Tech Stocks Lead the Overall Market Higher

Economic Indicators - The Fed Beige Book indicated mixed economic outlooks, with some contacts noting increased risks of slower activity while others expressed optimism among manufacturers [1] - The US November MNI Chicago PMI fell by 7.5 points to 36.3, marking the steepest contraction in 17 months and weaker than the expected 43.6 [1] - US September capital goods new orders, excluding defense and aircraft, rose by 0.9% month-over-month, surpassing expectations of 0.3% [1] Labor Market - Weekly initial unemployment claims in the US unexpectedly fell by 6,000 to a 7-month low of 216,000, indicating a stronger labor market than the anticipated increase to 225,000 [2] - The MBA mortgage applications rose by 0.2% in the week ending November 21, with the purchase mortgage sub-index increasing by 7.6% while the refinancing sub-index decreased by 5.7% [2] Stock Market Performance - Stock indexes rallied, with the S&P 500 reaching a 2-week high and the Dow Jones and Nasdaq 100 hitting 1.5-week highs, driven by strength in semiconductor stocks [5] - The S&P 500 Index closed up by 0.69%, the Dow Jones up by 0.67%, and the Nasdaq 100 up by 0.87% [6] Corporate Earnings - Q3 corporate earnings season is concluding, with 83% of S&P 500 companies exceeding forecasts, leading to a 14.6% increase in earnings, more than doubling the expected 7.2% year-over-year growth [8] - Urban Outfitters reported Q3 net sales of $1.53 billion, exceeding the consensus of $1.49 billion, resulting in a stock increase of over 12% [14] - Dell Technologies raised its 2026 revenue forecast to $112.2 billion from a previous range of $105 billion to $109 billion, stronger than the consensus of $107.94 billion, leading to a stock increase of over 5% [15] Market Sentiment - Optimism regarding a potential Fed rate cut has improved market sentiment, with the probability of a rate cut at the December FOMC meeting rising to 80% from 30% [4][7] - The Bureau of Labor Statistics announced the cancellation of the October consumer price report, with the November report scheduled for December 18 [7]