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Futures

Stock Futures Higher as Markets Aim for Winning Month

2024-11-29

During the Thanksgiving holiday, trading resumed on Friday but ended early. The stock market closed at 1 p.m. ET, and the bond market at 2 p.m. On Christmas Eve, which is Tuesday, Dec. 24, the markets maintained these shorter hours and were closed on Christmas Day. The bond market also had an early closure on New Year’s Eve, Tuesday, Dec. 31. Both markets were closed on New Year’s Day, Wednesday, Jan. 1, and reopened the next day.

Major Indexes Set to Post Big Monthly Gains

Thanks to the post-election rally, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite are on track to achieve significant monthly gains. In recent weeks, these major indexes have reached a series of record highs. As of Friday’s trading session, the Dow has seen a 7% increase this month, while the S&P 500 and Nasdaq are both up by about 5%. This remarkable performance showcases the strength and resilience of the U.S. financial markets.The post-election environment has provided a favorable backdrop for these index gains. Investors have shown confidence in the market, leading to a continuous upward trend. This growth is not only beneficial for individual investors but also has a significant impact on the overall economy. It indicates a positive outlook for businesses and encourages further investment and economic activity.

TradingView Insights on Major Indexes

Futures tied to the Dow Jones Industrial Average were up by 0.3%. This indicates a potential for a higher opening on the index. The S&P 500 futures also showed a 0.2% increase, suggesting a similar upward movement. Additionally, the Nasdaq 100 futures were up by 0.2%, further reinforcing the positive sentiment in the market. These trading view data provide valuable insights into the market’s expectations and potential direction. It allows investors to make more informed decisions and adjust their portfolios accordingly. The consistent upward movement in futures suggests that the major indexes are likely to continue their upward trend in the near future.

Impact of Holiday Trading Schedule on Market Volatility

The early closures during the holiday season can have an impact on market volatility. With shorter trading hours, there may be less liquidity in the market, which can lead to increased price fluctuations. However, historical data shows that these short-term disruptions usually have a minimal impact on the overall market trend. Investors need to be aware of these potential changes and adjust their trading strategies accordingly. It is important to consider both the short-term and long-term effects of the holiday trading schedule on market volatility. By doing so, investors can better manage their risks and take advantage of the market opportunities.In conclusion, the holiday trading schedule in the U.S. financial markets has a significant impact on trading hours and market performance. The major indexes are set to post big monthly gains, driven by the post-election rally. Futures indicate a higher open for the major indexes, providing positive signals for investors. However, investors also need to be aware of the potential impact of the holiday trading schedule on market volatility. By understanding these factors, investors can make more informed decisions and navigate the market more effectively.

On Friday, the stock market witnessed some interesting trends. The Dow Jones Industrial Average and other major stock indexes traded higher, with Nvidia (NVDA) making a comeback and Tesla (TSLA) aiming to end a three-day losing streak. This article delves into the details of these market movements and explores the performance of key stocks.

Unraveling the Friday Stock Market Story

Stock Market Indexes on Friday

After the opening bell, the Dow Jones Industrial Average rose by 0.4%, while the S&P 500 and the tech-heavy Nasdaq composite also showed positive movements. The 10-year Treasury yield ticked lower to 4.2%, and oil prices climbed, with West Texas Intermediate futures trading around $69.20 per barrel. Among exchange traded funds, the Invesco QQQ Trust (QQQ) moved up 0.3%, and the SPDR S&P 500 ETF (SPY) added 0.2% after the open. The stock market closed early at 1 p.m. ET.In the early hours of Friday, there were various movements in different sectors. Cracks emerged in Nvidia's AI armor, raising questions for investors. Meanwhile, Tesla moved up 1.9% in morning action, looking to break its losing streak. Shares of Tesla remain sharply extended past a 264.86 cup-with-handle entry even after reversing off new highs on Monday.

Nvidia's Stock Performance

Nvidia stock bounced 1.3% on Friday, trying to rebound after a sharp pullback in the last few trading sessions. While shares declined 1.2% on Wednesday, they halted their slide at the 10-week moving average line, which is an important area to monitor. If the stock breaks this level with heavy volume, further downside could be expected. Conversely, a decisive rebound would place the AI stock in a new buy area.

Dow Jones and Other Key Stocks

On Wednesday, the Dow Jones Industrial Average fell 0.3% after hitting an all-time high. The S&P 500 and the Nasdaq composite also declined. Among the best companies to watch on the stock market today are Embraer (ERJ), Cloudflare (NET), TJX (TJX), and Tradeweb Markets (TW). Dow Jones components like Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Sherwin-Williams (SHW) made notable moves. Sherwin-Williams and Cloudflare were featured in the Stocks Near A Buy Zone column. There were no new stocks on IBD MarketSurge's "Breaking Out Today" list on Wednesday, but potential breakouts can be found on the "Near Pivot" list.

Industry Group and IPOs

Dow Jones leader Sherwin-Williams is breaking out past a 392.57 buy point in a flat base, with shares up 0.7% on Friday. Outside the Dow Jones index, Cloudflare broke out last week, topping a 99.17 buy point in a cup with handle. The 5% buy zone runs up to 104.13, and shares are currently in the buy range. Embraer is in buy range above an alternative entry at 39.46 and is a recent IBD Stock Of The Day, although shares dropped 0.8% early Friday. Retailer TJX is above a 121.13 flat-base entry after strong gains and climbed 0.1% in early Friday trading. Finally, Tradeweb closed Wednesday just below a 136.13 entry in a flat base and moved up 0.4% on Friday.

Magnificent Seven Stocks

Among Magnificent Seven stocks, Alphabet (GOOGL) dropped 0.6% in morning trading and plunged below its 50-day line last week but is trying to rebound. Meta Platforms (META) is getting closer to a flat base's 602.95 buy point amid recent gains and was up 0.5% on Friday. Among Dow Jones components in the Magnificent Seven, Amazon stock rallied sharply this week and decisively retaken a 201.20 buy point, although it fell 0.2% in early trading on Friday. Shares of Apple are within striking distance of a flat base's 237.49 entry and were up 0.1% on Friday morning. Microsoft shares declined 0.8% on Friday morning but reclaimed its 50-day line during this week's gains.Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average, and the stock market today.

US equity futures witnessed a gain on Friday as speculation about president-elect Donald Trump moderating his extreme trade policies led to the dollar's largest weekly loss in three months. This development had a significant impact on various markets.

Unraveling the Implications of Trump's Treasury Pick

Impact on US Equity Futures

The Bloomberg Dollar Spot Index extended its weekly decline, snapping eight weeks of gains. Scott Bessent's nomination last week has weakened the dollar's strength and boosted US stocks and bonds. Contracts on the S&P 500 rose 0.3%, indicating modest gains in the shortened post-holiday trading session on Wall Street. November has seen the S&P 500 rise 5%, on course for its strongest month since February. A handful of tech titans have propelled a 26% year-to-date gain, making this one of the strongest years for US stocks.Trading resumed after the Thanksgiving holiday, causing Treasury yields to fall. European stocks were relatively unchanged, but miners like Anglo American Plc outperformed due to optimism about China's measures to stimulate its economy.

Influence on Currencies

The yen rose to its highest level in more than a month against the greenback, strengthening past 150 for a while. The dollar slipped against major currencies, with an index of greenback strength heading for its first weekly decline in two months. Strong Tokyo CPI reading supported the yen's further strengthening. With a more than 60% chance of the Bank of Japan raising interest rates next month, USD/JPY is likely to sustainably break below the key 150.00 support and move lower to test the 142.00 level.In other currency markets, Brazil's real tumbled to a record low due to disappointment over a government plan to cut spending. Some investors are also adjusting their expectations for US inflation and future Federal Reserve interest rate cuts following recent data.

Effects on Commodities

Oil was steady as traders awaited further clues about OPEC+'s production plans after delaying a key virtual meeting by four days. Gold rose for a fourth session but is still on pace to drop for the first month in the past five.Key events this week include Eurozone CPI on Friday and the ECB releasing the consumer expectations survey for October. "Black Friday" marks the traditional start of the US holiday shopping rush.In stocks, the Stoxx Europe 600 was little changed as of 9:36 a.m. London time. S&P 500 futures rose 0.3%, Nasdaq 100 futures rose 0.4%, and futures on the Dow Jones Industrial Average rose 0.3%. The MSCI Asia Pacific Index rose 0.2%, while the MSCI Emerging Markets Index fell 0.1%.In currencies, the Bloomberg Dollar Spot Index fell 0.2%. The euro was little changed at $1.0562. The Japanese yen rose 0.9% to 150.18 per dollar. The offshore yuan was little changed at 7.2458 per dollar. The British pound was little changed at $1.2695.In cryptocurrencies, Bitcoin rose 1.2% to $96,297.14, and Ether was little changed at $3,571.29.In bonds, the yield on 10-year Treasuries declined four basis points to 4.22%. Germany's 10-year yield was little changed at 2.12%, and Britain's 10-year yield declined three basis points to 4.25%.This story was produced with the assistance of Bloomberg Automation.Copyright Bloomberg News.