In a day when the low level of the VIX knocked the market back late in the afternoon, things finished decidedly mixed yesterday within the context of the current terrific November uptrend.

The Dow ended with a gain of only 13 after having been higher by as much as 163 at 2:20pm and slid from that level to end at 35,430. It was led by gains in BA, CRM ahead of its earnings last night and GS which were offset to some extent by a decline in UNH, which seems to alternate between gains and losses from one day to the next.

The S&P had been as high as 33 in the morning but these gains faded late in the day with the VIX as low as around 12.50 which could not sustain the advance and actually ended with a closing decline of 4 down to 4550. It was hurt by selling in some of the large technology winners this year, as AAPL, AMZN, NFLX, META, GOOG and TSLA all ended nominally lower, and this was the main reason that the Nasdaq also gave up a large early gain of 142 to end lower as well with a 23 point decline down to 14,258.

The Russell 2000 Index of small stocks put in a nominal gain of 11 up to 1803 while the VIX ended higher at 12.98 after having traded at around 12.50 when the market was on its morning highs. But the advance/decline line was strong at almost 2 to 1 on the upside, which means that the overall trend is still to the upside.

Automakers were among the bright spots, as GM surged by almost 10% after the company announced a big stock buyback, raised its dividend and told investors it won’t have any trouble absorbing the costs of its new labor contract. But the stock has been a real underperformer as it is lower by 6% this year while the S&P is higher by 18%. Even weakling F rose on the back of this as well.

Treasury yields fell, taking more pressure off of stocks. The yield on the 10-year slipped to 4.26% from 4.33% and the yield on the 2-year Treasury fell sharply to 4.66% from 4.75%.
 

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Donald M. Selkin

Chief Market Strategist

 

Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide our current or potential customers with timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analysis concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: {Bloomberg Financial, Reuters, and Associated Press}. It is possible that at any given point in time, the author, Newbridge Securities, or one or more of its employees or registered individuals associated with Newbridge Securities, may hold a position, either long, or short, as well as options, bonds or other instruments in the companies mentioned in this report.