The U.S. stock market seems positioned to move higher this morning, as traders look to extend last week’s gains. In the days ahead, investors will receive a key inflation reading, along with a number of important corporate profits reports. At the time that we were writing this update, the S&P 500 Index futures were ahead about 23 points (0.40%) in early morning trading.
The bond market will be closed in observance of Veterans’ Day. We’d like to take this opportunity to thank all who have served our country.
In economic news, there are no major reports scheduled today. Tomorrow will also be quiet, although a number of Federal Reserve officials will be presenting speeches at various events. On Wednesday, the release of the monthly CPI (consumer price index) will be the main area of focus for investors. The numbers are expected to show that consumer prices rose 2.5% during the month of October, year over year, up slightly from the 2.4% reading logged in September. The October PPI (producer price index), which provides a look at inflation from a wholesale perspective, will follow on Thursday. Finally, on Friday the October U.S. retail sales figures will be published, and traders will be closely watching this report.
Meanwhile, the third-quarter earnings season continues, even though numerous companies have already posted their results. This week we will hear from a handful of corporations that are members of the Dow Jones Industrial Average. Tomorrow, Home Depot (HD), a major building supply retailer, will posts its results. On Wednesday, Cisco Systems (CSCO), a provider of networking software and hardware, is slated to deliver its report. On Thursday, we will hear from Walt Disney (DIS), a leader in media and entertainment.
From a technical perspective, the stock market leapt up directly following the election, and is now back to record high ground. The rally has been quite broad; however, traders have also been repositioning their portfolios, so as to benefit from possible policy changes that may take place during a Donald Trump presidency. Looking ahead, it remains to be seen if further market gains are possible from current levels, or if a period of consolidation is in order. The S&P 500 Index is already up more than 25% in 2024 (year to date), many stocks seem extended technically, and valuations in some cases have become elevated. However, the holiday season will soon be commencing, and stocks tend to do well around the end of the year. – Adam Rosner
At the time of this article’s writing, the author had a position in Walt Disney (DIS).
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