Page One
Maybe, just maybe the stock market will see some profit-taking interest today after scoring huge gains in the wake of last week's election. One can't say that is a safe bet as we consider the session in its entirety.
Equity markets in Asia and Europe are generally weaker, yet the equity futures market here is little changed.
Currently, the S&P 500 futures are down two points and are trading fractionally above fair value, the Nasdaq 100 futures are up one point and are trading fractionally above fair value, and the Dow Jones Industrial Average futures are up 67 points and are trading 0.2% above fair value.
Those indications are negligible considering the S&P 500 is up 3.8%, the Nasdaq 100 is up 4.4%, and the Dow Jones Industrial Average is up 4.9% since Election Day (the span of just four trading sessions).
Some backing and filling, if you will, is to be expected, yet current indications don't point to a lot of backing up -- at least not at the open. The resolve of the bears, therefore, is going to be tested with the ongoing show of resilience.
Dow component Home Depot (HD) is helping to hold the line. It reported better than expected third quarter earnings and issued some better than expected guidance for the fiscal year. Shares of HD are indicated 1.5% higher, which is giving an extra boost to the Dow Jones Industrial Average futures.
The rest of the market is idling, taking stock of a 2.9% decline in Tesla (TSLA), which is up 39% since Election Day, as a potential guide for some broader profit-taking interest.
Market participants are also taking stock of rising Treasury yields. The bond market was closed yesterday for Veterans Day, but it has opened today on its heels. The 2-yr note yield is up eight basis points to 4.33% and the 10-yr note yield is up eight basis points to 4.39%.
Another area of headline interest involves President-elect Trump's selections for key administration posts. According to CNN, he will likely name Senator Marco Rubio (R-FL) as Secretary of State and will select Rep. Mike Waltz (R-FL) as National Security Advisor. These selections are being viewed as a precursor to taking a more aggressive diplomatic stance with China.
Hong Kong's Hang Seng Index declined 2.8% on Tuesday while China's Shanghai Composite fell 1.4%. The iShares China Large-Cap ETF (FXI) is indicated 2.6% lower in pre-market trading.
