Market Summary
from Briefing.comIndustry Watch
Strong: Industrials, Technology, Utilities, Consumer Discretionary
Weak: Energy
- Caution ahead of US election results
- Crude oil rebounds
- China's October exports fall 7.3% year-over-year (consensus -6.0%; last -10.0%)
- Quarterly results continue to pour in
- Heavily-weighted industrials and consumer discretionary outperform
[BRIEFING.COM] The major averages ended the Tuesday affair on a modestly higher note as participants awaited tonight's conclusion of a contentious US election cycle. The Nasdaq Composite (+0.5%) finished ahead of both the Dow Jones Industrial Average (+0.4%) and the S&P 500 (+0.4%).
Equity indices spun their wheels at the start of the session as rising bond prices and a modest loss in the U.S. Dollar Index (97.95, +0.17, +0.17%) signaled caution ahead of this evening's election results. The pause proved to be short-lived, however, as yesterday's risk rally resumed after the opening hour. Growth-sensitive groups and crude oil led the advance during this time, benefiting from some pre-election positioning.
The broader market maintained the positive tone into the afternoon amid speculation that Hillary Clinton would come away victorious despite the recent FBI scare. Recall that yesterday the S&P 500 snapped a nine-session losing streak after FBI Director James Comey confirmed that he will not recommend pursuing criminal charges against Democratic presidential nominee Hillary Clinton for mishandling of classified information and the use of a private email server. At the same time, market and political pundits suggested that the market also gained on the assumption that the GOP could manage to retain control of one, if not both houses, of Congress. The resulting gridlock would be welcomed by the market while a clean sweep by either party would lead to more uncertainty.
The broader market wavered in the last two hours of action, but the S&P 500 still settled in the top half of today's range. Ten of eleven sectors finished with gains, paced by defensively-oriented utilities (+0.7%) and telecom services (+0.6%). Heavily-weighted consumer discretionary (+0.6%) and industrials (+0.5%) followed.
Travel and leisure names outperformed in the consumer discretionary space (+0.6%) as Priceline Group (PCLN 1578.13, +97.80) rallied 6.6%. The company beat top- and bottom-line estimates for the quarter. Shares of Marriott (MAR 73.02, +1.92, +2.7%) also outperformed after the hotel operator beat consensus estimates for their quarter. However, it is worth noting that the company also issued cautious fourth-quarter earnings guidance.
In the industrial sector (+0.5%), machinery names outperformed with Dow components Caterpillar (CAT 84.68, +0.93) and 3M (MMM 171.03,+ 1.29) gaining 1.7% and 0.8%, respectively. Separately, the Dow Jones Transportation Average (UNCH) finished flat even though UPS (UPS 112.03, +2.23) climbed 2.0%.
Biotechnology finished in-line with the health care sector (+0.2%), evidenced by the 0.2% gain in the iShares Nasdaq Biotechnology ETF (IBB 261.62, +0.45). Mylan (MYL 37.11, +0.52) gained 1.4%, shrugging off reports that members of the Senate Judiciary Committee are calling on the Federal Trade Commission to bring antitrust charges against the company.
The commodity-sensitive energy sector (UNCH) inched lower despite rising crude oil futures. WTI crude ended up 0.3% ($44.95/bbl; +$0.13) ahead of this evening's inventory data from the American Petroleum Institute. The Department of Energy will release its more influential inventory data tomorrow morning at 10:30 ET.
Treasuries finished on a lower note as the short end of the curve underperformed. The yield on the 2-yr note finished higher by three basis points (0.85%) while the yield on the 10-yr note also ended up three basis points (1.86%).
Today's trading volume was above the average of 861 million as more than 869 million shares changed hands at the NYSE floor.
Today's economic data was limited to the Job Openings and Labor Turnover Survey for September:
Equity indices spun their wheels at the start of the session as rising bond prices and a modest loss in the U.S. Dollar Index (97.95, +0.17, +0.17%) signaled caution ahead of this evening's election results. The pause proved to be short-lived, however, as yesterday's risk rally resumed after the opening hour. Growth-sensitive groups and crude oil led the advance during this time, benefiting from some pre-election positioning.
The broader market maintained the positive tone into the afternoon amid speculation that Hillary Clinton would come away victorious despite the recent FBI scare. Recall that yesterday the S&P 500 snapped a nine-session losing streak after FBI Director James Comey confirmed that he will not recommend pursuing criminal charges against Democratic presidential nominee Hillary Clinton for mishandling of classified information and the use of a private email server. At the same time, market and political pundits suggested that the market also gained on the assumption that the GOP could manage to retain control of one, if not both houses, of Congress. The resulting gridlock would be welcomed by the market while a clean sweep by either party would lead to more uncertainty.
The broader market wavered in the last two hours of action, but the S&P 500 still settled in the top half of today's range. Ten of eleven sectors finished with gains, paced by defensively-oriented utilities (+0.7%) and telecom services (+0.6%). Heavily-weighted consumer discretionary (+0.6%) and industrials (+0.5%) followed.
Travel and leisure names outperformed in the consumer discretionary space (+0.6%) as Priceline Group (PCLN 1578.13, +97.80) rallied 6.6%. The company beat top- and bottom-line estimates for the quarter. Shares of Marriott (MAR 73.02, +1.92, +2.7%) also outperformed after the hotel operator beat consensus estimates for their quarter. However, it is worth noting that the company also issued cautious fourth-quarter earnings guidance.
In the industrial sector (+0.5%), machinery names outperformed with Dow components Caterpillar (CAT 84.68, +0.93) and 3M (MMM 171.03,+ 1.29) gaining 1.7% and 0.8%, respectively. Separately, the Dow Jones Transportation Average (UNCH) finished flat even though UPS (UPS 112.03, +2.23) climbed 2.0%.
Biotechnology finished in-line with the health care sector (+0.2%), evidenced by the 0.2% gain in the iShares Nasdaq Biotechnology ETF (IBB 261.62, +0.45). Mylan (MYL 37.11, +0.52) gained 1.4%, shrugging off reports that members of the Senate Judiciary Committee are calling on the Federal Trade Commission to bring antitrust charges against the company.
The commodity-sensitive energy sector (UNCH) inched lower despite rising crude oil futures. WTI crude ended up 0.3% ($44.95/bbl; +$0.13) ahead of this evening's inventory data from the American Petroleum Institute. The Department of Energy will release its more influential inventory data tomorrow morning at 10:30 ET.
Treasuries finished on a lower note as the short end of the curve underperformed. The yield on the 2-yr note finished higher by three basis points (0.85%) while the yield on the 10-yr note also ended up three basis points (1.86%).
Today's trading volume was above the average of 861 million as more than 869 million shares changed hands at the NYSE floor.
Today's economic data was limited to the Job Openings and Labor Turnover Survey for September:
- The September Job Openings and Labor Turnover Survey showed that job openings came in at 5.486 million from a revised 5.453 million (from 5.443 million) in August.
- Russell 2000: +5.5% YTD
- Dow Jones: +5.2% YTD
- S&P 500: +4.7% YTD
- Nasdaq Composite: +3.7% 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 08 | 10:00 | JOLTS - Job Openings | Sep | 5.360M | NA | NA | 5.453M | 5.443M |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE18332.74 +73.14 (+0.40%)
Volume: 79.82 Mil below average of 91.71 Mil
Range: 18200.75 - 18400.5
S&P500 INDEX
2139.56 +8.04 (+0.38%)
Volume: 556.53 Mil below average of 589.06 Mil
Range: 2146.87 - 2123.56
DOW JONES TRANSPORTATION AVERAGE
8328.29 -2.07 (-0.02%)
Volume: 19.03 Mil above average of 16.59 Mil
Range: 8158.04 - 8345.77
NASDAQ COMPOSITE
5193.490234 +27.32 (+0.53%)
Volume: 1736.10 Mil below average of 1795.00 Mil
Range: 5145.299805 - 5214.169922
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Market Internal
NYSE :Lower than average volume @ 879.7M vs 888.5M
Advancers outpaced Decliners(adv/dec): 1668M/1249M
New highs outpaced low(high/low): 88/58
NASDAQ :
Lower than average volume @ 1728.7M vs 1776.6M
Advancers outpaced Decliners(adv/dec): 1518M/1270M
New lows outpaced highs(high/low): 63/87
Advancers outpaced Decliners by 1.26 to 1 on lower volumes 2608.4 ( -2.13%) than avg 2665 (+0.30%)
VOLATILITY S&P500 (VIX) :
18.74 +0.03 (+0.16%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Treasuries Slide as Investors Wait on Election Results
- U.S. Treasuries sold off today as the S&P 500 rallied on increased investor confidence that Hillary Clinton would win today's election. The only U.S. economic data release was job openings for December which slightly missed expectations. Chicago Fed President Evans, who will vote on the FOMC in 2017, said that December looks reasonable for a rate hike but also said that he isn't confident that inflation is really heading higher. The $24 bln 3-year Treasury auction printed a high yield roughly in line with market expectations although the bid-to-cover and indirect bids were lower than usual. The S&P 500 now trades up 0.42% at 2,140.6 and the U.S. Dollar Index is up 0.08% to 97.86
- Yield Check:
- 2-yr: +5 bps to 0.87%
- 5-yr: +5 bps to 1.34%
- 10-yr: +4 bps to 1.86%
- 30-yr: +2 bps to 2.62%
- News:
- Chicago Fed President Charles Evans said today that the December FOMC meeting looks reasonable for a rate hike but that he is not yet confident that inflation is heading higher
- Evans will vote on the FOMC in 2017 and is one of the most dovish regional Fed presidents
- He went on to say that overshooting the Fed's 2% inflation target would not be a terrible thing
- September JOLTS – Job Openings: Actual 5.486 mln, Prior 5.443 mln, quits rate 2.1% (unch), hiring rate 3.5% vs. 3.6% prior
- $24 bln 3-year Treasury auction
- High yield: 1.034%
- Bid-to-cover: 2.69 (2.85 was the 12-auction average)
- Indirect bid: 42.6% (51.5% was the 12-auction average)
- Direct bid: 7.6% (11.7% was the 12-auction average)
- Chicago Fed President Charles Evans said today that the December FOMC meeting looks reasonable for a rate hike but that he is not yet confident that inflation is heading higher
- Commodities:
- WTI crude: -0.09% to $44.85/bbl.
- Gold: -0.14% to $1,277.6/troy oz.
- Copper: +2.90% to 2.3765/lb.
- Currencies:
- EUR/USD: -0.15% to 1.1026
- USD/JPY: +0.51% to 105.06
- Data out Wednesday:
- MBA Mortgage Index for the week ending 11/5 (07:00 ET)
- September Wholesale Inventories (10:00 ET)
- Crude Inventories for the week ending 11/5 (10:30 ET)
- Treasury Auction:
- $23 bln 10-year Treasury auction (results at 13:00 ET)
- Fed Speakers:
- Minneapolis Fed President Kashkari (will vote in 2017) (13:30 ET)
- San Francisco Fed President Williams (non-FOMC voter) (21:00 ET)
Currencies
Commodities
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Preview: Wednesday, 9 November 2016
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Nov 09 | 07:00 | MBA Mortgage Index | 11/05 | NA | NA | -1.2% | ||
| Nov 09 | 10:00 | Wholesale Inventories | Sep | 0.2% | 0.2% | -0.2% | ||
| Nov 09 | 10:30 | Crude Inventories | 11/05 | NA | NA | 14.420M |
Other Events of Interest
Earnings
Commentary
Volumes are lower than average as the market awaits the election results.
Direction for 9 Nov 16: ABSTAIN
Direction for 9 Nov 16: ABSTAIN
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