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Market Monitor November 27

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Nov 27, 2024

ChartMill Market Monitor Report

Highlights

  • The US stock markets closed in the red ahead of Thanksgiving, impacted by inflation figures and concerns over the Federal Reserve's interest rate policy.

  • Inflation rose to 2.3% in October, which could make the Fed cautious about further rate cuts.

  • The tech sector was under pressure, with losses for Microsoft (-1.2%), Amazon (-1%), and Nvidia (-1.2%). PC manufacturers Dell (-12.3%) and HP (-11.4%) suffered heavy losses due to disappointing forecasts, highlighting doubts about a recovery in the PC market despite the potential impact of AI-enabled PCs.

  • The automotive sector saw a slight recovery after losses caused by import tariffs announced by former President Trump. General Motors rose by 1.3%, and Stellantis by 1.4%.

  • Urban Outfitters performed strongly thanks to growth at its Anthropologie chain, with a 5.8% increase in revenue. The stock gained 18.3% following better-than-expected quarterly results.

Major ETFs Overview:

SPY (S&P 500 ETF):

  • Down by 0.3% today.

  • Shows a positive trend over the past 1 week (1.41%), 1 month (3.24%), and 12 months (30.44%), indicating strong long-term momentum.

QQQ (NASDAQ 100 ETF):

  • Down by 0.79% today.

  • Displayed weaker short-term performance compared to SPY but still shows notable gains over the past 3 months (6.13%) and 12 months (29.58%).

IWM (Russell 2000 ETF):

  • Closed up 0.14%, contrasting with the other indices.

  • The small-cap sector is gaining traction with strong performance over 1 month (8.81%) and 12 months (30.31%).

Sector Performance

1-Week:

  • Consumer Staples and Information Technology were the strongest sectors, with high outperformance.

  • Sectors like Energy, Materials, and Financials showed minimal gains or flat performance.

1-Month:

  • The Consumer Staples sector leads the pack, followed by Information Technology, Industrials, and Financials.
  • Materials and Real Estate lagged behind during this period.

3-Months:

  • Information Technology continues to dominate over the medium term, with Industrials and Consumer Staples also showing strong performance.

  • Real Estate and Materials are underperforming.

All info available on our Sector Performance page

Historical Breadth Numbers

Advancers vs. Decliners:

  • Today, Advancing stocks (61%) outpaced Declining stocks (40.7%), indicating general strength in the broader market despite some major indices being down.

Breadth Indicators:

  • The 200-day SMA (61%) shows that most stocks remain above their long-term moving averages, reflecting sustained upward trends.

  • Momentum is strong across other timeframes (50-day and 100-day SMAs), further suggesting market resilience.

New Highs (NH) vs. New Lows (NL):

  • A significant number of stocks are making new highs (6.2%) versus new lows (2.4%), which supports the broader bullish sentiment.

All info available on our Market Monitor page

Key Takeaways

  • Overall Market Sentiment: Mixed short-term performance but a broadly positive trend over the medium and long term.

  • Sector Strength: Consumer Staples and Information Technology stand out as leaders across multiple timeframes.

  • Breadth: The breadth of the market remains strong, with advancing stocks and stocks above key moving averages dominating.

  • Small-Cap Strength: The Russell 2000 (IWM) shows relative strength today and over the past month.

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