Stocks climbed slightly on Wednesday in a muted session ahead of Thanksgiving and the official kickoff of the holiday shopping season. As we discussed on CNBC on Wednesday afternoon (watch the interview here) we generally expect major indexes to continue to rise through the end of the year, but see some risks in stocks that have risen sharply in the past few weeks. This is particularly true of some technology names as well as the consumer discretionary sector. Although he latter may continue with its recent strong performance based on our expectations of a strong start to the holiday shopping season. Oil set a four year low on Wednesday and is set to drop further after OPEC announced it would not cut production. As a result of the Thursday announcement, Oil futures dropped nearly 6% ahead of Friday’s trading session.
Friday trading could prove erratic as there is little news being released to guide market participants, and many traders and investors are enjoying an extended Thanksgiving holiday weekend. Monday’s market action will be largely influenced by shopping results, which are expected to climb a meager 2 ½% over last year’s figures.
Next Week’s Market Moving Events:
- Monday: European manufacturing data, U.S. consumer spending figures, PMI Manufacturing and ISM Manufacturing data.
- Tuesday: Motor Vehicle sales, Goldman Store Sales, Construction Spending, Japanese and Chines PMI data.
- Wednesday: Eurozone GDP and Inflation data, U.S. Job Creation report, ADP Employment report, Mortgage Applications, Petroleum Supply data.
- Thursday: U.S. Chain Store sales, Payroll report, Consumer Comfort Index
- Friday: November employment data, Consumer Credit and Factory Orders are released.