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Dow hits 30k in record-setting session
24-Nov-20 16:15 ET
Dow +454.97 at 30046.18, Nasdaq +156.15 at 12036.70, S&P +57.84 at 3635.43

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

[BRIEFING.COM] The major indices rose more than 1.0% on Tuesday in record-setting advances. The Dow Jones Industrial Average (+1.5%) topped the 30,000 level for the first time ever, the S&P 500 (+1.6%) closed at a record high, the Russell 2000 (+1.9%) set fresh all-time highs, and the Nasdaq Composite gained 1.3%.

Value, cyclical, and small-cap stocks retained their leadership roles in this part of the bull market, and the bullish bias carried over to most parts of the market. The S&P 500 energy (+5.2%), financials (+3.5%), and materials (+2.5%) sectors outperformed, while the real estate sector (-0.03%) slipped into the red.

Aside from the obvious momentum and fear of missing out, stocks were supported by incrementally good news that fueled risk sentiment and maintained the market's 2021 recovery optimism.

Specifically, the General Services Administration said it will release funds to help the Biden administration transition into office after President Trump condoned the action, Wells Fargo (WFC 28.60, +2.30, +8.8%) was double upgraded to Outperform from Underperform at Raymond James, and numerous retailers reported better-than-expected earnings reports.

Dollar Tree (DLTR 111.35, +33.53, +6.4%) shares rose 6% following its earnings results, but truthfully, most of the earnings reactions weren't that great since the news may have already been priced in. Shares of Best Buy (BBY 113.54, -8.50, -7.0%) fell 7% despite beating top and bottom-line estimates.

There were also semblances of greed in the market. For example, shares of Tesla (TSLA 555.38, +33.53, +6.4%) surged 6% on no specific news to bring the company's market capitalization to over $500 billion. Hedging interest remained relatively suppressed with the CBOE Volatility Index (-1.02, -4.5%) closing at 21.64.

Longer-dated Treasuries faced selling pressure amid the heightened level of bullishness in stocks, sending yields higher in a curve-steepening trade. The 2-yr yield decreased one basis point to 0.16%, while the 10-yr yield increased three basis points to 0.88%. The U.S. Dollar Index decreased 0.4% to 92.16. WTI crude rose 4.2% to $44.89/bbl.

Reviewing Tuesday's economic data:

The Conference Board's Consumer Confidence Index dropped to 96.1 in November (Briefing.com consensus 96.5) from an upwardly revised 101.4 (from 100.9) in October.
The key takeaway from the report is that consumers going into 2021 don't foresee the economy and the labor market gaining strength, as attitudes about business conditions for the next six months have worsened.
The September S&P Case-Shiller Home Price Index increased 6.6% (Briefing.com consensus 5.5%) following a revised 5.3% increase in the prior month (from +5.2%).
The September FHFA Housing Price Index increased 1.7% following a 1.5% increase in the prior month.

Looking ahead, investors will receive a massive amount of data on Wednesday, most notably the weekly Initial and Continuing Claims report, New Home Sales for October, Personal Income and Spending for October, and the FOMC Minutes from the November meeting.

Nasdaq Composite +34.2% YTD
S&P 500 +12.5% YTD
Russell 2000 +11.1% YTD
Dow Jones Industrial Average +5.3% YTD

Market Snapshot
Dow 30046.18 +454.97 (1.54%)
Nasdaq 12036.70 +156.15 (1.31%)
SP 500 3635.43 +57.84 (1.62%)
10-yr Note -2/32 0.884
NYSE Adv 2341 Dec 738 Vol 1.2 bln
Nasdaq Adv 2396 Dec 1174 Vol 6.2 bln

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

Moving the Market

-- Cyclical sectors continue to set the performance pace

-- Dow hits 30k, Russell 2000 at fresh all-time highs

-- Momentum, fear of missing out, greed, prevailing optimism about 2021

WTI crude futures settle close to $45 per barrel
24-Nov-20 15:30 ET
Dow +449.31 at 30040.52, Nasdaq +154.46 at 12035.01, S&P +57.40 at 3634.99

[BRIEFING.COM] The S&P 500 is up 1.7%, and the Russell 2000 is up 2.0%.

One last look at the S&P 500 sectors shows energy (+4.9%) still way in the lead with a 5% gain, followed by sizable gains in the financials (+3.3%) and materials (+2.6%) sectors. The health care (+0.4%) and real estate (+0.4%) sectors lag with 0.4% gains.

WTI crude futures settled higher by 4.2%, or $1.80, to $44.89/bbl.