In today's Daily Rundown, Action Alerts PLUS' Chris Versace gives a state of the market and discusses the important economic data as Wall Street looks to leave November behind.
CHRIS VERSACE: Good morning, Action Alerts Plus members. Today we close the books on November, which has been a dynamite month for the market and a number of our holdings. AAP portfolio holdings-- stalwarts, if you want to call them that-- include Coty (COTY) , Marvell (MRVL) , Qualcomm (QCOM) , and United Rentals (URI) , each of which more than doubled the S&P 500 November performance.
Now as much as we've enjoyed that, there are signs the market rally may be running out of gas. We walked through them in our opening comments to you this morning, so please be sure to check your inboxes and visit the website to get that particular alert. And in keeping with that, as we've shared with you, a pause to refresh digestion of gains or whatever you want to call it would be an opportunity for us to pick up stocks at better prices following the market's quick move from oversold in late October to overbought, which is where the market looks to finish November. Turning to today's data, there were no major surprises in the PCE price index data for October.
Remember members, while we track a number of different inflation metrics throughout the month, this, the PCE price index, is one of the Fed's favorites. That report showed that, yes, continued progress was had on inflation, especially when we trace the data back several months. Was the report positive? Sure it was. But it didn't contain what we would call a downside surprise in the data.
Remember, it simply matched the progress that was expected. Now, we'd also remind you that the October data was just that, data for the month of October. And we have several November reports coming out before the Fed's December meeting. In that coming data, we will want to see, yes, continued progress on inflation, and have a picture that the data paints that confirms the economy isn't too hot and it doesn't look like it's going to turn cold-- excuse me-- either.
Pretty much, members, if you're a fan of Goldilocks and the Three Bears, the data we want to see is just right, supporting what the market is calling the Goldilocks narrative. If we get that data, we expect to read about the Fed starting to discuss potential rate cuts when we read through its December meeting minutes in early January. Now, the next round of all this data comes tomorrow with the final November manufacturing PMI report.
And on top of that, we also have Fed Chair Powell in the spotlight tomorrow. We, and more than likely the rest of the market, will be looking to see if he stays on script or if he works some softer language into his comments. Let me get back to what I said at the top. With the market being somewhat overbought as we exit November, a more hawkish than expected tone from Powell could give the market a reason to digest some of those November gains.
Now members, let's move on to oil and the conclusion of the latest meeting of OPEC Plus. Indications are an agreement is coming that will shave more than 1 million barrels per day off production levels. And that is giving some added lift to our XLE (XLE) shares this morning. However, that also means we're likely to see some upward movement in gas prices. And the falling energy tailwind for inflation data that we've seen over the last few months could become a modest headwind for further progress. Something that we will continue to watch.
And finally, be sure to keep an eye on Marvell after the bell as it reports its latest quarterly results. We'll have our latest analysis and commentary in your inbox as soon as possible. Until then, have a great trading day. And just to point out some programming, JD will be back tomorrow to get ready for December with the one, the only, Helene Meisler.