Market Perspective for November 11, 2019

The Dow Jones Industrial Average rallied on Monday thanks to a surge in Boeing (BA) shares. The Dow component advanced 4.61 percent after it stated the 737 MAX could restart delivery as soon as next month. The DJIA climbed 0.05 percent.

SPDR Utilities (XLU) fell 0.65 percent on Monday. Bond markets were closed for the Veteran’s Day holiday, but investors are still expecting rising interest rates. SPDR Technology (XLK) and SPDR Industrials (XLI) both gained 0.06 percent.

The National Federation of Independent Business will report its small business confidence index for October this week. The Bureau of Labor Statistics’ calculation of consumer and producer price inflation will be out midweek. Analysts forecast a 0.3 percent increase in headline inflation and 0.2 percent in core CPI. Producer prices are forecast to have risen 0.3 percent after falling 0.3 percent in September.

Federal Reserve Chairman Jerome Powell will testify before Congress on Wednesday and Thursday. Other Fed officials will make public appearances over the coming days.

Retail sales for October are out on Friday. Economists see headline sales rising 0.2 percent and sales ex-autos climbing 0.4 percent.

The U.S. Dollar Index pulled back 0.15 percent on Monday as the Conservative party polled strongly ahead of the December 12 parliamentary election in the United Kingdom. Nigel Farage of the Brexit Party also announced his party would not challenge Conservative candidates in most districts. A secure majority will hand Prime Minister Boris Johnson enough votes for a final Brexit deal with the European Union. The pound rallied 0.60 percent on Monday.

Chinese money supply growth was slower than expected in October. This news weighed on materials shares. Global X Copper Miners (COPX) slid 1.53 percent. iShares China Large Cap (FXI) fell 1.54 percent, which in turned pulled iShares MSCI Emerging Markets (EEM) lower by 0.71 percent.

Earnings season has started winding down, but retailers start reporting this week along with a few remaining blue chips. On Tuesday, investors will hear from Tyson Foods (TSN), Skyworks Solutions (SWKS), D.R. Horton (DHI), CBS Corp (CBS), Rockwell Automation (ROK) and Tilray (TLRY).

Cisco (CSCO), NetApp (NTAP), Canadian Goose (GOOS), Energizer (ENR) and Teekay Tankers (TNK) also report.

On Thursday, retail giant Wal-Mart (WMT) reports along with Nvidia (NVDA), Applied Materials (AMAT), Weibo (WB), Viacom (VIAB) and Brookfield Asset Management (BAM). Friday brings earnings from J.C. Penney (JCP), JD.com (JD) and Helmerich & Payne (HP).

 

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