BlackJack3D
Listen below or on the go on Apple Podcasts and Spotify
Dow outshined both the Nasdaq and benchmark S&P 500 (0:30). Gold sinks by most in 4 years (1:11). Crude oil futures fall sharply (1:50) Trump prepares broad energy plan (2:40).
Transcript
Traders and investors watched Wall Street's major averages finish Monday on a positive note, where the Dow outshined both the Nasdaq and benchmark S&P 500.
At the conclusion of the trading session, the (DJI) ended on top as it picked up 0.99%. Also closing in the green was the S&P 500 (SP500) as it climbed up 0.30%, and the Nasdaq Composite (COMP:IND) finished the day higher as it picked up 0.27%.
U.S. Treasury yields observed a move lower to start the week as U.S. 2-Year Treasury yield (US2Y) fell as did the U.S. 10-Year Treasury yield (US10Y).
"Despite treasury bonds catching a bid after Scott Bessent's nomination for US Treasury Secretary, the broad equity market only managed to register a minor gain in Monday's session," Seeking Alpha's Ahan Vashi of The Quantamental Investor stated.
Front-month gold futures fell Monday in the largest one-day decline by dollar amount since November 2020, as news of a potential ceasefire agreement between Israel and Hezbollah in Lebanon further undermined safe-haven demand for the metal, as well as President-elect Trump's selection of his new Secretary of the Treasury.
The move stopped a 5-session winning streak, but gold is still up 27% YTD.
Between falling safe-haven demand and a hawkish repricing of U.S. interest rate cut expectations, gold's short-term outlook has turned moderately bearish, StoneX analyst Fawad Razaqzada said.
Even so, gold could still potentially rise to $3,000/oz in the slightly longer-term, Razaqzada wrote.
ETFs: (GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (RING), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
Crude oil futures fell sharply Monday, as news grew of a ceasefire deal between Israel and Hezbollah in Lebanon, lowering the risk of a broader Middle East war that could impact global oil supplies.
"It seems the news of a ceasefire between Israel and Lebanon is behind the price drop, though no supply has been disrupted due to the conflict between the two countries and the risk premium in oil has been low already before the latest price decline," Giovanni Staunovo of UBS wrote.
Monday's losses followed last week's biggest weekly gains since September after Russia fired a hypersonic missile at Ukraine, following strikes by Ukraine on Russia using long-range missiles from the U.S. and U.K. for the first time.
U.S. natural gas futures reversed Friday's losses as cold weather is seen extending into the first weeks of December; front-month Nymex December gas (NG1:COM) settled +7.7% at $3.369/MMBtu.
ETFs: (USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)
Reuters reports that President-elect Trump's transition team is preparing a wide-ranging energy package to roll out within days of taking office that would increase oil drilling off the U.S. coast and on federal lands and lift the moratorium on liquefied natural gas export permits that was put in place by the Biden administration.
According to the report, Trump also plans to repeal some of Biden's key climate legislation and regulations, such as tax credits for electric vehicles and new clean power plant standards that aim to phase out coal and natural gas.
Headlines of note and stocks of interest:
Amazon Web Services (NASDAQ:AMZN) has been awarded a $158.25M from the U.S. Army for cloud computer and storage services, with an estimated completion date of Sept. 21, 2028.
Zoom beat expectations with Q3 earnings results, issued guidance that were better-than-expected, and said it is changing its name to Zoom Communications from Zoom Video.
Enphase Energy (ENPH) finished +8.4% in Monday's trading, leading broad gains in most solar stocks, after two members of the U.S. House submitted a resolution to suspend the 45X advanced manufacturing production tax credit, and rewrite the legislation to prevent Chinese companies from receiving tax credits.
SoFi Technologies (SOFI) continued gains for a seventh straight session as the stock closed 0.64% higher, at $15.70 on Monday.
The stock has gained over 59% so far this year, outperforming the broader S&P 500 Index’s gain of over 25%. SOFI is up around 43% over the past month.
Enterprise Products Partners L.P. (EPD) shares snapped seven straight sessions of gains, as the stock closed 1.5% lower at $32.34 on Monday.
As for other stocks that were on the move, shares of Hims & Hers Health (HIMS) popped 23.8% as the Street appears to believe that President-Elect Donald Trump's nomination of Marty Makary for U.S. FDA Commissioner will be positive for drug compounders and companies that sell their products.
In today's economic calendar, at 9:00 AM, Case-Shiller Home Price Index. Forecasters look for more slowing. At 9, we also have the Federal Housing Finance Agency (FHFA) House Price Index (HPI).
At 10:00 AM Consumer Confidence. The consensus looks for consumer confidence to extend its recovery in November after its surprising rebound to 108.7 in October from 99.2 in September.
Markets are focusing on consumer views of the job market, which improved markedly in October, now that inflation worries have diminished. At 10, we also have as New Home Sales. And at 2:00 PM, we'll have FOMC Minutes.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
