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Major indices close at new highs before Thanksgiving Day
27-Nov-19 16:20 ET
Dow +42.32 at 28163.91, Nasdaq +57.24 at 8705.16, S&P +13.11 at 3153.63

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

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and Dow Jones Industrial Average (+0.2%) closed at new record highs on this Wednesday before Thanksgiving Day. The Russell 2000 (+0.6%) closed at a new 52-week high.

It was a steady, broad-based advance that was reflected across gains in ten of the 11 S&P 500 sectors, most notably in the consumer discretionary sector (+0.8%). Sentiment on trade and the economy remained upbeat following mostly positive economic reports and some trade comments from President Trump.

Key data points included durable goods orders unexpectedly rising 0.6% in October (Briefing.com consensus -0.7%), weekly jobless claims reversing two straight weekly increases, and Q2 GDP being revised up to 2.1% (Briefing.com consensus 1.9%) from 1.9% in the advance estimate. As for trade, President Trump said the U.S. and China are in the "final throes of a very important deal."

Trading volume was understandably lighter than usual before the holiday, but that shouldn't take away from the bullish narrative propelling stocks higher. Some of the market's most familiar, and widely-owned, stocks in Apple (AAPL 267.84, +3.55, +1.3%), Amazon (AMZN 1818.51, +21.57, +1.2%), and Facebook (FB 202.00, +3.03, +1.5%) saw increased buying interest.

The S&P 500 industrials sector (-0.2%) was the lone holdout today amid losses in Boeing (BA 368.00, -5.51, -1.5%) and Deere (DE 169.06, -7.59, -4.3%). Boeing was pressured by news that the FAA will take control in re-certifying the airworthiness of each 737 MAX plane. In Deere's case, its cautious FY20 guidance outweighed its revenue beat.

Elsewhere, Box (BOX 18.62, +1.92, +11.5%), Guess? (GES 19.53, +0.45, +2.4%), and Autodesk (ADSK 180.18, +9.38, +5.5%) pleased investors with their earnings results, while Dell (DELL 50.32, -2.87, -5.4%), HP Inc. (HPQ 19.79, -0.27, -1.4%), and VMware (VMW 161.15, -3.75, -2.3%) underwhelmed investors.

U.S. Treasuries ended the session on a lower note, sending yields higher across the curve. The 2-yr yield and the 10-yr yield both increased three basis points each to 1.62% and 1.77%, respectively. The U.S. Dollar Index increased 0.2% to 98.40. WTI crude declined 0.5%, or $0.30, to $58.11/bbl.

Reviewing Wednesday's data dump, which was mixed but mostly positive:

Personal income was unchanged m/m in October (Briefing.com consensus 0.3%). Personal spending increased 0.3%, as expected. The PCE Price Index was up 0.2% and the core PCE Price Index, which excludes food and energy, was up 0.1%. Both inflation readings were in-line with expectations.
The key takeaway from the report is that it won't provoke any rate-hike concerns given that there was a yr/yr deceleration in the core PCE Price Index and the total PCE Price Index remains well below the Fed's 2.0% longer-run target.
Durable goods orders increased 0.6% in October (Briefing.com consensus -0.7%) following a downwardly revised 1.4% decline (prior -1.1%) in September. Excluding transportation, orders were also up 0.6% (Briefing.com consensus +0.2%) after a downwardly revised 0.4% decline (from -0.3%) in September.
The key takeaway from the report is that it will serve as a positive input for Q4 GDP forecasts given that shipments of nondefense capital goods orders, excluding aircraft, jumped 0.8% after declining 0.8% in September and 0.1% in August.
Initial claims for the week ending Nov. 23 decreased by 15,000 to 213,000 (Briefing.com consensus 219,000). Continuing claims for the week ending Nov. 16 decreased by 57,000 to 1.640 million.
The key takeaway from the report is that it marked a downturn in initial claims after two, consecutive weekly increases. The overall level of initial claims remains consistent with what one would see in a tight labor market.
The second estimate for Q2 GDP showed a 2.1% increase on an annualized basis (Briefing.com consensus 1.9%) versus a 1.9% increase with the advance estimate. The GDP Price Deflator was up 1.8% (Briefing.com consensus 1.7%) versus 1.7% with the advance estimate.
The key takeaway from the report is that the upward revision was driven predominately by a change in private inventories. Real final sales growth, which excludes that change, was unchanged from the advance estimate of 2.0%.
The Chicago PMI came in at 46.3 (Briefing.com consensus 47.1), up from the 43.2 reading in October.
Pending Home Sales declined 1.7% in October (Briefing.com consensus +0.9%). Today's reading follows an unrevised 1.5% increase in September.
The MBA Mortgage Applications Index increased 1.5% following a 2.2% decline in the prior week.
The Fed's Beige Book for December noted that economic activity was little changed from the previous reporting period. Consumer spending showed moderate growth in some Districts while auto sales and tourism increased in several Districts. Some Districts reported growth in manufacturing while transportation activity was mixed. Employment increased slightly.

As a reminder, the market will be closed for Thanksgiving Day on Thursday and will reopen for a half-day ending at 1:00 p.m. ET on Friday. Investors will not receive any economic data on Friday.

Nasdaq Composite +31.2% YTD
S&P 500 +25.8% YTD
Russell 2000 +21.2% YTD
Dow Jones Industrial Average +20.7% YTD

Market Snapshot
Dow 28163.91 +42.32 (0.15%)
Nasdaq 8705.16 +57.24 (0.66%)
SP 500 3153.63 +13.11 (0.42%)
10-yr Note -23/32 1.765
NYSE Adv 1795 Dec 1091 Vol 724.5 mln
Nasdaq Adv 2030 Dec 1031 Vol 1.7 bln

Industry Watch
Strong: Consumer Discretionary, Communication Services, Information Technology
Weak: Industrials

Moving the Market

-- Major indices close at new highs before Thanksgiving Day

-- Sentiment on trade and the economy remained upbeat following comments from President Trump and decent economic data

-- Relative strength in the mega-cap stocks

-- Lighter than usual trading volume

WTI crude settles Wednesday on lower note
27-Nov-19 15:25 ET
Dow +47.86 at 28169.45, Nasdaq +53.78 at 8701.70, S&P +13.61 at 3154.13

[BRIEFING.COM] The S&P 500 continues to trade near session highs with a gain of 0.4%. The Russell 2000 is up 0.6%.

One last look inside the S&P 500 shows ten of the 11 sectors trading in positive territory. The consumer discretionary (+0.9%), communication services (+0.7%), and health care (+0.6%) sectors outperform, while the industrials sector (-0.2%) remains the lone holdout.

WTI crude settled down $0.30 (-0.5%) to $58.11/bbl.