We’re back! The stock market surged yesterday, shifting the emotion needle from Neutral back into ‘Greed.’

Green is everywhere on the screen, and small-cap factors are erupting.

Banner Day

Many records fell yesterday, including the best post-election day session in the books.

The S&P 500 (SPX) bounced off its 50-day moving average and surged to a new record close.

Sector Performance

It is a good day for the market whenever those large boxes are green. Investors decided it was better to dump defensive positions and dash into momentum names.

The Same Tide

Overall, more than eighty-eight names in the S&P 500 finished higher. Every name in Communication Services (XLC) finished in the black.  Even declining sectors saw most components higher.

Heat Map & Market Breadth

Higher bond yields and mortgage rates hit Real Estate (XLRE) names, and suddenly, the demand for miracle weight loss drugs slowed.

Market breadth was highly bullish, especially from new highs to new lows on the New York Stock Exchange (NYSE) and the NASDAQ Composite. Also, the volume is robust again.

Market Breadth	NYSE	NASDAQ
Advancers	1,732	2,812
Decliners	1,083	1,532
New Highs	470	658
New Lows	52	153
Up Volume	4.18 billion	5.25 billion
Down Volume	2.14 billion	2.88 billion

There are many signs that the transition to the end of the year could be smooth sailing with even less volatility.

Today’s Session

Third quarter productivity grew 2.2%, below consensus of 2.5%, which was also the second quarter final read.  Unit labor cost grew 1.9%, much higher than consensus of 1.0% but it’s trending lower.

Unit labor cost was north of 8.0% in the first quarter of 2022.

Also note, the Atlanta Wage Tracker now sees a minimum advantage for job switchers over job stayers.  The Fed must grapple with these trends, but also the string of economic surprises.

Remember, a positive economic surprise is not the same as strong, or even solid, economic developments.

Comments

Start lowering our national debt which is going to require significant reductions in the size of our government Ken Terry on 11/7/2024 10:01:12 AM

We desperately need an honest media that informs and educates instead of indoctrinates. The same can be said for our education system. Ric Walter on 11/7/2024 10:45:09 AM

Return "One nation under God" as the underpinning of our democratic republic. Ron Switzer on 11/7/2024 10:53:49 AM

Repeal Obama’s Smith-Mundt Modernization Act. When Smith-Mundt was enacted, post WWII, it was intended to prevent the US State Department and Executive Branch from disseminating “educational” programs in the US. Obama reversed this. bdmerrill on 11/7/2024 2:32:22 PM

A thought on your question, "How to build a better nation" surely must address people for a nation is people. So, it would be logical that we must start with increasing our own and the people of this country with increasing Character Quality. I remember when we could fill up at a gas station and then walk in and pay with cash; we didn't lock our doors and we could do business with some hi-character types by relying on words. their word was their bond. I bought a small farm on such a basis. So, how did we get to be less of a nation than we are? I would argue that it is not the fault of the bad people or the evil people. A staid and true verse is that of II Chronicles 7:14 which reads, "If My people (those who belong to our God and Creator) who are called by My name (Christians) will humble themselves, and pray and seek My face, and turn from their wicked ways, Then I will hear from heaven, and will forgive their sin and heal their land". Since our land has not been healed we can conclude people who call them selves Christians have not humbled themselves, have not seeked God's face, and have not turned from their wicked ways. Who can say our country is more moral and more ethical than it was 50 or 100 years ago? The godless hate truth and hate God. The Bible is our only holy, Infalible, rule book of faith and practice for life. It has been denigrated and we have turned out back on God. And we say, may God bless America? Why should He? Shouldn't we be blessing Him for His loving kindness and patience with us for not leveying His justice on us as He did in Noah's day, in Sodom & Gomorrah and even on his own people and on their surrounding nations when He went before the Israelites and delivered them into their hands; when He told them to kill every man, woman, child, camels, herds of cattle, oxen, flocks of sheep, goats and to burn all their belongings and their silver and gold to wipe any trace of their existence from the earth. Gpod is not to be triffled with. Sin kills life. Jesus said in John 10:10, "I am come that you might have life (life as opposed to mere existence which is where most people are) and that you might have life "more abundantly". So, we have to get on track with God's truth. We cannot be Biblically ignorant for here is where real life can be found. Bill L. BAUMNER on 11/7/2024 5:46:09 PM

Education Terri Epps on 11/12/2024 6:09:08 PM

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