Market Snapshot
briefing.com
| Dow | 35913.84 | +94.28 | (0.26%) | | Nasdaq | 15595.91 | +97.53 | (0.63%) | | SP 500 | 4613.67 | +8.29 | (0.18%) | | 10-yr Note | -25/32 | 1.595 |
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| | NYSE | Adv 2486 | Dec 857 | Vol 828.4 mln | | Nasdaq | Adv 3378 | Dec 1192 | Vol 5.2 bln |
Industry Watch
| Strong: Energy, Consumer Discretionary |
| | Weak: Information Technology, Utilities, Real Estate |
Moving the Market
-- Major indices set fresh all-time highs with modest gains
-- Notable strength in the small-caps and micro-caps
-- Tesla (TSL) rises another 6% amid parabolic momentum
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November begins with a trio of record closes
01-Nov-21 16:20 ET
Dow +94.28 at 35913.84, Nasdaq +97.53 at 15595.91, S&P +8.29 at 4613.67
[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.6%), and Dow Jones Industrial Average (+0.3%) rose modestly on Monday and each set intraday and closing record highs. The small-cap Russell 2000 (+2.7%) and iShares Micro-Cap ETF (IWC 151.65, +4.11, +2.8%) played catch-up with gains over 2.5%.
The muted price action in the S&P 500 was largely due to weakness in Apple (AAPL 148.96, -0.84, -0.6%), Microsoft (MSFT 329.37, -2.25, -0.7%), Amazon.com (AMZN 3318.11, -54.32, -1.6%), and Alphabet (GOOG 2875.48, -89.93, -3.0%), which account for approximately 20.5% of the S&P 500's market capitalization.
The broader market looked better, not only evident from the big gains in small-caps and micro-caps, but also the 0.8% gain in the Invesco S&P 500 Equal Weight ETF (RSP 159.02, +1.26, +0.8%). Eight of the 11 S&P 500 sectors closed higher as new money got put to work on the first day of the month.
The consumer discretionary (+1.5%) and energy (+1.6%) sectors outperformed amid an 8.5% gain in Tesla (TSLA 1208.92, +94.92, +8.5%) on no specific news and higher oil prices ($84.05/bbl, +0.52, +0.6%). The communication services, (-0.7%), information technology (-0.1%), and health care (-0.1%) sectors closed lower.
Semiconductor stocks mitigated the decline in the tech sector following On Semiconductor's (ON 54.96, +6.89, +14.3%) better-than-expected earnings report. The Philadelphia Semiconductor Index rose 1.6%.
In Washington, Congressional Progressive Caucus leader Jayapal (D-WA) said progressives will support both infrastructure bills with the addition of several other items, but Senator Manchin (D-WV) said he won't support the budget reconciliation bill without further clarity on its economic impacts.
Treasury Secretary Yellen hinted at the possibility of removing some China tariffs, and the U.S. and EU agreed to ease tariffs on steel and aluminum imports. Harley-Davidson (HOG 39.80, +3.31, +9.1%) was a beneficiary of the U.S.-EU agreement.
Separately, there wasn't a noticeable reaction to the October ISM Manufacturing Index, which decelerated modestly to 60.8% (Briefing.com consensus 60.5%) from 61.1% in September. The report continued to depict robust demand along with ongoing struggles to meet that demand due to supply chain issues.
The 2-yr yield increased two basis points to 0.51%, and the 10-yr yield increased two basis points to 1.58%. The U.S. Dollar Index fell 0.3% to 93.86.
Reviewing Monday's economic data:
- The October ISM Manufacturing Index checked in at 60.8% (Briefing.com consensus 60.5%), down from 61.1% in September. A number above 50.0% is indicative of expansion. October marked the 17th straight month of expansion for the manufacturing sector.
- The key takeaway from the report is still the same. Demand is strong, but manufacturers and suppliers continue to struggle to meet increasing demand levels due to a range of factors that includes record-long raw material lead times, shortages of basic materials, transportation difficulties, worker absenteeism, and difficulty filling positions.
- Total construction spending declined 0.5% month-over-month in September (Briefing.com consensus +0.5%) following an upwardly revised 0.1% increase (from 0.0%) in August. Total private construction declined 0.5% month-over-month while total public construction spending decreased 0.7%.
- The key takeaway from the report is the continued decline seen in new single family and multifamily construction. That is most likely the consequence of ongoing supply chain pressures and higher costs for builders that are standing in the way of building more affordable homes.
- The final IHS Market Manufacturing PMI for September checked in at 58.4, down from 60.7 in the preliminary reading.
There are is no economic data of note scheduled for Tuesday.
- S&P 500 +22.8% YTD
- Nasdaq Composite +21.0% YTD
- Russell 2000 +19.4% YTD
- Dow Jones Industrial Average +17.3% YTD
Crude futures settle higher
01-Nov-21 15:30 ET
Dow +45.14 at 35864.70, Nasdaq +56.78 at 15555.16, S&P +1.42 at 4606.80
[BRIEFING.COM] The S&P 500 is up 0.1% ad on track to close at a record high.
One last look at the sector performances shows energy (+1.8%) and consumer discretionary (+0.9%) still outperforming the benchmark index amid higher oil prices and a 6.6% gain in Tesla (TSLA 1187.24, +73.69, +6.6%). The information technology (-0.3%) and communication services (-0.6%) sectors lag.
WTI crude futures settled higher by 0.6%, or $0.52, to $84.05/bbl. |
