The U.S. stock market seems poised for a constructive opening this morning, as another week on Wall Street begins. As we were writing this report, the S&P 500 Index futures were ahead about 45 points (0.75%) in early-morning trading. In the days ahead, investors will be focused on the nation’s employment situation, as well as the corporate profit outlook. (Reminder: The stock market will be closed on Thursday in observance of a day of mourning for former President Jimmy Carter.)
In economic news, a number of important reports will be released this week. However, the main event will take place Friday morning when the government delivers the monthly employment report. Most analysts think the numbers will show that about 155,000 jobs were added to the economy during December, down from the 227,000 figure logged in November. The unemployment rate is expected to come in at the 4.2% mark. This report will likely be of some importance, as the Federal Reserve is set to meet at the end of the month.
In the corporate sector, this week should be relatively quiet. Although, we will still hear from a few notable companies. Specifically, reports from Constellation Brands (STZ), KB Home (KBH), and Delta Air Lines (DAL) should receive some attention from investors. Elsewhere in the corporate arena, the CES (Consumer Electronics Show) event will take place this week. This meeting, which allows large and small businesses to present new products, could have an impact on the shares of technology companies. Most likely, AI (artificial intelligence), quantum computing, robotics, and autonomous driving will be among the featured topics.
The stock market pulled back during the final weeks of 2024, and it remains to be seen how the new year will unfold. At this juncture, the S&P 500 Index is sitting just below its 50-day moving average, located at the 5,945 level. Clearly, traders and followers of technical systems would like to see stocks move back above this critical area. In addition, advancing past the “psychologically” important 6,000 level would probably be the subject of media coverage and would do much to improve sentiment, particularly with retail investors. Meanwhile, it should also be noted that many traders are still looking for broader market participation, as there are quite a few stocks that are struggling to keep pace with the pack. –Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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