| | Good afternoon, | The markets demonstrated remarkable resilience this week, with buy-the-dip trading driving significant gains. The Russell 2000 and S&P Mid Cap 400 emerged as standout performers, surging 4.5% and 4.2%, respectively, benefiting from strategic capital rotation. The broader market showed strength, too, with the S&P 500 and Nasdaq Composite each advancing 1.7%, while the Dow Jones Industrial Average posted a solid 2.0% gain. | | Some mega-cap names faced challenges. Alphabet experienced a 4.2% decline amid Department of Justice pressure regarding potential forced sales of Chrome and Android. Adding to the tech drama, OpenAI’s potential browser development could present a significant competitive challenge to Google’s dominance. | The retail sector painted a contrasting picture. Target stumbled significantly, dropping 17.8% following disappointing earnings and outlook. However, Walmart demonstrated its market leadership with an impressive 7.4% weekly gain. NVIDIA remained surprisingly flat despite reporting strong fundamentals and describing demand for its Blackwell chip as “staggering.” | Have a great week! | Irving Wilkinson, Editor | AlphaBetaStock.com | | Bonds and Treasuries | Treasuries showed mixed performance this week, with notable movements in key yields. The 10-year Treasury yield decreased by two basis points to 4.41%, while the 2-year Treasury yield increased by seven basis points to 4.37%. | | Several economic reports influenced Treasury performance: | Strong existing home sales data for October Decreasing weekly jobless claims Accelerating services sector activity in November’s U.S. S&P Global Services PMI Manufacturing PMI showing slower contraction compared to October University of Michigan’s Consumer Sentiment dipping to 71.8 from 73.0
| The narrowing spread between the 2-year and 10-year yields suggests ongoing market uncertainty about the economic outlook and future Fed policy decisions. The Federal Reserve’s meeting minutes indicate a gradual approach to future rate cuts, with markets now pricing in a 66% chance of a December cut and expectations for two additional cuts in 2025 | US Market Highlights | The economic landscape reveals several key developments: | Personal spending increased 0.4%, while personal income jumped 0.6% Core PCE, the Fed’s preferred inflation gauge, rose to 2.8% Headline inflation settled at 2.3% The manufacturing sector shows improvement but remains in contraction territory Federal Reserve minutes indicate a gradual approach to future rate cuts Housing market showed unexpected strength with better-than-anticipated existing home sales
| | Global Highlights | International markets presented a complex tapestry of developments: | Israel and Lebanon reached a landmark permanent ceasefire agreement Trump announced aggressive tariff plans: 10% on Chinese imports, 25% on Canada and Mexico Canada’s economic growth slowed to 1%, marking six consecutive quarters of per-capita GDP contraction Bank of Korea surprised markets with consecutive rate cuts, lowering benchmark rates to 3.00% India’s growth cooled to 5.4%, its slowest pace since 2022 China’s manufacturing PMI improved slightly to 50.3, while services PMI balanced at 50.0
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| Commodities & Crypto | Did you know? The total cryptocurrency market has grown from zero to $3.2 trillion in just 14 years – a feat unmatched by any other asset class in history.The crypto market is making headlines with Bitcoin nearly touching $100,000, reaching $99,768. Ethereum surged to $3,300, while Solana reached $264. | | Ripple showed remarkable strength with a 32% gain to $1.40.In traditional commodities, oil markets remain volatile amid geopolitical tensions. | | Brent crude trades at $73, while WTI hovers around $70. Metal markets show mixed performance, with copper at $9,000 per tonne and aluminum reaching $2,630. | | Gold continues its impressive run, trading at $2,685. | Calendar | I’m particularly interested in next week’s employment data, as strikes and weather events significantly impacted October’s modest 12K addition. The upcoming report should provide a clearer picture of underlying labor market dynamics. | The most significant market-moving events will likely be Powell’s speech on Wednesday and the jobs report on Friday. Next week’s calendar is packed with market-moving events: | Economic Data: | | Key Earnings: | | Notable Events: | Federal Reserve Chair Powell’s appearance at NY Times DealBook Summit Multiple speaking engagements by ECB Chief Lagarde Final manufacturing and services PMI data
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