Merrill on Nov NFP: “We forecast a solid nonfarm payrolls growth of 195k in November following an increase of 128k in October. Resolution to the GM-UAW strike also supports our call for a solid number. Unemployment rate should hold at 3.6% though the risk is to fall.”

November – sector performance
Not 100% clear-cut “risk-on” with pharma complicating the view

Winners

Health Care: +4.7%

Technology: +3.9%

Financials: +3.3%

Communications: +2.8%

Industrials: +2.8%

Losers

Energy: +0.1%

Real Estate: -1.4%

Utilities: -1.7%

As mentioned atop last week’s Research Report and within this week’s State of the Markets video series, we will deliver our next report starting the first week of December. We will also have a Monday morning daily market dispatch to provide a set up for the week to come! Have a great Sunday everyone and see you in the Trading Room Monday!

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JPM: the upside for stocks remains material
Bears: Equities are already up 23% ytd, a lot is in the price, with no new positive catalysts.

JPM: We disagree, and expect more upside from here, looking at the following catalysts:

1. While equities have performed well this year, they had outflows throughout. Since Jan ’18, US equities saw $225bn o…[Read more]