It was a very quiet day in the markets. The bond market was closed due to Veterans Day. The VIX spiked higher last week after the election results were finalized. Today the VIX was down over 10% and closed at a two week low.
While there are several schools of thought on the issue, the general consensus, which can change quickly, appears to be that the fiscal cliff will likely be avoided. Today it appears that investors expect a negotiated settlement after what could be a protracted negotiation process.
Financials outperformed the broader market today. The sector was boosted by M&A activity. Leucadia National bought out Jefferies and other stocks in the space benefitted from the activity.
Transports were one of the best groups in the market today. Airlines, truckers, parcels and rails were all higher.
Energy closed slightly ahead of the broader market with crude down 0.50% and natural gas up 2%. Oil service companies, drillers and integrated oils all worked higher on the day.
Healthcare was an area of strength on moves in biotech. Celgene announced phase II trial data for a hepatitis drug that was positively received.
Source: PFS Group
