The Buzz on Business for Monday, November, 27th, 2023

Markets were closed on Thanksgiving Day, Thursday.

Stock Market

• The Dow Jones Industrials rose 185 points on Wednesday and 117 points on Friday to close at 35,390.
• The S+P 500 rose 18 points on Wednesday and 3 points on Friday to close at 4,559.
• The Nasdaq Composite rose 66 points on Wednesday and fell 15 points on Friday to close at 14,251.

Treasury

• The two-year Treasury yield rose 5 basis points to 4.955%.

• The twenty-year Treasury yield rose 6 basis points to 4.80%.

Oil and Gold

• Oil fell 44 cents on Wednesday and $1.19 on Friday to close at $75.13 a barrel.
• Gold fell $8.80 on Wednesday and rose $10.20 on Friday to close at $2,003 an ounce.

Earnings Season

Earnings season is almost over, and it has been bullish for stocks. 95% of the S+P 500 has reported third-quarter results, and 80% equaled or exceeded expectations. Those are the best numbers in maybe ten years.

Questions for the Week

Is the earnings recession over? Or will interest rates and inflation finally start hurting companies and the customers of those companies? Will the Fed, as is its wont, intervene to take away the punch bowl just as the party is getting started?

Earnings have been good, but revenue growth has been less robust, and companies have been warning of softening sales. Will this trend continue through the Christmas Season? Will it dampen the gathering euphoria on Wall Street?

Profits are up 4.3% at the S+P 500, year over year. The P/E Ratio of the S+P 500 is 18.6, below its five-year average. Indicating that maybe, just maybe, stocks have room to the upside. Still, traders and commentators seem to be worried—more focused on what could go wrong instead of what has been going right.

That worry, in and of itself, is also probably bullish for stocks, as well.

Key Events This Week

• Consumer Confidence numbers come out tomorrow at 10:00 a.m.
• Key inflation data is released on Thursday.
• Fed Chairman Jerome Powell speaks on Friday.

Premium Episodes

This week, as we enter the Christmas Season, we’re taking a look at Retail Sales and Consumer Spending. You won’t want to miss it.

It’s just for our Premium subscribers, however. A premium subscription is just $2.99 a month for these four extra episodes. Check out our podcast to learn more.

We hope you’ll join us.