Market Monitor November 27

Last update: Nov 27, 2024

Highlights

The US stock markets closed in the red ahead of Thanksgiving, impacted by inflation figures and concerns over the Federal Reserve's interest rate policy.
Inflation rose to 2.3% in October, which could make the Fed cautious about further rate cuts.
The tech sector was under pressure, with losses for Microsoft (-1.2%), Amazon (-1%), and Nvidia (-1.2%). PC manufacturers Dell (-12.3%) and HP (-11.4%) suffered heavy losses due to disappointing forecasts, highlighting doubts about a recovery in the PC market despite the potential impact of AI-enabled PCs.
The automotive sector saw a slight recovery after losses caused by import tariffs announced by former President Trump. General Motors rose by 1.3%, and Stellantis by 1.4%.
Urban Outfitters performed strongly thanks to growth at its Anthropologie chain, with a 5.8% increase in revenue. The stock gained 18.3% following better-than-expected quarterly results.

Down by 0.3% today.
Shows a positive trend over the past 1 week (1.41%), 1 month (3.24%), and 12 months (30.44%), indicating strong long-term momentum.

Down by 0.79% today.
Displayed weaker short-term performance compared to SPY but still shows notable gains over the past 3 months (6.13%) and 12 months (29.58%).

Closed up 0.14%, contrasting with the other indices.
The small-cap sector is gaining traction with strong performance over 1 month (8.81%) and 12 months (30.31%).

Consumer Staples and Information Technology were the strongest sectors, with high outperformance.
Sectors like Energy, Materials, and Financials showed minimal gains or flat performance.

The Consumer Staples sector leads the pack, followed by Information Technology, Industrials, and Financials.
Materials and Real Estate lagged behind during this period.

Information Technology continues to dominate over the medium term, with Industrials and Consumer Staples also showing strong performance.
Real Estate and Materials are underperforming.

Today, Advancing stocks (61%) outpaced Declining stocks (40.7%), indicating general strength in the broader market despite some major indices being down.

The 200-day SMA (61%) shows that most stocks remain above their long-term moving averages, reflecting sustained upward trends.
Momentum is strong across other timeframes (50-day and 100-day SMAs), further suggesting market resilience.

A significant number of stocks are making new highs (6.2%) versus new lows (2.4%), which supports the broader bullish sentiment.

Overall Market Sentiment: Mixed short-term performance but a broadly positive trend over the medium and long term.
Sector Strength: Consumer Staples and Information Technology stand out as leaders across multiple timeframes.
Breadth: The breadth of the market remains strong, with advancing stocks and stocks above key moving averages dominating.
Small-Cap Strength: The Russell 2000 (IWM) shows relative strength today and over the past month.