The U.S. stock market seems primed for further gains this morning, as traders gear up for a shortened holiday week. Specifically, the equity markets will be closed on Thursday in observance of Thanksgiving, and open for a half day on Friday. As we were writing this update, the S&P 500 Index futures were ahead approximately 30 points (0.50%) in early-morning trading.
In economic news, there are no major reports slated for today. However, tomorrow The Conference Board will release its November consumer confidence figures. Here, investors will want to see that the consumer is still in good shape, especially as the crucial holiday shopping season is about to commence. Also tomorrow, the FOMC (Federal Open Market Committee) will publish the minutes from our central bank’s November policy meeting. This issuance is often scrutinized by investors seeking to better understand the Federal Reserve’s decision-making process. On Wednesday, the second estimate of third-quarter GDP (Gross Domestic Product) is expected to confirm that the economy advanced at an annualized rate of about 2.8% during the quarter. We will also get a look at the monthly PCE (Personal Consumption Expenditures) Price Index, which is widely viewed as a key inflation report. The numbers will probably indicate that prices rose 2.3% during October, year-over-year, up just slightly from September’s reading. It is critical that inflation remains under control, since rising prices, coupled with an expanding economy, could make it difficult for the central bank to justify ongoing interest-rate reductions.
A handful of corporations, including some major retailers, will deliver quarterly financial reports this week. Specifically, we will hear from DICK’S Sporting Goods (DKS), Best Buy (BBY), and Macy’s (M). We will also receive reports from a few technology companies, including Analog Devices (ADI) and Autodesk (ADSK).
From a technical perspective, equities were quite volatile in early November, but managed to regain their stride last week. In general, the market tends to do well during the holiday season, although some individual stocks may encounter bouts of profit-taking or tax-loss selling. Lately, most of the major equity sectors have been making positive contributions, with strength in the financial and energy issues. In contrast, the healthcare group has come under some pressure. It should be noted that traders may still be adjusting their portfolios in an effort to be better aligned with the nation’s newly elected political leadership. – 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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