The streak is dead—long live the streak.
Although the S&P 500 (SPX) didn’t close at a weekly high for the ninth straight week, it still made a new daily record close last Wednesday and an intraday/intraweek high of 2,597.02 last Tuesday, extending its run of weekly highs to nine. But nine or more higher weekly closes is something the S&P has matched or exceeded only three previous times over the past 50 years (in 1985, 1989, and 2004), so tacking on another week was a bit of a longshot. The stock market cannot, after all, move in one direction forever.
For the week, the SPX lost -0.21%, the Dow Jones Industrial Average (INDU) declined -0.5%, the small-cap Russell 2000 (RUT) shed -1.31%, and the tech-driven Nasdaq 100 (NDX) gained 0.21%.
Turning to the hit parade, the top-performing S&P sectors for the week: Real Estate (+3.32%), Consumer Staples (+2.14%), and Energy (+1.08%). Strong performances from Real-Estate Investment Trusts (REITs) such as American Tower Corp. (AMT, +5.6%) and Crown Castle International (CCI, +6%) helped keep real estate in first place for a second straight week, while energy benefited from crude oil hanging around its 52-week high.
The worst-performing S&P 500 sectors: Financials (-2.54%), Telecom Services (-1.26%), and Materials (-1.18%).
Last week’s minor dip nudged volatility readings higher. After closing out the week ending November 3 at a record low close of 9.14, the CBOE Volatility Index (VIX) edged back into double digits last week, closing on Friday at 11.18--for perspective, a reading that was still in the bottom tenth of all VIX closes in the past 12 years.
This week includes a modest rollout of US economic numbers: Producer Price Index (PPI) on Tuesday; Consumer Price Index (CPI), Retail Sales, and Business Inventories on Wednesday; Industrial Production, Housing Market Index, Import and Export Prices on Thursday, and Housing Starts and E-commerce Retail Sales on Friday.
The Q3 earnings release season is winding down. This week’s lineup features lots of pharma stocks and several well-known retail and consumer staple names: Tyson Foods (TSN) on Monday; Home Depot (HD), TJ Maxx parent company TJX (TJX) and Chinese consumer finance company Yirendai (YRD) on Tuesday; Target (TGT), Cisco Systems (CSCO), Enanta Pharmaceuticals (ENTA), and NetApp (NTAP) on Wednesday; and Best Buy (BBY), Wal-Mart (WMT), Applied Materials (AMAT), Gap (GPS) and Ross Stores (ROST) on Thursday.
Don’t forget Capitol Hill: Any delays or discord associated with the House and Senate tax plans have the potential to spook a market that many observers say is in a prime position to be spooked.