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S&P 500, Nasdaq, and Dow close at record highs
04-Nov-19 16:20 ET
Dow +114.75 at 27462.15, Nasdaq +46.80 at 8433.20, S&P +11.36 at 3078.27

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) continued to set new highs on Monday, with the Dow Jones Industrial Average (+0.4%) finally breaking above its prior high from July following some positive-sounding trade comments. The Russell 2000 (+0.5%) kept pace with the large-cap indices.

Commerce Secretary Wilbur Ross said that good progress has been made in "Phase One" negotiations, companies may soon be granted licenses to work with Huawei, and auto tariffs on imported products may not be imposed. With the market already in record territory amid trade optimism and favorable monetary policy, there was presumably some chasing activity among buyers fearful of missing out on further gains.

The market took Mr. Ross' comments at face value, and shares of economically-sensitive companies continued to benefit from a positive growth outlook. The S&P 500 energy sector (+3.2%) surged past the other sectors, rising more than 3% as the value-oriented space also benefited from higher oil prices ($56.69/bbl, +0.48, +0.9%). The sector saw volume that was below average.

The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).

On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.

Notable story stocks from Monday included McDonald's (MCD 188.66, -5.28, -2.7%) and Under Armour (UAA 17.13, -4.01, -19.0%). McDonald's fired CEO Steve Easterbrook after he used "poor judgement" in having a consensual relationship with an employee. Under Armour reported lackluster sales activity and confirmed its accounting practices are being probed by the SEC and Department of Justice.

U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the safe-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.3% to 97.55.

Monday's economic data was limited to the Factory Orders report for September, which declined 0.6% (Briefing.com consensus -0.5%) following an unrevised 0.1% decline in August.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for October, the Trade Balance report for September, and the JOLTS - Job Openings survey for September on Tuesday.

Nasdaq Composite +27.1% YTD
S&P 500 +22.8% YTD
Russell 2000 +18.5% YTD
Dow Jones Industrial Average +17.7% YTD

Market Snapshot
Dow 27462.15 +114.75 (0.42%)
Nasdaq 8433.20 +46.80 (0.56%)
SP 500 3078.27 +11.36 (0.37%)
10-yr Note -27/32 1.779
NYSE Adv 1771 Dec 1082 Vol 951.7 mln
Nasdaq Adv 1892 Dec 1228 Vol 2.1 bln

Industry Watch
Strong: Energy, Financials, Industrials, Materials
Weak: Real Estate, Utilities, Consumer Staples, Health Care

Moving the Market

-- Stock market sets new record highs on trade comments, fear of missing out on further gains

-- Commerce Secretary Ross said companies may soon be granted licenses to work with Huawei and auto tariffs on foreign imports may not be imposed

-- Relative strength in the cyclical sectors, especially in the energy sector, which rose more than 3%

-- Relative weakness in the defensive-oriented sectors