Market Snapshot
briefing.com
| Dow | 36327.95 | +203.72 | (0.56%) | | Nasdaq | 15971.58 | +31.28 | (0.20%) | | SP 500 | 4697.53 | +17.47 | (0.37%) | | 10-yr Note | +28/32 | 1.460 |
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| | NYSE | Adv 2112 | Dec 1101 | Vol 897.9 mln | | Nasdaq | Adv 2408 | Dec 2077 | Vol 5.5 bln |
Industry Watch
| Strong: Industrials, Energy, Utilities, Materials, Consumer Discretionary |
| | Weak: Health Care, Financials |
Moving the Market
-- Stronger-than-expected October employment report
-- Pfizer (PFE) announces positive data for its COVID-19 oral antiviral
-- Pleasing earnings news, including commentary about strong travel demand
-- Long-term interest rates extend retreat
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Each of the major indices close at record highs (again)
05-Nov-21 16:15 ET
Dow +203.72 at 36327.95, Nasdaq +31.28 at 15971.58, S&P +17.47 at 4697.53
[BRIEFING.COM] Each of the major indices set intraday and closing record highs on Friday, supported by a stronger-than-expected October employment report, encouraging COVID-19 antiviral news from Pfizer (PFE 48.62, +4.77, +10.9%), pleasing earnings news, and another retreat in long-term interest rates.
The market, however, closed off session highs. The S&P 500 (+0.4%), Nasdaq Composite (+0.2%), and Dow Jones Industrial Average (+0.6%) rose between 0.2-0.6% after being up 0.7-1.0% early in the session. The Russell 2000 outperformed with a 1.4% gain.
Ten of the 11 S&P 500 sectors contributed to the advance. The energy (+1.4%) and industrials (+1.0%) sectors finished atop the standings with gains of at least 1.0%, while the health care sector (-1.0%) fell 1%, ironically due to the success of Pfizer.
Prior to the open, Pfizer announced its COVID-19 oral antiviral reduced the risk of hospitalization or death by 89% in interim data. The news undercut shares of Merck (MRK 81.61, -8.93, -9.9%), which has a competing treatment, and shares of other vaccine makers like Moderna (MRNA 236.99, -47.03, -16.6%). MRK fell 10%, and MRNA fell 17%.
As for the jobs data, nonfarm payrolls increased by 531,000 (Briefing.com consensus 400,000), the unemployment rate improved to 4.6% (Briefing.com consensus 4.7%) from 4.8% in September, and average hourly earnings increased 0.4% m/m (Briefing.com consensus 0.4%).
Despite the wage inflation, the 10-yr yield fell seven basis points to 1.45% in a move that signaled easing inflation concerns. The 2-yr yield decreased two basis points to 0.39%. The U.S. Dollar Index decreased 0.2% to 94.20.
This retracement in long-term rates was a supportive factor for the growth stocks for valuation reasons, although the value stocks outperformed today. The Russell 1000 Growth Index increased 0.2%. The Russell 1000 Value Index increased 0.5%.
In addition to the Pfizer and jobs news, travel-related stocks in particular keyed off earnings results and/or guidance from Airbnb (ABNB 201.62, +23.17, +13.0%), Uber (UBER 47.19, +1.92, +4.2%), and Expedia (EXPE 182.17, +24.62, +15.6%). Airbnb spoke positively about travel, saying it expects strong demand to extend well into 2022.
The U.S. Global Jets ETF (JETS 24.63, +1.48, +6.4%) jumped 6.4%, undeterred by the 3% rebound in oil prices ($81.25, +2.48, +3.2%).
Reviewing Friday's economic data:
- Nonfarm and nonfarm private payroll growth in October were much stronger than expected and there was a further boost in nice upward revisions for prior months. At the same time, though, this report brought additional wage inflation, as average hourly earnings increased 4.9% year-over-year, versus 4.6% in September.
- October nonfarm payrolls increased by 531,000 (Briefing.com consensus 400,000). The 3-month average for total nonfarm payrolls decreased to 442,000 from 629,000 in September. September nonfarm payrolls revised to 312,000 from 194,000. August nonfarm payrolls revised to 483,000 from 366,000.
- October private sector payrolls increased by 604,000 (Briefing.com consensus 390,000). September private sector payrolls revised to 365,000 from 317,000. August private sector payrolls revised to 504,000 from 332,000.
- October unemployment rate was 4.6% (Briefing.com consensus 4.7%), versus 4.8% in September. Persons unemployed for 27 weeks or more accounted for 31.6% of the unemployed versus 34.5% in September. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 8.3%, versus 8.5% in September.
- October average hourly earnings increased 0.4% (Briefing.com consensus 0.4%) versus a 0.6% increase in September. Over the last 12 months, average hourly earnings have risen 4.9%, versus 4.6% for the 12 months ending in September.
- The average workweek in October was 34.7 hours (Briefing.com consensus 34.8), versus 34.8 hours in September. Manufacturing workweek dipped 0.1 hours to 40.3 hours. Factory overtime dipped 0.1 hours to 3.2 hours.
- The key takeaway from the employment report is the broad-based pickup in hiring activity across the private sector, as that will be interpreted as being a byproduct of dissipating Delta issues and employers seeing a favorable demand backdrop.
- Consumer credit increased by $29.9 bln in September (Briefing.com consensus $17.0 bln) after increasing a revised $13.8 bln (from $14.4 bln) in August.
- The key takeaway from the report is that consumer credit expanded for the eighth consecutive month, reflecting continued demand for goods and services.
There is no economic data of note scheduled for Monday.
- S&P 500 +25.1% YTD
- Nasdaq Composite +23.9% YTD
- Russell 2000 +23.4% YTD
- Dow Jones Industrial Average +18.7% YTD
Crude futures bounce back over $80 per barrel
05-Nov-21 15:35 ET
Dow +188.48 at 36312.71, Nasdaq +10.70 at 15951.00, S&P +14.01 at 4694.07
[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at a record high.
One last look at the sectors shows industrials (+1.1%) and energy (+1.5%) in the lead with gains over 1.0%. The health care sector (-1.3%) remains at the bottom while the financials sector (-0.02%) has just slipped into negative territory amid the decline in Treasury yields.
WTI crude futures bounced back from recent losses and settled higher by 3.2%, or $2.48, to $81.25/bbl. |
