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New closing highs for the S&P 500 and Russell 2000
13-Nov-20 16:20 ET
Dow +399.64 at 29479.75, Nasdaq +119.70 at 11829.21, S&P +48.14 at 3585.29

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

[BRIEFING.COM] The S&P 500 (+1.4%) and Russell 2000 (+2.1%) closed at new record highs on Friday, as cyclical and small-cap stocks claimed the new leadership roles in this part of the bull market. The Dow Jones Industrial Average gained 1.4%, and the Nasdaq Composite gained 1.0%.

The gains were broad and steady with all 11 S&P 500 sectors opening and closing in positive territory. Sector gains ranged from 0.9% (utilities) to 3.8% (energy), and all 30 Dow components also finished higher. The industrials (+2.2%) and real estate (+2.3%) sectors were other standouts.

The market was aided by positive reactions to better-than-expected earnings reports and/or guidance from companies including Cisco (CSCO 41.40, +3.73, +7.1%), Walt Disney (DIS 138.36, +2.84, +2.1%), Applied Materials (AMAT 72.81, +3.01, +4.3%), and DraftKings (DKNG 42.84, +1.59, +3.9%).

Unlike yesterday, investors were more sanguine about the record number of U.S. coronavirus cases despite the lack of progress towards a stimulus deal and renewed restrictions from cities and states. Presumably, they remained assured that the rough road ahead will smooth itself out in 2021 because of a widespread vaccine and eventual stimulus.

This economic optimism was mainly manifested in equities since oil prices ($40.12/bbl, -0.96, -2.3%) settled lower by 2%, gold futures ($1886.80/ozt, +11.30, +0.7%) settled higher, and U.S. Treasuries traded relatively unchanged all session.

The 2-yr yield finished flat at 0.17%, and the 10-yr yield increased one basis point to 0.89%. The U.S. Dollar Index decreased 0.3% to 92.73. The CBOE Volatility Index dropped 8.9% to 23.10, as the bullish price action in equities continued to reduce hedging interest against a downturn in stocks.

Reviewing Friday's economic data:

The Producer Price Index (PPI) report for October was mixed, featuring a higher than expected 0.3% m/m increase in the index for final demand (Briefing.com consensus +0.2%) and a lower than expected 0.1% m/m increase in the index for final demand excluding food and energy (Briefing.com consensus +0.2%).
The muted response to the PPI report is owed in part to the understanding that yesterday's Consumer Price Index for October was on the soft side. Another key takeaway is that this Producer Price Index, like yesterday's Consumer Price Index, was an interest-rate friendly report as it showed tame year-over-year increases of 0.5% and 1.1%, respectively, for final demand and final demand excluding food and energy.
The preliminary University of Michigan Index of Consumer Sentiment for November checked in at 77.0 (Briefing.com consensus 79.0), down from the final reading of 81.8 for October and 93.2 for the same period a year ago.
The key takeaway from the report is that the decline in sentiment stemmed from concerns about the presidential election and the resurgence in covid infections and deaths.

Looking ahead, investors will receive the Empire State Manufacturing Survey for November on Monday.

Nasdaq Composite +31.8% YTD
S&P 500 +11.0% YTD
Russell 2000 +4.5% YTD
Dow Jones Industrial Average +3.3% YTD

Market Snapshot
Dow 29479.75 +399.64 (1.37%)
Nasdaq 11829.21 +119.70 (1.02%)
SP 500 3585.29 +48.14 (1.36%)
10-yr Note -1/32 0.893
NYSE Adv 2500 Dec 519 Vol 887.0 mln
Nasdaq Adv 2570 Dec 897 Vol 3.6 bln

Industry Watch
Strong: Energy, Industrials, Real Estate, Materials, Financials
Weak: Utilities, Information Technology

Moving the Market

-- S&P 500 and Russell 2000 closed at record highs

-- Cyclical and small-cap stocks led the broad-based advance

-- Prevailing optimism about a vaccine and economic growth in 2021

-- Technology stocks underperformed, except Cisco (CSCO) following its earnings report

WTI crude futures settle lower by 2%
13-Nov-20 15:30 ET
Dow +364.00 at 29444.11, Nasdaq +105.06 at 11814.57, S&P +42.95 at 3580.10

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.2% and is trying to set a new closing record.

One last look at the S&P 500 sectors shows green across the board. The energy sector (+3.7%) is in a league of its own today with a 3.7% gain. Following suit are the real estate (+2.0%), industrials (+1.9%), and financials (+1.5%) sectors.

WTI crude futures settled lower by 2.3%, or $0.96, to $40.12/bbl.