Major indices were initially rallying, but moved sharply lower mid-session after Morgan Stanley indicated they no longer expect a rate cut in December as well as Fed Cook’s comments of a possible market drop.

The Magnificent Seven are split between red and green. Notably, Nvidia (NVDA) initially moved higher following their earnings, but has erased gains and moved into the red.

Four sectors are in the green, with the defensive sector of Consumer Staples (XLP) in the lead. Meanwhile, Technology (XLK) is lagging and led lower by Micron Technology (MU). Yesterday, the CEO presented at the RBC Conference, indicating higher capital spending yesterday.

Economic Data

September’s unemployment rate rose to 4.4% from 4.3% and exceeded expectations of 4.3%. Additionally, it marks the highest level since October of 2021.

Nonfarm Payrolls rose 119K in September from a 4k decline in August and beat estimates of a 50k rise.

October existing home sales rose 1.2% M/M, surpassing consensus of +0.5%, but below last months of +1.3%.

The Philadelphia Manufacturing Index rose 11 points in November to -1.7 and beat market forecasts of -3.1. The report showed strong signs for manufacturing, plus the special survey question indicated a slower expected growth in prices, over the next year, compared to expectations last quarter. In addition, current new orders and shipments saw weaknesses, while future conditions and employment both improved.

The Kansas City Fed Manufacturing index rose to +8 in November from +6 in October, marking its third straight month of strengthening factory activity across both durable and nondurable industries.

Comments

Powell is sticking it to the American investor. What a wuss. Kenn Nordstrom on 11/20/2025 4:01:46 PM

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