Stock Market Update from Briefing.com

Briefing.com

4:10 pm: [BRIEFING.COM] The major averages ended the session near their best levels of the day with the Nasdaq Composite (+0.6%) finishing in the lead. The S&P 500 rose 0.3% to another record high while the Dow Jones Industrial Average (+0.1%) hovered near its flat line throughout the session.

Meanwhile, the benchmark index spent the day in a slow and steady advance despite a heavy batch of disappointing economic data that was reported this morning. The index did show some signs of defensive posturing as all four countercyclical sectors ended ahead of the market while cyclical sectors traded in mixed fashion.

The telecom services sector (+1.2%) finished in the lead after trending higher throughout the day, but more notably, the heavily-weighted health care sector (+0.7%) posted a solid gain with help from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 303.87, +4.20) settled higher by 1.4% to extend this week's gain to 3.0%. Conversely, biotechnology helped the Nasdaq spend the day in the lead.

Although biotech provided a measure of support, the Nasdaq also drew significant strength from chipmakers after Analog Devices (ADI 54.56, +2.85) reported better than expected results. The stock spiked 5.5% while the PHLX Semiconductor Index jumped 2.1% with all but one component ending in the green.

The solid gains among chipmakers helped the technology sector (+0.9%) spend the day in a steady uptrend. However, the same could not be said for the remaining cyclical groups. Financials (+0.2%) held a slim gain throughout the day while consumer discretionary (unch), energy (-1.1%), industrials (-0.2%), and materials (+0.1%) lagged.

Notably, the energy sector widened its November loss to 2.8% as crude oil took another leg down, falling 0.5% to $73.75/bbl.

Treasuries spiked following today's data, but slipped into the close. The 10-yr yield ended lower by a basis point at 2.24%.

Intraday participation was well below average, but volume spiked into the close. As a result, just under 685 million shares changed hands at the NYSE floor.

Economic data was plentiful and almost entirely disappointing. Initial claims, durable orders ex-transportation, personal income/spending, Chicago PMI, Michigan Sentiment, and October pending/new home sales all missed expectations while headline durable orders beat:

  • Initial claims came in at 313,000 (Briefing.com consensus 288,000), which was above the revised prior week count of 292,000 (from 291,000) 
    • Continuing claims fell to 2.316 million from 2.330 million 
  • Durable goods orders increased 0.4% in October following an upwardly revised 0.9% (from -1.3%) decline (Briefing.com consensus -0.6%) 
    • A 45.3% increase in defense aircraft orders helped boost total aircraft demand by 8.7%. The gains in aircraft orders drove overall transportation orders up 3.4% after declining 3.3% in September 
    • Excluding transportation, orders fell 0.9% in October after increasing an upwardly revised 0.2% (from -0.2%) (consensus +0.5%) 
  • Personal income increased 0.2% for a second consecutive month in October (Briefing.com consensus +0.4%) 
    • Personal spending increased 0.2% in October after an upward revision resulted in no change (from -0.2%) in September (consensus +0.3%) 
  • The Chicago PMI for October fell to 60.8 from 66.2 (consensus 63.0) 
  • The University of Michigan Consumer Sentiment report for November was revised down to 88.8 from 89.4 (consensus 90.0) 
  • Pending home sales for October fell 1.1% (expected +0.5%) 
  • New home sales increased 0.7% in October to 458,000 from a downwardly revised 455,000 (from 467,000) (consensus 470,000) 
  • The weekly MBA Mortgage Index fell 4.3% to follow last week's 4.9% increase 
Equity markets will be closed tomorrow and Friday's session will end early at 13:00 ET.

Happy Thanksgiving!
  • Nasdaq Composite +14.6% YTD 
  • S&P 500 +12.1% YTD 
  • Dow Jones Industrial Average +7.6% YTD 
  • Russell 2000 +2.3% YTD

3:35 pm: [BRIEFING.COM]

  • Oil prices sold off in morning trade as the chance for OPEC to cut its output was looking grim
  • WTI crude oil ended the day $0.34 lower at $73.75/barrel ahead of OPEC's meeting tomorrow
  • In electronic trade, Brent crude oil -0.6% at $77.72/barrel, while WTI crude oil is -0.6% at $73.67/barrel
  • Natural gas futures lost 5 cents to $4.36/MMBtu following storage data
  • Dec gold fell 50 cents to $1196.80/oz, Dec silver lost 2 cents to $16.53/oz
  • Dec copper finished unchanged at $2.96/lb

2:55 pm: [BRIEFING.COM] The S&P 500 holds a three-point gain with one hour remaining in the session. We expected today's session to be relatively quiet and the market has yet to dispel that notion going into the home stretch.

Only 315 million shares have changed hands at the NYSE floor, which suggests the final tally will come in below the 200-day average of 700 million shares. Market breadth continues favoring the bulls with 1.5 names trading in the green for each decliner.

Elsewhere, Treasuries have returned to their highs with the 10-yr yield down three basis points at 2.23%.

2:25 pm: [BRIEFING.COM] Recent action saw the S&P 500 (+0.1%) inch away from its afternoon high into the neighborhood of its best level from this morning.

With just one more November session-half-session, actually-remaining, the benchmark index is on track to end November higher by 2.6%. That solid advance puts the S&P 500 behind the Nasdaq, but ahead of the Dow. The tech-heavy Nasdaq has added 3.2% so far in November while the Dow trails with a month-to-date gain of 2.4%.

The technology sector (+0.7%), which outperforms today, is on course to end the month in the lead with a 4.4% gain. The two consumer sectors follow not far behind with gains close to 4.0% apiece while the energy sector represents the weakest performer of the month, down 2.9%.

1:55 pm: [BRIEFING.COM] The S&P 500 (+0.2%) has inched up to a fresh high while the Dow Jones Industrial Average remains near its flat line.

The price-weighted Dow has lagged since the start with 12 of its 30 components trading in the red. Although the majority of the index trades higher, losses among some of the top-weighted components have kept the index near its flat line. To that point, Visa (V 256.60, -0.66), United Technologies (UTX 110.26, -1.45), IBM (161.66, -0.10), and Goldman Sachs (GS 188.31, -0.55) have all contributed to the underperformance of the Dow.

Elsewhere, Treasuries remain near their highs with the 10-yr yield down two basis points at 2.24%.

1:30 pm: [BRIEFING.COM] The main US indices remain mixed at this time with the Nasdaq +0.4% while the Dow Jones is -0.1%. In recent trade, the Dow and Nasdaq seem to be diverging as the Nasdaq works towards its highs of the day while the Dow Jones continues to move gradually lower. 

Energy continues to be the weakest sector on the day (-0.9%) as oil remains lower ahead of tomorrow's OPEC meeting. On the other hand, Technology continues to display relative strength (+0.7%) as it leads the Nasdaq higher into the afternoon. 

This evening, SemiLeds (LEDS 0.49, +0.03) is the only notable company that is confirmed to report earnings after the close.

Volume continues to be light ahead of a market closure tomorrow for Thanksgiving and then a half day on Friday. 

12:55 pm: [BRIEFING.COM] At midday, the major averages trade near their flat lines after spending the first half of action inside narrow ranges. The S&P 500 (+0.1%) currently hovers near the top of its four-point range while the Nasdaq Composite (+0.4%) outperforms.

This morning, investors received an avalanche of economic data with just about every report coming in below expectations. However, the market has been able to look past the disappointing economic news.

Countercyclical sectors are responsible for the bulk of the first half advance with all four defensively-oriented groups trading ahead of the broader market. The telecom services sector (+1.3%) has been rising steadily since the opening bell while the influential health care sector (+0.3%) has received support from biotechnology.

The iShares Nasdaq Biotechnology ETF (IBB 301.57, +1.90) has added 0.6% to extend its week-to-date advance to 2.2%. In turn, the outperformance of biotech has contributed to the relative strength of the Nasdaq.

Furthermore, the tech-heavy index has drawn strength from chipmakers. The PHLX Semiconductor Index trades up 1.5% with all but three components in the green. Analog Devices (ADI 54.58, +2.87) has been a standout performer, trading higher by 5.6% after beating earnings and revenue estimates.

Similar to chipmakers, the broader technology sector (+0.7%) has shown relative strength through the first half. However, top-weighted components are bit mixed with Apple (AAPL 118.62, +1.02) and Microsoft (MSFT 47.94, +0.47) holding gains while Google (GOOGL 547.15, -2.08), IBM (IBM 161.64, -0.12), and Visa (V 255.97, -1.29) lag.

Treasuries jumped in reaction to today's data and have held near their highs since the opening bell. The 10-yr yield is lower by two basis points at 2.24%.

Economic data was plentiful and almost entirely disappointing. Initial claims, durable orders ex-transportation, personal income/spending, Chicago PMI, Michigan Sentiment, and October pending/new home sales all missed expectations while headline durable orders beat:

  • Initial claims came in at 313,000 (Briefing.com consensus 288,000), which was above the revised prior week count of 292,000 (from 291,000) 
    • Continuing claims fell to 2.316 million from 2.330 million 
  • Durable goods orders increased 0.4% in October following an upwardly revised 0.9% (from -1.3%) decline (Briefing.com consensus -0.6%) 
    • A 45.3% increase in defense aircraft orders helped boost total aircraft demand by 8.7%. The gains in aircraft orders drove overall transportation orders up 3.4% after declining 3.3% in September 
    • Excluding transportation, orders fell 0.9% in October after increasing an upwardly revised 0.2% (from -0.2%) (consensus +0.5%) 
  • Personal income increased 0.2% for a second consecutive month in October (Briefing.com consensus +0.4%) 
    • Personal spending increased 0.2% in October after an upward revision resulted in no change (from -0.2%) in September (consensus +0.3%) 
  • The Chicago PMI for October fell to 60.8 from 66.2 (consensus 63.0) 
  • The University of Michigan Consumer Sentiment report for November was revised down to 88.8 from 89.4 (consensus 90.0) 
  • Pending home sales for October fell 1.1% (expected +0.5%) 
  • New home sales increased 0.7% in October to 458,000 from a downwardly revised 455,000 (from 467,000) (consensus 470,000) 
  • The weekly MBA Mortgage Index fell 4.3% to follow last week's 4.9% increase

12:30 pm: [BRIEFING.COM] The S&P 500 (+0.1%) has inched above its morning high while the Nasdaq (+0.3%) continues holding the lead.

Biotechnology and chipmakers gave an opening boost to the Nasdaq and the two industry areas have built on their early gains. The iShares Nasdaq Biotechnology ETF (IBB 301.33, +1.66) has padded its gain to 0.6% while the PHLX Semiconductor Index is now up 1.4%.

Including today's gains, the biotech ETF is higher by 2.2% since last Friday while the PHLX Semiconductor Index has added 2.3% so far this week.

11:55 am: [BRIEFING.COM] Not much change in the major averages with the S&P 500 trading just a point below its best level of the session. Telecom services (+1.0%) and technology (+0.6%) are the only two sectors that have continued advancing in steady fashion while the remaining groups have been locked in narrow ranges.

Elsewhere, the Treasury has conducted a 7-yr auction, which was roughly in-line with average. The auction drew a yield of 1.96% versus a When Issued yield of 1.955%. Indirect bidders took 50.0% of the supply while direct bids hit just 12.8%, leaving primary dealers with 37.2% of the supply.

The 10-yr note has slipped from its high following the auction, but remains in the green with the benchmark yield lower by two basis points at 2.24%.

11:25 am: [BRIEFING.COM] The major averages continue drifting near their recent levels with the S&P 500 sporting a one-point gain. The benchmark index has held within a three-point range so far today and it wouldn't be too surprising if that range held throughout the session.

Individual sectors are split down the middle with five up and five down. All four countercyclical groups hold gains, but the technology sector (+0.6%) represents the only growth-sensitive group that has spent the first two hours of the session in positive territory. The sector has received a measure of support from its top-weighted component-Apple (AAPL 118.96, +1.36)-which trades higher by 1.2%.

10:55 am: [BRIEFING.COM] The major averages remain near their flat lines with the Nasdaq Composite (+0.3%) trading ahead of the remaining indices.

The tech-heavy index has received support from biotechnology and chipmakers while large cap components of the tech sector (+0.5%) trade in mixed fashion. The iShares Nasdaq Biotechnology ETF (IBB 300.56, +0.89) is higher by 0.3% while the PHLX Semiconductor Index trades up 1.2% with Analog Devices (ADI 53.76, +2.05) in the lead. The stock trades up 4.0% after beating earnings and revenue estimates.

Furthermore, the technology sector has outpaced the remaining cyclical groups. Financials (+0.1%) hold a slim gain while energy (-0.6%), industrials (-0.2%), materials (-0.4%), and consumer discretionary (-0.1%) hover in the red.

10:35 am: [BRIEFING.COM]

  • Jan WTI crude oil was trading lower this morning ahead of OPEC, as well as the weekly storage that just came out
  • Following that data, Jan crude barely moved lower.
  • OPEC is still the primary catalyst moving oil prices
  • Jan crude oil is now -0.6% at $73.62/barrel
  • Dec natural gas is +1.2% at $4.45/MMBtu
  • Dec gold is currently +0.02% at $1197.30/oz, while Dec silver is +0.2% at $16.59/oz
  • Dec copper remains below $3/lb and is now -0.03% at $2.96/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.1%.

The University of Michigan Consumer Sentiment report for November was revised down to 88.8 from 89.4, while the Briefing.com consensus expected the reading to climb to 90.0.

New home sales in October hit an annualized rate of 458,000, which was up from the revised September rate of 455,000 (from 467,000), but worse than the rate of 470,000 that had been broadly expected by the Briefing.com consensus.

Pending home sales for October fell 1.1%, which was worse than the 0.5% increase forecast by the Briefing.com consensus.

9:45 am: [BRIEFING.COM] The major averages began the session near their flat lines with six sectors showing early gains. The S&P 500 sits right on its flat line with countercyclical health care (+0.5%) and utilities (+0.5%) in the lead.

Similarly, the remaining two defensively-oriented groups also outperform with consumer staples up 0.2% and telecom services trading higher by 0.5%.

On the downside, energy (-1.2%) is under pressure once again as crude oil trades lower by 0.8% at $73.46/bbl. Meanwhile, the remaining groups trade closer to their flat lines.

Just released, the Chicago PMI for November fell to 60.8 from 66.2, while the Briefing.com consensus expected a decrease to 63.0.

9:11 am: [BRIEFING.COM] S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +4.70. The stock market is on track for a subdued open with futures on the S&P 500 trading two points above fair value. Futures on the benchmark index held inside narrow ranges through the night before slipping to lows in recent action. The downtick in U.S. futures occurred as markets in Europe followed the same pattern, slipping to lows.

Equity indices have been range-bound since the start of the week and today's session is not expected to generate much more excitement. Things will be a bit busier on the economic front with four more reports expected on top of the four that have already been released.

Briefly, initial claims (313,000; Briefing.com consensus 288,000) missed expectations, while durable orders (+0.4%; consensus -0.6%) beat. However, ex-transportation, durable orders came in below expectations (-0.9%; consensus +0.5%). Similarly, Personal income (+0.2%; expected +0.4%) grew at a slower rate than expected, which was also the case with personal spending (+0.2%; consensus +0.3%).

Treasuries climbed to highs in reaction to the data before cutting their gains in half. The 10-yr yield is lower by a basis point at 2.25%.

The Chicago PMI for November will cross at 9:45 ET while the final reading of the Michigan Sentiment Survey for November will be released at 9:55 ET. October New and Pending Home Sales will be reported at 10:00 ET.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: +2.60. Nasdaq futures vs fair value: +7.70. The S&P 500 futures trade three points above fair value.

Markets gained across most of Asia. Traders had to grapple with mixed comments out of Japan as BoJ member Sayuri Shirai suggested even more must be done to reach the central bank's 2.0% inflation target while former Finance Minister Eisuke Sakakibara, aka Mr. Yen, said the depreciation of the currency is near its end.

  • Economic data was limited: 
    • South Korea's Consumer Confidence slipped to 103 from 105 (expected 105) 
    • Singapore's Industrial Production rose 2.6% month-over-month (expected 3.4%; previous -2.9%) while the year-over-year reading inched up 0.2% (consensus 0.8%; last -1.0%) 
    • Australia's Construction Work Done fell 2.2% quarter-over-quarter (expected -1.7%; previous -1.2%) 
------
  • Japan's Nikkei shed 0.1%, but held near seven-year highs. Honda Motor lost 2.9% after admitting to underreporting vehicle defects. 
  • Hong Kong's Hang Seng climbed 1.1% to a two-month high. Insurers saw strong gains as China Life and Ping An surged 7.2% and 3.7%, respectively. 
  • China's Shanghai Composite rallied 1.4% to a three-year high. Brokerage firm Huatai Securities gained the limit, 10%, in its first day of trading since November 14. 
  • India's Sensex added 0.2% to finish just shy of its all-time high. 
Major European indices have slipped from their highs with Spain's IBEX (-0.4%) showing the largest decline. ECB Vice President Vitor Constancio said the central bank may begin buying sovereign bonds next quarter. The remark provided a small boost, but expectations for more immediate stimulus from the ECB have been on the rise since last Friday. The benchmark yields for Italy and Spain have declined one basis point to 2.11% and 1.91%, respectively.
  • In economic data: 
    • Germany's Import Price Index slipped 0.3% month-over-month, as expected, while the year-over-year reading decreased 1.2% (consensus -1.4%; last -1.6%) 
    • Great Britain's CBI Distributive Trades Survey fell to 27 from 31 (expected 28). Separately, Business Investment slipped 0.7% quarter-over-quarter (expected 2.3%; last 3.3%) while the year-over-year reading rose 6.3% (consensus 9.7%; previous 11.0%). Also of note Q3 GDP was left unrevised at 0.7% quarter-over-quarter, as expected 
    • French Consumer Confidence climbed to 87 from 85 (expected 86) 
    • Italy's Consumer Confidence slipped to 100.2 from 101.3 (consensus 101.6) 
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  • Germany's DAX is higher by 0.3% with utilities in the lead. E.On has added 2.3% and RWE leads with a gain of 4.0%. HeidelbergCement is the weakest performer, down 0.6%. 
  • Great Britain's FTSE has returned to its flat line. Miners remain strong with Antofagasta, BHP Billiton, and Randgold Resources up between 1.2% and 4.2%. Discretionary names lag with TUI Travel and Persimmon down 1.4% and 0.9%, respectively. 
  • In France, the CAC is lower by 0.2%. Growth-sensitive names are under pressure with Technip, Lafarge, and Legrand down between 1.3% and 2.6%. GDF Suez outperforms with a gain of 0.9%. 
  • Spain's IBEX has given up 0.4% amid weakness in bank shares. Banco Popular, Banco Sabadell, Bankinter, and Caixabank are down between 1.1% and 1.8%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +1.70. Nasdaq futures vs fair value: +4.50. The S&P 500 futures trade two points above fair value.

The latest weekly initial jobless claims count totaled 313,000 while the Briefing.com consensus expected a reading of 288,000. Today's tally was above the revised prior week count of 292,000 (from 291,000). As for continuing claims, they fell to 2.316 million from 2.330 million.

October durable goods orders rose 0.4%, which was better than the 0.6% decrease expected among economists polled by Briefing.com. This comes after the prior month's revised reading reflected a decline of 0.9% (from -1.3%). Excluding transportation, durable orders decreased 0.9% (consensus 0.5%) to follow the prior month's revised increase of 0.2% (from -0.2%).

October personal income increased 0.2%, while the Briefing.com consensus expected an uptick of 0.4%. Meanwhile, personal spending also increased 0.2%, while the consensus expected an increase of 0.3%.

Core PCE prices rose 0.2% while the Briefing.com consensus expected an uptick of 0.1%.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +5.50. U.S. equity futures trade little changed amid subdued action overseas. The S&P 500 futures hover two points above fair value after maintaining a five-point range throughout the night. Outside of the jam-packed economic calendar, today's session is not expected to be particularly active with Thanksgiving coming up tomorrow and an abbreviated session on Friday.

Treasuries hover just below their flat lines with the 10-yr yield at 2.26%.

The weekly MBA Mortgage Index fell 4.3% to follow last week's 4.9% increase.

Weekly Initial Claims, October Durable Orders, and October Personal Income/Spending Data will be released at 8:30 ET while the Chicago PMI for November will cross at 9:45 ET. The final reading of the Michigan Sentiment Survey for November will be released at 9:55 ET while October New and Pending Home Sales will be reported at 10:00 ET.

In U.S. corporate news of note:

  • Deere (DE 85.75, -2.04): -2.3% after its below-consensus guidance for fiscal year 2015 overshadowed better than expected results. 
  • Hewlett-Packard (HPQ 37.12, -0.51): -1.4% after reporting a one-cent beat on below-consensus revenue. The company's Q1 earnings guidance was on the low end of expectations. 
  • ReneSola (SOL 1.88, -0.23): -10.9% after missing estimates. 
Reviewing overnight developments:
  • Asian markets ended mostly higher. Hong Kong's Hang Seng +1.1%, China's Shanghai Composite +1.4%, and Japan's Nikkei -0.1% 
    • Economic data was limited: 
      • South Korea's Consumer Confidence slipped to 103 from 105 (expected 105) 
      • Singapore's Industrial Production rose 2.6% month-over-month (expected 3.4%; previous -2.9%) while the year-over-year reading inched up 0.2% (consensus 0.8%; last -1.0%) 
      • Australia's Construction Work Done fell 2.2% quarter-over-quarter (expected -1.7%; previous -1.2%) 
    • In news: 
      • Bank of Japan member Sayuri Shirai said she would like to see the central bank take its time in reaching the 2.0% inflation target in order to avoid hurting consumers
  • Major European indices trade in mixed fashion. Germany's DAX +0.5%, Great Britain's FTSE +0.1%, and France's CAC -0.1%. Elsewhere, Italy's MIB +0.1% and Spain's IBEX -0.4% 
    • In economic data: 
      • Germany's Import Price Index slipped 0.3% month-over-month, as expected, while the year-over-year reading decreased 1.2% (consensus -1.4%; last -1.6%) 
      • Great Britain's CBI Distributive Trades Survey fell to 27 from 31 (expected 28). Separately, Business Investment slipped 0.7% quarter-over-quarter (expected 2.3%; last 3.3%) while the year-over-year reading rose 6.3% (consensus 9.7%; previous 11.0%). Also of note Q3 GDP was left unrevised at 0.7% quarter-over-quarter, as expected 
      • French Consumer Confidence climbed to 87 from 85 (expected 86) 
      • Italy's Consumer Confidence slipped to 100.2 from 101.3 (consensus 101.6) 
    • Among news of note: 
      • ECB Vice President Vitor Constancio said the central bank may begin buying sovereign bonds next quarter. The remark provided a measure of support, but expectations for more immediate stimulus from the ECB have been on the rise since last Friday. The benchmark yields for Italy and Spain have declined one basis point to 2.11% and 1.91%, respectively.

6:41 am: [BRIEFING.COM] S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +11.00.

6:41 am: [BRIEFING.COM] Nikkei...17,383.58...-24.00...-0.10%.  Hang Seng...24,111.98...+268.10...+1.10%.

6:41 am: [BRIEFING.COM] FTSE...6,745.66...+14.50...+0.20%.  DAX...9,927.44...+66.30...+0.70%.

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