Notable premarket movements in Affirm, Boeing, Crocs
Housing market strengthens, as per Case-Shiller Index
US Stock Indexes Open Lower After Strong November Gains
The major U.S. stock indexes opened lower on Tuesday, signaling a cautious approach by traders after notable gains throughout November. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures all saw slight declines, following a modest retreat in Monday’s session. This comes as November, a strong trading month, nears its close, with the Dow and S&P 500 set to finish the month with significant increases of 6.9% and 8.5%, respectively, while the Nasdaq projects a 10.8% climb.
Stocks in the Spotlight
In premarket trading, several stocks made notable moves. Affirm saw a 2% rise following an upgrade at Jefferies, driven by positive trends in the “buy now pay later” services sector. Boeing also gained about 2% premarket after an upgrade at RBC Capital Markets, buoyed by a favorable outlook for its commercial and defense segments. Additionally, Crocs’ stock increased over 2.3% due to an upgrade to strong buy at Raymond James, with expectations of continued business growth into 2024.
Housing Market Continues its Upward Trajectory
The housing market maintained its upward trajectory, with the S&P CoreLogic Case-Shiller index for 20 major U.S. markets posting a 3.9% annual increase in September, in line with estimates. This growth reflects the persistent pressures in the real estate market and expectations for shelter costs.
Economic Data and Earnings Reports in Focus
Investors are keenly awaiting economic data, including the consumer confidence survey, while also focusing on upcoming earnings reports. Zscaler’s shares dipped in premarket trading despite meeting fiscal expectations, and CrowdStrike is anticipated to report earnings after the bell. Federal Reserve officials, including Chicago Fed President Austan Goolsbee and Governors Christopher Waller and Michelle Bowman, are also set to deliver remarks, which could influence market sentiment.
Outlook: A Balanced Market with Upcoming Catalysts
Equity markets are currently in a state of balance, following strong returns in November and ahead of the holiday season. This balance suggests a norm of market fluctuations as investors await major catalysts, including earnings, inflation data, and the OPEC+ meeting. Wolfe Research advises a more defensive stance, citing overbought signals and a potential shift in market momentum.
Daily E-mini S&P 500 Index
The E-mini S&P 500 Index is currently trading at 4552.25, which positions it above both its 200-day moving average of 4302.74 and its 50-day moving average of 4373.74. This indicates a bullish trend as the index is maintaining levels above these significant moving averages.
It is also trading just below the minor resistance level of 4562.50, suggesting that this could be a pivotal point for potential upward movement. However, it remains well above the minor support level of 4494.40 and the main support at 4424.50, reinforcing the current bullish sentiment.
The market’s positioning above key moving averages and critical support levels, coupled with its proximity to minor resistance, points towards a bullish outlook for the E-mini S&P 500 Index in the short to medium term.
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.