3.9 C
New York
Monday, November 29, 2021
spot_img

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

#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!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

Related Articles

Stay Connected

15,334FansLike
43,300FollowersFollow
2,855SubscribersSubscribe
- Advertisement -spot_img

Latest Articles