After a dismal October, stocks roared back in November, with the S&P 500 hitting a 17-day high of 4,557 on Monday. The surge comes amid a backdrop of strong earnings reports and positive economic data.

What's Driving the Rally?

There are several factors contributing to the recent rally in stocks.

• Strong earnings reports: Corporate profits grew by more than 6% in the third quarter, above expectations and above trend. This is good news for investors, as it suggests that companies are doing well and are likely to continue to do so in the future.
• Positive economic data: The inflation news has been decent, and the economic news has also been good. This suggests that the economy is on a solid footing, which is also good for investors.
• Expectations of rate cuts: The market seems to be assuming that rate cuts are on the way. This could further boost investor sentiment and lead to continued gains in the stock market.

NVIDIA Earnings in Focus

After the close today, all eyes will be on NVIDIA, which is expected to report earnings of $3.36 a share on $16.18 billion in revenue. A miss could devastate the stock and drag the market down with it. Just meeting expectations could result in buyers flooding the exits.

Lowe's and Best Buy Earnings

We'll also be looking at Lowe's and Best Buy. Consumer spending and retail sales have been an important component of both the economy and the market. So far, retailers have done well but tempered expectations going into the Christmas season. Does that continue?

Fed Minutes Release

The Federal Reserve will release the minutes of its most recent meeting later today. Traders will be scrutinizing the minutes for any clues about the Fed's future policy plans.

Market Outlook

The market is still susceptible to volatility, and a miss from NVIDIA or a hawkish Fed statement could send stocks tumbling. However, the overall trend is positive, and there is reason to be optimistic about the stock market in the near term.

Markets Closed for Thanksgiving

Please note that the markets will be closed on Thursday and Friday for the Thanksgiving Day holiday. We will not be publishing a Buzz on Business episode on those days, nor will we publish a PREMIUM episode this Sunday. We wish all of our listeners, their friends, neighbors, and families the happiest of Thanksgivings.

Thank you for reading!