US Stock Market Overview – Stocks Rise Led by Energy as Vaccine Sentiment Remain Positive

Stocks are ending the week on a firm note, and are holding onto upside gap breakouts achieved earlier in the week. Most sectors in the S&P 500 index were higher, led by energy shares, utilities were the worst-performing sector in the S&P 500 index. Joe Biden was declined the winner in George, while President Trump was declared the winner in North Carolina. US PPI rose in October, while the University of Michigan sentiment index slumped.

US PPI Rises

The Labor Department said its producer price index climbed 0.3% in October, driven by more expensive food and gasoline, after rising 0.4% in September. It was the sixth straight monthly increase in the PPI. A 0.5% increase in the price of goods accounted for nearly 60% of the gain in the PPI. Goods rose 0.4% in September. On a year over year basis, the PPI advanced 0.5% after rebounding 0.4% in September. Economists had forecast the PPI would rise by 0.2% in October and increase 0.4% on a year-on-year basis. Core PPI, which excludes food and energy gain 0.2% in October. The core PPI advanced 0.4% in September. On a year-over-year basis core, PPI increased 0.8% after rising 0.7% in September.

Sentiment Slumped

The University of Michigan’s consumer sentiment index dropped to 77 early this month from a final reading of 81.8 in October. Expectations had been for the index to remain near 82. The survey’s measure of current conditions was steady. Its gauge of expectations fell to 71.3 from 79.2.A measure of expectations among Republicans declined to 76.4 from 96.4. It edged up to 69.3 from 68.6 among Democrats. The survey from the University of Michigan on Friday also showed Democrat Joe Biden’s victory in the November 3 presidential election was weighing on expectations among Republicans, with a slight gain among Democrats.