Last Week
The stock market posted its best Thanksgiving week since 2012, as investors piled into tech and small-cap shares, taking a “risk on” approach in the holiday spirit. The Nasdaq composite scored its biggest Thanksgiving weekly advance since 2008, gaining 4.9%, and the Russell 2000 surged 5.2%! Advancing issues overwhelmed declining issues by a factor of 5-1, with both the bond market and gold also enjoying the feast. The yield on the 10-year treasury finished at 4.02%, down 4 basis points, while Gold surged $142/oz to $4,218. Every industry sector was in the green, except for a modest slip in the Telecommunications sector. There did not seem to be a specific catalyst for the rally, although the absence of bad news might be all it took to reverse the recent declines. Additionally, a benign backward-looking September producer price index report and upbeat guidance from Alphabet about Gemini, its family of integrated AI models, combined to shift the narratives about Fed policy and the AI boom or bubble more positively.
On the Chicago Sports Scene, the Bears looked like a contender in disposing of the reigning Super Bowl champions in Philadelphia on Friday. The Bulls’ recent skid to mediocrity continued, having now lost 3 of their last 10 games. Even worse has been the Blackhawks, who are now riding a 5-game losing streak.
This Week
There will be a few scattered earnings reports, primarily from retailers and tech companies.
On Friday, the Bureau of Economic Analysis will release the Personal Consumption Expenditure (PCE) index for September. Although the data is old, it will likely move the betting line on the odds of a Fed rate cut at the following week’s FOMC meeting. The University of Michigan’s Consumer Sentiment Index for December will also be released on the same day.
The stocks mentioned above may be holdings in our mutual funds. For more information, please visit www.nsinvest.com.