Recent market gains come amid Fed tone change, Fundstrat’s Tom Lee says
Tom Lee thinks the skepticism around the early November rally may be unwarranted.
“These gains have come on the heels of a change in tone from the Fed (‘dovish’) and at a time when economic data remains supportive of a soft landing (cooling inflation),” wrote Lee, head of research at Fundstrat.
“In terms of market internals, there has been a substantial improvement with better market breadth and continued follow through,” he added.
The S&P 500 is riding its longest daily winning streak since 2021. It’s also up more than 4% so far in November.
New Zealand’s inflation expectations fall to two-year low in fourth quarter
New Zealand’s inflation forecast dropped to a two-year low in the fourth quarter, a Reserve Bank of New Zealand survey showed.
The RBNZ’s two-year inflation expectations, viewed as roughly the time frame when the central bank’s monetary policy action will translate to prices, fell to 2.76% from 2.83% in the previous quarter ending September.
The annual price increases for one-year-ahead was expected to cool to 3.60%, from 4.17% previously.
One-year-ahead expectation for annual wage inflation was 4.43%, down from 5.04% in the third quarter, while the two-year-ahead expectation for annual wage inflation was at 3.53%, lower than the last quarter’s 3.66%.
The survey highlights that the central bank’s interest rate hiking cycle has shown signs of bringing down price pressures. The RBNZ will hold its next policy meeting on Nov. 29.
CNBC Pro: These are the stocks that will benefit — and lose out — from the wellness trend, Morgan Stanley says
From nutrition to beauty, a “global shift to wellness” is taking place — not just among consumers but also governments, Morgan Stanley says.
The Covid-19 pandemic was a big factor behind the rising focus on weight and its implications for health, the investment bank noted, though it added that wellness goes beyond weight loss and also encompasses fitness, nutrition, appearance, sleep and mindfulness.
CNBC Pro takes a look at the stocks Morgan Stanley says will be affected — both positively and negatively.
Japan business sentiment improves as Reuters Tankan survey shows rise in November
Confidence among large Japanese manufacturers rose in November, according to the Reuters Tankan survey, which measures business sentiment among large Japanese companies.
This is the first time that the index improved since August, while service-sector mood rose for a second month.
Manufacturers’ sentiment index rose to +6 in November versus +4 in October, and the service-sector index was at +27 above +24 last month.
The survey underscored a patchy economic recovery and a challenging outlook for Japan manufacturers.
It also mirrored a similar improvement seen in the Bank of Japan’s closely watched quarterly tankan survey.
A positive figure means that optimistic respondents outnumber pessimists, and vice versa.
CNBC Pro: ‘The gift that keeps on giving’: Morgan Stanley likes the memory sector and picks its top stocks
The tech theme has been reigning supreme this year and one segment in particular stands out to Morgan Stanley: the memory sector.
Calling it “the gift that keeps on giving,” the investment bank notes that the sector’s “pricing power is now among the best in tech, and still in early recovery stage.”
The bank reveals its “top picks” and “preferred plays.”
Apple had the most positive impact on the S&P 500 and Nasdaq Composite on Tuesday
Tuesday’s trading session marked the longest stretch of positive days since November 2021 for both the S&P 500 and Nasdaq Composite indexes.
The S&P 500 gained 0.28%. The stock with the most positive impact on the index was Apple, which gained about 1.5%.
Apple also had the most positive impact on the Nasdaq Composite. The tech-heavy index was up 0.9%.
The Dow Jones Industrial Average gained about 57 points, or 0.17%, to notch its longest winning streak since July. Salesforce had the most positive impact on the 30-stock index.
Stocks making the biggest moves after hours: eBay, Toast and more
These are the stocks moving the most in extended market trading:
Robinhood — Shares of the trading platform app slid more than 8%. Robinhood posted third-quarter revenue of $467 million, compared to analysts’ estimate of $478 million, per LSEG.eBay — Shares of the e-commerce giant dropped 6%. Third-quarter revenues came in at $2.5 billion, in line with analysts’ expectations, per LSEG.Toast – Shares dropped 17% in extended trading. Toast, a provider of restaurant point-of-sale systems, posted a third-quarter loss of 9 cents per share, while analysts polled by LSEG anticipated earnings of 10 cents per share.
Stock futures are little changed
Stock futures traded near flat Tuesday night.
Dow futures ticked up around 0.04% after 6 p.m. ET, while S&P 500 and Nasdaq 100 futures were both marginally around flat.