Large-Cap Stocks Pause, Small Caps Shine, Oil Makes Comeback: What's Driving Markets Friday?
Portfolio Pulse from Piero Cingari
Wall Street saw a quiet session with major averages near parity, but small caps and oil stood out with gains. The Russell 2000 and crude oil prices rose significantly, while large-cap stocks remained flat. The dollar weakened, and Treasury yields flattened. Sector-wise, energy stocks rallied, while health care and communication services lagged. Retail stocks surged, and REITs had a softer performance. Housing starts and building permits data were positive. Gap, Ross Stores, and Expedia saw stock increases, while Applied Materials faced pressure due to a potential criminal investigation. ChargePoint Holdings plunged after a preannouncement. Global markets and commodities also saw varied movements.
November 17, 2023 | 7:38 pm
News sentiment analysis
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NEGATIVE IMPACT
Applied Materials, Inc. fell nearly 5% amid a report of a potential U.S. criminal investigation.
AMAT's decline is likely due to the negative sentiment from the reported criminal investigation, which could harm the stock's short-term performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
ChargePoint Holdings, Inc. plunged more than 30% following its preannouncement.
CHPT's significant drop is a reaction to its preannouncement, which is a strong negative indicator for the stock's short-term price direction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The SPDR Dow Jones Industrial Average ETF fell 0.1%.
The slight decline in DIA indicates a small negative impact on the ETF in the short term, aligning with the minor drop in the Dow Industrials.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEGATIVE IMPACT
The Vanguard Real Estate ETF saw a minor decline of 0.1%.
VNQ's small drop reflects a softer performance in REITs, indicating a minor negative short-term impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEGATIVE IMPACT
The Communication Services Select Sector SPDR Fund also lagged, decreasing by 0.3%.
XLC's drop mirrors the lag in communication services stocks, suggesting a short-term negative impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEGATIVE IMPACT
The Health Care Select Sector SPDR Fund was down by 0.3%.
XLV's decline reflects the underperformance of health care stocks, indicating a negative short-term impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
The iShares S&P 100 ETF remained flat for the day, reflecting the pause in large-cap stocks' movement.
The ETF directly tracks large-cap stock performance, which was unchanged, indicating a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
POSITIVE IMPACT
Expedia Group Inc. rose 5.3% after an upgrade by Evercore ISI and a raised price target.
EXPE's price increase is influenced by the positive analyst rating and higher price target, suggesting a bullish short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The Gap Inc. soared 29% on an extraordinary earnings beat.
GPS's surge is directly related to its earnings outperformance, which is a strong positive driver for the stock's short-term price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The iShares Russell 2000 ETF rallied 1.5%, outperforming other indices.
IWM's significant rally reflects the strong performance of small caps, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
The Invesco QQQ Trust was up 0.1%.
QQQ's slight increase is in line with the Nasdaq's performance, suggesting a stable short-term outlook.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
POSITIVE IMPACT
Ross Stores, Inc. rose nearly 8% on strong quarterly results.
ROST's stock increase is a direct consequence of its positive earnings report, indicating a likely short-term upward trend.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust saw a slight increase of 0.1%.
The modest increase in SPY reflects the overall positive sentiment in the market, suggesting a potential for continued short-term growth.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF is on track for its fourth consecutive week of gains, the longest streak in a year.
The positive streak for TLT suggests continued investor interest in long-term bonds, likely to support a short-term price increase.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
The Energy Select Sector SPDR Fund climbed 2.6% amid a rally in energy stocks.
XLE's gain is driven by the overall increase in energy stocks, suggesting a bullish short-term impact.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P Retail ETF surged by 2.8%, indicating strong performance in retail stocks.
XRT's significant increase is a positive sign for the retail sector, likely leading to a bullish short-term impact.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80