Mega-Cap Rebound Fuels Rally to New Record Highs
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Welcome to the swamp market update podcast, where each trading day we recap tea market results and statistics. I am keep land's ford, and here's a summary of what happened today, tuesday, november twenty six. Wall street posted its seven straight winning session and new all time highs despite their forms lifted by hopes for another federal reserve cut and make a cap revival.

But a major inflation report looms first thing tomorrow. Shares of the largest U. S.

Companies, including apple metta platforms, alphabet and microsoft, rebounded today after taking a back seat to their smaller brother in the last few sessions, even slumping in video got into the act with a late surge, president Franklin roseville said. There's nothing to fear but fear itself. However, there's not much fear in today's markets, and that could be concerning.

Momentum is generally favorable and seasonal are strong too, but for the sentiment remains a risk, said lisa Sanders, chief investor tech asha. Earlier today, some fear resurfaced after a president elect trump promised new terrorist s on imports from mexico and canada and higher tails on imports from china. Upon taking office, the us dollar initially Spiked on the news, then stepped back the ten year treasury yields, which scraped against one month lows yesterday in a coming trend, rose today but remained below last week's peaks.

Inflation and rates fears appeared of dude, however, after the federal reserves latest minutes received a David interpretation. And as investors await tomorrow mornings, october personal consumption expenditure, or PC Price index report, the fads favor inflation reading. Here's where the major benchMarks ended.

The S M P five hundred index rose thirty four point two six points, or zero point five seven percent, to six thousand twenty one point six three that out Jones industrial average added one hundred and twenty three point seven four points, or zero point two eight percent, forty four thousand eight sixty point three one and the as that composite gained one hundred and nineteen point four six points, zero point six three percent to ninety thousand one seventy four point three zero ten year treasury no yielding limb four basis points to four point three percent after trumps terror commons. But shorter term fields fell after the fed minutes, keeping the yield curve slightly out of inversion, and the cabo volatility index, or vx, dropped to fourteen point one nine near a two week low. As well as stocks on the move.

Today's mega cap strength helped disguise a sharp turn round in the broader market. Get the saw two of every three new york stock exchange stocks trading lower by midday just three sessions ago. Last thursday, four of every five stocks rose.

A huge market captivation of the magnificent seven helped the S M P five hundred index post its first closed above six thousand since november eleven and the highest finish ever. But the dance floor was a bit less crowded. Turn around from monday, U.

S. Companies exposed international trading faced pressure today following trumps tera talk. Shares of many semiconductor, energy, retailer manufacturing and auto firms with exposure to asian markets, including micron, x on mobile, nike, toyota war pool and ford fell.

It's unclear how much their loss is reflected terrible fears materials, a sector heavily exposed to trade, was the only sector to drop sharply today. Energy also slipped as crude oil Prices sagged on news of a ceasefire in lebanon. However, utilities surged, partly helped by this week to drop in treasury yields. A five year treasury note auction today was the second one this week to see solid demand, a possible sign that yields may have reached levels where investors want to buy treasurer. Other leading sectors were info tech and communication services, both dominated by mega camps.

The Terry worries may have helped make a caps today because those stocks are sometimes perceived as safe havens amid uncertainty, though no stock is safe, best buy fell nearly five percent after the company missed analysts quarterly revenue expectations and forecasts of worst declines the expected in four years sales for stores open at least a year longer. In its earnings release, the company referred to softer than expected demand that hinged on a variety of factors, including customers waiting for deals and distraction ahead of the U. S.

election. Cols plunged seventeen percent after IT reported worse than expected results and provided a weak holiday quarter forecast. Sales remained soft in the apparel and footwear business. The company said zoom lost six percent despite earnings that your past analysts expectations and stronger guidance shares are up about twenty four percent this year, roughly matching me S M P five hundred M G N plumaged more than six percent, even though its face to study data for an experimental weight loss drug was positive.

Participants lost an average of twenty percent of their body weight after a year at the highest dose, but the data didn't show the drug working Better than eli lilly weight loss blockbuster that bound parents noted chairs of you like lilly bounced four point five five percent. Turning to the technical picture. Seasonality still might favor of the balls, whether it's the historic performance of thanksgiving week, which tends to be strong, or the santa laws rally associated with the months of november and december, said neth and Peterson, director of derived of analysis at the shop center for financial research.

Before the open tomorrow, be ready for the PC Price index, personal income and spending and the government's latest updated estimate for third quarter gross domestic product, or GDP P C. Expectations are for october monthly core growth of zero point three percent, equal to septembers reading, and headline growth of zero point two percent, also equal to september. According to trading economics, core excludes food and energy Prices.

On a year over year basis, october P C E Prices are seen rising two point three percent versus two point one percent in september. The core P, C E is also seen climbing to two point eight percent, from two point seven percent as the opposite direction of what the ed wants to see as he tries to guide inflation two percent goal. The P, C E report is expected to show inflation remains sticky, said Colin marn, director of fixed income strategy at the swap center for financial al research.

Wednesday will be shocked full of data releases given the holiday shorten week, but P, C E will likely be the most important because its stickiness could pull the fed closer to a pause at next once meeting. G D, P is expected to be unchanged at two point eight percent, according to trading economics. Details will be keh wales.

Martin said strong personal consumption revisions could support recent economic strength and would confirm the economy remains on solid footing. Earlier today, the conference boards consumer confidence index for november rose to one hundred and eleven point seven a, again of two point one points from a revised one hundred and nine point six the previous month and the best numbers since mid twenty twenty three. That said, I was slightly below the briefing dock come consents of one hundred and thirteen point zero three reports.

Forward looking expectations index jumped to ninety two point three from ninety one point nine and inflation expectations for a year ahead dropped to four point nine percent from five point three percent. All in all, a relatively positive set of data ahead of the holidays. Less positive was october new home sales flowing to a seasonally adJusting annual level of just six hundred and ten thousand, when analyst survey by briefing dot com had expected seven hundred and eighteen thousand that represented at a seventeen point three percent monthly decline and at nine point four percent annual slide.

Hurray es might have affected sales that month, so the november report becomes vital to confirm whether octobers softness was a weather related one off or something more sinister. Home buler stocks, including K, B, home, lr, D, R, horton and tall brothers, sharply on the news minutes from the federal open market committee november meeting out this afternoon. We're more upbeat.

Inflation could continue to head toward to the fed two percent goal, and the labor market remains solid, policymakers said. However, some policymakers think getting inflation to two percent could take longer than previously expected, and members agree that inflation remains somewhat elevated. And some policymakers said if data came in about as expected, with inflation continuing to move down sustainably to two percent and the economy remaining near maximum, employment would likely be appropriate to move gradually toward a more neutral stance of policy over time.

The futures market appeared to interpret that as evidence that policymakers lean told another rate cut before the end of the year as a today, traders, C. S, sixty three percent chance rates will fall twenty five basis points at the conclusion of the federal open market committee meeting december seventeen and eighteen and at thirty seven percent chance of no move based on the C M E pad watch tool that's up from a fifty two percent chance of a move Priced in a day earlier. This has been the swap market update podcast to stay informed, to visit swap dot com slaws market update or follow the show for free in your favorite podcasting out.

And if you like what you've heard, please consider leaving us a reading or a review. IT really helps new listeners find the show. Join us for another update tomorrow. For important disclosures, see the show notes and swap dot com slash market update podcast.