The Market at 04:10PM ET
Dow: +1.20… | Nasdaq: +13.33… | S&P: -0.27…
NASDAQ Vol: 1.44 bln… Adv: 1872… Dec: 956…
NYSE Vol: 661.2 mln… Adv: 1847… Dec: 1184…
Moving the Market
Low volume expected ahead of Thanksgiving: bond and equity markets closed on Thursday; Friday session will end at 13:00 ET
Strong: Health Care, Consumer Discretionary, Consumer Staples
Weak: Energy, Materials, Utilities, Technology
[BRIEFING.COM] The stock market ended Wednesday on a flat note with trading volume running well below average as some market participants got an early jump on the Thanksgiving holiday, which will keep capital markets in the U.S. closed on Thursday. The S&P 500 settled just below its flat line while the Nasdaq Composite (+0.3%) outperformed.
Investors received a boatload of economic data this morning, but there was little response in the market as stocks opened flat and inched higher to establish narrow trading ranges that held throughout the day. For instance, the S&P 500 spent the session in a seven-point range with seven sectors offsetting gains in three groups that outperformed throughout the day.
Heavily-weighted health care (+0.5%) and consumer discretionary (+0.5%) seized the lead in the early going and held their ground into the close. The health care sector received support from biotechnology, evidenced by a 1.1% spike in iShares Nasdaq Biotechnology ETF (IBB 338.85, +3.58).
Biotechnology was not the only high-beta group that displayed relative strength as chipmakers also outperformed the broader technology sector (-0.3%) with the PHLX Semiconductor Index adding 0.1% after showing a larger gain intraday. As for the tech sector, the top-weighted group was weighed down by several large names. Apple (AAPL 118.03, -0.85) lost 0.7%, but more notably, HP (HPQ 12.64, -2.00) sank 13.7% after missing estimates and guiding Q1 earnings below analyst expectations.
Similar to technology, industrials (unch) lagged during the trading day, but the market came back to the economically-sensitive sector in afternoon action. The industrial sector ended flat even though Deere (DE 80.00, +3.66) soared 4.8% after beating earnings expectations and issuing upside Q1 net sales guidance.
Also of note, the consumer discretionary sector received broad support with apparel retailers getting a boost after Guess? (GES 20.86, +1.32) beat bottom-line estimates. Elsewhere in the sector, homebuilders rallied throughout the day even though the October New Home Sales report came in below estimates (495,000; Briefing.com consensus 504,000). The iShares Dow Jones US Home Construction ETF (ITB 28.84, +0.27) surged 1.0%.
Similar to stocks, Treasuries spent the day inside narrow ranges, ending with slim gains that pressured the 10-yr yield to 2.23% (-1 bp).
To little surprise, trading volume was well below average with 661 million shares changing hands at the NYSE floor.
Economic data included Initial Claims, Personal Income/Spending, Durable Orders, Michigan Sentiment, New Home Sales, and FHFA Housing Price Index:
Tomorrow, bond and equity markets will be closed for Thanksgiving while Friday's session will end at 13:00 ET.
[BRIEFING.COM] The S&P 500 (+0.1%) hovers just above its flat line with one hour remaining in what has been a sleepy pre-holiday session.
The stock market has essentially spent the day on autopilot with three sectors holding solid gains-health care (+0.6%), consumer discretionary (+0.5%), and consumer staples (+0.4%)-while most of the remaining groups have alternated between gains and losses.
To little surprise, the bond market has been equally as sleepy today and the 10-yr note is set to end the session with a two-tick gain that has lowered the benchmark yield by a basis point to 2.32%.
[BRIEFING.COM] The S&P 500 remains higher by 0.1%.
This morning featured a torrent of economic data, including the New Home Sales report for October, which showed sales at a seasonally adjusted annual rate of 495,000. That was below the Briefing.com consensus estimate of 504,000, but up 10.7% from a downwardly revised September reading of 447,000 (from 468,000). September marked the lowest number of new homes sold since July 2014. In brief, the spike in October sales was good to see but it wasn't all that it appeared to be given the reduced September base.
Moreover, sales were helped along by a 6.0% decline in the median sales price to $281,500 (down 8.5% month-over-month). That was the first year-over-year decline in the median sales price since September 2014.
The Northeast saw a huge 135.3% jump in new home sold after sales declined 47% in September. Elsewhere, new home sales increased 5.3% in the Midwest and 8.9% in the South. The West, however, saw new home sales slip 0.9%. At the current sales pace, there is a 5.5 months' supply of inventory, which is down from an upwardly revised 6.0 months' supply (from 5.8) seen in September.
Homebuilders have climbed higher throughout the session with the iShares Dow Jones US Home Construction ETF (ITB 28.87, +0.30) up 1.1% at this juncture.
[BRIEFING.COM] Equity indices have ticked down from their highs, but the trading dynamic has not changed much. The S&P 500 remains higher by 0.1% while the Nasdaq (+0.3%) outperforms thanks to relative strength among chipmakers and biotechnology names.
Sector standing has not changed at all with health care (+0.5%) and consumer discretionary (+0.5%) holding the lead while the consumer staples sector (+0.4%) also trades ahead of the broader market.
On the downside, it is worth noting that technology has extended its decline to 0.2%, but that loss remains modest in scope.
[BRIEFING.COM] The major U.S. indices maintain their position in positive territory heading into the late afternoon trading ahead of tomorrow's market closure for Thanksgiving.
A look inside the Dow Jones Industrial Average shows that Pfizer (PFE 33.06, +1.09), Wal-Mart (WMT 60.60, +0.68), and Nike (NKE 113.70, +1.19) are outperforming. Pfizer is leading the Dow higher amid strength in the health care industry, today's best performing sector, while Nike and Wal-Mart are in positive territory as consumer oriented names grind higher ahead of the popular shopping weekend.
Conversely, Travelers (TRV 114.61, -0.83) is the worst-performing Dow component as financials lag.
With today's small gains, the DJIA has pushed back into positive territory for the week, and is showing gains of nearly 1% for the month of November.
[BRIEFING.COM] The major averages sport modest midday gains with the Nasdaq (+0.4%) trading ahead of the S&P 500 (+0.2%).
With the Thanksgiving holiday approaching, it should not be a surprise to see that the market has spent the first half of today's affair in a relatively narrow range. Below average trading volume highlights the subdued activity considering only 295 million shares have been traded at the NYSE floor so far today. This suggests the final total is very likely to come in below the 200-day average of roughly 850 million.
Investors received a barrage of economic data this morning, but the market took the mixed news in stride. Similar to stocks, Treasuries have maintained narrow ranges with the 10-yr note showing a modest gain at this juncture. Accordingly, the benchmark yield is down one basis point at 2.23%.
Four sectors hold midday gains with health care (+0.6%) sitting in the lead thanks to relative strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 339.15, +3.88) is higher by 1.2%, giving a boost to the Nasdaq Composite. Furthermore, the Nasdaq has benefited from strength among chipmakers (PHLX Semiconductor Index +0.4%) while large cap names have kept the technology sector (-0.1%) near its flat line. On the earnings front, HP (HPQ 12.78, -1.86) has plunged 12.7% after missing estimates and guiding Q1 earnings below analyst expectations.
In other earnings of note, Deere (DE 79.36, +3.02) has spiked 4.0% after beating earnings expectations and issuing upside Q1 net sales guidance; however, the broader industrial sector (+0.1%) is little changed.
Economic data included Initial Claims, Personal Income/Spending, Durable Orders, Michigan Sentiment, New Home Sales, and FHFA Housing Price Index:
[BRIEFING.COM] Equity indices have added to their gains with the Nasdaq now up 0.4% while the S&P 500 (+0.2%) remains weighed down by three influential sectors-industrials (+0.1%), technology (-0.1%), and financials (+0.1%). All in all, things remain relatively quiet for the time being.
Earlier, we speculated that today's final trading volume is likely to be well below average and nothing has changed on that front considering just 272 million shares have changed hands at the NYSE floor.
Treasuries have climbed back into positive territory in recent action, pressuring the 10-yr yield to 2.23% (-1 bp).
[BRIEFING.COM] Quiet action continues as the major averages hover just above their flat lines with the S&P 500 trading up 0.1%.
The slim gain in the benchmark index has masked losses in seven of ten sectors, but outside of utilities (-0.9%), the losses have been contained for the time being. Most notably, the top-weighted financials (-0.1%) and technology (-0.1%) are essentially unchanged.
On the upside, the health care sector (+0.5%) remains in the lead while consumer discretionary (+0.4%) and consumer staples (+0.3%) follow a bit behind. Health care has been underpinned by biotechnology while the discretionary sector has benefited from all around strength. For instance, retailers have enjoyed a strong start with SPDR S&P Retail ETF (XRT 45.49, +0.49) trading higher by 1.1%.
[BRIEFING.COM] The major averages continue hovering just above their flat lines and it wouldn't be a huge surprise if the remainder of the session featured range-bound action. The S&P 500 remains higher by 0.1% while the Nasdaq (+0.2%) sits just ahead.
With the Thanksgiving holiday looming, the early trading volume has been noticeably lower than average. To that end, only 215 million shares have been traded at the NYSE floor so far today.
Similar to stocks, Treasuries are little changed with the 10-yr yield flat at 2.24%.
[BRIEFING.COM] Equity indices have marked new session highs in recent going, but the action continues unfolding relatively close to the unchanged level. The S&P 500 trades up 0.1% while the Nasdaq (+0.3%) outperforms after showing relative weakness yesterday.
Five sectors are now in the green with the health care sector (+0.6%) sitting in the lead. The group has benefited from strength in biotechnology, evidenced by a 0.7% gain in iShares Nasdaq Biotechnology ETF (IBB 337.70, +2.43). Furthermore, biotech has helped the Nasdaq vault ahead of the S&P 500 while the top-weighted technology sector (-0.1%) remains near its flat line. Large cap components have kept the sector behind the broader market with HP (HPQ 12.71, -1.94) down 13.2% after the company missed estimates and guided Q1 earnings below analyst expectations.
Elsewhere in technology, chipmaker names outperform with the PHLX Semiconductor Index trading higher by 0.3%.
[BRIEFING.COM] The S&P 500 trades higher by 0.1%.
Just released, the University of Michigan Consumer Sentiment report for November was revised down to 91.3 from 93.1 while the Briefing.com consensus expected the reading to remain at 93.1.
Separately, New home sales in October hit an annualized rate of 495,000, which was up from the revised September rate of 447,000 (from 468,000), but worse than the rate of 504,000 that had been broadly expected by the Briefing.com consensus.
[BRIEFING.COM] As expected, the major averages have started the trading day just above their flat lines, but the S&P 500 (-0.1%) has followed the higher open with a dip into the red as seven sectors sit in negative territory.
Most notably, the energy sector (-1.0%) is the weakest performer after surging more than 2.0% yesterday. Meanwhile, the remaining decliners sport slimmer losses. On the upside, the consumer discretionary sector (+0.4%) leads while health care (+0.3%) also trades a bit ahead of the broader market.
Elsewhere, Treasuries continue holding slim gains with the 10-yr yield down one basis point at 2.23%.
The stock market is on track for a modestly higher open with S&P 500 futures trading three points above fair value after spending the night in a ten-point range.
The overnight session was fairly quiet, featuring mixed action in Asia while most European indices sport solid gains at this juncture, continuing their rebound off yesterday's lows. Investors have received a boatload of economic data this morning and futures have backed away from their morning highs in response. Weekly initial claims declined to 260,000 from 272,000 (Briefing.com consensus 272,000) while the October Personal Income report showed an in-line increase of 0.4%. Also of note, October Durable Orders rose 3.0% while the consensus expected an increase of 1.5%.
More data will be released later today with the final reading of the November Michigan Sentiment Index (consensus 93.1) and October New Home Sales (consensus 504,000) set to be reported at 10:00 ET.
Treasuries held gains earlier, but they have returned to unchanged with the 10-yr yield at 2.24%.
On the corporate front, Deere (DE 79.95, +3.61) has surged 4.7% in pre-market after beating earnings expectations and issuing upside Q1 net sales guidance.
The S&P 500 futures trade three points above fair value.
The FHFA Housing Price Index for September rose 0.8%, which followed an increase of 0.3% in August.
The S&P 500 futures trade three points above fair value.
Markets in the Asia-Pacific region ended Wednesday on a mixed note. It was a fairly quiet evening relative to yesterday with many of the Asian indices attempting to correlate to the move seen in US stocks on Tuesday. In Japan, the Nikkei was weighed down by yesterday's strength in the yen and some weakness in financials following reports that several of the larger banks may need to increase their capital ratios.
Major European indices trade mostly higher while Spain's IBEX (-0.4%) underperforms amid a 42.7% plunge in the shares of Abengoa after the debt-ridden company began seeking protection from creditors. On a separate note, the European Central Bank is reportedly looking into expanding the reach of its quantitative easing program with the latest reports indicating the bank may begin buying non-performing loans. The euro has retreated in response, sliding below 1.0600 against the dollar.
The S&P 500 futures trade four points above fair value.
The latest weekly initial jobless claims count totaled 260,000 while the Briefing.com consensus expected a reading of 272,000. Today's tally was below the revised prior week count of 272,000 (from 271,000). As for continuing claims, they rose to 2.207 million from 2.173 million.
October durable goods orders rose 3.0%, while the Briefing.com consensus expected an increase of 1.5%. This comes after the prior month's revised reading reflected a decrease of 0.8% (from -1.2%). Excluding transportation, durable orders increased 0.5% (consensus +0.5%) to follow the prior month's revised decrease of 0.1% (from -0.6%).
Separately, October personal income rose 0.4%, which is what the Briefing.com consensus expected. Meanwhile, personal spending increased 0.1% while the consensus expected a reading of 0.3%.
Core PCE prices were flat while the consensus expected an increase of 0.2%
U.S. equity futures hold modest pre-market gains amid upbeat action overseas. The S&P 500 futures hover four points above fair value after hitting their highs around the start of the European session.
Meanwhile, Treasuries also sport modest gains with the 10-yr yield down a basis point at 2.23%.
Today will be very busy on the economic front. The weekly MBA Mortgage Index fell 3.2% to follow last week's 6.2% spike. The day's data will continue with an 8:30 ET release of weekly Initial Claims (Briefing.com consensus 272,000), October Personal Income/Spending Data, and October Durable Orders (consensus 1.5%). The September FHFA Housing Price Index will be released at 9:00 ET while the final reading of the Michigan Sentiment Index for November (consensus 93.1) and October New Home Sales (consensus 504,000) will both be reported at 10:00 ET.
In U.S. corporate news of note:
Reviewing overnight developments:
[BRIEFING.COM] The stock market ended the Tuesday session on a flat note, overcoming an opening retreat that was fueled by a military incident, which is likely to invite geopolitical implications going forward. The S&P 500 added 0.1% while the Nasdaq Composite (unch) underperformed.
Early this morning, it was reported that the Turkish military shot down a Russian fighter jet, which allegedly violated Turkish airspace on the country's border with Syria. This marked the first time that a NATO member downed a Russian plane since the 1950s and Russian military officials said that both pilots were killed by Syrian opposition fighters after ejecting from the plane. The Russian defense ministry called the incident a "hostile act" while President Vladimir Putin has terminated all Russian military cooperation with Turkey. Mr. Putin denied the incursion into Turkey, saying the action represented "backstabbing by accomplices of terrorists" and that it "goes beyond [the] fight against terror."
The news was met with a spike in Treasuries and the 10-yr note then notched a new high shortly after the release of the second estimate of Q3 GDP (+2.1%; Briefing.com consensus +2.0%); however, the 10-yr note spent the rest of the day in a slow retreat from morning highs to end with a small gain that lowered the benchmark yield one basis point to 2.24%.
Meanwhile, stocks opened in the red and fell to new lows after a disappointing November Consumer Confidence report crossed the wires (90.4; consensus 99.6); however, a turnaround ensued shortly thereafter with the rally uninterrupted by late-morning news of another terrorist attack in Tunisia, which prompted the country to invoke a State of Emergency. The market climbed into the green during early afternoon action, but briefly slipped back to unchanged in a knee-jerk reaction to reports of a hostage situation in Northern France, which was later said to have no connection to the Paris attacks. The S&P 500 climbed to a new high during the final hour, but slipped back to its flat line into the close.
Nine sectors started the day in negative territory, but only four groups--financials (-0.3%), consumer discretionary (-0.2%), industrials (-0.2%), and utilities (-0.1%)--remained in the red when the closing bell rang. On the upside, the energy sector (+2.1%) spent the day well ahead of its peers thanks to strength in crude oil. To that point, WTI crude surged 2.7% to $42.91/bbl after marking a session high at $43.45/bbl.
Elsewhere, the materials sector (+0.8%) also settled well ahead of the broader market while other pockets of strength included health care (+0.3%), materials (+0.8%), and consumer staples (+0.3%). In the staples sector, Campbell Soup (CPB 51.33, +1.54) surged 3.1% after the company reported better than expected earnings and boosted its earnings guidance; however, the sales outlook was lowered due to currency headwinds.
Over on the cyclical side, the consumer discretionary sector (-0.2%) could not keep pace with the market as restaurant and media names weighed while apparel and luxury retailers fared well after two components reported their results. Tiffany & Co (TIF 79.32, +2.77) erased an opening loss to settle higher by 3.6% after reporting a one-cent beat on below-consensus revenue combined with lowered earnings guidance. Meanwhile, Signet Jewelers (SIG 134.89 -5.76) lost 4.1% after missing estimates and guiding Q4 earnings towards the low end of expectations.
Today's session invited above-average participation as more than 893 million shares changed hands at the NYSE floor.
Economic data released today included second estimate of Q3 GDP, Consumer Confidence, and Case-Shiller 20-City Index:
Tomorrow will be very busy on the economic front starting with the 7:00 ET release of the weekly MBA Mortgage Index. At 8:30 ET, investors will receive weekly Initial Claims (Briefing.com consensus 272,000), October Personal Income/Spending Data, and October Durable Orders (consensus 1.5%). The September FHFA Housing Price Index will be released at 9:00 ET while the final reading of the Michigan Sentiment Index for November (consensus 93.1) and October New Home Sales (consensus 504,000) will both be reported at 10:00 ET.