Dow hits record high ahead of shortened trading week

HOT stories for today

Today’s action

• Asia-Pacific markets gained on Monday, with attention turning to critical economic data, including China’s industrial production figures and India’s third-quarter GDP numbers. European markets are expected to open higher as global sentiment improves, with Germany’s Ifo business climate index among the key data points.
• In the U.S., stock futures advanced of a shortened Thanksgiving trading week. Dow Jones Industrial Average futures (DJIA) rose 211 points, or 0.5%, while S&P 500 (SPX) and Nasdaq-100 (NDX) futures increased by about 0.4% each. Markets will close on Thursday for Thanksgiving and close early on Friday. Investors are also closely watching the release of October’s consumption expenditure (PCE) price index, the Federal Reserve’s preferred measure of inflation. The index and minutes from the Fed’s most recent policy meeting are set to be released before Thanksgiving. Bath and Body Works (BBWI) reports on the corporate earnings front on Monday. On Tuesday, significant retailers Macy’s (M), Nordstrom (JWN), and Best Buy (BBY) will release results, along with tech companies CrowdStrike (CRWD) and Dell Technologies (DELL). Will this mix of data, earnings, and Fed insights drive continued gains or spark new market concerns?

Watchlist: GOOGL, NVDA, BBWI, COIN, AMZN, MSFT, TSLA, NFLX

Stocks on the move:

• Despite nearly doubling its third-quarter revenue compared to last year's period, Nvidia's (NVDA) shares declined by 3.2% on Friday, concluding a volatile week marked by the stock swinging between gains and losses.
   
• Meanwhile, Alphabet (GOOGL), Google's parent company, finished the week down nearly 5% following a recommendation from the U.S. Department of Justice that it divest its Chrome browser as part of an antitrust case resolution. Amazon, another Big Tech giant, also slid 3.4% over the week.
• Uber (UBER) faced pressure after investor Brad Gerstner revealed on CNBC’s “Halftime Report” with Scott Wapner that he was offloading the stock. Despite this, Uber closed Friday slightly higher, gaining 2.16%.

Bitcoin

• Bitcoin (BTC) has reached a significant milestone, hitting an all-time high of $98,367 per coin just 1.66% away from the highly anticipated $100,000 threshold. CNBC’s “Mad Money” host Jim Cramer has weighed in, advising investors to prioritize holding Bitcoin itself over MicroStrategy (MSTR) shares, a company deeply invested in the cryptocurrency. Cramer labeled Bitcoin a “clear winner,” emphasizing its direct value.
• Recent price action highlights a short-term bearish pullback despite Bitcoin maintaining a broader bullish trajectory. After peaking at $99,560, trading volume has tapered off, suggesting a possible weakening of momentum. Analysts identify $96,000 as a critical support level, potentially offering a favorable entry point for buyers if trading volume signals renewed interest. However, a break below this level could see Bitcoin retrace further, possibly to $90,000. With Bitcoin’s trajectory nearing historic highs, how traders respond to these pivotal levels could shape the next phase of its rally.
  Watchlist: Bitcoin: 90 000-99 560, Ethereum: 3000-3500, Solana: 220-265

Forex

• In the early European session on Monday, the EUR/USD pair was trading positively at around 1.0475, bolstered by a weakening U.S. dollar (USD). This decline follows President-elect Donald Trump's announcement to nominate Scott Bessent as Secretary of the Treasury.
• Concurrently, the Japanese Yen (JPY) has pared some of its Asian session gains against the USD. Uncertainty surrounding the Bank of Japan's (BoJ) potential rate hikes and prevailing risk-on market sentiment have diminished the JPY's appeal as a safe-haven asset. Additionally, expectations that Trump's policies may spur inflation could lead the Federal Reserve to adopt a more gradual approach to interest rate cuts, providing support for the USD. As a result, the USD/JPY pair has rebounded over 50 pips from its daily low, climbing back above the 154.00 level.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• Oil prices edged lower today but held close to two-week highs, buoyed by geopolitical tensions involving Russia and Iran. Brent crude dipped 26 cents to $74.91 per barrel, while West Texas Intermediate (WTI) slipped 27 cents to $70.97. Both benchmarks recently marked their strongest weekly gains since late September. Escalating conflicts, including Russia’s missile activities in Ukraine and Iran's uranium enrichment advancements, have raised fears of potential supply disruptions. Analysts suggest these developments could keep Brent prices in the $70-$80 range. Meanwhile, rising crude demand from China and India further supports the market. Investors now focus on upcoming U.S. inflation data, which could influence the Federal Reserve’s monetary stance.
• Gold prices (XAU/USD) pulled back during Monday’s Asian session after briefly reaching a nearly three-week high near the $2,721-$2,722 range, likely ending a five-day rally. This retreat follows U.S. President-elect Donald Trump's announcement nominating Scott Bessent as Treasury Secretary, reducing a key source of market uncertainty. Investor confidence was further lifted by reports of Israel nearing a truce with Hezbollah in Lebanon, fueling a risk-on market sentiment. The improved outlook pressured the safe-haven appeal of gold, driving prices down toward the mid-$2,600 range.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!