Another day, another rally session that got stronger into the close. The fact is the market might be rallying on muscle memory, and the memory of those that know Santa Claus rallies can come very early.
The market was up fractionally, and the market breadth tightened more than recent sessions.
- Russell 2000: +2.33
- NASDAQ Composite: +15.44
- S&P 500: +6.88
- Dow Jones Industrial Average: +55.22
NYSE
- Advancers: 1,585
- Decliners: 1,347
- New Highs: 147
- New Lows: 27
- Up Volume: 2.42 billion
- Down Volume: 2.26 billion
NASDAQ
- Advancers: 1,595
- Decliners: 1,578
- New Highs: 198
- New Lows: 69
- Up Volume: 1.29 billion
- Down Volume: 1.19 billion
Back in the Winners Circle
Observation: the gulf between new highs and lows underscores the fact investors are once again putting chasing stocks above value.
S&P 500 Index | +0.22% | |
Communication Services (XLC) | +0.33% | |
Consumer Discretionary (XLY) | +0.68% | |
Consumer Staples (XLP) | +0.81% | |
Energy (XLE) | -0.92% | |
Financials (XLF) | -0.10% | |
Health Care (XLV) | -0.08% | |
Industrials (XLI) | +0.29% | |
Materials (XLB) | +0.50% | |
Real Estate (XLRE) | +1.39% | |
Technology (XLK) | +0.09% | |
Utilities (XLU) | +0.33% |
Real Estate has been the most compelling sector of 2019 because it’s been rocking and never gets any press. I love the names in the sector associated with the build out of 5G (fifth generation), and I also love the storage plays, as America is on the move again. There was some cautious buying, reflecting strength in Consumer Staples.
Best Buy Co., Inc. | +7.32 | +9.86% |
UNDER ARMOUR INC | +0.80 | +5.11% |
CHIPOTLE MEXICAN GRILL INC. | +29.33 | +3.73% |
UNDER ARMOUR INC | +0.63 | +3.63% |
Abiomed Inc. | +6.69 | +3.57% |
Hormel Foods Corp. | +1.52 | +3.55% |
Today’s Session
The U.S. trade deficit in goods declined 6% in October to a 17-month low of $66.5 billion. Some would interpret this as tariffs are working and suggest the fourth quarter (4Q) Gross Domestic Product (GDP) could be better than current estimates.
Some fret these numbers point to the persistently slow global economic picture, and along with the sharp decline in auto imports, are worrisome.
Meanwhile, there is a slate of data releases today, including:
- Durable Goods
- Personal Income
- Personal Spending
- Core Inflation
Many market and economic naysayers are looking for signs in the durable goods report to be the crack in the nation’s economic armor. It turns out even the Fed was more concerned about the economy than they led us to believe.
Will businesses holding out on capital expenditures (Capex) upend the market, or are they taking a greater risk of not keeping up with rivals?