| | | Major indices squeeze out record closes to end week
08-Nov-19 16:25 ET
Dow +6.44 at 27681.28, Nasdaq +40.80 at 8475.32, S&P +7.90 at 3093.08
briefing.com
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.02%) closed at record highs on Friday, even as President Trump said he had not yet agreed to roll back existing tariffs. The Russell 2000 increased 0.3%.
President Trump's statement refuted China's claim that an agreement was already made, but the market maintained an optimistic view on trade. It presumably continued to think that a "Phase One" deal will still get signed considering the president didn't technically rule out the possibility to roll back tariffs and White House trade advisor Peter Navarro said the U.S. might be willing to delay the Dec. 15 tariffs.
There still wasn't much conviction from buyers or sellers for most of the session, though, until a wave of buyers pushed the market to session highs into the close. The S&P 500 health care (+0.8%) and information technology (+0.6%) sectors posted decent gains, while the energy (-0.8%), utilities (-0.4%), and real estate (-0.2%) sectors finished lower.
Walt Disney (DIS 137.96, +5.00, +3.8%) beat earnings estimates and shares of the Dow component rose accordingly. Its outperformance also helped the S&P 500 communication services sector (+0.4%) overcome weakness in Verizon (VZ 59.35, -1.18, -2.0%), which fell on no confirmed news catalyst.
The trade-sensitive Philadelphia Semiconductor Index (+0.5%) continued to rise amid the upbeat trade sentiment. The group also benefited from follow-through buying in shares of Qualcomm (QCOM 94.03, +4.05, +4.5%) after it reported positive earnings results earlier in the week.
In other corporate news, Southwest's (LUV 58.18, -0.06, -0.1%) 10-Q stated it plans to remove Boeing's (BA 351.00, -6.31, -1.8%) 737 MAX from its flight schedule through March 6, 2020. This is a one-month delay. Gap, Inc. (GPS 16.68, -1.38, -7.6%) announced the departure of its CEO and issued downside EPS guidance.
The U.S. Treasury market finished relatively unchanged in a quiet session. The 2-yr yield declined one basis point to 1.66%, and the 10-yr yield increased one basis point to 1.93%. The U.S. Dollar Index increased 0.2% to 98.37. WTI crude increased 0.2% (+$0.10) to $57.21/bbl.
Reviewing Friday's economic data, which included the preliminary University of Michigan Consumer Sentiment Index for November and the Wholesale Inventories report for September:
- The preliminary University of Michigan Consumer Sentiment Index for November crossed at 95.7 (Briefing.com consensus 95.0), which was slightly better than expected and roughly even with the final reading of 95.5 for October.
- The key takeaway from the report is that consumer expectations increased from October, underscoring an otherwise confident attitude that should continue to manifest itself in relatively solid consumer spending activity.
- Wholesale inventories declined 0.4% m/m in September (Briefing.com consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017. Wholesale sales were flat in September after declining 0.1% in August.
- The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.
Investors will not receive any notable economic data on Monday.
- Nasdaq Composite +27.7% YTD
- S&P 500 +23.4% YTD
- Dow Jones Industrial Average +18.7% YTD
- Russell 2000 +18.6% YTD
Market Snapshot
| Dow | 27681.28 | +6.44 | (0.02%) | | Nasdaq | 8475.32 | +40.80 | (0.48%) | | SP 500 | 3093.08 | +7.90 | (0.26%) | | 10-yr Note | -2/32 | 1.942 |
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| | NYSE | Adv 1519 | Dec 1383 | Vol 824.0 mln | | Nasdaq | Adv 1675 | Dec 1390 | Vol 2.0 bln |
Industry Watch
| Strong: Health Care, Information Technology |
| | Weak: Energy, Utilities, Real Estate |
Moving the Market
-- S&P 500, Nasdaq, Dow close week at record highs
-- President Trump said he had yet to agree to roll back existing tariffs; market remained optimistic
-- Walt Disney (DIS) beat earnings expectations
-- Relative strength in the health care sector
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WTI crude futures inch higher, up nearly 2% this week
08-Nov-19 15:25 ET
Dow -19.22 at 27655.62, Nasdaq +28.43 at 8462.95, S&P +3.18 at 3088.36
[BRIEFING.COM] The S&P 500 is up near session highs with a gain of 0.1%. Any gain today would be a record close for the benchmark index.
One last look inside the S&P 500 sectors shows the health care sector (+0.7%) outperforming after AbbVie (ABBV 85.19, +3.18, +3.9%) submitted an FDA application for a cancer treatment. Conversely, the energy (-0.7%) and utilities (-0.7%) sectors remain today's laggards.
WTI crude futures settled up $0.10 (+0.2%) to $57.21/bbl. For the week, the commodity rose 1.8%. |
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