Stocks Gain Supported By Dow Jones
3:00 pm Monday, November 07th, 2022
U.S. stocks kept gains in choppy trading, with investors focusing attention on midterm elections and inflation readings later this week. Treasury yields rose across the curve, while the dollar pared losses.
Separately, the dollar has remained under pressure. The U.S. Dollar Index is down 0.7% to 110.14.
Apple trades down today after warning of lower-than-expected iPhone 14 shipments because of production issues in China, but the reaction has not been outsized given that the specter of such a warning loomed large over Apple last week, which declined nearly 11% from its high on Tuesday to its close on Friday.
The Vanguard Mega Cap Growth ETF (MGK) is flat while the S&P 500 trades up 0.1%.
The stock market is showing resilience to selling pressure, however, supported by speculation that China could relax its zero-COVID policy in coming months and an expectation that the midterm election results will lead to legislative gridlock that will make it near impossible to pass any new tax hikes or big spending plans.
Most of the S&P 500 sectors sit in positive territory today, led by energy (+1.6%). The latter has been bolstered by rising energy prices and will presumably face less regulatory pressure in a gridlock environment. Communication services (+0.6%) is another winning standout thanks to gains in Meta Platforms (META) after The Wall Street Journal reported the company is planning large layoffs that will help the company cut costs.
Meanwhile, the utilities (-3.1%), consumer discretionary (-1.3%), and real estate (-0.3%) sectors are alone in the red. The consumer discretionary sector is weighed down by Tesla (TSLA 198.57, -8.90, -4.3%), which fell to a new 52-week low.
Market breadth reflects mixed action. Advancing issues are roughly in-line with declining issues at both the NYSE and the Nasdaq.
Economic data today is limited to the September Consumer Credit report (prior $23.80 bln) at 3:00 p.m. ET.
