US indices were up across the board yesterday posting their best day in months as they rebounded from last week’s sell off.
Below are highlights from the NDW Morning Update Video for the morning of 11/10. Access the video on the NDW Morning Update Video page.
- US equity futures are mixed this morning the Dow is up ~30 bps while the S&P is roughly flat and the Nasdaq is down ~40 bps.
- US indices were up across the board yesterday posting their best day in months as they rebounded from last week’s sell off.
- The Nasdaq-100 (NDX) led the market higher gaining 3.4% while the S&P 500 (SPX) gained 2.35% and the Dow (.DJIA) gained 2.15%.
- Small caps also had a strong day as the Russell 2000 (RUT) gained 3.15%.
- Semiconductors, which were hard-hit in last week’s drawdown, were among the best performing subsectors, as the iShares Semiconductor ETF (SOXX) gained 7.5%.
- It was also a good day for international equities as the iShares MSCI EAFE ETF (EFA) and the iShares MSCI Emerging Markets ETF (EEM) were both up around 3%.
- Prospects for a peace deal in Iran helped lift stocks but were a major headwind for crude oil (CL/) which was down more than 4% on the day. Crude gave a second consecutive sell signal when it broke a spread triple bottom at $86.
- The 10 Week for the NYSE (^TWNYSE) which measures the percent of stocks on the NYSE trading above their 10-week (50-day) moving average reversed up into Xs yesterday, indicating some improvement in breadth. The 10 Week for Optionable Stocks (^TWOPTI) also reversed up.
- Yesterday’s research discussed recent changes in NDW’s Dynamic Asset Level Investing (DALI) tool. The focus of the piece was the decline of technology, which fell into the bottom half of the rankings last week. The weakness in technology has also driven some weakness in other areas – like emerging markets – as technology accounts for roughly 37.5% of the iShares MSCI Emerging Markets ETF (EEM).
- October CPI is due out this morning with the market expecting month-over-month headline inflation of 0.3% and core inflation of 0.2%, this will be the last CPI reading ahead of the Fed meeting next month. The market is currently pricing in about a 99% chance of a 25 bps rate increase at that meeting.
