On this Veterans Day we say thank you to our men and women in uniform, past, present, and future.
US markets open higher for Veteran’s Day. US markets open in the green after mixed market results Tuesday in which the Dow continued its two-day climb and the Nasdaq finished lower.
- Market rotation continues toward small cap and value names given COVID-19 vaccine progress.
- Value equities have outperformed growth names for two consecutive days.
- The Russell 2000 small cap index finished Tuesday up almost 2%, near an all-time high from over two years ago.
- European markets are higher during midday trading.
- Asian markets closed mostly higher with Japan’s Nikkei up over 1%.
Japan at 29-year highs. Global stock markets have soared since the US election last week, with many near all-time highs. One that has our attention is the Japanese Nikkei, which is at its highest point since 1991. Japan is the third largest economy (behind the United States and China) and is showing major signs of life.
Bonds shift away from post-election story. The 10-year Treasury yield fell sharply post-election as the market started to price in divided government and a potentially weaker stimulus bill. But positive vaccine news Monday reminded us the election isn’t the only story. The 10-year yield bounced sharply higher Monday, finishing at its highest level since March. Today’s LPL Research blog covers more on the bond market’s post-election reaction.
Thank you to all the Veterans! Today is Veterans Day and a Federal holiday. LPL Financial and the stock market will be open. Some banks may be closed.
Technical update. Tuesday saw more of Monday’s momentum reversal, albeit to a far lesser degree as the Nasdaq fell another 1.4%, while the small cap Russell 2000 gained 1.9%. The move put the Russell 2000 within less than half a percent of its all-time closing high, a mark it will try to hurdle today. The S&P 500 Index set an intraday record on Monday, but will attempt to make a record closing high by moving above 3580 today.
COVID-19 news. COVID-19 cases in the United States jumped more than 50% week over week on Tuesday, pushing the seven-day average to 119,000, a 39% week-over-week increase (source: COVID Tracking Project). California and several states across the Midwest tightened restrictions, focusing on bars, restaurants, gyms, religious institutions, and limiting social gatherings.
LPL Research on CNBC. LPL Financial Chief Market Strategist Ryan Detrick joined Brian Sullivan this morning on Worldwide Exchange to talk the election, stock market, and economy. Watch the full interview here.
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