The U.S. stock market may attempt to move higher this morning, as traders look to extend the gains logged last week. In the days ahead, numerous companies are slated to deliver third-quarter profit reports, and investors will be busy sifting through the results. In addition, Wall Street will be keeping an eye on the war unfolding in Gaza, as the dire situation there has the potential to become a larger regional conflict. At the time that we were preparing this update, the S&P 500 Index futures were up about five points (0.10%) in pre-market trading.
There are few notable economic reports due out today, but the remainder of the week should be relatively quiet. It is worth mentioning that a number of Federal Reserve officials will be speaking at various events throughout the week, and investors will probably be paying attention to these remarks. Last week, Wall Street seemed quite relieved that the Federal Reserve chose to leave interest rates unchanged. Furthermore, Chairman Jerome Powell appeared to adopt a more accommodative tone, even though inflation remains above the central bank’s 2% target level. At this point, many investors are likely speculating that the Federal Reserve will again leave rates unchanged at its next policy meeting in mid-December.
Meanwhile, the third-quarter earnings season continues to unfold. This week we will hear from entertainment giant The Walt Disney Company (DIS). Disney stock, which briefly hit the $200 mark in early 2021, has since fallen to around $85 a share. The company has been undergoing restructuring efforts, led by veteran CEO Bob Iger. In addition, a well-known activist investor has been lobbying for changes at the business. Traders will be looking at Disney’s results to see if the company’s popular theme parks and streaming media platforms are starting to move in the right direction. This week we will also hear from D.R. Horton (DHI), a leading home builder, and Wynn Resorts (WYNN), one of the largest operators of casino properties.
The stock market looks better from a technical vantage point. Last week’s rally has pushed the S&P 500 Index back to its 50-day moving average, located near the 4,350 level. It remains to be seen if the bulls can regain control of the market in the days ahead. On the bright side, it should be noted that stocks tend to perform well during the final weeks of the year. – Adam Rosner
At the time of this article’s writing, the author had a position in The Walt Disney Co. (DIS).
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