US Stock Market Overview – Stocks Close Mixed as Capital Moves to Value from Growth
US stocks were mixed on Tuesday, with capital flowing into value and out of growth. Most sectors in the S&P 500 index were higher, led by consumer staples, technology bucked the trend. Crude oil prices moved higher on Wednesday following a larger than expected draw in oil inventories. The VIX volatility index was unchanged and is hovering near the 25% level, well off the highs made in March near 85, but still double the average seen in 2019. The JOLTs report showed that the number of new openings remained the same in September compared to August. Gold prices rebounded as the dollar eased, while yields remained buoyed.
ACA Likely to Remain In Tact
Several conservative Supreme Court justices on Tuesday joined liberals voicing skepticism that the entire Affordable Care Act must fall because Congress removed any penalty for failing to have insurance. Chief Justice John Roberts and Justice Brett Kavanaugh gave little credence to the highly technical arguments put forward by the ACA’s opponents.
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JOLTS Was Little Changed
The number of job openings was little changed at 6.4 million in September, according to the US Labor Department. Hires and total separations were little changed at 5.9 million and 4.7 million, respectively. Within separations, the quits rate was little changed at 2.1 percent while the layoffs and discharges rate decreased to a series low of 0.9 percent.
Standoff Between Biden and Trump Could Create a Vacuum
Three days after the Associated Press and most media declared Mr. Biden the president-elect, the Trump administration has declined to make a typically routine technical designation that would grant the former vice president crucial transition resources. Mr. Biden’s advisers are urging the General Services Administration, to identify him as the winner of the election, arguing that Mr. Trump’s efforts to contest the results of the election have little chance of success.