 (10:30 ET)
- November Fed's Beige Book (14:00 ET)
- Fed Speakers:
- Dallas Fed President Kaplan (FOMC voter in 2017) (08:00 ET)
- Fed Governor Powell (FOMC voter) (09:15 ET)
- Cleveland Fed President Mester (FOMC voter in 2016)
Currencies
Commodities
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Preview: Wednesday, 30 November 2016
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 30 | 07:00 | MBA Mortgage Index | 11/26 | NA | NA | -5.5% | ||
| Nov 30 | 08:15 | ADP Employment Change | Nov | 153K | 160K | 147K | ||
| Nov 30 | 08:30 | Personal Income | Oct | 0.3% | 0.4% | 0.3% | ||
| Nov 30 | 08:30 | Personal Spending | Oct | 0.4% | 0.5% | 0.5% | ||
| Nov 30 | 08:30 | Core PCE Price Index | Oct | 0.1% | 0.1% | 0.1% | ||
| Nov 30 | 09:45 | Chicago PMI | Nov | 51.4 | 52.0 | 50.6 | ||
| Nov 30 | 10:00 | Pending Home Sales | Oct | 1.0% | 0.7% | 1.5% | ||
| Nov 30 | 10:30 | Crude Inventories | 11/26 | NA | NA | -1.255M | ||
| Nov 30 | 14:00 | Fed's Beige Book | Nov | NA | NA | NA |
Other Events of Interest
Earnings
Commentary
Divergent market internals on low volumes, we are not going anywhere. Probably in a consolidation after the post-election rally.
Direction for 30 November 2016: Down
Direction for 30 November 2016: Down
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