EZBites~week ending November 10, 2023
LAST WEEK:
DOW: +0.7% (YTD:+3.4%)
NASDAQ: +2.4% (YTD:+31.8%)
S&P: +1.3% (YTD:+15.0%)
The US equity markets had a decent showing this week on the heels of last week's big gains.? Investors digested another heavy flow of earnings news, but that news was largely overshadowed by moves in the mega cap stocks.
The Vanguard Mega Cap Growth ETF (MGK) jumped 3.4% this week versus a 1.3% gain in the market-cap weighted S&P 500, which closed above the 4,400 level on Friday. The Invesco S&P 500 Equal Weight ETF (RSP), meanwhile, declined by 0.6% this week.
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The broader market showed nice resilience to selling efforts despite many participants thinking stocks are due for a pullback. The S&P 500 is now up 7.2% from its low close on October 27.? ?Small and mid cap stocks were an exception, relenting to some selling pressure this week. The Russell 2000 fell 3.2% and the S&P Mid Cap 400 declined 1.6%.
Six of the 11 S&P 500 sectors gained this week. The heavily-weighed Technology (+4.8%) and Communication Services (+2.2%) sectors performed the best followed by Consumer Discretionary (+0.9%). The biggest decliners were the Energy (-3.8%), Utilities (-2.6%), and Real Estate (-2.1%) sectors.
A jump in market rates following some Treasury auctions this week, along with commentary from Fed Chair Powell, slowed the rebound momentum. The 2-yr note yield climbed 19 basis points this week to 5.05%, and the 10-yr note yield rose seven basis points this week to 4.63%.
Tuesday's and Wednesday's sales of 3- and 10-yr Treasury notes respectively met decent enough demand for the stock market, but Thursday's 30-yr bond auction was met with dismal demand.
There were several Fed officials speaking this week, but the market was mostly focused on Fed Chair Powell's IMF panel discussion on Thursday at which Mr. Powell largely reiterated his remarks from November 1, saying "If it becomes appropriate to tighten policy further, we will not hesitate to do so."
December EZTracker Newsletters come out??Sunday, November 26, 2023