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Morning Commentary

ANYTHING BUT HO-HUM †

By Charles Payne, CEO & Principal Analyst
11/22/2023 9:38 AM

Yesterday was tough sledding for the market, which struggled to find its footing all session long. Traditional safe-haven sectors climbed due to profit-taking and angst in Technology (XLK).

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Interestingly, the ten-year yield eased even more to 4.395%, filling a significant gap that could mean a bounce ahead.

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Market breadth was distinctly negative, although there were more new highs than lows on the New York Stock Exchange (NYSE).

Market Breadth

NYSE

NASDAQ

Advancers

959

1,329

Decliners

1,906

3,048

New Highs

67

33

New Lows

27

54

Up Volume

1.11 billion

1.33 billion

Down Volume

2.38 billion

2.77 billion

Lopsided

For all the complaints about the lopsidedness of the stock market, research from Hi Mount Research underscores how the top stocks in every sector, save Industrials (XLI), are overwhelmingly represented.  It’s how it is and what investors shouldn’t fight against.

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Hi Mount Research

FOMC Minutes

Although it's easy to describe the Federal Open Market Committee (FOMC) minutes as “hawkish,’ it’s because “All Officials" see rates as restrictive “for some time.” But it's just an arrow in the quiver.  Beyond the talk and innuendo, the Street is becoming comfortable with the notion the Fed is done. It's too early to spike the ball, but Powell & Co also want to:

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Meanwhile, if the Fed is down, more than likely, this market is in for a fantastic rally from here.

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After the close, Nvidia (NVDA) crushed it, and the stock dived immediately on the news. The numbers were anything but ho-hum!

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Today’s Session

Initial claims fell last week to 209k from 230k last week.

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Continuing claims were down to 1.84M from 1.86M. Both missed economists’ expectations. One week doesn’t make a trend, but hopefully signals some moderation from the recent rise.

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Meanwhile, business orders in the Durable Goods report declined for the second consecutive month.

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Stocks have bounced higher, and yields have swing lower, as investors digest the latest economic data and results from NVIDIA ahead of a holiday trading break.


 

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