Tech Falls but Dow Hits Record on Economic Hopes
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Welcome to the swamp market update podcast, where each trading day we recap tea market results and statistics. I'm k fan ford, and here's a summary of what happened today, friday, november twenty second. While three finished ed the pretty day stretch with its fifth straight winning session, even as A I giant in video, miss the party and tech mainly stayed home hopes for an improved business climate under the next U.

S. Administration delivered the tail when for most other sectors, one question heading in a friday was whether thursdays surge in cyclical stocks that often track the U. S. Economy would spill over to some extent did, which could help explain why the dow Jones dust rial average and small cats outpace the broader market.

M tech, the now posted a record, closed some of the same companies that enjoyed buying interest yesterday, received more of the same, including auto makers, steel manufacturer retailers and heavy industry giants like caterpillar and beer retailers drew support from a mostly resilient week of earnings from many well known shopping makers. Despite disappointment from target, this all took place as NVIDIA crumbled more than three percent friday. And other mega caps like alphabet, amazon and ma platforms languaged possibly assign that rotation continues out of mega caps and into smaller and more cyclical parts of the market.

However, a couple of days isn't a good sample size. The S M P five hundred encountered some dips throughout the week, but those instances were largely met with buyers, said nathian terim, director of derives analysis at the shop center for financial research. Stocks have been able to climb without a lot of help from the technology sector.

Yes, information technology is up to and a half percent over the past twenty days, but the semicon inductor sector is down by around one percent over the same time frame. Recent under performance in chips could reflect concerns around the tighter export restrictions to china by the incoming administration. Still, optimism around potential positive impact from policy changes appears to be dominating market psychology in the near term, Peterson added.

Here's when the major benchMarks ended, the S M P five hundred index rose twenty point six three points, or zero point three five percent, to five thousand nine sixty nine point three four to end the week, up one point six eight percent, the down Jones and destroy average gained to four hundred and twenty six point one six points, or zero point nine seven percent to forty four thousand two ninety six point five one tamed the week, up one point nine six percent, and the mad composite added thirty one point two three points, or zero point one six percent, the nineteen thousand three point six five to end the wake up one point seven three percent. The ten your treasure note yield fell two basis points to four point four one percent and is down two basis points for the week, but the two year no yield rose at seven basis points this week as rate cut odds fell. Meta y, both volatility and x or vx fell sharply to fifteen point three one and finished slightly lower for the week.

As far as stocks on the move, gap aboard almost thirteen percent after earnings per share from the old navy and banana republic parent company easily beat analysts consensus views and revenue came in as analysts had expected. The company issued guidance that top consensus and said its holiday season has had a strong start. NVIDIA drop more than three percent in what appeared to be continued profit taking after wednesday's solid earnings report. Many analysts raise their Price targets following the result, but in videos, shares approached earnings near all time highs.

Ross stores have jumped to two point one nine percent following a quarter that like gap beat on earnings pressure are and match consensus on the top line guidance with the current fourth quarter was below the average analyst earnings per share estimate, but the retailer excited investors by raising its full year earnings per share guidance and in two at lost five point six eight percent as the software firm beat earnings expectations but provided fiscal second quarter guidance well below consensus expectations. IT did reiterate full year guidance with a delay in timing of revenue driving the soft second quarter outlook. Investor rotation out of mega caps and into a broader group of sectors showed up in the recent paths of the S M P five hundred versus the S M P five hundred equal weight index both surged after the election and backed off last week.

Roughly in sink, then they diverged the last few days. By mid friday, the S M P five hundred has risen one point four percent since the end of last week. But the S M P five hundred equal weight index, which raise all stocks in the index equally rather than by a market capitalization, was up two point four percent.

None of the leading ing sectors this week, including staples, utilities, materials and energy, are associated with the so called magnificent. This helps explain how the S M P five hundred index can be off its all time high of just above six thousand, even as bread proves. As of friday, seventy two percent of S M P five hundred stocks traded above their respect of two hundred day moving averages, up from sixty nine percent a week ago.

Wear wall street heads in the longer term could partly him on the relationship between stocks and treasuries. Stocks have generally reacted positively to rising treasure yields over the last two months, steadily climbing even as the ten year treasury note yield added eighty basis points. Higher yield cam signal prospects for robust economic growth, which seems to be driving the relationship for now.

If the coal lation flips back in a negative territory, though, IT would be consistent with inflation again being the main driver of downside risks for stocks shops. Experts say in a recent market perspective, it's too soon to say if that will be the case, but the risk is worth monitoring as we start to turn the corner into twenty, twenty five. Near term treasury direction could be determined in part by next week's heavy basket of U.

S. Economic data, especially october P, C, E. Prices. That report to do wednesday morning is expected to show zero point two percent monthly growth, unchanged from the september gain, according to training economics. The P.

C, E report, which is closely watched by the federal reserve, contains readings on spending by the government and employers that aren't tracked by the consumer Prices index, or CPI, and represent close to one hundred percent of the U. S. economy.

Technical key resistances at four point five percent for the ten year no year old shop Peterson. In other areas, healthy consolidation brought the S M P five hundred down to near term support at its twenty day moving average this week near fifty eight eighty five and residence rests at the six thousand level, he added by all november. University of michigan consumer sentiment out earlier today felt to seventy one point eight from the preliminary seventy three point zero, but one year inflation expectations were unchanged at two point six percent.

Analysts had expected a headline of seventy three points. According to briefing that com, this morning's S M P global U S. Manufacturing and services preliminary PMI data for november were more influential, is higher than expected overall reading and improvement in manufacturing appeared to lift shorter term treasury yields. This reinforced the trend this week that it's seen the shorter end of the yield curve gain on the longer end, partly due to data like these that reduced the markets expectations of a december rate that S, M, P, global U. S.

Manufacturing remained in contraction territory below fifty percent at forty eight point eight percent, up marginally from the prior reading of forty eight point five percent, but the services component rose to fifty seven point nine percent from the prior fifty five point zero percent to bring the overall composite headline to fifty five point three percent. That was the strongest growth in the country's private sector since April of twenty two. Expectations also reached two year highs, helped by companies hopes for lower interest strates and favorable business policy from the incoming administration.

A few weeks out from the feds next, meaning the market Prices in roughly a fifty, fifty chance of a rate had next weeks inflation data, then the following week's jobs report will likely have an impact on the decision. However, I would say the case for a pause is getting stronger, and the reason is the economic data have been resilient, said coffee Jones, chief fixed income strategist at job in the latest on investing podcast. What we see is an economy that's really growing at a pretty healthy rate to and a half percent to three percent with pretty full employment.

Unemployment rate has edged, duped, but IT stuck around four percent, which we used to think was actually below for employment. And wage growth has been pretty healthy. So we don't have a lot of areas of the economy that are suffering. Jones added that although inflation growth is declining, th Epace h as s lowed a s o f l ate t oday.

Traders see a fifty three percent chance rates will fall twenty five basis points at the conclusion of the federal open market committee meeting december seventeen eighteen, and a forty seven percent chance of no move based on the C M E fed watch dual. That's down from sixty two percent chances of a cut pricing a week ago. This has been the swap market update podcast.

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