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Stocks rebounded after sliding last week. The Treasury sell-off over the last few weeks looked exhausted as the 10YR treasury neared 4.5%. Investors are still trying to handicap the news around Donald Trump’s new administration and what it could mean for economic growth and inflation.
Economic data is light this week and all eyes will be on Nvidia on Wednesday when the chipmaker reports its earnings. With its shares more than doubling in 2024, Nvidia has ascended to become the world’s largest publicly traded company. However, the company will face challenging year-over-year comparisons, making it more difficult to exceed investor expectations.
The S&P 500 struggled to hold above the 6,000 mark last week, losing momentum as the week progressed. With this recent pullback, we’ll be closely watching to determine whether it’s driven by profit-taking or signals the start of a broader sell-off. Our Newton model reflects this shift, with scores dropping from their previous highs. Domestically, markets continue to outperform their foreign counterparts. Notably, there has been a slight improvement at the longer end of the yield curve. Sector-wise, Communications, Cyclicals, and Technology are showing the most strength, while Health Care and Materials are underperforming.
Monday: Home Builder Confidence Index
Tuesday: Housing Starts, Building Permits, Chicago Fed President Goolsbee Speaks
Wednesday: Boston Fed President Collins Speaks
Thursday: Initial Jobless Claims, Existing Home Sales, Leading Economic Index, Kansas City Fed President Schmid Speaks
Friday: S&P Flash US Services & Manufacturing PMIT, Consumer Sentiment
Discount airline, Spirit Airlines, filed for Chapter 11 Bankruptcy.
Trump team shows support for Kevin Warsh as Treasury feud persists.
Donald Trump’s transition team is planning to set up federal regulations for autonomous vehicles.
US Homebuilder Confidence at a 7-month high in November.
Our Newton model attempts to determine the highest probability of future price direction by using advanced algorithmic and high-order mathematical techniques on the current market environment to identify trends in underlying security prices. The Newton model scores securities over multiple time periods on a scale of 0-20 with 0 being the worst and 20 being the best possible score.
Trend & level both matter. For example, a name that moves from an 18 to a 16 would signal a strong level yet slight exhaustion in the trend.
Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models, through mathematical algorithms, attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, updated with new data, and can accurately predict future market, industry and sector performance.