Daily Market Recap

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The market was pretty flat until roughly 11:30 EST when Senator Harry Reid made some remarks regarding his dissatisfaction with the fiscal cliff negotiations. Sen. Read also mentioned the debt ceiling issue and how that has to be part of the discussion. Not surprisingly, on the heels of those remarks the market sold off. 

The extent of the selloff was not a surprise given the aggressive move higher off the recent lows. The market received good news prior to the open from Europe. The EU reached a deal regarding Greece’s debt. Athens will get the next tranche of aid near the middle of next month. 

The latest consumer confidence reading for October was better than expected. The actual number came in at 73.7 versus consensus estimates of 73.0. The November Case-Shiller 20-city housing index rose 3.0%. This was slightly below the estimate of 3.1%. The trend for higher real estate prices remains intact. 

Technology ended lower on the day. Corning was one of the best performers on the day. The stock was up over 7% on a positive pre-announcement. Apple was off after its recent spike off oversold levels. There were rumors that they are having issues with getting enough components to meet demand for their devices. Oracle was up nicely on positive comments from Morgan Stanley.

Industrials were off slightly, but outperformed the overall market. Multi-line industrials were the best performers and late stage cyclicals were the weakest area of the sector.

The positive macro news in the housing sector helped the homebuilder/building sectors today. Names in the space were up between 0.50-1.00%.

Transports were strong today. Truckers, parcels and some railroad stocks were positive.  The parcel delivery names are up in anticipation of heavy volume aver the coming weeks on the strength of on line shopping growth.

Energy was one of the weakest sectors today. Crude oil was off roughly 0.50% and natural gas traded up 0.75%. Oil service names were a leader in the space and drillers were poor performers.

Materials stocks were off slightly but traded ahead of the market. Steels were an area of weakness. Precious metals stocks were lower on the day due to lackluster trading in the gold and silver pits. 

Source: PFS Group

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