The U.S. stock market may attempt to move higher at the opening bell this morning, as traders look to build upon last week’s gains. In the coming days, investors will receive an important inflation reading, as well as a number of corporate earnings releases. As we were publishing this update, the S&P 500 Index futures were ahead about 10 points (0.20%) in pre-market trading.
This week, traders will receive a handful of notable economic reports, covering the housing market, gross domestic product, the broader economy, and the nation’s unemployment situation. However, the main event will take place on Friday, when the PCE (Personal Consumption and Expenditures) Price Index is published. Most analysts expect that core prices (which exclude volatile food and energy items) rose about 3.2% during the month of November, year over year, down from the 3.5% reading registered in October. It should be noted that this report is closely followed by the Federal Reserve, and will likely be carefully scrutinized by Wall Street. At last week’s policy meeting, the Fed took no action, and even suggested that it could start to cut rates in the coming year. The news reverberated through the fixed-income markets, pushing the yield on the 10-Year Treasury bond below the 4% mark.
In corporate news, investors will have a few important profit reports to process this week. Over the next few days, we will hear from FedEx (FDX), Micron Technology (MU), General Mills (GIS), and Nike (NKE). These sizable companies operate across quite different industries, and their reports should be informative.
The stock market continues to press ahead, as we enter the final weeks of 2023. Over the past several sessions, the S&P 500 Index has managed to move beyond the 4,600 level, which was of some importance to followers of technical trading systems. The index is now within striking distance of the 4,800 area (the high-water mark reached in early 2022). Lately, investors seem to be taking a broader approach to the market, which is a constructive development. Specifically, from a sector perspective, previously overlooked equity groups, such as the industrials and financials, have demonstrated strength over the past few weeks. In contrast, the technology stocks have lagged to some degree. Further, some investors have started to bargain hunt, and have been looking for undervalued stocks, which makes sense in the current market. - 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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