Adam in CNBC: Nasdaq hits record high as stocks rise; oil slides more than 3.5% ahead of OPEC meeting

November 28, 2016 1pm
U.S. equities rose on Tuesday as investors kept an eye on falling oil prices ahead of a key OPEC meeting, while digesting economic data.
The Dow Jones industrial average traded about 30 points higher, with UnitedHealth Group contributing the most gains. The S&P 500 traded 0.2 percent higher, with health care and real estate leading advancers. The Nasdaq composite outperformed, trading 0.5 percent higher and hitting a new record high, as the so-called FANG stocks (Facebook, Amazon, Netflix and Google-parent Alphabet) all rose. The three major indexes traded lower earlier in the session.
U.S. stocks closed lower on Monday, as a post-election rally paused, with the major indexes dropping off from all-time high levels. The small-caps Russell 2000, which has been outperforming large-cap indexes, fell more than 1 percent, snapping a 15-day winning streak, its longest in 20 years.
“I think we’re at a point where people are afraid of pushing the market too far off the fundamentals, but I don’t think there are any news that could push the market markedly lower” in the near term, said Bruce McCain, chief investment strategist at Key Private Bank.
West Texas Intermediate futures for January delivery dropped 3.8 percent to $45.30 per barrel, as of 12:30 p.m. ET. OPEC are set to meet in Vienna, Austria on Wednesday and traders will be keeping a close eye on announcements regarding an oil production cut. In September, OPEC had outlined a deal to cut output by approximately 1 million barrels per day.
“All eyes are on the upcoming OPEC meeting and traders are awaiting the decision. The headlines are not very positive and this is making investors very jittery,” Naeem Aslam, chief market analyst at Think Markets, said in a note.
Indonesian Energy Minister Ignasius Jonan said he was not sure OPEC would clinch a deal to limit oil output when it met. Meanwhile, non-OPEC producer Russia confirmed on Tuesday it would not attend the OPEC gathering, but added that a meeting between the group and non-affiliated producers at a later stage was possible.
That said, U.S. equity futures held most gains before the bell Tuesday. “We’re seeing a bit of decoupling between oil prices and stocks,” said Adam Sarhan, CEO at 50 Park Investments. “Since [President-elect Donald] Trump won, equities have soared, and oil has not.”
“Unless we see a breakout below $40 or above $50, the market is comfortable with oil trading in this range,” Sarhan said.
In economic news, the second read on third-quarter GDP came in at an annualized rate of 3.2 percent, above a previous reading of 2.9 percent.
“While old news, the revision provides us with the baseline from which Q4 activity began. On a 4 quarter run rate, GDP growth is now averaging 1.6% and 1.8% in the 3 quarters year to date,” said Peter Boockvar, chief market analyst at The Lindsey Group, in a note to clients.
Other data released Tuesday included the S&P Core Logic Case-Shiller index, which showed U.S. home prices gained 5.5 percent in September. The Consumer confidence index for November came in at 107.1, well above expectations.
Economic data has been at the forefront for investors as they brace themselves for a possible interest rate hike from the Federal Reserve next month. According to the CME Group’s FedWatch tool, market expectations for a December rate hike are above 95 percent.
Treasury prices recovered to erase earlier losses on Tuesday, with the two-year note yield trading at 1.099 percent and the benchmark 10-year yield around 2.309 percent.
The U.S. dollar slipped about 0.2 percent against a basket of currencies, with the euro around $1.063 and the yen around 112.6. However, the greenback has strengthened considerably recently. Joe O’Leary, senior FX trader at Silicon Valley Bank, said the dollar’s rise has been driven by optimism in the U.S. economy. “I think that, compared to the rest of the world, we’re in a pretty good place,” he said.
Overseas, European equities traded mostly higher, with the Stoxx 600 Europe index gaining 0.3 percent.

The Dow Jones industrial average rose 28 points, or 0.15 percent, to 19,126, with UnitedHealth leading advancers and Chevron the biggest decliner.
The S&P 500 gained 5 points, or 0.24 percent, to trade at 2,206, with health care leading eight sectors higher and energy lagging.
The Nasdaq advanced 27 points, or 0.5 percent, to trade at 5,395.
Advancers and decliners were about even at the New York Stock Exchange, with an exchange volume of 366 million and a composite volume of 1.729 billion in midday trade.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 12.8.
Gold futures for December delivery fell $4.30 to $1,186.50 per ounce.
—CNBC’s Sam Meredith and Reuters contributed to this report.
LINK:
http://www.cnbc.com/2016/11/29/us-markets.html
On tap this week:
Tuesday
Earnings: Splunk, Autodesk, Nutanix
Wednesday
Earnings: American Eagle Outfitters, La-Z-Boy, Box, Synopsys, Royal Bank of Canada, Guess, Pure Storage, Semtech, PVH
8:00 a.m. Dallas Fed President Rob Kaplan
8:15 a.m. ADP employment
8:30 a.m. Personal income
9:45 a.m. Chicago PMI
10:00 a.m. Pending home sales
12:35 p.m. Cleveland Fed President Loretta Mester
2:00 p.m. Beige book
Thursday
Monthly vehicle sales
Earnings: Toronto-Dominion Bank, Dollar General, Ulta Salon, Lands’ End, Kroger, Express, Canadian Imperial Bank, Ambarella, Workday, Smith & Wesson, Five Below, Ascena Retail
8:30 a.m. Initial claims
8:30 a.m. Cleveland Fed’s Mester
9:00 a.m. Dallas Fed’s Kaplan
9:45 a.m. Manufacturing PMI
10:00 a.m. ISM manufacturing
10:00 a.m. Construction spending
Friday

Earnings: Big Lots
8:30 a.m. Employment report
12:30 p.m. Fed Gov. Daniel Tarullo
12:30 p.m. Cleveland Fed’s Mester

Link: 
http://www.cnbc.com/2016/11/29/us-markets.html

Adam in Reuters: US STOCKS-Wall St falls as consumer, finance stocks weigh

* Time Inc jumps after report of company rejecting takeover bid
* Amazon weighs the most on the S&P, Nasdaq
* Oil prices fluctuate on uncertainty regarding OPEC deal
* Indexes down: Dow 0.15 pct, S&P 0.22 pct, Nasdaq 0.21 pct (Updates to early afternoon)
By Tanya Agrawal and Anya George Tharakan November 28, 2016 11am
U.S. stocks were lower in early afternoon trading on Monday, weighed down by financial and consumer discretionary stocks, as some investors cashed in following a record-setting week visit here xfilmporno.net .
The three major U.S. indexes closed higher for the third week in a row on Friday, with the S&P 500 notching its seventh record close since Nov. 8.
Oil prices gained more than 2 percent in volatile trading, recouping early losses, as the market reacted to the shaky prospect of major OPEC producers being able to agree output cuts at a meeting on Wednesday.
U.S. stocks have soared since Donald Trump’s victory in the presidential election as investors expect his plans to boost infrastructure spending, cut corporate taxes and reduce regulation to benefit the economy.
Up to Friday’s close, the S&P 500 had jumped 3.4 percent since Nov. 8, while the small-cap Russell 2000 soared 11.9 percent.
“U.S. stocks have soared since the election. At this point, it would be perfectly normal to see the market pull back a bit to digest the very strong move,” said Adam Sarhan, chief executive at 50 Park Investments.
“Technically, the market is very overbought and just about everyone out there, including the strongest bulls, want to see a nice orderly consolidation.”
At 12:42 p.m. ET (1742 GMT) the Dow Jones industrial average was down 28.02 points, or 0.15 percent, at 19,124.12.
The S&P 500 was down 4.82 points, or 0.22 percent, at 2,208.53 and the Nasdaq Composite was down 11.14 points, or 0.21 percent, at 5,387.78.
Six of the 11 major S&P sectors were lower, with the financial index leading the decliners with a 0.94 percent fall.
Wells Fargo and Bank of America were down about 1.5 percent and were among the biggest drags on the S&P.
The consumer discretionary index also fell 0.57 percent.
Amazon was down 1.6 percent at $767.74 after Citigroup reduced its price target on the stock. The stock was the biggest drag on the Nasdaq and the S&P.
Time Inc jumped 16 percent to $16.01 after the New York Post reported that the publisher had rejected a takeover bid from billionaire investor Edgar Bronfman Jr.
Declining issues outnumbered advancers on the NYSE by 1,757 to 1,126. On the Nasdaq, 1,852 issues fell and 891 advanced.
The S&P 500 index showed 21 new 52-week highs and no new lows, while the Nasdaq recorded 134 new highs and 16 new lows. (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
Link: 
http://www.reuters.com/article/usa-stocks-idUSL4N1DT457

Adam in Reuters: US STOCKS-Retailers nudge Dow, S&P to record highs on Black Friday

Fri Nov 25, 2016 | 11:35am EST
* Wal-Mart leads retailers higher; department stores lag
* Online spending on Black Friday to surge 11 pct-Adobe data
* Energy stocks drop along with oil prices
* Indexes up: Dow 0.27 pct, S&P 0.24 pct, Nasdaq 0.21 pct (Adds details, comments, updates prices)
By Yashaswini Swamynathan
Nov 25 Wall Street extended its record-setting rally on thin volumes on Black Friday, with the Dow and S&P hitting record highs, helped by gains in retailers at the start of the crucial holiday shopping season.
The stock market will close at 1:00 p.m. ET (1700 GMT).
The holiday shopping season accounts for as much as 40 percent of retailers’ annual sales. But they have been struggling to pull shoppers into stores as people increasingly prefer the convenience of shopping for bargains available online all year long.
Holiday sales are expected to increase 3.6 percent this year to about $656 billion, according to the National Retail Federation, while online sales are likely to increase 7-10 percent to as much as $117 billion.
Online spending on Black Friday alone is expected to surge about 11 percent to surpass $3 billion for the first time, according to Adobe Digital Insights.
The Dow Jones U.S. retailers index was up 0.32 percent, led Wal-Mart, up 0.7 percent, and Home Depot which rose 0.5 percent. Amazon.com was flat.
However, department store chain operators Macy’s and Kohl’s were the top laggards on the index, falling about 0.5 percent each amid far from far from overwhelming traffic at brick-and-mortar stores.
“Black Friday has now become a hybrid between Black Friday and Cyber Monday and has extended into a whole buying weekend. So this is going to be a good test of the strength of the consumer,” said Adam Sarhan, chief executive at 50 Park Investments.
At 11:25 a.m. ET the Dow Jones Industrial Average was up 51.91 points, or 0.27 percent, at 19,135.09. It hit a high of 19,146.22 earlier.
The S&P 500 was up 5.39 points, or 0.24 percent, at 2,210.11, easing slightly from an all-time high of 2,210.75.
The Nasdaq Composite was up 11.19 points, or 0.21 percent, at 5,391.76.
Nine of the 11 major S&P sectors were trading higher, led by a 1.58 percent rise in utilities. The consumer staples index rose 0.8 percent, giving the biggest boost to the S&P 500.
The energy sector, fell 0.6 percent, pulled down by a 2.7 percent drop in oil prices amid uncertainty that the OPEC would arrive at a decision to cut production during a meeting next week.
Advancing issues outnumbered decliners on the NYSE by 1,704 to 1,037. On the Nasdaq, 1,388 issues rose and 1,147 fell.
The S&P 500 index showed 37 new 52-week highs and no new lows, while the Nasdaq recorded 194 new highs and nine new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)
http://www.reuters.com/article/usa-stocks-idUSL4N1DQ3TL

Week-In-Review: Bulls Gobble Up Stocks On Shortened Holiday Week

1sp500-new-all-time-high-big-breakout-from-sloppy-base-on-baseBulls Gobble Up Stocks On Shortened Holiday Week

Stocks are very strong and the fact that they continue to rally and hit new highs, illustrates that the bulls are clearly in control. The Dow jumped above 19,000 and the S&P 500 jumped above 2,200 last week and continued hitting new highs. In the short term, the market is overbought by any normal measure and we wouldn’t be surprised to see it drift lower in the near future. Keep in mind, that we are approaching the end of the month, quarter and year – which is a seasonally strong period for the market. Barring a massive sell off, we are operating with the notion that weakness should be bought. Looking forward, the next big event the market will be looking at is the Jobs report on Friday and then the Fed meeting in December.

Mon-Wed Action:

The Dow Jones Industrial Average, Nasdaq composite, S&P 500 all hit record highs on Monday. Monday was the first day of the shortened holiday week. The benchmark S&P 500 hit a fresh record high after energy prices rallied 2% on renewed optimism that OPEC would cut production. Apple ($AAPL) and IBM ($IBM) were two big leaders in the Dow and made up most of the Dow’s gain. Elsewhere, Tyson Foods ($TSN) plunged 14% after reporting earnings.
Stocks rallied on Tuesday helping the Dow trade above 19,000 and the S&P 500 top 2,200 for the first time ever. These are “round” numbers and important psychological levels to watch going forward. Existing home sales jumped to a 9.5 year high. Steel stocks continued to surge and act very well.
Stocks were mixed on Wednesday as investors digested the latest round of economic data, including minutes from the Federal Reserve’s November meeting. The Minutes showed the Fed still wants to raise rates in December. Separately, Durable Goods rose by +4.8%, beating estimates for +1.5%.

Thur & Fri Action:

U.S. stocks were closed on Thursday in observance of Thanksgiving. The market rallied on Friday, helping the major averages continue to hit fresh record highs. The market closed early (1pm est) on Black Friday.

Market Outlook: Tape Is Strong

The market remains very strong now that the election uncertainty is behind us. That tells us the bulls are still in control and the market will likely continue to rally for now. As always, keep your losses small and never argue with the tape.  Schedule a complimentary appointment today if you want to talk to Adam about your portfolio. Visit: 50Park.com

Want Help Managing Your Portfolio?
Let’s Talk… 

Adam in Reuters: GLOBAL MARKETS-U.S. shares end at record highs for 2nd day, oil steadies

Tue Nov 22, 2016 | 4:32pm EST

By Sam Forgione | NEW YORK

Wall Street’s three main stock indexes ended at record highs for a second straight day on Tuesday, while European shares also rose on expectations that markets would benefit from U.S. President-elect Donald Trump’s policies.
Moderate gains led the Dow to close above the 19,000 mark and the S&P 500 to end above 2,200 for the first time ever, while the Nasdaq and small-cap Russell 2000 also hit record closing highs for the second day.
In Europe, the pan-European STOXX 600 index and the FTSEurofirst 300 .FTEU3 of top regional shares climbed to their highest levels since Nov. 10. 
Declines in U.S. healthcare stocks restrained U.S. indexes’ gains, however. U.S. shares have rallied since the Nov. 8 U.S. election as Trump has promised tax cuts, higher spending on infrastructure and simpler regulations in the banking and healthcare industries. [nZXN0RVT2I]
A sharp rally in metals prices and mining stocks boosted European shares, with the European Basic Resources index .SXPP closing up more than 3.4 percent. [nL8N1DN5GZ]
“Strength begets strength. The more we can continue to rally, the more people who are on the sidelines want to jump in, especially because there’s so much cash on the sidelines,” said Adam Sarhan, chief executive of 50 Park Investments.
MSCI’s all-country world equity index .MIWD00000PUS was last up 1.07 points, or 0.26 percent, at 413.37.
The Dow Jones industrial average .DJI closed up 67.18 points, or 0.35 percent, at 19,023.87. The S&P 500 .SPX gained 4.76 points, or 0.22 percent, at 2,202.94. The Nasdaq Composite .IXICadded 17.49 points, or 0.33 percent, at 5,386.35.
Europe’s broad FTSEurofirst 300 index closed up 0.13 percent at 1,344.15.
Oil prices ended little changed in volatile trade in which prices rose and fell by $1 a barrel depending on the latest comment from OPEC officials at a technical conference in Vienna on whether cartel members would agree to an output cut.
Brent crude LCOc1 settled up 22 cents, or 0.45 percent, at $49.12 a barrel. U.S. crude CLc1 settled down 21 cents, or 0.44 percent, at $48.03 a barrel. U.S. crude rose as high as $49.20 a barrel earlier, while benchmark Brent crude touched $49.96.
The dollar rose modestly against the yen after touching a session high of 111.35 yen, just below Monday’s nearly 6-month high of 111.36 yen, on data showing a surge in U.S. existing home sales last month. [nL1N1DN1LN]
U.S. two-year Treasury note yields US2YT=RR steadied after rising to a more than six-year high of 1.1070 percent US2YT=RR earlier. [nL1N1DN1N9]
New supply has weighed on shorter-dated debt as investors are increasingly nervous about impending interest rate hikes.
“The sector that is most vulnerable to rate hikes is obviously the short end and intermediates, and there is some reason to believe that some people may shy away from the sector,” said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York.
Gold edged lower on reduced appetite for safe-haven assets. Spot gold prices XAU= were last down $1.3, or 0.11 percent, at $1,212.36 an ounce.[nL4N1DN2U3]
(Additional reporting by Yashaswini Swamynathan in Bengaluru, Sabina Zawadzki in London and Karen Brettell and Gertrude Chavez-Dreyfuss in New York; Editing by Nick Zieminski and Dan Grebler)
http://www.reuters.com/article/us-global-markets-idUSKBN13H250

Week In Review: Stocks Flirt With Record Highs

iwmStocks Flirt With Record Highs

Stocks are strong. Small and mid-cap stocks led the way higher last week as the small-cap Russell 2000 ($IWM) and mid-cap S&P 4o0 ($MDY) broke out of big bases. For now that is bullish action and illustrates strong appetite from investors of all size. Meanwhile, the popular indices paused to digest a very strong election week rally. Remember, there are two ways for a market to consolidate a recent rally, either move sideways or move lower. Right now, the market is moving sideways to higher which is the more bullish scenario. Additionally, it is healthy to see small weekly bull flags emerging in many important sectors – which could resolve themselves higher if the bulls remain in control. Until we see any technical damage emerge, weakness should be bought, not sold. 

Mon-Wed Action:

Stocks opened higher on Monday, briefly dipped lower than edged higher to mixed by the close. The Nasdaq lagged for most of the day. President- Elect Donald Trump said in a 60 Minutes interview that he wants to unify the country. In other news, mortgage rates jumped to 4% since the election. Stocks were relatively quiet on Tuesday and closed higher as oil prices jumped 5% on renewed hope OPEC will cut production. Elsewhere, shipping stocks soared and the Nasdaq bounced back after lagging hard since the election. Stocks ended mixed on Wednesday as the Dow snapped a 7-day win streak. Before the open, mortgage applications tanked by 9% as mortgage rates spiked higher. A separate report showed Home Builder sentiment remained steady. Inflation remained at bay as the producer price index came in unchanged, missing estimates for a gain of 0.3%. Finally industrial production for October was also unchanged, missing estimates for a gain of 0.1%. For the second straight day Nasdaq and Nasdaq 100 type stocks out-performed the Dow & S&P 500. 

Thur & Fri Action:

Stocks were relatively quiet on Thursday as investors digested Yellen’s testimony, and the latest round of mixed earnings and economic data. Yellen made the case for raising rates in December and said she intends to finish her term. Economic data was mixed. Housing starts jumped by 25% last month which might slow now that mortgage rates have spiked. Weekly jobless claims fell to their lowest level since November 1973 which bodes well for the jobs market. Meanwhile, October CPI rose 0.4% which matched estimates. Earnings data was mixed, Wal-Mart (WMT) fell after reporting lousy numbers while shares of Best Buy (BBY) rallied sharply after beating on both the top and bottom line. Stocks were quiet on Friday as the market paused to digest the recent and robust election rally. 

Market Outlook: Tape Is Resilient

The market remains very strong and the fact that it rallied since the election shows us the bulls are still in clear control of the market. As always, keep your losses small and never argue with the tape.  Schedule a complimentary appointment today if you want to talk to Adam about your portfolio. Visit: 50Park.com

Want Help Managing Your Portfolio?
Let’s Talk… 

Adam in CNBC: Russell 2000, mid-cap stocks hit new highs as large caps slow down

Thursday, November 17, 2016
The rally in the three major U.S. stock indexes has taken a pause, but small and mid-cap stocks keep climbing higher, helped by the fact that they are less sensitive to a rising dollar.
The Russell 2000, composed of small-cap stocks, and the S&P Mid Cap 400 rose 0.7 percent and 0.6 percent, respectively, in late morning, hitting new highs. Small-cap stocks are those with a market capital of$300 million to $2 billion, while mid caps are those between $2 billion to $10 billion.
The rally in the two indexes has come on the back of Republican Donald Trump‘s surprising victory over Hillary Clinton. Since Election Day, the Russell has spiked 10.57 percent, while mid caps have climbed 6.68 percent.
Russell 2000 (green) and S&P Mid Cap 400 (blue) since Nov. 8Source: FactSet
The dollar has also risen bout 3 percent against a basket of currencies.
“When you look for signs that a new paradigm is in place for the economy, the strong dollar doesn’t hurt them as much as the big caps. Unlike the S&P 500, they don’t do 40 percent of their business overseas,” said Art Hogan, chief market strategist at Wunderlich Securities.
The three major large-cap stock indexes — the Dow Jones industrial average, S&P 500 and Nasdaq composite — also rallied following the election, with the Dow hitting new all-time highs and posting a seven-day winning streak.
However, the rally within the major indexes has taken a breather this week.
Adam Sarhan, CEO at 50 Park Investments, said the spike in small and mid-cap stocks “signals that risk appetite remains strong.” He also said “the fact that the large indexes are pausing is not a bearish sign,” but rather a natural reaction to such sharp gains over a period of time.
LINK:
http://www.cnbc.com/2016/11/17/russell-2000-mid-cap-stocks-hit-new-highs-as-large-caps-slow-down.html

Week-In-Review: Stocks Soar On Trump Victory

dow-all-time-highStocks Soar On Trump Victory

Stocks are very strong and the fact that they refuse to fall- illustrates how strong the bulls are right now. Last week was a very important week on Wall Street. The bulls stepped in and defended major support (the longer term 200 day moving average line) and erased three month’s worth of losses in 3.5 days! The market likes Trump’s pro-growth policies and is clearly giving him the bullish benefit of the doubt. Even large billionaire investors that were pro-Hillary are bullish on our future and are supporting Trump. The market went from being egregiously oversold to overbought in a few days. In the near term, the bulls want to see these gains hold and they want the market to stay above November’s low (200 DMA line). The other big shift that occurred in the market last week was that leadership changed considerably. Before the election, the market was pricing in a Hillary win and the stocks that were leading were Hillary friendly. After the election, that switched. The areas of the market that were lagging (Dow & S&P 500) are now leading and the leading areas are now lagging (Nasdaq/Nasdaq 100). Unless we erase last week’s gains, weakness should be bought in the near future. Looking forward, the next big event the market will be looking at is the Fed meeting in December.  

Mon-Wed Action:

Over the weekend, the FBI cleared Hillary in the latest email scandal and stocks rallied sharply from deeply oversold levels on Monday. The market was very oversold and just finished its longest losing streak in 36 years! Technically, the bulls showed up and defended the longer-term 200 DMA line for the S&P 500. For now, that is the major level of support to watch. Looking forward, resistance resides near the 50 DMA line. Steel (SLX) stocks and Transportation (IYT) broke out above resistance on Monday as the financials (XLF) and semiconductors (SMH) remain in decent shape. They key now is to analyze the health of the bounce and see if new leadership shows up.
Stocks rallied on Tuesday as Americans cast their vote. The market opened a little lower after the latest round of earnings blowups were announced. $HTZ, $VRX, $CVS, $W, $DEPO, $TAST, and $DHI were some of the stocks that fell after reporting earnings. Buyers quickly showed up and sent stocks higher after early exit polls suggested that Hillary will win the election. Remember, Hillary represents more easy money and, at this point, markets love easy money.
Stock futures were down close to 900 points overnight after Donald Trump won the 2016 election. The massive sell-off only lasted a few hours because the bulls showed up on Wednesday and sent stocks higher. That turned into the largest single day reversal for the market since the 2008 financial crisis.

Thur & Fri Action:

The Dow hit a fresh record high on Thursday helped by a large rally in the financials, industrials, materials and transports. The Nasdaq and Nasdaq 100 spent the session in the red as several big growth stocks remain under pressure (AAPL, AMZN, FB, FLT, BABA, just to name a few). Almost overnight, the areas of the market that were lagging (Dow and S&P 500) are now leading and the areas that were leading for the past few months are now lagging (Nasdaq and Nasdaq 100) as the market prices in a Trump victory. Stocks were relatively quiet on Friday as the market paused to digest its strongest weekly gain of the year. Oil prices fell 3% which dragged down a slew of energy stocks. Oil fell after people questioned the ability for OPEC to actually reach a deal and cut production. It’s perfectly normal to see the market pauses after a very strong move. The Dow erased 3 month’s of losses in the past 3.5 trading days! That’s a big feat.

Market Outlook: Tape Is Resilient

The market soared last week (before and after) the election. That tells us that the bulls are still in control and the market will likely continue to rally for now. As always, keep your losses small and never argue with the tape.  Schedule a complimentary appointment today if you want to talk to Adam about your portfolio. Visit: 50Park.com

Want Help Managing Your Portfolio?
Let’s Talk… 

Sarhan In Reuters: Trump rally sputters as energy, health stocks drag

Fri Nov 11, 2016 | 11:33am EST

By Yashaswini Swamynathan

A rally sparked by Donald Trump’s surprise victory in the U.S. presidential election, that also powered the Dow to a record high, sputtered on Friday as energy and healthcare stocks came under pressure.
Investors scrambled to adjust their portfolios to benefit from Trump’s plans to simplify regulation in the health and financial sectors and boost spending on infrastructure.
The S&P 500 financial index .SPSY has gained 7.2 percent, industrials .SPLRCI 4.1 percent and healthcare .SPXHC 2.9 percent since the U.S. election on Tuesday, far outperforming other sectors.
The S&P is on track to mark its best week since October 2014, despite the pull back on Friday.
“The market this week has been exceptionally strong and when you see a massive rally like this, it is perfectly normal to see some profit-taking,” said Adam Sarhan, chief executive of 50 Park Investments.
“The market has earned the right to pause a little bit to digest that move.”
Oil prices fell more than 3 percent as the market refocused on a persistent supply overhang that is not expected to abate unless OPEC and other producers cut their output significantly. [O/R].
Eight of the 11 major S&P 500 sectors were lower, with declines in energy .SPNY and health .SPXHC being the steepest.
At 11:06 a.m. ET the Dow Jones industrial average .DJI was down 41.78 points, or 0.22 percent, at 18,766.1.
The S&P 500 .SPX was down 11.23 points, or 0.52 percent, at 2,156.25 and the Nasdaq Composite .IXIC was down 10.92 points, or 0.21 percent, at 5,197.88.
Federal Reserve Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates, but the central bank is monitoring an increase in long-term U.S. government borrowing costs.
U.S. bond markets are closed for Veteran’s Day on Friday. But the 10-year Treasury yield US10YT=RR has hit its highest levels in 10 months already this week.
Nvidia (NVDA.O) shares jumped 24.3 percent after the graphic chipmaker reported its biggest quarterly revenue growth in more than six years.
Walt Disney (DIS.N) rose 2.5 percent to $97.31 after its executives promised earnings growth for the next two years. Barclays also upgraded the media company’s stock to “equal weight” from “underweight”.
Declining issues outnumbered advancing ones on the NYSE by 1,693 to 1,219. On the Nasdaq, 1,606 issues rose and 1,022 fell.
The S&P 500 index showed 22 new 52-week highs and six new lows, while the Nasdaq recorded 206 new highs and 25 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)
Link:
http://www.reuters.com/article/us-usa-stocks-idUSKBN13619K

Friday Recap: Adam in CNBC: Stocks gyrate as energy falls 1.5%, but on track for best weekly gains of 2016

Friday, November 11, 2016
U.S. equities traded mostly lower on Friday as the post-U.S. election rally took a breather, with the three major indexes poised to record their best weekly gains of the year.
The Dow Jones industrial average opened slightly lower but briefly broke above the flatline, with Walt Disney contributing the most gains and Merck the most losses. The S&P 500 fell 0.3 percent, with health care leading decliners.The Nasdaq composite underperformed, falling 0.45 percent as Apple, the iShares Nasdaq Biotechnology ETF (IBB) an the so-called FANG stocks (Facebook, Amazon, Netflix and Google’s parent, Alphabet) all falling.
“Within a week, the market went from egregiously oversold to overbought. They managed to repair all the damage done during the nine-day losing streak,” said Adam Sarhan, CEO of 50 Park Investments.
Stocks skyrocketed after Republican Donald Trump’s surprise victory over Hillary Clinton. The Dow closed at an all-time high on Thursday, while the S&P and the Nasdaq were flirting with their record highs entering Friday. Financial markets, as well as numerous pollsters and political analysts, had expected Clinton, the former secretary of State, to win the race for the White House.
“The market is giving Trump the bullish benefit of the doubt,” Sarhan said. But “if he starts going off the deep end, whether on foreign policy or something else, then that could be bad for the market.”
Since Trump’s victory, investors have been quickly reallocating assets, increasing exposure to financials and industrials, while lowering positions in sectors like utilities, real estate and consumer staples.
Entering Friday, financials and industrials had gained 10.9 percent and 7.65 percent, respectively, while utilities, consumer staples and real estate were down 3.71 percent, 1.97 percent and 1.61 percent, respectively.
Sharp moves were also seen in the U.S. Treasury market following Trump’s win, with the benchmark 10-year yield breaking above 2 percent. The U.S. bond market was closed on Friday due to Veterans Day.
The dollar, meanwhile, surged against a number of Emerging Markets currencies, especially the Mexican peso. Since Tuesday, the peso has fallen nearly 12 percent against the U.S. currency, according to FactSet. The Brazilian real, another closely watched EM currency, has dropped about 6.7 percent. EM currencies in Asia weren’t spared, either, with the Malaysian ringgit and the Chinese yuan also falling.
“While the declines seen in Asian currencies are being linked to the impact of trade throughout the continent if Donald Trump enforces protectionist trade policies, the return of expectations that the Federal Reserve will still raise US interest rates in December is strengthening the Dollar and also pressuring the emerging market currencies,” Jameel Ahmad, vice president of market research at FXTM, said in a note.
“If the Federal Reserve do not raise US interest rates in December as they have been preparing the markets towards for months following such a spectacular rebound in stocks after the victory by Trump, it will raise questions over credibility and concerns that they are worried about Donald Trump taking over office in January,” he said.
The Fed is largely expected to raise rates next month, according to the CME Group’s FedWatch tool, which said market expectations for higher rates were around 76 percent.
Before the bell, Fed Vice Chairman Stanley Fischer said the case for removing accommodation is “quite strong” while interest rates will plateau at a level that is lower than normal. He added that He expects U.S. rates to rise gradually, and said the Fed is close to achieving its dual mandate. The Fed’s goal is to return to 2 percent longer-run inflation and to maximize employment.
In economic news, consumer sentiment data are due at 10 a.m.
Overseas, European equities traded slightly lower, with the pan-European Stoxx 600 index slipping 0.25 percent. In Asia, stocks closed mostly lower, with the Nikkei 225 gaining 0.18 percent and the Korean Kospi falling 0.91 percent.
—CNBC’s Katie Little contributed to this report.
On tap this week:
Friday

Veterans Day
Bond market closed, stock market normal hours
10:00 a.m. Consumer sentiment
 
Link:
http://www.cnbc.com/2016/11/11/us-markets.html