Wall Street Ends Fourth Consecutive Week in the Green
Despite the reduced investor activity during the Thanksgiving holiday week, Wall Street continued its winning streak, marking its fourth consecutive week in the green. The major U.S. stock indices are steadily approaching their all-time highs, with the S&P 500 index just 6% away from its January 2022 peak of 4,818, and the Nasdaq approximately 5% below its November 2021 high of 16,764.
Microsoft Surges to Record Highs, On Track for the Best Year Since 1999
One standout performer during this week was Microsoft Corp. (MSFT), which reached a historic high of $377 per share during Wednesday’s trading session. This remarkable performance adds to the tech giant’s outstanding year, with the stock boasting a year-to-date gain of 57%. This level of growth hasn’t been seen since 1999, reminding investors of Microsoft’s glory days.
Sam Altman Returns to Open AI
In a surprising turn of events, Sam Altman is set to resume his role as chief executive officer of OpenAI shortly after being dismissed just a week earlier. The OpenAI saga has been filled with twists and turns, and Benzinga has reconstructed a timeline recounting the events leading up to Altman’s return.
November’s Fed Minutes Fail to Make Waves
The latest Federal Reserve minutes did not bring any major surprises, with policymakers signaling that interest rates are already restrictive. The Fed indicated the need for further evidence of a decline in inflation. As a result, the markets have completely ruled out the possibility of a rate hike in December and are now anticipating four rate cuts in 2024.
Mixed Economic Data
Economic data from November depict a mixed scenario. While U.S. private sector activity remained unchanged, there was a sharper-than-expected decline in manufacturing, counterbalanced by a more positive surge in services. Employment is beginning to contract, but price pressures are easing, aligning with the Federal Reserve’s 2% target.
Analysts Raise Projections Following Positive Nvidia’s Earnings
Nvidia Corp. (NVDA) delivered third-quarter results that exceeded expectations and provided robust revenue guidance for the fourth quarter. In response, several analysts on Wall Street raised their price targets for the semiconductor giant.
Israel-Hamas Ceasefire Begins
A temporary ceasefire in Gaza between Israel and Hamas was put into effect on Friday following extensive negotiations. The truce includes exchanging 50 hostages held by Hamas for 150 Palestinian prisoners in Israeli jails.
Javier Milei Wins Argentine Elections
Javier Milei, a staunch advocate of libertarianism and a devoted Trump supporter, secured victory in Argentina’s presidential race. This comes at a time when the country is battling inflation exceeding 140%. The stock market witnessed an impressive surge in the day following Milei’s win. The new president has pledged to enact ambitious and radical policies, such as dropping the peso in favor of the dollar.
What to Watch in the Week Ahead
In the upcoming week, all eyes are on Thursday’s release of the October Personal Consumption Expenditure price index, the Fed’s favored inflation gauge. Economists expect a drop from 3.4% to 3.1% in the annual rate. Thursday also brings personal income and spending data. On Friday, watch for the ISM manufacturing PMI for November, and Fed Chair Jerome Powell will provide remarks at Spelman College in Atlanta.
Upcoming Earnings to Watch
Several notable companies will be reporting their earnings in the upcoming week. These include ZScaler Inc. (ZS), Intuit Inc. (INTU), Workday Inc. (WDAY), CrowdStrike Holdings Inc. (CRWD), Splunk Inc. (SPLK), Hewlett Packard Enterprise Co. (HPE), Salesforce Inc. (CRM), Synopsys Inc. (SNPS), Snowflake Inc. (SNOW), Dollar Tree Inc. (DLTR), Marvell Technology (MRVL), Kroger Co. (KR), and Ulta Beauty Inc. (ULTA).
As the year comes to a close, investors are keeping a close eye on these developments and earnings reports to gauge the market’s performance and potential opportunities for growth.
