The market continues to change with updates regarding the fiscal cliff. The S&P 500 was essentially flat on the day. Fed Chairman Bernanke’s speech didn’t really touch on any new information. His comment that the Fed lacked the tools necessary to fully offset the fallout from the full fiscal cliff sent stocks lower. These comments were in line with what he has consistently said in the past. The market regained the losses that took place after the comments hit the tape.
Housing numbers continue to surprise to the upside. October housing starts came in at 894,000 versus consensus estimates of 840,000. Based on the strength of the recent data the fourth quarter will continue to be strong.
Financials rallied again today after a sharp selloff last week. Bank of America was particularly strong. Insurance stocks showed follow through on their strong performance yesterday.
Homebuilders and building products stocks were the star performers on the day. Housing related data continues to surprise to the upside. Housing starts and permit data was favorably received by the market today and many stocks in the sector traded up significantly.
Materials stocks performed with the market today. Most of the weakness in the sector came from metals stocks. Steel and precious metals underperformed the market.
Energy traded down slightly today. Crude was down 2.5% and natural gas was up 3% after seeing sellers yesterday.
Source: PFS Group