The U.S. stock market may get off to a sluggish start this morning, as traders return from the Thanksgiving holiday weekend. In the days ahead, investors will receive an important inflation report, along with numerous corporate profit releases. In addition, Wall Street will probably turn its attention to the retail sector, now that the important holiday shopping season has commenced. Flash reports from some consulting firms indicate that “Black Friday” weekend sales at retailers improved over last year, at least in non-inflation adjusted terms. As we were writing this update, the S&P 500 Index futures were down about five points (-0.10%) in pre-market trading.
Investors will receive several economic reports over the next few days, with the most important item due out later in the week. Specifically, on Thursday the PCE (Personal Consumption Expenditures) Price Index for the month of October will be published. This report, which tracks the prices that people actually pay for goods and services, is closely followed by the Federal Reserve. Analysts currently expect the numbers will show that core inflation (excludes volatile food and energy items) rose about 3.5% during the month, on a year-over-year basis. This reading would demonstrate continued progress in the battle against inflation, and should satisfy the Federal Reserve, for now. Notably, the FOMC (Federal Open Market Committee) is set to hold its final meeting of 2023 in mid-December, and will announce an interest-rate decision at that time. The majority of investors think that rates will be left unchanged at this juncture.
Meanwhile, a handful of emerging and established technology companies are slated to deliver their financial results this week. On Tuesday, we will hear from CrowdStrike Holdings (CRWD), a provider of cybersecurity solutions. On Wednesday, Salesforce (CRM), a leading designer of enterprise software, will post its report. It is worth noting that Salesforce stock is included in the Dow Jones Industrial Average, and, as a result, the news should be closely followed by Wall Street. On Thursday, Dell Technologies (DELL), a manufacturer of computer hardware and provider of IT solutions, will weigh in with its numbers.
The stock market has staged a solid advance over the past few weeks. Specifically, the S&P 500 Index has risen about 11% off the low point that was hit in late October. This broader market average is currently located not far below the 4,600 mark, which corresponds to the highest level reached in 2023. It remains to be seen if stocks can move beyond this area without encountering major resistance. – 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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