Nasdaq 100, Dow Jones, S&P 500 News: Positive Momentum Despite Retail Sector Woes
Highlights
- Stock futures up, continuing November’s market rally.
- Mixed results in retail sector impact market trends.
- Softer inflation data boosts market optimism.
Stock Futures Firm Ahead of Opening
Stock futures are higher on Friday, with investors aiming to sustain the month’s positive momentum. Dow Jones Industrial Average futures edged up by 0.23%, while S&P 500 and Nasdaq 100 futures saw decent gains of 0.22% and 0.05%, respectively.
Notable After-Hours and Regular Trading Updates
In after-hours trading, Gap’s shares surged 15% following robust third-quarter results. Conversely, ChargePoint’s shares plummeted 29% after the electric vehicle charging network announced significant changes in its leadership and a cut in its revenue forecast.
Thursday’s regular trading session saw a mixed performance, with the Dow snapping its four-day winning streak and the S&P 500 and Nasdaq Composite recording slight gains.
Monthly Gains and Key Economic Data
November has been a strong month for the markets, with the S&P 500 up by 7.5%, the Dow by 5.7%, and the Nasdaq by an impressive 9.8%. Investors are now turning their attention to upcoming housing starts and building permits data for October, seeking insights into the housing market’s health.
Retail Sector and ETF Movements
Retail stocks, particularly Walmart, faced challenges, dragging the SPDR S&P Retail ETF (XRT) to its worst performance since May. The ETF dropped 3.4% after Walmart’s cautious consumer spending outlook and weak year-end forecast. Bath & Body Works also experienced a decline, aligning with sales expectations for the fiscal year.
Market Outlook Amid Inflation Concerns
Market sentiment has been buoyed by softer consumer and producer price index readings for October, fueling optimism that inflation pressures and the Federal Reserve’s aggressive rate policy might be easing.
UBS predicts that emerging market equities will offer the highest returns over the next decade, despite potential challenges from higher interest rates and the need for global diversification in a deglobalizing world.
Technical Analysis
The E-mini S&P 500 Index, currently at 4531.50, is trading above both its 200-day and 50-day moving averages, positioned at 4289.79 and 4369.79 respectively. This positioning above key moving averages indicates a bullish trend.
The index is now nearing the minor resistance level of 4562.50, suggesting potential for an upward breakout if this resistance is surpassed. Additionally, the current price is well above the main support level of 4424.50 and minor support at 4494.00, further reinforcing the bullish sentiment.
Overall, the market for the E-mini S&P 500 Index appears to be in a strong bullish phase, with the potential to test and possibly break through the near-term resistance levels.
