U.S. stocks could start the holiday-shortened week on a positive note, with the momentum from the past week likely to carry over. The developments around Friday’s boardroom coup at OpenAI and its implications for Microsoft Corp. (NASDAQ:MSFT) and other AI stalwarts could create some ripple in the tech space. More importantly, traders could look ahead to Nvidia Corp.’s (NASDAQ:NVDA) earnings due Tuesday after the market close to give a lift to the sector and the broader market.
Energy stocks are likely to gain ground amid oil’s strong rebound. Bond yields remain flattish to slightly up, and the Treasury auctions scheduled for the day remain on traders’ radar. Volume could be thin, as is typical of pre-holiday trade, lending less credence to the moves.
Cues From Past Week’s Trading:
Tamer inflation and softer growth data points kept the market afloat in the week ended November 17, with the major averages posting solid weekly gains. After the inflation-induced sharp advances early in the week, the indices traded in a lackluster manner, although maintaining a positive bias. Negative reaction to some key earnings reports served as a drag.
US Index Performance In Week Ended Nov. 17
|S&P 500 Index||+2.24%||4,514.02|
The Nasdaq Composite and the S&P 500 indices closed at their highest levels in 3-1/2 and 2-1/2 months, respectively. The Dow Industrials ended just shy of a three-month high hit last week.
As the S&P 500 Index trades 6.32% off its Jan. 4, 2022, high (intraday) of 4,818.62, an analyst at LPL Financial delved into what is in store for the remainder of the year. “It’s been 471 trading days since the S&P 500 reached its all-time high of 4,796.56 on January 3, 2022,” said Jeffrey Buchbinder, the firm’s chief equity strategist, referring to the closing high.
Buchbinder noted that LPL has a year-end fair value of 4,300-4,400 based on estimated earnings of $230 for 2024. “Technical evaluations show a recent breakout above resistance at 4,400 and a possible re-test of a key 4,600 level,” he said.
“The next six weeks are among the best seasonally for stocks on the…