Rotational trade leaves major indices mixed
10-Nov-20 16:10 ET
Dow +262.95 at 29420.86, Nasdaq -159.93 at 11553.78, S&P -4.97 at 3545.67
briefing.com
[BRIEFING.COM] The S&P 500 declined 0.1% on Tuesday, as another rotation out of growth stocks and into value stocks contributed to a lackluster performance in the benchmark index. The Nasdaq Composite fell 1.4%, while the Dow Jones Industrial Average (+0.9%) and Russell 2000 (+1.9%) posted solid gains in catch-up trades.
The broad market looked more like the Dow and Russell 2000 today, as advancing issues outpaced declining issues by comfortable margins at the NYSE and Nasdaq. The market remained guided by expectations that the economy and corporate earnings will improve in 2021 due to the medical progress being made to neutralize the coronavirus.
As such, investors felt inclined to increase exposure to economically-sensitive companies and other value-oriented stocks within the energy (+2.5%), consumer staples (+2.0%), industrials (+1.8%), materials (+1.1%), and financials (+0.7%) sectors.
Conversely, many of the mega-cap stocks relinquished their leadership roles for the second straight day. Aside from the Nasdaq, these losses were manifested in the lagging positions of the information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-0.3%) sectors.
Eli Lilly (LLY 146.56, +4.23, +3.0%) provided investors another reason to feel better about the coronavirus after it received emergency use authorization for its antibody treatment. Separately, Boeing (BA 188.69, +9.33, +5.2%) was one of the larger value stocks that outperformed amid news that it could receive FAA approval for the 737 MAX by Nov. 18.
On the earnings front, D.R. Horton (DHI 70.88, +5.92, +9.1%) exceeded quarterly expectations and issued upbeat FY21 revenue guidance. Beyond Meat (BYND 125.01, -25.49, -16.9%) provided disappointing Q3 earnings results, sending shares down 17%.
U.S. Treasuries finished near their flat lines in a quiet session, leaving longer-dated yields at recent highs. The 2-yr yield was flat at 0.18%, and the 10-yr yield was flat at 0.96%. The U.S. Dollar Index increased 0.1% to 92.81. WTI crude futures rose 2.6%, or $1.06, to $41.37/bbl.
Reviewing Tuesday's economic data:
- The NFIB Small Business Optimism Index for October was unchanged at 104.0.
- September job openings increased to 6.436 mln from a revised 6.352 mln in August (from 6.493 mln).
Looking ahead, investors will receive the weekly MBA mortgage Applications Index on Wednesday.
- Nasdaq Composite +28.8% YTD
- S&P 500 +9.7% YTD
- Dow Jones Industrial Average +3.1% YTD
- Russell 2000 +4.1% YTD
Market Snapshot
| Dow | 29420.86 | +262.95 | (0.90%) | | Nasdaq | 11553.78 | -159.93 | (-1.37%) | | SP 500 | 3545.67 | -4.97 | (-0.14%) | | 10-yr Note | -23/32 | 0.949 |
|
| | NYSE | Adv 1995 | Dec 1011 | Vol 1.2 bln | | Nasdaq | Adv 2077 | Dec 1369 | Vol 4.6 bln |
Industry Watch
| Strong: Energy, Materials, Industrials, Consumer Staples, Utilities |
| | Weak: Information Technology, Consumer Discretionary, Communication Services |
Moving the Market
-- Rotational trade left major indices mixed
-- Value outperformed growth
-- Expectations economy and corporate earnings will improve in 2021
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WTI crude settles above $41 per barrel
10-Nov-20 15:30 ET
Dow +281.19 at 29439.10, Nasdaq -150.98 at 11562.73, S&P -2.04 at 3548.60
[BRIEFING.COM] The S&P 500 is trading lower by just 0.1% and continues to look up to the Dow (+1.0%) and Russell 2000 (+1.9%).
One last look at the sector performances shows consumer staples (+2.1%) and industrials (+2.1%) up more than 2.0%, followed by energy (+1.8%) and utilities (+1.5%). The information technology (-1.9%), consumer discretionary (-1.1%), and communication services (-1.3%) sectors underperform in the red.
WTI crude futures settled higher by 2.6%, or $1.06, to $41.37/bbl. |
