Home StocksDow Jones US Stocks Just Shy of All-time Highs, Retail Outlook Strong

US Stocks Just Shy of All-time Highs, Retail Outlook Strong

by Paul Ebeling

#stocks #retail #sales #consumers #prices #commodities #crypto #memes #inflation #economy #politics

$SPY $QQQ $RUT $VXX $HD $GBITS $BTCUSD $ETHUSD

This Bull market is strong and consumers are undaunted by higher prices“– Paul Ebeling

DJIA +54.77 at 36142.22, NAS Comp +120.01 at 15973.86, S&P 500 +18.10 at 4700.90

The S&P 500 gained 0.4% Tuesday, and just shy of closing at a record high on lots of positive developments. The NAS Comp outperformed with a 0.8% gainer, while the DJIA and Russell 2000 both increased 0.2%. 

The S&P consumer discretionary sector was the best-performing of the 11 major S&P sectors while the S&P 500 retailing index rose to close at a record high for a 2nd session running.

  • S&P 500 +25.2% YTD
  • NAS Comp +23.9% YTD
  • Russell 2000 +21.8% YTD
  • DJIA +18.1% YTD

Earnings from Home Depot (NYSE:HD) and retail sales data signaled solid consumer health and eased worries about a Federal Reserve that may have to become more aggressive in the face of rising inflation.

Data showed retail sales spiked 1.7% in October, the largest gainer since March and above the 1.4% estimate, indicating Americans have begun Christmas holiday shopping early.

US retail sales for October, industrial production and capacity utilization for October, and the NAHB Housing Market Index for November were each better than expected. Total retail sales were up 1.7% M-M in October Vs consensus +1.2%.

Retailer Home Depot Inc rose to close at a record high and saw its biggest 1-day percentage gainer since April 2020 after beating Quarterly sales estimates by nearly $2-B and Topping the Street’s EPS view.

The positive data helped investors look past comments from St. Louis Federal Reserve President Bullard, who called for a more Hawkish stance in response to rising inflation. Other Fed officials are calling for patience believing the inflation will fad with the VirusCasedemic.

Crypto

Bitcoin and other cryptocurrencies, sans GIBITS, fell sharply Tuesday, retreating from near-record highs.

The world’s largest digital coin briefly fell below $60,000 during morning trade London time, slipping as low as $58,702 at 1 point.

It later recovered some of those loses and was 5.2% lower at $60,595.44 as of 4:10p EST, according to Coin Metrics data.

Ether, the 2nd-biggest cryptocurrency, fell 6.8% to $4,254.74.

GBITS rose to and is trading at $428.178151

The Memes

Shares of Canoo traded up more than 14% as the Noon hour ended Tuesday, at $9.65 in a 52-wk range of $5.75 to 24.90. The average daily trading volume is around 3.5 million shares, and about 11.5 million had already traded on the day.

Canoo (NASDAQ:GOEV) $10.45 +$2.00 (+23.7%) Closing price November 16, 2021

Lucid stock traded up more than 20% to $54.04, in a 52-wk range of $9.67 to 64.86. The average daily trading volume is about 49.5 million shares, and almost 134 million had traded thus far and (NASDAQ:LCID) $55.52 +$10.64 (+23.7%) Closing price November 16, 2021

Progenity shares traded up more than 29% to $4.48, in a 52-wk range of $0.66 to 7.86. The average daily trading volume is around 64 million shares, and nearly 224 million had changed hands, (NASDAQ:PROG) $4.84 +$1.37 (+39.5%) Closing price November 16, 2021

Pine Island traded up about 3.5%, at $10.25 in a 52-wk range of $9.68 to 14.94. The average daily volume is less than a million shares, but more than 3 million had traded thus far Tuesday. While Pine Island Acquisition Corp. (NYSE: PIPP) is hardly a household name, even among meme stock traders, it had a fair boost in mentions Tuesday on no specific news. A SPAC that began trading in January, Pine Island is often referred to as the “Biden SPAC.” Both Secretary of State Blinken and Defense Secretary Austin were members of the company’s team before their appointments in the Biden administration.

Commodities

Gold futures settled $12.50 lower (-0.7%) to $1,854.10/oz, the US Dollar Index is at its best marks since July of Y 2020, up +0.4% at $95.82 and WTI Crude Oil futures settled lower by 0.1%, or $0.08, to $80.77/bbl.

Tuesday’s economic data:

  • Total retail sales increased 1.7% month-over-month in October, consensus +1.2%, on Top of an upwardly revised 0.8% increase (from 0.7%) in September. Excluding autos, retail sales also rose 1.7%, consensus +0.9%, following a downwardly revised 0.7% increase in September.
    • The Key takeaway from the report is that spending picked up across most retail categories, reflecting the fading impact of the Delta variant. The exceptions were health and personal care stores (-0.6%) and clothing and clothing accessories stores (-0.7%).
  • Total industrial production increased 1.6% in October, consensus +0.8%, following an unrevised 1.3% decliner in September. The capacity utilization rate rose to 76.4%, consensus 75.9%, from an unrevised 75.2% in September. That was the highest capacity utilization rate since January 2019.
    • The Key takeaway from the report is that it points to a lot of latent growth potential when the semiconductor supply shortage, and other supply chain issues, get worked out.
  • The NAHB Housing Market Index increased to 83.0 in November, consensus 80.0 from 80.0 in October.
  • Business inventories increased 0.7% M-M in September, consensus 0.6% following an upwardly revised 0.8% increase in August.
  • Import prices jumped 1.2% M-M and export prices increased 1.5%. On a Y-Y basis, import prices were up 10.7%, +5.5% excluding fuel, and export prices were up 18.0%, +17.2% excluding agricultural exports.

Looking Ahead: Investors will receive Housing Starts and Building Permits for October and the weekly MBA Mortgage Applications Index Wednesday. 

Politics

Mr. Biden said he will nominate a Fed Chairman in “about four days.”

Have a prosperous day, Keep the Faith!

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE