Sector Investing

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Market Snapshot

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

Dow 36052.63 +138.79 (0.39%)
Nasdaq 15649.60 +53.69 (0.34%)
SP 500 4630.65 +16.98 (0.37%)
10-yr Note +1/32 1.557
NYSE Adv 1523 Dec 1759 Vol 832.0 mln
Nasdaq Adv 2327 Dec 2250 Vol 5.0 bln

Industry Watch
Strong: Materials, Real Estate, Information Technology
Weak: Consumer Discretionary, Energy

Moving the Market

-- S&P 500, Dow, Nasdaq, and Russell 2000 set intraday and closing record highs

-- Better-than-expected earnings reports, catalyzing a host of bullish reactions

-- Mega-cap support, positive momentum

Record closes for each of the major indices
02-Nov-21 16:20 ET
Dow +138.79 at 36052.63, Nasdaq +53.69 at 15649.60, S&P +16.98 at 4630.65

[BRIEFING.COM] The S&P 500 (+0.4%), Dow Jones Industrial Average (+0.5%), Nasdaq Composite (+0.3%), and Russell 2000 (+0.2%) set intraday and closing record highs on Tuesday. The market drew support from bullish earnings reactions, positive momentum, and some mega-cap support.

Avis Budget (CAR 357.17, +185.71, +108.3%) stole the earnings show, with the stock more than doubling in a short squeeze after the company beat top and bottom-line estimates. Avis shares were up as much as 218%, exemplifying the intense spirit of this bull market, and the intraday retracement didn't deter overall risk sentiment.

To be fair, the breadth of the market was more mixed in front of the FOMC policy announcement tomorrow. While nine of the 11 S&P 500 sectors closed higher, declining issues outpaced advancing issues at the NYSE and were roughly even at the Nasdaq.

The materials sector (+1.1%) was the only sector that gained more than 1.0%, but Apple (AAPL 150.02, +1.06, +0.7%), Microsoft (MSFT 333.13, +3.76, +1.1%), Alphabet (GOOG 2917.26, +41.78, +1.5%), and NVIDIA (NVDA 264.01, +5.74, +2.2%) provided individual leadership.

Conversely, the energy (-1.0%) and consumer discretionary (-0.6%) sectors lower. Tesla (TSLA 1171.97, -36.62, -3.0%) held back the latter after CEO Elon Musk said there has yet to be a signed contract with Hertz Global (HTZZ 35.06, +0.91, +2.7%) and that the deal would have no economic impact on Tesla.

Back to earnings, Pfizer (PFE 45.45, +1.81, +4.2%), Estee Lauder (EL 338.62, +13.47, +4.1%), Arista Networks (ANET 491.87, +83.30, +20.4%), Zebra Technologies (ZBRA 585.55, +42.96, +7.9%), and Under Armour (UA 21.68, +2.65, +13.9%) also saw sizable gains following their earnings reports, although not to the same extent as Avis Budget.

Elsewhere, Treasuries saw increased demand ahead of the Fed decision tomorrow, driving yields lower in a curve-steepening trade. The 2-yr yield fell six basis points to 0.45%, and the 10-yr yield fell three basis points to 1.55%. The U.S. Dollar Index gained 0.2% to 94.10. WTI crude futures decreased 0.2%, or $0.19, to $83.86/bbl.

Hedging interest remained muted amid the resolve in the major indices. The CBOE Volatility Index (16.03, -0.38, -2.3%) closed near the 16.00 level.

Investors did not receive any economic data on Tuesday. Looking ahead to Wednesday, investors will receive the ISM Non-Manufacturing Index for October, the ADP Employment Change report for October, Factory Orders for September, the weekly MBA Mortgage Applications Index, and the final IHS Markit Serfices PMI for October.

S&P 500 +23.3% YTD
Nasdaq Composite +21.4% YTD
Russell 2000 +19.5% YTD
Dow Jones Industrial Average +17.8% YTD

Crude futures settle slightly lower
02-Nov-21 15:25 ET
Dow +132.15 at 36045.99, Nasdaq +31.76 at 15627.67, S&P +14.81 at 4628.48

[BRIEFING.COM] The S&P 500 is up 0.3% and on track to close at another record high.

One last look at the sectors shows materials (+1.2%) as the only sector up more than 1.0%, while the energy (-1.0%), consumer discretionary (-0.6%), and utilities (-0.2%) sectors are the only groups trading lower.

WTI crude futures settled lower by 0.2%, or $0.19, to $83.86/bbl.