The preliminary read of the University of Michigan's Index of Consumer Sentiment for November decreased to 77.0 versus expectations for 82, and below October’s read of 81.8.  Survey results showed that Americans were uncertain about the presidential election and worried about the resurgence in Covid19 cases.  This was the lowest reading since August. 

Interviews conducted after the election recorded a substantial negative shift in the Expectations Index among Republicans. There was no increase in expectations among Democrats, as economic gains expectations were likely offset by the spike in coronavirus cases.  According to the survey, “59% of Democrats reported that their normal life had changed to a great extent due to the coronavirus compared with just 34% among Republicans. The gap in expectations closed somewhat due to the coronavirus and the partisan shift in expectations that began well before the election. Note that Republicans now voice the least favorable economic expectations since Trump took office, and Democrats have voiced more positive expectations.”

Despite the sentiment downturn, the major indices are all in the green, and it’s risk on again for travel related stocks.  The Dow is up 1.1%, the S&P 500 up 1% and the Nasdaq +0.7%. All 11 S&P 500 sectors are in the green with Energy outperforming despite WTI trading down 2% to $40.20 per barrel.  Near term demand worries are pressuring the commodity. Technology is the laggard this session, and many of the stay-at-home stocks are under pressure again.  

Breadth is decidedly positive today, advancers far outpace decliners, and there are substantially more new highs than new lows.

Have a great weekend.  Be well and stay safe.