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Afternoon Note

Pressure on Yields

By Charles Payne, CEO & Principal Analyst
11/12/2020 1:45 PM

The major indices have all gone negative and the selling is picking up steam.  Renewed Covid 19 concerns, stimulus or lack thereof, and the shape of the overall economy, has investors dumping stocks today.  

Comments from Fed Chair Jerome Powell added pressure to the Nasdaq, which was up 0.5% before turning negative.   Powell indicated that we are not going back to the same economy from before the pandemic. Lower end workers may face challenges as we move to an economy with more technological changes.

Treasuries yields are under pressure today as well. Senate Minority Leader Chuck Schumer stated fiscal stimulus negotiation should begin with $2.2 trillion, which Mitch McConnell, Senate Majority Leader, has said on numerous occasions will not pass.  Adding further pressure, the Trump administration indicated that they are backing away from stimulus negotiations.

U.S. Treasury Yields:

The Dow is down 1.39%, followed by the S&P 500, down 1.19%, and the Nasdaq is lower by 0.72%.  

All 11 S&P 500 sectors are in the red, with Energy the worst performing sector. 

EIA data showed U.S. crude oil refinery inputs averaged 13.4 million barrels per day last week, which was 105,000 barrels per day less than the prior week, with refineries operating at 74.5% capacity. Gasoline production increased, averaging 9.3 million barrels per day, while Distillate fuel production decreased, averaging 4.2 million barrels per day.

Some of the FAANG stocks are holding on to gains, however Amazon (AMZN) and Netflix (NFLX) are now in the red.

S&P 500 Index

-0.82%

Communication Services XLC

-0.16%

Consumer Discretionary XLY

-1.23%

Consumer Staples XLP

       -0.75%

Energy XLE

-1.98%

Financials XLF

-1.83%

Health Care XLV

-0.31%

Industrials XLI

-0.84%

Materials XLB

-1.76%

Real Estate XLRE

-0.84%

Technology XLK

-0.54%

Utilities XLU

-1.46%

Breadth is negative across the board, down volume outpaces up volume, and 52-week highs are much higher on the Nasdaq, but lag on the NYSE.

Market Breadth

NYSE

NASDAQ

Advancing

852

1,183

Declining

2,155

2,242

52 Week High

2

83

52 Week Low

5

7

Up Volume

735.61M

989.14M

Down Volume

1.47B

1.08B

 


 

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