Energy Deal Saves the Market's Bacon on Volatile Day
Today's financial recap and tomorrow's financial outlook.
Technicians were alarmed by the S&P breaking through yesterday's low to touch 2030.44, but buyers eventually stepped in, aided by deal news in the energy space.
Energy stocks closed out the day as the worst performing major sector, but the group spiked late in the day on a Dow Jones report that Halliburton (HAL) is in talks to acquire Baker Hughes (BHI), a revelation which sent shares of both companies soaring.
The Energy Select Sector SPDR ETF (XLE) finished down 1.3% on the day as the deal news wasn't good enough to overcome oil collapsing below $75.
But the bounce in energy did help push the S&P fractionally into the green at 2039.33.
Retail names were strong courtesy of Wal-Mart (WMT), which popped 4.7% after reporting better-than-expected third-quarter sales. The news boosted other sector names like Amazon.com (AMZN) and Target (TGT), and the Market Vectors Retail ETF (RTH) rose 0.85%.
The Russell 2000 (RUT) was a notable disappointment with a 0.93% decline. Many market observers remain concerned with the Russell's inability to recapture earlier highs the way the S&P 500 and Dow Jones Industrial Average (DJI) have.
Additionally, the NASDAQ Biotechnology Index (NBI), which led the way up in 2013 and 2014, sank 0.67%.
One point of concern today was weak data out of China. October retail sales rose 11.5%, slightly below the 11.6% expected, while Industrial Production increased 7.7% vs. the 8.0% consensus. The news weighed on copper prices.
Stateside, Initial Jobless Claims rose to 290,000, slightly worse than the 280,000 consensus. Continuing claims were also above expectations.
Tomorrow's Financial Outlook
October Retail sales will be reported at 8:30 a.m. ET. Following Wal-Mart's positive sales surprise, traders are watching for other signs that consumers are still spending and are being helped by the sharp drop in gasoline prices.
Also on tap tomorrow are October Import/Export Prices, November University of Michigan Consumer Sentiment, September Business Inventories, and Natural Gas Inventories for last week.
Aside from the retail sales report, traders' main point of focus should be the 9:55 ET Consumer Sentiment report.
There are no major earnings reports on tap.
In terms of market activity, traders will once again be looking for stabilization in oil prices, as well as key momentum sectors like small caps and biotech, which have lagged as of late.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter