Market Monitor December 05

Highlights

A quiet day in the US markets, with no new records!

• American Airlines: A raised profit forecast, driven by higher demand for domestic flights and rising prices, sent the stock soaring, closing 17% higher.

• JetBlue Airways: Relatively good news here as well, with a smaller-than-expected revenue decline projected for 2024. Similar to American Airlines, the increase in domestic flights was highlighted. However, this news did not lead to gains, as the stock fell by just over 2%.

• Another big loser was American Eagle. The company issued a weaker quarterly forecast and lowered its growth expectations for the full year. Analysts expressed concerns about profit margins and strong competition in the sector.

• Industry peer Five Below performed much better. It raised its annual forecast and reported a stronger-than-expected quarterly report. This positive news, coupled with the announcement of a new CEO, resulted in a solid 10% stock gain.

• Today, the jobs report will be released. The consensus expects 220,000 new jobs added in November, with unemployment holding steady at 4.1%.

Major Indices

SPY (S&P 500 ETF) (S&P 500):

• Today: -0.16%.
• 1 Week: +1.31%, 1 Month: +2.64%, 3 Months: +12.27%.
• LT trend remains positive.

QQQ (Nasdaq 100):

• Today: -0.28%.
• 1 Week: +3.27%, 1 Month: +3.21%, 3 Months: +16.3%.
• LT trend remains strongly positive.

IWM (Russell 2000 ETF) (Russell 2000):

• Today: -1.2%.
• 1 Week: -1.19%, 1 Month: +0.36%, 3 Months: +14.52%.
• LT trend remains positive, but weaker short-term performance.

Sector Performance

1 Week:

• Consumer Staples remains dominant with the strongest growth.
• Energy and Utilities continue to be the weakest sectors.

1 Month:

• Consumer Staples and Information Technology lead the way.
• Materials and Health Care lag behind.

3 Months:

• Consumer Staples has maintained the strongest growth, followed by Industrials.
• Real Estate and Utilities remain the weakest-performing sectors.

All info available on our Sector Performance page

Historical Breadth Numbers

• Advancing stocks: 35.1% (slightly down from 38.9% yesterday).
• Declining stocks: 61.9% (slightly up from yesterday).
• "Adv 4% day": Sharp drop to 2.3% (down from 5.3% yesterday).

SMA ratios (20+, 50+, 100+, 200+):

• Slight declines across all moving average ratios, but LT trends remain above 60%.

Net highs/lows (NH/NL):

• NH: 7.5 → slightly up.
• NL: 1.6 → stable.

All info available on our Market Monitor page

Summary

• Market: No new records; slight corrections in all indices today.
• Sectors: Consumer Staples remains strong across all time horizons. Energy and Utilities continue to lag.
• Breadth Indicators: More decliners than advancers, but long-term trends remain positive.