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- The Nasdaq (COMP.IND) +0.5% has pared some gains at the close, while the S&P (SP500) +0.3% finished near intra-day highs.
- The Dow (DJI) -0.2% is still getting hit by a price decline in Cisco.
- The S&P is just above 4,700, which has been a resistance level this week and a "close above the 4,702 record-high close would validate a topside breakout," Piper Sandler's Craig Johnson says. "Downside support sets up at 4,647 (Nov lows), the 4,600-point milestone, and at 4,550 (late Oct low/Fib retracement)."
- Four S&P sectors are in the green, but they are megacap homes: Consumer Discretionary in the lead, followed by Info Tech. Energy and Utilities are the weakest.
- Amazon performs the best among the megacaps, up more than 4%, but Meta closes lower.
- Rates are lower, with the 10-year Treasury yield down 2 basis points to 1.58%.
- The Philly Fed manufacturing index for November came in much stronger than expected.
- "The good news is that the jump in the headline index is mirrored in soaring orders, up 16.6 points to 47.4, the highest reading since March 1973," Pantheon Macro writes. "But delivery times, unfilled orders and prices paid all rose, though the first two remain below their spring peaks."
- "The jump in prices paid likely is due in large part to the jump in oil prices. Still, these numbers all suggest that supply chain pressures remain intense, but we expect to see a clear improvement over the next few months as chip supply rises and port logjams ease."
- Jobless claims dipped slightly from a revised-higher week before, but holidays are likely to introduce some volatility into the numbers through the rest of the year.
- Looking to investor sentiment, the latest AAII survey saw bullish sentiment drop to 38.8% from 48% the week before, which was the highest level since July 2020. Neutral sentiment rose more than bearish sentiment for the week.
- BofA clients piled into energy stocks as the S&P broke its winning streak last week.