CURRENCY MARKET WRAP 

As of Tue Nov 19th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.13%, 97.82
USDJPY, -0.03%, $108.67
EURUSD, +0.17%, $1.1072
GBPUSD, +0.21%, $1.2947
USDCAD, -0.17%, $1.3202
AUDUSD, -0.17%, $0.6805
NZDUSD, -0.05%, $0.6396

U.S session began with the market digesting a tweet from a China-based CNBC reporter, who said she was informed by a Chinese government source that Beijing is pessimistic about a trade deal because Trump hasn’t supported a tariff rollback. Based on the modest losses and ensuing price action, the market presumably remained optimistic about a Phase One agreement.

U.S. Treasuries extended last week’s advance, pushing yields slightly lower across the curve. The 2-yr yield declined two basis points to 1.59%, and the 10-yr yield declined three basis points to 1.81%. The U.S. Dollar Index declined 0.13% to 97.82.

STOCK MARKET WRAP 

S&P500, +0.05%, 3,122.03
Nasdaq, +0.11%, 8,549.94
Nikkei Futures, -0.03%, 23,353.0

The large-cap indices eased their way into positive territory thanks to the turnarounds in the S&P 500 consumer discretionary (+0.3%), information technology (+0.3%), and communication services (+0.3%) sectors. Consistent leaders included the consumer staples (+0.5%) and real estate (+0.5%) sectors, as the negative-sounding trade headline likely fostered some conservative-minded interest.

The trade-sensitive industrials (-0.3%) and materials (-0.2%) sectors were among today’s laggards, but their losses were small compared to the 1.3% drop in the energy sector, which was pressured by the decline in oil prices ($57.04, -0.71, -1.2%).

Notable corporate news included HP Inc. (HPQ 20.01, -0.17, -0.8%) turning down the takeover bid from Xerox (XRX 39.30, +0.36, +0.9%). HP remained open to a deal, though. Netflix (NFLX 302.57, +7.54, +2.6%) shares outperformed on speculation that either Carl Icahn or Bill Ackman built a large stake in the company.

CURRENCY MARKET WRAP 

As of Mon Nov 18th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.16%, 98.00
USDJPY, +0.31%, $108.75
EURUSD, +0.27%, $1.1053
GBPUSD, +0.20%, $1.2907
USDCAD, -0.18%, $1.3223
AUDUSD, +0.49%, $0.6820
NZDUSD, +0.30%, $0.6401

U.S. October retail sales increased 0.3% m/m (consensus +0.2%) following an unrevised 0.3% decline in September. Excluding autos, retail sales jumped 0.2% (consensus +0.4%) after declining an unrevised 0.1% decline in September. Industrial production slumped 0.8% in October (consensus -0.4%) on the heels of an upwardly revised 0.3% decline (from -0.4%) in September. The capacity utilisation rate fell to 76.7% (consensus 77.1%) from 77.5% in September.

Stock market rallied higher into record territory on Friday, with risk sentiment fuelled by NEC Director Larry Kudlow saying the U.S. and China are close to reaching a Phase One trade agreement.

U.S. Treasuries didn’t sell off despite the risk-on in the stock market, but they did edge lower. The 2-yr yield increased three basis points to 1.61%, and the 10-yr yield increased two basis points to 1.83%. The U.S. Dollar Index declined 0.16% to 98.00. WTI crude rose 0.9%, or $0.99, to $57.75/bbl.

STOCK MARKET WRAP 

S&P500, +0.77%, 3,120.46
Nasdaq, +0.73%, 8,540.83
Nikkei Futures, +1.07%, 23,367.5

The S&P 500 health care sector did the heavy lifting on Friday, climbing 2.2%, even as the Trump administration announced an initiative to increase price transparency from hospitals and insurers. Investors were evidently unconcerned about the proposal leading to an adverse effect on earnings.

No other S&P 500 sector increased 1.0%, but the continued outperformance of Apple (AAPL 265.76, +3.12, +1.2%), Microsoft (MSFT 149.97, +1.91, +1.3%), and Alphabet (GOOG 1334.87, +23.41, +1.8%) should not be understated. The SPDR S&P Retail ETF (XRT 44.86, +0.44, +1.0%) and Philadelphia Semiconductor Index (+0.9%) also showed relative strength.

Retail stocks extended yesterday’s advance after October retail sales increased 0.3% m/m (consensus +0.2%). Semiconductor stocks benefited from the trade news and the solid results and guidance from Applied Materials (AMAT 62.06, +5.10, +9.0%). Conservative guidance from NVIDIA (NVDA 204.19, -5.60, -2.7%) did limit gains, though.

Interestingly, the trade-sensitive materials sector (-0.1%) was the lone holdout on Friday. Separately, T-Mobile US (TMUS 78.07, +1.23, +1.6%) CEO John Legere is no longer considering the CEO role at WeWork, according to CNBC. Shares of RH (RH 188.47, +13.25, +7.6%) and Occidental Petroleum (OXY 38.95, +1.19, +3.2%) outperformed after Warren Buffet’s Berkshire Hathaway (BRK.B 219.74, +0.38, +0.2%) disclosed new positions in the companies.

CURRENCY MARKET WRAP 

As of Fri Nov 15th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.23%, 98.15
USDJPY, -0.30%, $108.50
EURUSD, +0.12%, $1.1020
GBPUSD, +0.24%, $1.2882
USDCAD, -0.02%, $1.3248
AUDUSD, -0.75%, $0.6787
NZDUSD, -0.48%, $0.6381

U.S. Producer Price Index for final demand jumped 0.4% m/m in October (consensus +0.3%) while the index for final demand, less food and energy, rose 0.3% (consensus +0.2%). The yr/yr change for these measures checked in at 1.1% and 1.6%, respectively, versus 1.4% and 2.0% in September. Initial claims increased by 14,000 to 225,000 (consensus 214,000) for the week ending November 9. Continuing claims for the week ending November 2 decreased by 10,000 to 1.683 million

The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined six basis points to 1.82%. The U.S. Dollar Index declined 0.23% to 98.15. Demand for Treasuries may have been driven in part by continued misgivings about a “Phase One” trade agreement, which the U.S. and China are struggling to complete, according to a new report from The Financial Times. The stock market, though, remained undeterred by any negative-sounding trade news that doesn’t come directly from Trump, China, or top negotiators.

Separately, Powell’s final day of testimony on Capitol Hill went largely unnoticed due to it being a reiteration of what the market already knows about monetary policy and the economic outlook.

STOCK MARKET WRAP 

S&P500, +0.08%, 3,096.63
Nasdaq, -0.04%, 8,479.02
Nikkei Futures, -0.59%, 23,162.5

S&P 500 (+0.08%) eked out another record close on Thursday despite Cisco Systems (CSCO 44.91, -3.55, -7.3%) dropping more than 7% after it issued downside quarterly guidance. Cisco blamed familiar macro uncertainties like Brexit and trade for its cautious outlook, but investors construed the situation as a company-specific issue. The broader market held steady throughout the morning, until shares of Walmart (WMT 120.65, -0.33, -0.3%), which were up more than 3% on positive earnings results and an upbeat outlook, turned negative.

Apple (AAPL 262.64, -1.83, -0.7%) was downgraded to Sell from Hold at Maxim Group, which may have contributed to a slight pullback in the stock. Kraft Heinz (KHC 30.96, -1.94, -5.9%) was downgraded to Sell from Neutral at Goldman, which dragged the stock lower.

CURRENCY MARKET WRAP

As of Wed Nov 13th, Singapore Time zone UTC+8

U.S. Dollar Index, +0.13%, 98.33
USDJPY, -0.05%, $109.00
EURUSD, -0.19%, $1.1012
GBPUSD, -0.03%, $1.2851
USDCAD, +0.02%, $1.3235
AUDUSD, -0.12%, $0.6842
NZDUSD, -0.38%, $0.6337

The Treasury market reopened for trading after being closed for Veterans Day yesterday. An uptick in demand pushed the 2-yr yield down one basis point to 1.65% and the 10-yr yield down two basis points to 1.91%. The U.S. Dollar Index increased 0.13% to 98.33. WTI crude was unchanged at $56.85/bbl.

Trump’s lunchtime speech at the Economic Club of New York on Tuesday took aim once again at the Fed for its interest rate policy in a highly anticipated speech that offered no fresh details on his administration’s long-running trade war with China. Trump said U.S. and Chinese negotiators were “close” to a “phase one” trade deal, but largely repeated well-worn rhetoric about China’s “cheating” on trade.

STOCK MARKET WRAP 

S&P500, +0.16%, 3,091.84
Nasdaq, +0.26%, 8,486.09
Nikkei Futures, +0.58%, 23,435.0

S&P 500 clipped the 3100 level for the first time on Tuesday, but the record run lost some steam to leave the benchmark index up just 0.16% and below 3100 on a closing basis. The Nasdaq Composite (+0.3%) closed at a record high, while the Dow Jones Industrial Average (unch) and Russell 2000 (unch) finished unchanged.

The market also received support from the earnings-driven gains in Rockwell Automation (ROK 198.01, +18.81, +10.5%), DXC Technology (DXC 35.25, +5.85, +19.9%), and Tyson Foods (TSN 88.88, +6.15, +7.4%), as well as the healthy gains from Facebook (FB 194.47, +4.86, +2.6%) and Walt Disney (DIS 138.58, +1.84, +1.4%).

Facebook introduced “Facebook Pay,” a feature that will allow users to send payments across its platforms. Disney officially launched its streaming service, which experienced some technical difficulties due to higher-than-expected consumer demand.

CURRENCY MARKET WRAP 

As of Tue Nov 12th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.14%, 98.21
USDJPY, -0.15%, $109.04
EURUSD, +0.11%, $1.1034
GBPUSD, +0.47%, $1.2854
USDCAD, +0.05%, $1.3233
AUDUSD, -0.13%, $0.6848
NZDUSD, +0.51%, $0.6363

U.S. Treasury market and banks were closed for Veterans Day and investors did not receive any economic data. The U.S. Dollar Index declined 0.14% to 98.21. WTI crude declined 0.6% to $56.88/bbl.

In UK, Britain’s economy has grown at the slowest annual rate in almost a decade, according to official figures. Year-on-year growth in the three months to end-September slowed to 1% from 1.3% in the second quarter, the Office for National Statistics said. While the economy dodged outright recession, the rebound in quarterly growth was smaller than expected. UK Prelim GDP q/q expanded by 0.3% in the third quarter, it was not as fast as the 0.4% forecast by economists.

STOCK MARKET WRAP 

S&P500, -0.20%, 3,087.01
Nasdaq, -0.13%, 8,464.28
Nikkei Futures, -0.45%, 23,327.5

S&P 500 declined just 0.2% on Monday, while the Dow Jones Industrial Average (+0.04%) eked out a record close amid strength in Boeing (BA 366.96, +15.96, +4.6%) and Walgreens Boots Alliance (WBA 62.25, +3.01, +5.1%). The Nasdaq Composite lost 0.13%, and the Russell 2000 lost 0.3%.

Boeing said it expects 737 MAX deliveries to resume in December and commercial service to resume in January. Walgreens received a leveraged buyout offer from KKR & Co. (KKR 29.26, +0.11, +0.4%), according to Bloomberg.

The nice gain in Boeing was an influential driver not only in the Dow but also the S&P 500 industrials sector (+0.1%), which joined the real estate (+0.2%) and information technology (+0.1%) sectors in positive territory. The tech sector overcame a negative start, predominately due to Apple (AAPL 262.20, +2.06, +0.8%) extending its record run on no specific catalyst.

Separately, T-Mobile US (TMUS 79.62, -1.32, -1.6%) was a notable laggard after The Wall Street Journal reported that its CEO John Legere is in talks to become the next CEO of WeWork. Qualcomm (QCOM 91.84, -2.19, -2.3%) underperformed after the stock was downgraded to Equal-Weight from Overweight at Morgan Stanley.

CURRENCY MARKET WRAP 

As of Mon Nov 11th, Singapore Time zone UTC+8

U.S. Dollar Index, +0.21%, 98.35
USDJPY, -0.04%, $109.24
EURUSD, -0.28%, $1.1019
GBPUSD, -0.32%, $1.2773
USDCAD, +0.44%, $1.3228
AUDUSD, -0.54%, $0.6861
NZDUSD, -0.58%, $0.6329

U.S. University of Michigan Consumer Sentiment Index for November crossed at 95.7 (consensus 95.0), which was slightly better than expected and roughly even with the final reading of 95.5 for October. Consumer expectations increased from October, underscoring an otherwise confident attitude that should continue to manifest itself in relatively solid consumer spending activity.

Wholesale inventories declined 0.4% m/m in September (consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017. Wholesale sales were flat in September after declining 0.1% in August.

Trump’s statement refuted China’s claim that an agreement was already made, but the market maintained an optimistic view on trade. It presumably continued to think that a “Phase One” deal will still get signed considering the president didn’t technically rule out the possibility to roll back tariffs and White House trade advisor Peter Navarro said the U.S. might be willing to delay the Dec. 15 tariffs.

The U.S. Treasury market finished relatively unchanged in a quiet session. The 2-yr yield declined one basis point to 1.66%, and the 10-yr yield increased one basis point to 1.93%. The U.S. Dollar Index increased 0.21% to 98.35. WTI crude increased 0.2% (+$0.10) to $57.21/bbl.

STOCK MARKET WRAP 

S&P500, +0.26%, 3,093.08
Nasdaq, +0.48%, 8,475.31
Nikkei Futures, +0.48%, 23,472.5

There still wasn’t much conviction from buyers or sellers for most of the session, though, until a wave of buyers pushed the market to session highs into the close. The S&P 500 health care (+0.8%) and information technology (+0.6%) sectors posted decent gains, while the energy (-0.8%), utilities (-0.4%), and real estate (-0.2%) sectors finished lower.

Walt Disney (DIS 137.96, +5.00, +3.8%) beat earnings estimates and shares of the Dow component rose accordingly. Its outperformance also helped the S&P 500 communication services sector (+0.4%) overcome weakness in Verizon (VZ 59.35, -1.18, -2.0%), which fell on no confirmed news catalyst.

The trade-sensitive Philadelphia Semiconductor Index (+0.5%) continued to rise amid the upbeat trade sentiment. The group also benefited from follow-through buying in shares of Qualcomm (QCOM 94.03, +4.05, +4.5%) after it reported positive earnings results earlier in the week.

In other corporate news, Southwest’s (LUV 58.18, -0.06, -0.1%) 10-Q stated it plans to remove Boeing’s (BA 351.00, -6.31, -1.8%) 737 MAX from its flight schedule through March 6, 2020. This is a one-month delay. Gap, Inc. (GPS 16.68, -1.38, -7.6%) announced the departure of its CEO and issued downside EPS guidance.

CURRENCY MARKET WRAP

As of Fri Nov 8th, Singapore Time zone UTC+8

U.S. Dollar Index, +0.18%, 98.13
USDJPY, +0.28%, $109.28
EURUSD, -0.13%, $1.1053
GBPUSD, -0.25%, $1.282
USDCAD, -0.04%, $1.3175
AUDUSD, +0.24%, $0.6899
NZDUSD, +0.09%, $0.6374

U.S. Initial jobless claims for the week ending November 2 decreased by 8,000 to 211,000 (consensus 217,000). Continuing jobless claims for the week ending October 26 decreased by 3,000 to 1.689 million. The Consumer Credit report for September showed an increase of $9.5 billion (consensus $14.0 billion), and August credit growth was unrevised at $17.9 billion.

The stock market rallied to new highs on Thursday after China’s Commerce Ministry said it reached an agreement with the U.S. for both sides to phase out tariffs. News of internal strife within the White House about those plans, however, curbed some enthusiasm in the market.

In trade, China’s announcement was confirmed by an unnamed U.S. official to Bloomberg, but multiple sources familiar with trade talks followed up to Reuters that opposition is based on concerns that the U.S. would give away leverage to Beijing. Considering that China reportedly wants all retaliatory tariffs removed for the “Phase One” deal to get signed, the news understandably created some jitters in the market.

The 2-yr yield rose seven basis points to 1.67%, and the 10-yr yield rose 11 basis points to 1.93%. The U.S. Dollar Index increased 0.18% to 98.13.

In B0E, two officials unexpectedly voted to lower interest rates on Thursday to ward off an economic slowdown, and others including Governor Mark Carney said they would consider a cut if global and Brexit headwinds do not ease. Economists had expected the BoE to vote unanimously to keep Bank Rate at 0.75%, and the announcement of the 7-2 split pushed sterling to a two-week low as market odds on a cut next year rose as high as 80%.

STOCK MARKET WRAP 

S&P500, +0.27%, 3,085.18
Nasdaq, +0,28%, 8,434.52
Nikkei Futures, +1.04%, 23,542.5

The trade-sensitive Philadelphia Semiconductor Index increased 0.7%, although it was up as much as 1.8% in the session. The group still outperformed, though, largely due to the positive reaction to Qualcomm’s (QCOM 89.98, +5.35, +6.3%) better-than-expected quarterly results.

Separately, the online travel services industry received negative attention after Expedia Group (EXPE 98.29, -37.07, -27.4%) and TripAdvisor (TRIP 31.65, -9.14, -22.4%) provided investors disappointing quarterly results. Ensuing industry concerns undercut shares of Booking Holdings (BKNG 1849.93, -162.16, -8.1%) in front of its earnings report after the close.

CURRENCY MARKET WRAP 

As of Wed Nov 6th, Singapore Time zone UTC+8

U.S. Dollar Index, +0.42%, 97.91
USDJPY, +0.51%, $109.14
EURUSD, -0.47%, $1.1076
GBPUSD, -0.05%, $1.2883
USDCAD, -0.01%, $1.3151
AUDUSD, +0.12%, $0.6892
NZDUSD, -0.41%, $0.6377

U.S. ISM Non-Manufacturing Index for October increased to 54.7 (consensus 53.3) from 52.6 in September. U.S trade deficit narrowed slightly in September to $52.5 billion, as expected, from a downwardly revised $55.0 billion (from -$54.9 billion) in August. It wasn’t a narrowing driven necessarily by stronger demand, imports (-$4.4 billion) and exports (-$1.8 billion) both declined month-over-month, so the narrowing was simply a function of imports falling more than exports.

In trade, reports indicated that the U.S. is considering removing the 15% tariff rate that went into effect in September and could possibly delay the tariffs in place for December. China, however, reiterated it would want the U.S. to remove all retaliatory tariffs imposed since last year and for the U.S. to be firmer in its commitments to remove them. It’s a tough ask, but the market presumably understood that negotiations are ongoing and it shouldn’t conclude that a “Phase One” deal won’t get signed based on these reports.

The 2-yr yield rose four basis points to 1.63%, and the 10-yr yield rose eight basis points to 1.87%. The U.S. Dollar Index increased 0.42% to 97.91. WTI crude rose 1.0%, or $0.55, to $57.24/bbl.

RBA held interest rates at the historic low of 0.75 per cent (as expected). The futures market forecast a less than 10 per cent chance of a cut and no longer has a full 25 basis point cut priced in over its 18-month horizon. RBA governor Philip Lowe noted in his post-decision statement the outlook for the Australian economy is little changed from three months ago.

STOCK MARKET WRAP 

S&P500, -0.12%, 3,074.62
Nasdaq, +0.02%, 8,434.68
Nikkei Futures, +0.58%, 23,337.5

S&P 500 shed 0.12% on Tuesday in a mixed session that saw more trade headlines and a further increase in Treasury yields. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (+0.01%), and Russell 2000 (+0.1%) finished just above their flat lines.

Walgreens Boots Alliance (WBA 61.21, +1.56, +2.6%) and Kroger (KR 27.83, +2.84, +11.4%) were some notable gainers in the consumer staples sector (+0.3%). Walgreens held preliminary discussions with private equity firms about a leveraged buyout, according to Reuters, while Kroger issued upbeat FY20 guidance following an encouraging update on its “Restock Kroger” initiative.

Adobe Systems (ADBE 289.29, +11.79, +4.3%) also provided shareholders with upbeat FY20 guidance. Shares rose accordingly, while shares of Uber (UBER 28.02, -3.06, -9.9%) and Peloton (PTON 22.74, -1.87, -7.6%) dropped despite better-than-expected results and decent guidance. Shake Shack (SHAK 66.83, -17.38, -20.6%) plunged 21% on disappointing guidance.

CURRENCY MARKET WRAP 

As of Tue Nov 5th, Singapore Time zone UTC+8

U.S. Dollar Index, +0.35%, 97.56
USDJPY, +0.45%, $108.71
EURUSD, -0.34%, $1.1128
GBPUSD, -0.37%, $1.2889
USDCAD, +0.11%, $1.3153
AUDUSD, -0.38%, $0.6889
NZDUSD, -0.51%, $0.6402

In trade, Commerce Secretary Wilbur Ross said that good progress has been made in “Phase One” negotiations, companies may soon be granted licenses to work with Huawei, and auto tariffs on imported products may not be imposed. Beijing is pressing the U.S. to remove a 15% tariff that was imposed on roughly $112 billion worth of Chinese goods on Sept. 1, but no decision has been made, Politico reported citing sources.

The Financial Times later on Monday also said the White House is considering whether to roll back levies on $112 billion of Chinese imports including clothing, appliances, and flatscreen monitors, which were introduced at a 15% rate on Sept. 1. Trump had said on Friday evening that negotiations about a “phase one” agreement were going well and he hoped to sign the deal with Chinese President Xi Jinping at a U.S. location when work on the agreement was completed.

U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the safe-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.35% to 97.56.

STOCK MARKET WRAP 

S&P500, +0.37%, 3,078.27
Nasdaq, +0.56%, 8,433.20
Nikkei Futures, +1.05%, 23,202.5

The S&P 500 energy sector (+3.2%) surged past the other sectors, rising more than 3% as the value-oriented space also benefited from higher oil prices ($56.69/bbl, +0.48, +0.9%). The sector saw volume that was below average.

The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).

On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.

Notable stocks from Monday included McDonald’s (MCD 188.66, -5.28, -2.7%) and Under Armour (UAA 17.13, -4.01, -19.0%). McDonald’s fired CEO Steve Easterbrook after he used “poor judgement” in having a consensual relationship with an employee. Under Armour reported lacklustre sales activity and confirmed its accounting practices are being probed by the SEC and Department of Justice.

CURRENCY MARKET WRAP 

As of Mon Nov 4th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.18%, 97.12
USDJPY, +0.15%, $108.19
EURUSD, +0.13%, $1.1167
GBPUSD, -0.05%, $1.2935
USDCAD, -0.19%, $1.3136
AUDUSD, +0.29%, $0.6914
NZDUSD, +0.23%, $0.6428

U.S. October employment report was adversely impacted by the GM strike but otherwise strong absent the effects of that strike, which led to about 42,000 job losses for the motor vehicle and parts industry. October non-farm payrolls increased by 128,000 (consensus 80,000). There were sizable upward revisions to non-farm payrolls for August and September, fewer discouraged workers, and an uptick in the labor force participation rate. ISM Manufacturing Index for October checked in at 48.3% (consensus 48.7%), up from 47.8% in September but still below the 50.0% level. This was its third straight monthly contraction, but the market’s reaction reflected a better-than-feared perspective.

In trade, China’s Ministry of Commerce said both sides reached a consensus on core issues in a phone call involving senior negotiators. The USTR office followed up, saying that they are “in the process” of resolving outstanding issues, according to CNBC.

The 2-yr yield and the 10-yr yield increased four basis points each to 1.56% and 1.73%, respectively. The U.S. Dollar Index declined 0.18% to 97.12.

STOCK MARKET WRAP 

S&P500, +0.97%, 3,066.91
Nasdaq, +1.13%, 8,386.40
Nikkei Futures, +0.47%, 22,850.0

Investors embraced risk, with cyclical sectors leading the rally. The S&P 500 energy sector (+2.5%) outpaced the market, as oil prices ($56.21, +2.03, +3.8%) rose nearly 4% and Exxon Mobil (XOM 69.60, +2.03, +3.0%) beat earnings estimates. Next in line were the industrials (+2.2%), materials (+1.5%), and financials (+1.4%) sectors.

Apple (AAPL 255.82, +7.06) rose 2.8% and the trade-sensitive Philadelphia Semiconductor Index rose 2.3%. The latter was supercharged by Qorvo (QRVO 97.22, +16.36, +20.2%), an Apple supplier, beating top and bottom-line estimates and providing encouraging guidance.

Separately, Fitbit (FIT 7.14, +0.96, +15.5%) agreed to be acquired by Alphabet (GOOG 1273.74, +13.63, +1.1%) for $7.35/share in cash, or approximately $2.1 billion. Pinterest (PINS 20.86, -4.28, -17.0%) disappointed investors with its guidance.

Alibaba blows past earnings estimates and says it expects further cloud growth. For the September quarter, Alibaba reported net income of RMB72.5 billion ($10.1 billion), or RMB27.51 a share ($3.85), up from RMB20 billion, or RMB7.62 a share, in the year-prior quarter. Excluding non-recurring items, Alibaba’s adjusted earnings per share rose to RMB13.10 ($1.83) from RMB9.60. Alibaba’s revenue rose to RMB119 billion ($16.7 billion) from RMB85.1 billion and came in ahead of estimates, which modeled RMB117 billion. The company saw RMB101.2 billion in revenue from its core commerce segment, which includes the popular Taobao and Tmall platforms. Alibaba had 693 million annual active customers on its China retail marketplaces and 785 million mobile monthly active users.