Stock market extends record run
26-Nov-19 16:20 ET
Dow +55.21 at 28121.59, Nasdaq +15.44 at 8647.92, S&P +6.88 at 3140.52
[BRIEFING.COM] The stock market extended its record run on Tuesday, with the S&P 500 (+0.2%), Dow Jones Industrial Average (+0.2%), and Nasdaq Composite (+0.2%) also closing near their session highs. The Russell 2000 increased 0.1% but closed off its highs.
Leading the advance were the S&P 500 real estate (+1.4%), consumer staples (+0.8%), consumer discretionary (+0.8%), and materials (+0.5%) sectors. The energy (-1.0%), financials (-0.1%), and health care (-0.1%) sectors were the lone holdouts.
Evidently, buying conviction was less pronounced than yesterday, but the same factors that have contributed to the market's record run -- trade progress, low rates, low volatility, and supportive monetary policy expectations -- remained intact. As for trade, China's Commerce Ministry said top negotiators held a phone call in which both sides agreed on how to properly resolve outstanding issues for a Phase One deal.
Other outperformers in the stock market included the SPDR S&P Retail ETF (XRT 44.84, +0.27, +0.6%), which benefited from upbeat earnings forecasts, and the iShares U.S. Home Construction ETF (ITB 45.89, +0.61, +1.4%), which benefited from new home sales in October coming in better than expected at 733,000 units (Briefing.com consensus 710,000).
Best Buy (BBY 81.57, +7.32, +9.9%), Burlington Stores (BURL 225.97, +17.71, +8.5%), and Dick's Sporting Goods (DKS 46.77, +7.34, +18.6%) impressed investors with their results and guidance, the latter of which is especially important for the retailers with the holiday-shopping season nearly in full swing. Dollar Tree (DLTR 95.26, -17.13, -15.2%) failed to meet expectations.
Separately, several Dow components set new all-time highs today. Walt Disney (DIS 151.64, +1.95, +1.3%) was one of them after the stock was initiated with an Outperform rating at Consumer Edge Research with a price target of $175.
U.S. Treasuries continued to increase, which sent yields slightly lower across the curve. The 2-yr yield declined three basis point to 1.58%, and the 10-yr yield declined two basis points to 1.74%. The U.S. Dollar Index declined 0.1% to 98.23. WTI crude increased 0.6%, or $0.32, to $58.30/bbl.
Reviewing Tuesday's batch of economic data, which featured the New Home Sales report for October:
- New home sales in October decreased 0.7% m/m to a seasonally adjusted annual rate of 733,000 units (Briefing.com consensus 710,000) from an upwardly revised 738,000 (from 701,000) in September. On a yr/yr basis, new home sales were up 31.6%.
- The key takeaway from the report is that the October showing was better than what meets the eye at first blush given the large, upward revision to the prior month's number.
- The Conference Board's Consumer Confidence Index for November eased to 125.5 (Briefing.com consensus 126.9) from 125.9 in October, marking the fourth straight monthly retreat.
- The key takeaway from the report is that consumers continue to remain relatively upbeat about the short-term outlook based in part on income prospects, which should be a support for holiday spending activity.
- The Advance International Trade in Goods report for October showed a narrowing in the deficit to $66.5 billion from $70.5 billion in September. Advance Retail Inventories were up 0.3% on top of a 0.2% increase in September and Advance Wholesale Inventories increased 0.2% after declining 0.7% in September.
- The FHFA Housing Price Index for September increased 0.6% following an unrevised 0.2% increase in August.
- The S&P Case-Shiller Housing Price Index for September increased 2.1% (Briefing.com consensus 2.6%) following an unrevised 2.0% increase in August.
Looking ahead, investors will be given a cornucopia of reports on Wednesday before Thanksgiving Day: Personal Income and Spending for October, Durable Goods Orders for October, the second estimate for Q3 GDP, Pending Home Sales for October, the weekly reports for MBA Mortgage Applications and jobless claims, and the Fed's Beige Book for December.
- Nasdaq Composite +30.3% YTD
- S&P 500 +25.3% YTD
- Dow Jones Industrial Average +20.6% YTD
- Russell 2000 +20.4% YTD
Market Snapshot
| Dow | 28121.59 | +55.21 | (0.20%) | | Nasdaq | 8647.92 | +15.44 | (0.18%) | | SP 500 | 3140.52 | +6.88 | (0.22%) | | 10-yr Note | +24/32 | 1.737 |
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| | NYSE | Adv 1565 | Dec 1302 | Vol 1.6 bln | | Nasdaq | Adv 1522 | Dec 1595 | Vol 2.4 bln |
Industry Watch
| Strong: Real Estate, Consumer Discretionary, Consumer Staples, Materials |
| | Weak: Energy, Financials, Health Care |
Moving the Market
-- Stock markets edges higher into record territory
-- Trade sentiment remained upbeat, low rates and volatility persisted
-- Relative strength in the real estate sector amid the lower Treasury yields
-- Relative strength in retail and homebuilding stocks following earnings reports and housing data, respectively
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WTI crude settles higher
26-Nov-19 15:25 ET
Dow +23.79 at 28090.17, Nasdaq +9.29 at 8641.77, S&P +2.41 at 3136.05
[BRIEFING.COM] The S&P 500 (+0.1%) is vying for another record close, although it has been floundering over the past few hours.
One last look inside the benchmark index shows the real estate (+1.0%), consumer staples (+0.6%), and consumer discretionary (+0.6%) sectors atop the standings, while the energy (-1.1%), health care (-0.3%), and financials (-0.3%) sectors trade lower.
WTI crude settled up $0.30 (+0.6%) to $58.30/bbl. |
