Do Large Caps Offer More Value Relative to Small Caps?
Large caps will be in a much better position to navigate through this period given their cash positions.
The stronger dollar (UUP) will be a commendable headwind for large caps.
Deere’s stock traded at $80 on November 25, 2015. This was above its 50-day and 20-day moving averages but below its 100-day moving average.
Retail stocks contributed considerably to the consumer discretionary sector of the SPDR S&P 500 ETF (SPY) recently with upbeat quarterly earnings.
Allergan and Pfizer rose 2.8% and 2.8%, respectively, after an initial slide on November 25 when the companies entered into a merger worth $160 billion.
Despite 10.7% monthly gains in October 2015, the real estate sector fell short of consensus expectations. New home sales did not surge as expected.
SPY and SPXL fell slightly on Wednesday, November 25, 2015, after the release of an array of economic data that turned out to be mixed.
According to the US Census Bureau, new orders for manufactured durable goods increased $6.9 billion or 3.0% to $239.0 billion.
With a decline in initial jobless claims, the Industrial Select Sector SPDR Fund (XLI) has risen 0.49% as of November 25 from a week ago.
In October, an increase in wages and salaries of $45.0 billion kept the reading in line with the consensus estimate of 0.4%.
EWU gained 0.06% on November 24, 2015, boosted by the rally in energy stocks that followed tension in the Middle East and concerns of terrorism threats.
Avon climbed 17% on November 24 after analysts at Citigroup upgraded the stock to a “buy” rating. Avon’s price target was also raised from $3.50 to $5.00.
November’s consumer confidence level is the lowest since September 2014, indicating a lack of confidence in consumers’ perceptions of the job market.
The Russian warplane incident on November 24, 2015, resulted in a hike in oil prices that pushed the energy sector to lead SPY by 2.1% on the day.
SPY rose 0.13% on November 24, 2015, as its losses in the real estate, financial, and other sectors were overshadowed by the rally of energy stocks.
Food retailers Tesco (TSCO), Wm Morrison Supermarkets (MRW), and J Sainsbury (SBRY) fell 3.7%, 2.6%, and 1.6%, respectively, on November 23.
On November 23, Tyson Foods (TSN) closed at $48.09, which is well above its 100-day, 50-day, and 20-day moving averages of $44, $44, and $45, respectively
On November 23, Analog Devices (ADI) fell 4.4% to close at $56.80, which was below its moving averages.
The utility sector, represented by the Utilities Select Sector SPDR ETF (XLU), fell by 0.9% on November 23.
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull & Bear 3x Shares ETF (SPXL) fell 0.12% and 0.52%, respectively, on Monday, November 23.