Sector Investing

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27-Nov-20 13:15 ET
Dow +37.90 at 29910.31, Nasdaq +111.44 at 12205.76, S&P +8.70 at 3638.37

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

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.9%) closed at fresh record highs on Friday in a shortened trading session. The Russell 2000 increased 0.6%, and the Dow Jones Industrial Average increased 0.1%.

A wide range of growth stocks outperformed, including Tesla (TSLA 585.76, +11.76, +2.1%), Moderna (MRNA 127.03, +17.85, +16.4%), Etsy (ETSY 160.55, +15.46, +10.7%), and many within the Philadelphia Semiconductor Index (+1.2%). Value and cyclical stocks, meanwhile, continued to take a breather from their incredible monthly performances.

From a sector perspective, the S&P 500 health care (+1.0%), communication services (+0.6%), and information technology (+0.5%) sectors did the heavy lifting, while the energy (-1.3%) and utilities (-1.0%) sectors declined the most with 1% losses.

The price action in the S&P 500 generally lacked conviction given the reduced market participation, although trading volume at the Nasdaq was three times higher today than the same time last year. In addition, the market never got the risk-on signal from the Treasury market, which traded higher throughout the morning.

Ahead of the bond market close at 2:00 p.m. ET, the 2-yr yield was down two basis points to 0.14%, and the 10-yr yield was down three basis points to 0.85%. The U.S. Dollar Index was down 0.2% to 91.82. WTI crude futures were down 0.7% to $45.39/bbl.

Retail stocks also had a decent outing after Adobe Analytics said Thanksgiving Day spending rose nearly 22% yr/yr to a record $5.1 billion. Adobe expects Black Friday and Cyber Monday sales to be great for retailers, too, as more consumers shop online this year. The SPDR S&P Retail ETF (XRT 61.21, +0.52, +0.9%) increased 1% to extend its weekly gain to 6.3%.

Investors did not receive any economic data on Friday. Looking ahead, investors will receive the Chicago PMI for November and Pending Home Sales for October on Monday.

Nasdaq Composite +36.0% YTD
S&P 500 +12.6% YTD
Russell 2000 +11.2% YTD
Dow Jones Industrial Average +4.8% YTD

Market Snapshot
Dow 29910.31 +37.90 (0.13%)
Nasdaq 12205.76 +111.44 (0.92%)
SP 500 3638.37 +8.70 (0.24%)
10-yr Note +25/32 0.848
NYSE Adv 1718 Dec 1362 Vol 530.0 mln
Nasdaq Adv 2294 Dec 1265 Vol 3.3 bln

Industry Watch
Strong: Health Care, Communication Services, Information Technology
Weak: Energy, Utilities, Financials

Moving the Market

-- Growth stocks lift Nasdaq and S&P 500 to record closing highs

-- Shortened trading session

-- Strong Thanksgiving Day sales