This week it was another win for the Bulls. Wall Street started December with a rise on Friday, continuing its November rally that broke a three-month losing streak. November really lived up to its stellar reputation, with monthly gains of nearly 8.8% for the Dow, about 8.9% for the S&P 500 and 10.7% for the Nasdaq. Historically, November is the best month of the year for the stock market and December is the third, according to the Stock Trader’s Almanac. The market managed to rise on Friday despite Federal Reserve Chairman Jerome Powell saying interest rate cut talks were “premature” and more rate hikes could still occur. Many investors assumed the Fed was finished with its tightening cycle after inflation showed signs of easing. Further evidence that the Fed’s fight against inflation is working came Thursday when the central bank’s most popular inflation indicator showed a continued downward trend in price pressures. The core PCE (personal consumption expenditures) price index, which excludes the food and energy sectors, rose 0.2% in October and 3.5% year over year. Both increases were below estimates. Beneath the surface, we also saw signs of a possible market rotation in the making this week. This is just one of three key topics to keep an eye on in the coming week. 1. Rotation Watch: We need to pay attention to next week’s trade for confirmation that we are in a rotation or just a head fake. The former was evident this week as the year’s two biggest industry gainers, communications services and technology, underperformed the market. The rotation was also evident at the index level, with the Dow the clear leader and the tech-heavy Nasdaq the laggard. The moves aren’t that surprising when you consider that in addition to the headline-grabbing “Magnificent 7” stocks, there are plenty of coil springs that needed so-called less bad news to make big moves higher. Foot Locker (FL) was a prime example this week, posting a bigger-than-feared rise in financials that pushed the stock to the top of our list of November’s best stocks. 2. Jobs, Jobs, Jobs: The biggest release of the week comes Friday in the form of November’s nonfarm payrolls report. This is an indirect but important statement about the health of the economy and the future path of inflation. Although it does not provide information about prices or sales activity, it does provide an indication of purchasing power because, after all, employment is the key to sustained purchasing power. For this reason, economists expect 150,000 new entries in addition to the total number. We are keeping an eye on the unemployment rate (expected at 3.9%) and wage inflation, where we expect an increase of 4% compared to the same period last year. Ahead of Friday’s jobs report, ADP looks at hiring trends at U.S. companies on Wednesday. Economists expect 125,000 new arrivals in November. The ADP’s track record didn’t bode particularly well for the government’s monthly jobs data. But it’s still worth seeing. 3. Club Results: One of our late reporting companies, Broadcom (AVGO), reports its quarterly results after the closing bell on Thursday. Expectations may have been tempered by earnings from Marvell Technology (MRVL), which reported better-than-expected results but delivered slightly lower-than-expected sales and profit guidance. It’s a similar dynamic to Cisco Systems (CSCO) two weeks ago. Networking will certainly be a key focus for us at Broadcom. Last time, CEO Hock Tan said network revenue rose 20% this quarter – now accounting for 40% of semiconductor segment revenue – and that an acceleration was expected in the current quarter. Comments on custom chips will also be of interest, as Broadcom is a well-known design and manufacturing partner for major artificial intelligence players such as club name Alphabet (GOOGL). We will also be on the lookout for additional information on the recently completed VMWare acquisition, which should now serve as guidance for 2024. As of Friday, the market remains overbought, with the S&P short-range oscillator at 7.33%. Any value of 4% or greater means the market is technically overbought (a value less than minus 4% means oversold). Another retreat could be lurking. Here’s the full rundown of next week’s key domestic data after the club issued three trading alerts on four stocks this week. We also updated our price targets on six stocks and changed our rating on another. Monday, December 4, 10 a.m. ET: Factory Orders. Before bell result: Science Applications (SAIC). After the bell: GitLab (GTLB), Joann (JOAN). Tuesday, December 5, 10 a.m. ET: ISM Services PMI, 10 a.m. ET: JOLTS (Job Openings and Labor Turnover Survey) Before the Bell: Nio (NIO), AutoZone (AZO), JM Smucker (SJM), Signet Jewelers ( SIG), DSW owner Designer Brands (DBI) After the bell: MongoDB (MDB), SentinelOne (S), Toll Brothers (TOL), Dave & Busters (PLAY), Stitch Fix (SFIX), Asana (ASAN) Wednesday, December 6, 8:15 a.m. ET: ADP Private Sector Employment Before the Bell: Ollies Bargain (OLLI), Campbell Soup (CPB), Thor Industries (THO), Brown-Forman (BF), United Natural Foods (UNFI) After the Bell: GameStop (GME), Chewy (CHWY), ChargePoint (CHPT), Sportsman’s Warehouse (SPWH) Thursday, December 7, 8:30 a.m. ET: Initial jobless claims Before the Bell: Dollar General (DG) After the Bell: Broadcom (AVGO), lululemon (LULU), DocuSign (DOCU), Vail Resorts (MTN), Smith & Wesson (SWBI) Friday, December 8, 8:30 a.m. ET: Non-Farm Payrolls (A complete list of Stocks from Jim Cramer’s Charitable Trust can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.

People walk past the New York Stock Exchange (NYSE) in New York City on November 2, 2023.

Spencer Platt | Getty Images News | Getty Images

This week it was another win for the Bulls. Wall Street started December with a rise on Friday, continuing its November rally that broke a three-month losing streak. November really lived up to its stellar reputation, with monthly gains of nearly 8.8% for the Dow, about 8.9% for the S&P 500 and 10.7% for the Nasdaq. Historically, November is the best month of the year for the stock market and December is the third, according to the Stock Trader’s Almanac.

Source : www.cnbc.com

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