Rally Broadens Despite Struggles for Mega Caps
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Welcome to the show market update podcast, where each trading day we recap key market results and statistics. I'm collado clare, and here's a summary of what happened today, thursday, november twenty first. Big banks, retailers and heavy equipment makers helped wall street to substantial gains thursday, putting tech in the back seat despite a decent outing for semiconductors after in video's earnings.

The S M P five hundred index is now up four days in a row. The one session isn't a trend. IT felt like the market reclaimed some of the signal strength that dominated right after the election and to some extent, earlier this fall.

Single sectors like financials and industrials that often do best when the U. S. Economy warms up, let the way both then and today. As foreign video investors seem to vicolo following earnings in revenue that easily beat analyst expectations, but guidance that missed the most bullish hopes, analysts praise to the results almost unanimously, and many raised their Price targets, helping shares turn the corner after stumbling out of the gate.

However, profit taking LED to some early pressure nearly a month before the next federal reserve meeting, the market baked in about fifty fifty chances of a third consecutive rate cut. The tone from recent fed speakers, including fed chairman jero power, has vary from cautious to optimistic about progress on inflation and the state of the labor market, but the fed has cut rates seventy five basis point since september, and pal said clearly last week there is no hurry. The case for a fed pause in december is getting stronger, and fed officials are communicating that they are open to IT going into the next meeting, said Kathy Jones.

To fixed income strategies to trib IT will come down to employment and inflation data. The next U. S. Known from payrolls report is due in just over two weeks, with november inflation readings also due before the feds made december meeting. The october report revealed very soft jobs growth, but that reflected storms and strikes.

November's readings could clear up confusion, but recent state by state job data showed cooling, even as today is a weekly initial jobless claims fell to seven months lows, advancing stocks far outpace decliners today in a broad rally and crypto vite for headlines too, as bitcoin climbed to nearly one hundred thousand dollars for the first time. The move towards cyclical and out of mega catered and communication services today could reflect a rotation trade with invidia earnings over and alphabet struggling amid anti trust issues. Here's where the major benchMarks ended.

The S N, P five hundred booed thirty one point six zero points, zero point five three percent to five thousand and nine hundred forty eight point seven one. The dw jone's industrial al average rose four hundred and sixty one point eight eight points, or one point zero six percent, to forty three thousand eight hundred seventy point three five, and the mazda composite stayed relatively flat, up six point two eight points, or zero point point zero three percent to eighteen thousand and nine hundred seventy two point four two. The ten year treasury no yield added two basis points to four point four two percent, staying range bound, and the suburb volatility index of vix slip to sixteen point eight seven, still above last week's levels.

As for stocks on the move today, thursday was positive for shares of many cynically firms. Some of the big names climbing. The latter included deer, nike, o cv, ellin, clifts, caterpillar and golden sex.

At the same time, the philadelphy assembly conductor index gained as NVIDIA climbed a little under one percent. The broader markets upward move came without much help for mega caps as tesla like crossing t apple and alphabet trailed. Seeing major indexes climb even as make a cap sink could be evidence that the rally is broadening beyond the biggest stocks, though of course it's only one session sector.

Ize utilities made a late move to lead all sectors despite rising treasury yields, possibly more evidence of expected increasing power demand related to A I. After in video's bullish outlook, communication services finished last hurt by alphabet. Technically the S P five hundred and nasaa continue to hover above key support at the twenty day moving averages.

That support line is now near five thousand eight hundred and eighty for the S M P five hundred, with secondary support at the fifty day moving average down near five thousand eight hundred, which also represents early november laws. The following company said stock Price move driven by analyst ratings, quarterly earnings or other news, snowflake surged thirty two point seven percent after beating analysts earnings and revenue expectations. The company's collaboration with amazon's amazon web services cloud platform has helped snowfall, book revenue executive said in their earnings call.

C, N, B, C reported alphabet slipped four point seven percent after the U. S. Department of justice said he wants the company to sell its chrome web browser after a court determine the company has an illegal monopoly over search.

Chrome is a small part of phab t but could be worth up to twenty billion dollars, media report said. Deer at vane state point one percent as earnings speed expectations, even while the company's outlook appeared servais, a soft agriculture market and high interest rates have LED to a poor harvest lately. For the industrial giant, revenue fell sharply in the quarter, but easing inflation and a tiger corporate wallet lowered costs, contributing to the earnings beat.

Final november university of michigan consumer sentiment rounds out the data calendar just after tomorrow is open and lists expect a headline of seventy three equal to the preliminary reading. According to briefing dot com year ahead, inflation expectations dropped to two point six from two point seven percent earlier this month, the lowest enormous four years. So it's important to track any possible changes in that metric tomorrow.

Also tomorrow morning's stay tuned for S N P global P M I data, which could show economic activity picking up steam after last month gains in new orders and drops in inventory activity might have picked up recently as the prospect of increased tariff under a new U. S. Administration encourages buying and selling ahead of the inauguration, which is right at two months from now for the U.

S. S. In pig global data, it's likely another divergent set of numbers. U, S, S, N, P, global manufacturing P, M, I is seen at a headline of forty eight point eight percent according to trading economics, below the fifty percent needed to show expansion and below the previous forty nine point two percent.

But services are seen at fifty five point two percent, up from fifty five point one percent in the prior report. Initial weekly jobless claims out earlier today looked relatively light at two hundred and thirteen thousand low, the briefing dcm expectations of two hundred and twenty one thousand and the lowest since April. Falling claims could indicate workers returning after some high profile strikes in september and october, but continuing claims continued rising and topped one point nine million for the first time in three years, fed speakers this week said.

The labor market continues to cool october. Existing home sales eked out monthly and year over year gains. The headline three point nine six million seasonally adJusting annual rate beat the brief in 点 com consensus for three point nine million and rose from three point eight four million in september。

Mortgage rates are up sharply over the last month and via enthusiasm remains constrained, but the nearly three percent annual rise i'll be is still to low. Historic levels indicate some life in the market. October leading indicators from the conference board were worse than expected, down zero point four percent.

Analysts had seen leading indicators falling zero point three percent. Leading indicators have been read the last two years, almost without exception, but the U. S. Economy grew today. Chicago fed president Austin goals be told an audience, inflation is on its way to the feds.

Two percent target and added, if we look out over the next year or so, IT feels to me like rates will end up a fair bit lower than where they are today, bearance reported. Though fed policymakers have stayed mum on potential ramifications of the new administration policies on trading immigration, there is little doubt if factors into the markets narrow ling chances of rate cuts in the coming year. We are looking for the bond market to trade in a broad range due to uncertainty about policy in twenty twenty five jobs, Jones said.

Tax cuts, turfs and limits on immigration could add to inflation pressures. The term premium has already started to rise as a result of these concerns. Longer term, the terminal rate will probably be closer to three point five percent than the september estimate of two point seven five percent.

The terminal rate is where participants think borrowing costs will be when the fed finishes the current training cycle. Rates could wind up higher than previously thought due to economic growth and physical policy, with next months fed projections likely to reflect that. As of late today, traders see fifty five percent chances rates will fall twenty five basis points at the conclusion of the federal open market committee meeting december seventeen th to eight, and a forty five percent chance of no move based on the C M.

A fed watch tool, the oo dds of a cut are down dramatically from seventy two percent a week ago, reflecting powle's cautious words. This has been the swap market update podcast. To stay informed, visit swept dot com slash market update or follow the show for free in your favorite podcasting APP.

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