DAILY MORNING CHAI

 U.S. equity index futures trade near record territory in this abbreviated trading session, which ends at 1:00 p.m. ET. Currently, the S&P 500 futures trade nine points, or 0.3%, above fair value. Market participants will not receive any U.S. data today and trading volume is expected to be on the light side. Retail stocks might be in focus with Black Friday looking like more of an online shopping event this year for obvious reasons. The SPDR S&P Retail ETF (XRT 61.00, +0.31, +0.5%) is up 5.4% this week and 21.8% this month. The coronavirus situation remains dire with cases still relatively high and many businesses facing restrictions, but investors continue to look ahead to better times in 2021 with low rates, a vaccine, and divided government. In turn, there is apt to be emotional factors in the mix like performance-chasing activity. U.S. Treasuries have edged higher, pushing yields slightly lower. The 2-y yield is down one basis point to 0.15%, and the 10-yr yield is down...

  The S&P 500 futures trade 26 points, or 0.7% above fair value as the market continues to follow the leadership of the value, cyclical, and small-cap  The S&P 500 futures trade 26 points, or 0.7% above fair value as the market continues to follow the leadership of the value, cyclical, and small-cap stocks. Presumably, the market is feeling more certain about the next presidential administration and improved economic growth in 2021. Last night, the General Services Administration formally began the presidential transition process to Joe Biden, although it's worth mentioning that President Trump has yet to concede the race. The market is not worried about the latter and is instead looking forward to a predictable government next year in which former Fed Chair Yellen is the Treasury Secretary. The latter isn't confirmed yet, but the market reacted positively to reports of her potential nomination yesterday since she is perceived to be more dovish and an advocate for more...