MARKETS TODAY Nov 15 (Vica Partners) – The S&P 500 up +0.80% as of 2:30 p.m. Eastern. The Dow Jones Industrial Average up 33 points, or +0.07%, to 33,559. The tech based Nasdaq up +1.47%.
Stocks mixed during Tuesdays trading session with major stock market indexes mixed, the 10-year Treasury yield flat at 3.814%, -0.053%, the 2 year Treasury yield flat at 4.385%, -0.026% and the U.S. Dollar Index (DXY) flat at $106.75, +0.09%. Oil prices up with Brent crude $93.86, +0.77%, and US West Texas Intermediate up at $86.96, +1.27%.
The 4,000 level is another important benchmark for the S&P 500.
The S&P 500 is getting closer to the 200-day moving average. The line has been a resistance level for the index, most notably in April and August.
Oil prices moved up earlier today on the news that Russian missiles struck the border of Poland and the Ukraine.
Oil prices currently up with Brent crude $93.86, +0.77%, and US West Texas Intermediate up at $86.96, +1.27% at midday.
Notable earnings today
Walmart (WMT) beat sales and profit estimates in the premarket and on pace for its best day since 2020 after the retailer reported better-than-expected earnings and raised its forward financial forecast. Walmart reported that sales rose by nearly 9% in the fiscal third quarter for the three-month period ended Oct. 31 with earnings per share: $1.50 adjusted vs. $1.32 expected and revenue of $152.81 billion vs. $147.75 billion expected.
This Week’s Major U.S. Economic Reports out today
The Producer Price Index for final demand increased 0.2 percent in October (below Analyst expectations of 0.4%), seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in September and were unchanged in August.
Keep in mind that the stock market typically performs well in November…
The stock market typically performs well in November… November is tied with April for being the second-best month of the year, with the Standard & Poor’s 500 rising 1.5% on average during the month since 1950. Election Data over the past 78 years shows that party control over either chamber has relatively little to do with long-term changes in the broad S&P 500 stock index
Vica Momentum Stock Report
Marathon Petroleum Corp NYSE (MPC) (Grade A) 50 Day Average +21.05%, 100 Day Average +39.11%, 200 Day Average +66.12%, YTD +86.26%.
IMPORTANT TO READ; Low interest rates will return!
The Federal Reserve gave guidance that back in August of 2022 that they would raise rates to 4% and have. Rate adjustments will drive down inflation and slow the pace of the economy. Company earnings will remain mixed with stronger support for Communication services, Consumer staples, Energy, Financials and Health care. As these sectors tend to perform well during recessions
Following 2022 we expect the Central Bank to begin to cut interest rates in late Q2 of 2023 to avoid an extended recession. As the cure for inflation is not just raising rates. Vica analysts see a significant policy change coming by late spring of 2023 with Powell reversing direction… just look at 12 month declining lower commodity pricing and new reports on rising retail inventories.
Yearly commodity prices will rise “as there are still production shortages” which include: iron, copper and crude oil. Upside will continue!
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
Look to Communication services, Consumer staples, Energy, Financials and Health care as these sectors tend to perform well during recessions
Best to continue to cost average buy value stocks and resist most all tech and growth stocks where companies have negative margins. Our Teams forecast a negative 6-8% valuation correction for speculative stocks. DON’T try to time market lows!
*** Watch for our emerging 30/ 60/ 90 day Sector and leading company watchlist’s
*** Look to Index ETF’s like SPY to outperform stocks and most managed funds
*** Energy is the Top Performing Sector in S&P 500 Year to Date and is already regaining strength
*** Banks will profit from higher interest rates on new loans and other products which will offset defaults
