Major U.S. indexes approach 2023 highs in November.
Salesforce, Snowflake excel in after-hours trading.
Bullish market outlook despite Federal Reserve’s rate uncertainty.
U.S. Stock Futures on the Rise
As November draws to a close, U.S. stock futures are experiencing a surge in the pre-market session on Thursday. This uptick is primarily seen in the three major stock indexes, with futures tied to the Dow Jones Industrial Average leading the charge. Despite a mixed performance in Wednesday’s session, both the Dow and the S&P 500 are hovering close to their year-to-date peaks, with the Nasdaq Composite also nearing its 2023 closing high.
Substantial November Gains
The month has been particularly fruitful for the major averages, marking an end to a three-month losing streak. The S&P 500 has climbed 8.5%, while the Nasdaq has seen an impressive 11% rise. The Dow Jones Industrial Average is not far behind, with a 7.2% increase, making this November potentially its best month since October 2022.
After-Hours Movers: Salesforce and Snowflake
In the wake of better-than-expected earnings, Salesforce and Snowflake have emerged as significant gainers in extended trading. This positive trend in earnings has led to heightened expectations for other companies like Big Lots, Express, and Kroger, who are slated to report their earnings soon.
Big Lots: New Innovative Moves
Big Lots is in the spotlight, with its shares already up over 9% in anticipation of its earnings report. The retailer is not just banking on its discount strategy; it has initiated a series of innovative moves including partnering with Uber for deliveries and offering extended Black Friday sales. These strategies may play a crucial role in its performance in the upcoming quarters.
Earnings Spotlight: Ulta Beauty
Ulta Beauty is set to report its third-quarter earnings after the close, with analysts predicting muted growth. Despite a challenging year, Ulta has demonstrated resilience, showing a steady increase in earnings and revenue. However, with minimal earnings upside expected, analysts suggest a cautious approach.
Market Outlook: Bullish Amid Economic Data
The overall market sentiment remains bullish, supported by positive economic data and the Federal Reserve’s stance on interest rates. Traders are keenly awaiting October’s personal consumption expenditures (PCE) report and Federal Reserve Chairman Jerome Powell’s upcoming speech, which could influence the market’s trajectory in December.
Daily E-mini Dow Jones Industrial Average Futures
The current daily price of E-mini Dow Jones Industrial Average Futures is 35,621. It’s trading above both the 200-day moving average (34,023) and the 50-day moving average (34,082), indicating a bullish sentiment. The minor support level at 35,268 may act as a pivotal point. Overall, the market sentiment appears bullish, with the price above key moving averages.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.