Blue chip stocks traded higher today while tech shares left the party and went home early. The Dow closed the day up 68 points to 19,191 on heavier volume. Also trading on higher volume was the tech heavy NASDAQ which fell 72 points or 1.36% to 5,251. Affecting the NASDAQ is speculation about taxes, trade policies and other issues that have yet to be hammered out by President-elect Trump. Energy stocks led the Dow higher with a big assist from banks which might experience higher interest rates and fewer regulations in the near future.
November was a crazy month. All the predictions for the election and the market were wrong and a non-politician is now in the chief politician in the White House. Markets are at an all-time high. Internal market action however shows massive sector rotation starting to occur with profit taking in the big NASDAQ tech stocks while material, banks, energy and blue chips in the Dow are moving higher thanks to money coming out of bonds and cash. The Dow gained 5.4% in November and is now up about 10% for the year outpacing both the S&P 500 and the NASDAQ which are up 8.3% and 7.8% respectively.
OPEC surprised the gurus by announcing a 1.25 million barrel per day production cut at the Vienna meeting. This is the first output reduction in 8 years and occurred when Saudi Arabia accepted a headlock and dropped a demand that Iran slash its output. This is also the first coordinated action within the group including Russia in 15 years. The news sent oil prices higher as WTI crude jumped to the $50 per barrel range and closed up 3% today to $51.11 per barrel.