It’s a mixed bag again today with the Dow trading in the green and the S&P and Nasdaq in the red. The Dow is up on the merits of financial and energy stocks.  Oil is up big again at $51.72.  Brent has made a new one year high, trading above $54 on the OPEC deal. 

The NASDAQ is trading at a 2 week low, bouncing off the 50-day moving average, as tech stocks sell off, being pressured by reports that Apple (AAPL) has reduced its iPhone7 orders pressuring many of its suppliers. The XLK (SPDR Technology Sector ETF) has broken down through its 50-day moving average and finds some support at $46. The FANG (Facebook, Amazon, Netflix, Google/Alphabet) stocks are all down, but FB is getting hammered the worst today, down 4%, retesting November lows after giving up its 200-day moving average. 

On the economic front, weekly initial claims jumped to 268,000 from 251,000, but claims are still near historical lows and have been below 300,000 for 91 consecutive weeks. The 4-week moving average increased 500 to 251,500.

On the construction front, October’s construction spending increased 0.5% to $1,172.6 billion above the revised September estimate of $1,166.5 billion.  While overall private construction spending was down in October, residential construction was up 1.6% to $466.2 billion from September.  Public construction was up 2.8% in October namely from educational and highway construction.  

Economic activity continued to expand in the manufacturing sector for the 90^th consecutive month.  In the latest ISM report, November PMI rose for the third consecutive month to 53.2%, up from 51.9% in October.  This is the highest reading since June 2016. The employment index declined to 52.3% from 52.9%, and the inventory index declined to 49% from 49.5%, as the labor market tightens and companies plan to reduce inventory by year end.

Market internals are not overly negative with NYSE advance/decline at 44/53% and NASDAQ at 42/54%. New highs continue to eclipse new lows 281/182 on the NYSE and 291/105 on the NASDAQ. Overall volume is strong today.