Daily Market Recap

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The S&P 500 declined by 0.49% and the Dow was lower by 0.39%.

The Federal Reserve released their most recent statement today. Things remain consistent with their last statement from 9/18. The release was not a big catalyst for action one way or the other.  Stocks drifted lower prior to the announcement and roughly half of the day's decline was made up by the end of the day.

There was a continued rotation out of the high beta momentum names and into the large cap issues that sold off when it appeared that the taper, and higher interest rates, were a foregone conclusion. Technology and financials outperformed today. Media, internet, and healthcare names lagged.

ADP employment data showed private payrolls increased 130,000 in October. The consensus estimate was in the 150,000 range. These numbers were somewhat impacted by the government shutdown that took place in October.

Bank stocks were slightly lower but outperformed the broad market averages. Insurance stocks lagged. Brokerage stocks were the weakest area in the sector.

Apple held up the tech sector today. Apple posted a gain of 1.6% after profit taking drove the stock lower yesterday. Apple was higher on anticipation of a China Mobile iPhone announcement next week. Semiconductors were mixed. The group finished in line with the market but there were several areas of strength.

Industrials looked to extend their recent torrid performance. They again traded higher in the morning session as the cyclical names continued to be in favor. An absence of buyers in the late session caused a selloff. There was very little volume late in the day and the group experienced mild profit taking near month end.

Media stocks came under some pressure after Comcast reported numbers. Comcast-owned NBC reported lower than expected numbers. Content stocks fared worse than broadcasters. The group has been very strong this year and the selling today was controlled and mild.

Consumer staples underperformed while the discretionary space performed in line with the market. Since the Fed announcement to not taper, staples have performed very well. Staples sold of prior to the tapering decision and suffered as interest rates spiked.

Source: PFS Group

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