Traders on the NYSE floor, Oct. 21, 2022.
Source: New York Stock Exchange
S&P 500 futures fell slightly Sunday evening ahead of another batch of retail earnings to kick off the shortened week of the Thanksgiving holiday.
Futures tracking the Broad Market Index fell 0.1%. Dow Jones Industrial Average futures were down 38 points, or 0.1%. Nasdaq 100 futures were flat.
Each of the major averages rose in the previous trading session but fell in the week. The Dow Jones Industrial Average is up about 200 points, or 0.6%. The S&P rose 0.5% and the Nasdaq Composite closed just 0.01% above the flat line.
Investors are reflecting the strength of the recent bear market rally that started the month with the October CPI and gained momentum in wholesale prices last week. Traders were less than impressed with the numbers last week and were hung up on a message from the Federal Reserve that reassessed optimism about a possible slowdown in inflation.
Yardeni Research’s Ed Yardeni said in his view that the Oct. 12 low was a trough and the S&P 500 could rise to nearly 4,300 by the end of the year, according to Friday night’s “Closing Bell: Overtime.” told CNBC. The benchmark index is currently 3,965.34.
“What’s making a big difference in the market is the resilience of the economy. It’s remarkable,” he said. “Everyone has been debating whether it will be a soft or hard landing. In the meantime, there has been no landing at all. Consumers have not received a recession note and are continuing to spend.”
Retail sales rose in October, but at the corporate level, Target reported slowing demand and Amazon announced it would lay off 10,000 employees, while Home Depot and Walmart reported strong results. doing.
“Regardless of what holiday spending suggests, November retail stocks tend to be in the top three, December in the bottom three, and January in between,” says SoFi. Liz Young, chief investment strategist at Investor, said in a note this weekend.
“Seasonality plays an important role in market analysis and has some predictive power, but the forces of economic cycles are stronger at any time of the year,” she added. rice field. “Given the Fed’s 375 basis point rate hikes so far, the inverted yield curve, skyrocketing inflation and commodity prices still part of the story, we are compelled to conclude that the economic cycle is lagging. .”
This week has been a historically quiet week ahead of Thanksgiving, but investors will be busy with another group of retail earnings to digest before the post-holiday shopping season kicks off. Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree are among the companies on deck.
Investors can also receive economic reports on durable goods, new home sales, unemployment claims, consumer sentiment, and releases of the minutes of the last Federal Reserve Board meeting.
a week ahead It’s short. The market is closed on Thursdays for Thanksgiving. On Friday, the stock exchange will close at 1:00 pm ET and the bond market will close at 2:00 pm ET.